ISO 45001:2018 OH& S management system

Occupational Health and Safety Management System

Organizations worldwide recognize the need to provide a safe and healthy working environment, reduce the likelihood of accidents and demonstrate they are actively managing risks. ISO 45001 is the international standard for occupational health and safety will provide an internationally accepted framework that will help protect employees as well as protecting the longevity and health of an organization. The standard is flexible and can be adapted to manage occupational health and safety in a wide range of organizations including; large organizations and enterprises, small and medium-sized enterprises, public and not-for-profit organizations. Although organizations tend to use generic health and safety guidelines or national and consortia standards, none of these demonstrate global conformity. There was a worldwide need to harmonize health and safety management systems using an international standard and sharing best practices. This can be seen at local, national, regional and global levels – applying to both developing and developed countries. With an international standard to refer to, together with the right infrastructure and training, organizations will be able to address these risks better in future.

Goals of  ISO 45001 Standard

As with the other safety management consensus standards, the goals of ISO 45001 are to provide guidance for the development of a framework where injuries, property damage, and other loss causing incidents can be mitigated. The stated goals of ISO 45001 are:

  • Develop an OH&S policy
  • Have leadership demonstrate their commitment to safety
  • Establish systematic processes for safety management
  • Conduct hazard identification efforts
  •  Create operational safety controls
  • Increase awareness and knowledge for employees about safety.
  •  Evaluate OH&S performance and develop plans to improve continuously
  •  Establish the necessary competencies
  • Create and foster an OH&S culture within the organization
  • Ensure employees participate fully and meaningful in the safety process
  • Meet all legal and regulatory requirements

Methodology

At the outset, ISO 45001 explains the founding principle of PLAN, DO, CHECK, ACT (PDCA). This principle is the methodology which guides the various performance aspects of the standard. PDCA is the idea of continual improvement that was made popular by Edward Deming, often considered the father of modern quality control theory, and fosters the standard of detailed actions that provide a platform for continual improvement across the organization. This is a critical concept as it establishes the model for continual, as opposed to continuous, improvement.

This concept of continual improvement is repeated throughout the standard. “Continual improvement” is an umbrella concept that incorporates elements of continuous improvement. The distinction between continual and continuous improvement is a fine, but important one.

Continual Improvement is defined as “recurring activity to enhance performance”. Continual does not mean continuous, so the activity does not need to take place in all areas simultaneously. Continuous Improvement is defined as “on-going and endless without interruption.” By its very nature, business activities often have numerous starts and stops. Business activities are best managed by regular and routine evaluations. Thus the concept of continual improvement is better suited to an organizational environment than the concept of continuous improvement.

Clause 1: Scope

ISO 45001 provides a set of requirements for an OH&S system that will assist an organization to foster an environment that is safe and healthy. The standard is applicable to any organization regardless of size, operations, objectives, and outcomes. It includes the development of an OH&S policy that meets best practices and legal requirements. The scope of ISO 45001 includes:

  1. Creation of a OH&S policy that reinforces the objectives of the organization while taking into account its internal and external contexts.
  2. Establishment, implementation, and maintenance of an OH&S management system.
  3. Continual improvement of OH&S performance.
  4. Assured conformity to the OH&S policy.
  5. Demonstration of compliance with this ISO Standard

ISO 45001 does not provide specific criteria for OH&S performance. It does allow for the integration of other similar aspects of health and safety such as wellness, non-occupational health, and wellbeing. The scope does not include ideas of product safety, public safety, environmental protections, and quality. ISO 45001 can be used in part or in total to improve OH&S management systems; however, claims of conformity with ISO 45001 are only acceptable if the standard has been completely adopted without any exclusions.

Clause 3: Terms and Definitions

ISO 45001 contains a large “Terms and Definitions” glossary spanning seven pages which offers key descriptions and terminologies that organizations should consider adopting into their safety lexicon, especially those that are considering or are in ISO 45001 compliance process. Standardization of this language will allow for common understanding of actions, concepts, and outcomes throughout all business units, locations, facilities, and departments of the organization.

Clause 4: Context of the Organization

Clause 4 of ISO 45001 provides a definition of the context of the organization and explains how this context must be used to understand organizational objectives. The context of the organization is the key consideration to be taken when developing and implementing OH&S mission statement, OH&S policy statement, and objectives. Context is defined as the purpose that the organization is attempting to achieve and the external and internal issues that will impact the ability to achieve the intended outcome. The key elements to the context of the organization include:

  • Interested parties, in addition to workers (ISO 45001 defines managers, supervisors, and senior leaders as “workers”)
  • Needs and expectations of workers and other interested parties
  • Legal requirements
  • Differences in needs between managerial and non-managerial workers

When developing the OH&S management system, the organization will take into account the internal and external issues, the requirements of workers, and the work that is being performed. The context of the organization must be documented and the documentation must be available.

4.1 Understanding the organization and its context

This clause is found in all ISO management system standards, and it requires the organization to determine all internal and external issues that may be relevant to the achievement of the objectives of the OH&S Management System itself. This includes all elements which are, and may be capable of, affecting these objectives and outcomes in the future. The organization must understand:

  • the issues both positive and negative that needs consideration in establishing OH&S
  • the opportunity to identify external and internal factors and interested parties that effect intended outcomes of OH&S
  • the external context – cultural, social, political, key trends in industry
  • the internal context- governance, policies, objectives, culture, trends

4.2 Understanding the needs and expectations of interested parties

The standard now requires the organization to assess who the interested parties are in terms of its OH&S Management System, what their needs and expectations may be, and consequently, if any of these should become compliance obligations. The organization must understand the needs and expectations of

  • external interested parties determined by organisation relevant to OH&S.
  • managerial and non-managerial workers.
  • other interested parties – legal and regulatory authorities, includes workers, customers and clients.
  • Applicable legal requirements.

4.3 Determining the scope of the OH&S Management System

The scope and boundaries of the OH&S Management System must now be thoroughly examined and defined considering the aforementioned interested parties and their needs, plus resulting compliance obligations. Also requiring consideration are the OH&S Management System functions and physical boundaries, and all products, services, and activities, including the organization’s ability to exert control on external factors, with the results of the whole definition included in the OH&S Management System and kept critically as “documented information.” While determined the scope the organization must

  • Clarify the boundaries of OH&S
  • Consider external and internal factors
  • Consider the requirements of interested parties
  • Consider the work related activities performed
  • Ensure the scope should address hazards and potential risk

4.4 OH&S Management System

The standard indicates that an OH&S Management System should be established to achieve the desired outcomes by using interacting processes to deliver continual improvement. The ultimate objective is to improve the organization’s occupational health & safety performance. The Organization must:

  • Establish, implement, maintain and continually improve OH&S
  • Process needed and interactions – integrate requirements into various business operations e.g. design & development and procurement

Clause 5: Leadership and Worker Participation

The terms “leadership” and “top management” are used interchangeably throughout ISO 45001. The responsibilities of leadership and top management include:

  • Take overall responsibility and accountability for worker protection.
  • Ensure the OH&S policy relates to the context and is compatible with the strategic direction of the organization.
  • Integrate the OH&S management system into the larger business processes.
  • Provide resources for the OH&S management system.
  • Ensure participation by workers in the OH&S system.
  • Communicate the OH&S system and ensure the organization conforms to it.
  • Promote the OH&S system to address nonconformities and ensure continual improvement.
  • Create a culture that drives the organizational support for the OH&S System

Since top management is responsible for the OH&S system, the elements required to be included in the OH&S management system are detailed within the leadership and worker participation section. The elements include the written commitments for safety; framework for the OH&S system; obligations to meet legal requirements; continual improvement for OH&S performance; establishment of a risk control strategy; and most importantly; worker involvement. The policy must be documented, communicated with workers, reviewed periodically, and available to other parties. Other key considerations for leadership and worker participation include training, communication, worker participation support, employee engagement, and establishment of audit programs.

5.1 Leadership and commitment

This clause reminds the user that the organization and top management retain responsibility for the performance of all internal and external performance factors at all times. It therefore makes perfect sense that the Occupational Health & Safety Policy and objectives are aligned with each other, and with the strategic policies and overall direction of the business, including integration with other business systems,where applicable. Provision must be made for resources to ensure that the OH&S Management System can be operated efficiently, and top management must ensure that the people with responsibility within the OH &S Management System have the correct support, training, and guidance to complete their tasks effectively. Communication is also critical from a leadership perspective, and communication methods and frequencies must be defined and established for both internal and external interested parties. In summary, it is the responsibility of the leadership of the organization to show an enhanced level of leadership, involvement, and co-operation in the operation of the OH&S Management System. The organization must

  • Have more focus to demonstrate leadership and commitment
  • Take overall responsibility and accountability for protection of workers
  • Ensure active participation of workers, worker representation using consultation
  • Consider need to establish H&S committees
  • Identify and removal of barriers to participation
  • Have continual improvement of OH&S
  • Be developing, leading and promoting a culture supporting OH&S

5.2 Occupational Health & Safety Policy

Top management has the responsibility to establish the previously mentioned Occupational Health & Safety Policy, which is appropriate for the organization in terms of the size, scope, activities, and ambitions of the organization, and provides a formal framework for setting objectives. Obviously, the policy should include a commitment to eliminate hazards and reduce risks, to prevent workplace injury, and to consult with workers. Meeting compliance and regulatory factors is clearly another key element, and a method of capturing and recording this must be established. Finally, and vitally, the Occupational Health & Safety Policy must provide a commitment to the continual improvement of the OH&S Management System and its results. Critically, the Occupational Health & Safety Policy must be maintained as documented information, be communicated within the organization, and be available to all interested parties, as appropriate. The Organization must have a

  • OH&S policy set of principles and overall sense of direction.
  • OH&S policy on consultation with workers at all levels and communicated.
  • Commitment to provide safe and healthy working conditions.
  • Prevention of injury and ill-health.
  • Policy appropriate to size and context of organisation.
  • Specific nature of it OH&S risk and OH & S opportunities.
  • Mechanism for communication of policy

5.3 Organizational Roles, responsibilities and authorities

The standard states that it is the responsibility of top management to ensure that roles, responsibilities, and authorities are delegated and communicated effectively. The responsibility shall also be assigned to ensure that the OH&S Management System meets the terms of the 45001:2018 standard itself, and that the performance of the OH&S Management System can be reported accurately to top management. The Organization must ensure that

  • Workers at each level assume responsibility which they have control.
  • The relevant roles have been assigned within OH&S.
  • Organizational roles, responsibilities and authorities are communicated at all levels within organisation.
  • Organizational roles, responsibilities and authorities are maintained as documented information

5.4 Consultation and participation of workers

When it comes to the health & safety of workers,it is vital that these same workers are consulted about the OH&S Management System and participate in implementing the processes necessary to secure a safe workplace. To this end,the organization needs to determine the processes necessary to consult with workers at all levels of the organization in all aspects of development, planning, implementation, performance evaluation,and improvement actions of the OH&S Management System. The Organization must:

  • Establish, implement, maintain processes for consultation and participation in developing, planning, evaluation and actions for improvement in OH&S.
  • Provide mechanisms, time, training and resources necessary for participation.
  • Provide timely access to clear, understandable and relevant information on OH&S.
  • Identify and remove obstacles or barriers to participation and minimize those that cannot be removed.
  • Have additional emphasis to the participation of non-managerial workers in OH&S.
  • Have additional emphasis to the inclusion of non-managerial workers in consultation.
  • Provide training at no extra cost to workers and provision of training during working hours.

Clause  6 : Planning

Clause 6 describes the actions necessary to address risk and opportunity. Activity planning must take place within the context of the organization. The planning process must ensure that the OH&S management system is designed to achieve its intended outcomes and continually improve. Worker participation is cited as being a critical component in the planning phase. Additional considerations include operational risk, legal requirements, and other opportunities to improve the OH&S management system. This section outlines the need for hazard identification by the organization for both routine and non-routine activities, emergency situations, people and behavior, work area design, work environment under the control of the organization, and situations not under organizational control. Additional points of assessment include changes to process and operations, past incidents and their causes, and social/economic factors. The major sub-sections in Clause 6 include:

  1. Hazard Identification
  2. Assessment of OH&S Risks
  3. Identification of OH&S Opportunities
  4. Determination of Legal Requirements
  5. Planning to Take Action
  6. Setting of OH&S Objectives
  7. Planning to Achieve Objectives

The planning phase is a comprehensive part of the ISO 45001 standard, requiring a detailed understanding of operations. By following this section, the organization can create a very deliberate and effective set-up to sustain the OH&S management system and ensure it continually improves.

6.1 Actions to address risks and opportunities

6.1.1 General

This clause replaced “preventive action” in the previous OHSAS 18001 standard. The current standard states that the organization should establish, implement, and maintain the processes needed to address the requirements of the whole of the planning section itself. When planning the OH&S Management System, considerations need to be made regarding the context of the organization (section 4.1) and the needs and expectations of interested parties (section 4.2), as well as the scope of the OH&S Management System. Risk and opportunity must be considered with respect to these elements, as well as legal and regulatory issues, and the organization’s Occupational Health & Safety hazards themselves. This outcome needs to ensure that the OH&S Management System can meet its intended outcomes and objectives, that any external factors that may affect performance are avoided, and that continual improvement can be achieved.

In terms of emergency situations, the organization is required to determine any situations that may occur and have a resulting occupational health & safety risk.Again, it is vital that documented information is retained concerning the risks and opportunities considered and addressed in the planning phase in order to satisfy the terms of the clause. While planning for actions to address risks and opportunities, the organization must

  • take into consideration the Organizational Context (4.1), needs and expectations of Interested parties (4.2) and Organizational Scope (4.3)
  • Prevent or reduce undesired effects.
  • Achieve its intended outcome.
  • make assessment of risk and opportunities arising out of changes in Organization.(whether planned or unplanned).
  • Maintain documented information – risks, opportunities and processes needed to have confidence in risk management.

6.1.2 Hazard identification and assessment of risks and opportunities

ISO 45001:2018 asks organizations to consider, in a proactive manner,all occupational health & safety hazards within the organization’s control. Changes or planned future changes to services also have to be taken into account, as do any abnormal situations that may arise that are reasonable for the organization to predict–for example, if you are about to launch a new product that needs radically new production processes or materials. Again, the organization needs to maintain documented information on this clause and its elements, and communication to the appropriate levels with effective frequency needs to be planned and undertaken. In terms of documented information, if you ensure that all actual and associated risks, the criteria you use to define them, and your significant occupational health & safety risks are documented,then you will satisfy the terms of this clause.

It has following Sub-clauses

6.1.2.1 hazard identification

6.1.2.2 assessment of OH&S risk and other risks to OH&S management system

6.1.2.3 assessment of OH&S opportunities and other opportunities

6.1.2.1 Hazard identification: 

While identifying the hazards in proactive manner the organization must consider:

  • Past incidents, emerging trends
  • Routine & non-routine activities and situations
  • Emergency situations
  • Human factors
  • Other issues – design, situations in the vicinity of workplace, situations not controlled by organisations
  • Changes or proposed changes
  • Change in knowledge
  • How work is organised, social factors, workload, work hours, leadership and culture

6.1.2.2 Assessment of OH&S risk and other risks to OH&S management system

The organization must assess OH&S risks from hazards identified. While Assessing the OH&S risks the Organization must take into account the issues from context 4.1 & needs and expectations of interested parties 4.2. It must define methodology and criteria for Assessing OH&S risks. The Methodologies and criteria must be maintained and retained as documented information

6.1.2.3 assessment of OH&S opportunities and other opportunities

The Organization must identify OH&S Opportunities to enhance OH&S performance. While identifying OH&S opportunities the Organization must take into account:

  • Planned changes
  • Opportunities to eliminate or reduce risk
  • Opportunities to adapt work, work organisation and work environment to workers
  • Opportunities for improving OH&S management system

6.1.3 Determination of legal and other requirements

This is a relatively straightforward, but obviously vital part of the ISO 45001:2018 standard. The organization must decide what legal and other requirements are related to its occupational health & safety hazards and how to best access them, decide how they apply to the organization, and take them into consideration when establishing, operating, and delivering continual improvement through the OH&S Management System. Documented evidence needs to be recorded for these obligations, also. The Organization must

  • Determine and have access to up to date legal requirements
  • Determine how these apply and will be communicated
  • Take into account when establishing, implementing
  • Maintain and retain documented information

6.1.4 Planning actions

In this clause, the standard states that the organization shall plan to take actions to address its occupational health & safety hazards, risks and opportunities, and compliance obligations, all of which we have discussed above. These also need to be implemented into the organization’s OH&S Management System and associated business processes. The task of evaluating the effectiveness of these actions also must be considered, with technological, financial, and operational considerations all taken into account.  In this clause the organization is expected to:

  • Address risk and opportunities (6.1.2.2 & 6.1.2.3)
  • Address applicable legal requirements (6.1.3)
  • Emergency preparedness emergency situation (8.2)
  • Integrate actions to other business process(s) – Business Continuity,
  • Financial or HR
  • Eliminating hazards and reducing OH&S risk (8.1.2)
  • Consider the Best practice into the action

6.2 Occupational health & safety objectives and planning to achieve them

6.2.1 Occupational health & safety objectives

The standard advises that occupational health & safety objectives should be established at appropriate levels and intervals, having considered the identified occupational health & safety hazards, risks and opportunities, and compliance obligations. The characteristics of the set objectives are important, too:they need to be consistent with the organization’s Occupational Health & Safety Policy, measurable where possible, able to be monitored, communicated effectively, and be such that they can be updated when circumstances require. Once more, it is mandatory that documented information is kept outlining this process and its outputs.To maintain and improve OH&S management system and OH&S performance, while establishing OH&S objective the Organization must

  • Take into account results of assessment of OH&S risk and opportunities and other risks and opportunities.
  • Take into account outputs of consultation with workers and workers representative.
  • Objectives are  measurable or capable of evaluation.
  • Objectives are clearly communicated

6.2.2 Planning to achieve occupational health & safety objectives

The standard advises on the elements that need to be determined to ensure that objectives can be achieved. This can be thought of in terms of what needs to be done, when it needs to be done by, what resources are required to achieve it, who is responsible for the objectives being achieved, how results are to be measured and progress ensured, and consideration on how these objectives can be implemented within existing business systems. While Planning to achieve OH&S objectives the organization must consider the following:

  • What will be done?
  • What resources will be required?
  • Who will be responsible?
  • When completed?
  • How measured through indicators if practicable, monitored and frequency?
  • How actions will be integrated into overall business processes?
  • Maintain and retain documented information?

Clause 7: Support

Clause 7 of ISO 45001 discusses the resources and support needed to be successful with the OH&S management system. “Support” means that the organization has achieved a level of competence among its workers and systems to successfully drive the outcomes of the OH&S plan. It also discusses the need to establish awareness of the OH&S policy, communicate information about the OH&S management system, outline with whom the information should be shared, manage documentation including tracking of updates, and control information and ensure its accessibility and accuracy. Essentially, the support system provides an overview of how the organization must support the OH&S management system.

7.1 Resources

Simply put, the standard advises the organization that the resources required to achieve the stated objectives and show continual improvement must be made available. The Organization must determine resources and provide resources needed for OH&S. Resources can include HR, natural resources, infrastructure and technology. Human resources includes – diversity, skills and knowledge.

7.2 Competence

Employee competence must meet the terms of the ISO 45001:2018 standard by ensuring that the people given responsibility for OH&S Management System tasks are capable and confident. Related to this, it stands to reason that the experience, training, and/or education of the individual must be of the required standard, and that any necessary training is identified and delivered –with measurable actions taken externally or internally to ensure that this level of competence exists. Predictably, this process and its outputs need to be recorded as documented information for the OH&S Management System.The organization must ensure:

  • Workers are competent that impact on OH&S performance.
  • Competence are appropriate to education, training and experience.
  • Criteria for each role are established.
  • Workers are evaluated periodically to ensure continued competence for their roles.
  • Appropriate documented information as evidence of competence are retained.

7.3 Awareness

Awareness is closely related to competence in the standard. Employees must be made aware of the Occupational Health & Safety Policy and its contents, any current and future impacts that may affect their tasks, what their personal performance means to the OH&S Management System and its objectives, including the positives or improved performance, and what the implications of poor performance may be to the OH&S Management System. Additionally, the standard demands that workers be aware that they can remove themselves from work situations that they consider to be a danger to their life or health. Workers must be:

  • Made aware of OH&S policy
  • Implication of not conforming with OH&S requirements
  • Information and outcomes of investigations of relevant incidents
  • OH&S hazards and risk relevant for them

7.4 Communication

7.4.1 General

Processes for internal and external communication need to be established and recorded as documented information within the OH&S Management System. The key elements that need to be decided, actioned, and recorded are what needs to be communicated, how it should be done, who needs to receive the communication, and at what intervals it should be done. It should be noted here that any communication outputs should be consistent with related information and content generated by the OH&S Management System for the sake of consistency.

7.4.2 Internal communication

The standard advises the organization that information should be communicated at various levels and with various frequencies as deemed suitable, and that the organization must ensure that the nature and frequency of communication allows continual improvement to result from the communication process itself.

 7.4.3 External communication

Once again, the organization is advised by the standard to ensure that communication relevant to the OH&S Management System takes place as per the established process, with the goal of ensuring that compliance obligations and objectives are met.

7.5 Documented information

7.5.1 General

“Documented information,” which you will have seen mentioned several times during this guide, refers to the documents and records that are necessary for the OH&S Management System. The requirements are designed to allow each organization to have the ability to shape documented information to their own requirements in general, with the exception of the mandatory components mentioned specifically in the standard and, therefore, this guide. The ISO 45001:2018 standard advises us that the OH&S Management System should include all documented information that it declares mandatory, and anything viewed as critical to the OH&S Management System and its operation. It should also be noted that the amount of documented information that an organization requires would differ according to the size, operating sector, and complexity of compliance obligations faced by the business.

7.5.2 Creating and updating

The standard advises that documentation created by the OH&S Management System needs to include appropriate identification, description,and format so that it is can be easily understood what the documented information is for. There is also a need to review and approve the documented information for suitability and accuracy before release.

7.5.3 Control of documented information

The standard advises that documentation created by the OH&S Management System should be available and fit for purpose where and when needed, reasonably protected against damage or loss of integrity and identity, and that the processes of distribution, retention, access, retrieval, preservation and storage, control and disposition are adequately provided for. It should be noted that documented information from external sources should be similarly controlled and handled, and that viewing and editing access levels should be carefully considered and controlled.

Clause where there are reference to documented information are

4.3, 5.2, 5.3, 6.1.1, 6.1.2.2,6.1.3, 6.2.2, 7.2, 7.4, 7.5.1. 7.5.3, 8.1.1., 8.2, 9.1.1, 9.1.2, 9.2.2, 9.3, 10.1 & 10.2

Clause 8: Operation

Clause 8 forms the heart of the ISO 45001 standard and addresses the program content necessary to have a successful OH&S management system that meets the intent of the standard. The specific topics discussed in this section include:

  1. General provisions: such as the means for creating and managing documentation.
  2. Hierarchy of controls: to utilize the most effective means of risk reduction within the organization.
  3. Management of change: to ensure that when planned changes occur they are managed to control risk.
  4. Outsourcing: to make certain risk controls are adequate for all outsourced processes.
  5. Procurement: to validate all incoming materials and services conform to the system requirements.
  6. Contractors: to communicate and control internal risks to third parties and evaluate risks they may introduce into the workplace.
  7. Emergency preparedness and response: to identify potential emergency risks and develop specific and customized plans with key stakeholders to minimize these risks

8.1 Operational control and planning

While the standard acknowledges that operational control will greatly depend on the size, nature, compliance obligations, and occupational health & safety hazards of an organization, the scope is given to the individual organization to plan and ensure the desired results are achieved. The methods suggested by the standard are that processes should be designed in such a way that consistency is guaranteed and error eliminated, technology is used to improve control, and it is ensured that personnel are trained and competent. Processes should be performed in an agreed and prescribed manner; those processes should be measurable, and the documented information should match the requirements to ensure operational control. An essential part of operational control lies in eliminating hazards and reducing OH&S risks. This can be carried out through a hierarchy of controls,from elimination of the hazard to the use of personal protective equipment. Change in the OH&S Management System also needs to be managed in order to maintain the integrity of the OH&S performance. Procurement, including contractors and outsourcing of functions and processes, must also be considered and controlled. Appropriate measures must be taken to define and control the competency of outsourced service suppliers, including their effect on the OH&S Management System processes.As ever, opportunities for improvement must always be considered and identified.

The standard also recognizes that the degree of control the organization has over an outsourced product or service can vary from absolute, if taking place onsite, to very little, if the activity takes place remotely. However, it is suggested that there are factors that,nonetheless,should be considered. As expected, compliance obligations should be considered and controlled, all direct and associated occupational health & safety risks should be evaluated and controlled, as should risks and opportunities associated with the provision of the service itself.

8.1.1. General

During Operation planning and Control the organization must

  • Establishing criteria for processes
  • Implementing control defined in criteria
  • Keeping documented information as absence of documented information could lead to deviations
  • Adapting work to workers including induction of new workers

8.1.2 Eliminating hazards and reducing OH&S risks

The Organization must establish a process and determine controls for achieving reduction in OH&S risks using the following hierarchy of Controls;

  • Eliminate
  • Substitute
  • Engineering controls
  • Administrative controls
  • Provide and ensure safe use of PPE

Provision of PPE  should be at no extra cost to workers

8.1.3 Management of Change

The Organization must establish a process for the implementation and control of planned changes. Changes may include:

  • Work processes
  • Legalisation
  • Knowledge and information about hazards and related OH&S risk
  • Developments in knowledge and technology

Changes must be control  to mitigate against adverse impact on OH&S

8.1.4 Procurement

8.1.4.1 Procurement

The organization must establish process to control procurement of products and services to ensure conformity with its OH&S Management System

8.1.4.2 Contractors

  • The organization must establish a process to co-ordinate with contractors for hazard identification and access controls to OH&S risks from contractor activities
  • The requirements of OH&S management system must be met by contractors and their workers
  • The organization must establish the OH&S criteria for selection of contractors

8.1.4.3 Outsourcing

The organization must ensure outsourced functions and process are controlled. The Outsourced arrangements must be consistent with legal requirements. It should be integral to the organisation’s ability to operate. There must be controls to achieve intended outcome of OH&S management system

8.2 Emergency preparedness and response

Emergency preparedness and response is a key element in the mitigation of occupational health & safety risk. The standard informs us that it is the responsibility of the organization to be prepared, and a number of elements should be considered and planned for. Actions to mitigate incidents must be developed, as well as internal and external communication methods and appropriate methods for emergency response. Consideration of varying types of occupational health & safety incidents needs to be made, as do root cause analysis and corrective action procedures to respond to incidents after they occur. Regular emergency response testing and relevant training need to be considered and undertaken, and assembly routes and evacuation procedures defined and communicated. Lists of key personnel and emergency agencies (think clean-up agencies, local emergency services, and local occupational health & safety offices or agencies) should be established and made available, and it is often good practice to form partnerships with similar neighboring organizations with whom you can share mutual services and provide help in the event of an occupational health & safety incident. To establish Emergency  preparedness and response process the organization must

  • Identify potential emergency situations
  • Assess OH&S risks associated with these
  • Establish Preventative controls
  • Plan response to emergency situations including provision of first aid
  • Conduct periodic testing and exercise of emergency response capabilities
  • Evaluate and revise plans
  • Communicate information relevant to their duties
  • Conduct Training
  • Identity Needs and capabilities of interested parties
  • Maintain and retain documented information

Clause  9: Performance Evaluation

Performance Evaluation provides an in-depth discussion regarding the criteria for evaluating the overall performance of the OH&S management system. The primary themes of this section focus on the means of process evaluation and documentation of evaluations. The importance of documentation (and how records and data are retained), as well as document dissemination, are performance themes both in ISO 45001 in general and in this section in particular.

This section tends to be more specific than some of the others and includes a detailed discussion of documentation requirements, internal audit protocols, and relevancy and applicability of measurements within the organization. The key attributes of this section include:

  1. Following applicable legal requirements and documentation are followed.
  2. Measuring operational risks and hazards.
  3. Evaluating the effectiveness of operational controls.
  4. Establishing the timeline for conducting the measures.
  5. Planning for analysis, evaluation, and communication of the results.
  6. Calibrating and verifying the accuracy of all equipment.
  7. Retaining documentation of all measures.
  8. Auditing the OH&S Management System, the OH&S Policy, OH&S Objectives and the 45001 requirements.
  9. Establishing the frequency of audits and account for significant changes to the organization, performance improvements, risks, and opportunities.
  10. Ensuring the competency of auditors.
  11. Communicating findings to management, workers, and worker representatives.
  12. Taking action to address identified nonconformities.
  13. Retaining audit results as evidence of the completion of the audit.
  14. Reviewing audit findings and corrective actions by top management.
  15. Ascertaining that corrective actions, worker engagement, and opportunities for continual improvement are in place

The most important objectives of the Performance Evaluation section are ensuring the adequacy of the current OH&S management system and measuring that OH&S objectives are met. These are, essentially, the only measures of success.

9.1 Monitoring, measuring, analysis,and evaluation

9.1.1 General

The organization not only has to measure occupational health & safety progress, but it should also consider its significant hazards, compliance obligations, and operational controls when tackling this clause. The methods established should have considerations to ensure that the monitoring and measuring periods are aligned with the needs of the OH&S Management System for data and results;that the results are accurate, consistent, and can be reproduced;and that the results can be used to identify trends. It should also be noted that the results should be reported to the personnel with the authority and responsibility to initiate action on the basis of the outputs themselves.

9.1.2 Evaluation of compliance

The standard recognizes that evaluation requirements will vary from organization to organization based on factors such as size, compliance obligations, sector worked in, past history and performance, and so on, but suggests that regular evaluation is always required. If the result of a compliance evaluation reveals that a legal requirement is unfulfilled, the organization needs to assess what action is appropriate, possibly up to contacting a regulatory body and agreeing on a course of action for repair.This agreement will now see this obligation become a legal requirement. Where a non-compliance is identified by the OH&S Management System and corrected, it does not automatically become a non-conformity.

9.2 Internal Audit

9.2.1 General

Internal audits and auditors should be independent and have no conflict of interest over the audit subject, the standard reminds us, and it should be noted that non-conformities should be subject to corrective action. When considering the results of previous audits, the results of previous internal and external audits and any previous non-conformities and resulting actions to repair them should be taken into account.

9.2.2 Internal audit program

The 45001:2018 standard refers us to ISO 19011 for the internal audit program, but when you are establishing your program there are several rules you can subscribe to in order to ensure that your program is effective. Base your internal audit frequency on what is reasonable for your organization in terms of size, sector you operate in, compliance obligations, and risk to the health and safety of workers.Decide what is reasonable for you, whether that is bi-annually, quarterly, or whatever you deem suitable. Keep in mind that this schedule can be changed, preferably through management review and leadership guidance,in the event of changes that necessitate extra internal audit activity.

9.3 Management Review

It should be noted that, contrary to popular belief, the management review does not have to be done all at once; it can be a series of high-level or board meetings with topics tackled individually, although it should be ona strategic and top management level. Complaints from interested parties should be reviewed by top management,with resultant improvement opportunities identified. It should be remembered that the management review generally is the one function that must be carried out accurately and diligently to ensure that the function of the OH&S Management System and all resulting elements can follow suit. It goes without saying that all details and data from the management review must be documented and recorded to ensure that the OH&S Management System can follow the specific requirements and general strategic direction for the organization detailed there.

Clause 10: Improvement

Clause 10, the final major section, delineates the concept of continual improvement within the context of specific activities. Any organization wishing to adopt the principles of ISO 45001 must have a plan for addressing nonconformities in a timely manner. Organizations should take direct action to control conditions and deal with consequences. Nonconformities can be identified from investigations, audits, or other events. The corrective actions should be evaluated and the results should be documented. To achieve continual improvement, the organization shall have an OH&S management system that:

  1. Prevents the occurrence of incidents and nonconformities.
  2. Promotes a positive OH&S culture.
  3. Enhances OH&S performance

10.1 General

Outputs from management reviews, internal audits, and compliance and performance evaluations should all be used to form the basis for improvement actions. Improvement examples could include corrective action, reorganization, innovation, and continual improvement programs.

10.2 Nonconformity and corrective action

Prevention of incidents and elimination of hazards is a key facet of the OH&S Management System, and this is specifically addressed in the definition of organizational context (4.1) and assessing risks and opportunities (6.1).Taking action to correct and control problems when they occur, and then to investigate and take corrective action for the root causes of these problems when it is necessary, are critical to prevent recurrence of process nonconformity. The organization must

  • React to incidents in timely manner .
  • Take direct action to control and correct.
  • Evaluate the root cause
  • Determine action
  • Review of assessment of OH&S risks prior to taking action
  • Communicate documented information to relevant workers

Reporting of incidents without delay can assist in removal of hazard

10.3 Continual improvement

Through all of the actions to improve the overall OH&S Management System,the organization can achieve enhanced OH&S performance and promote a culture that supports worker participation in making the OH&S Management System better. The organization must:

  • Enhance OH&S performance
  • Promote a positive OH&S culture
  • Promoting the participation of workers in implementing actions
  • Communicate results
  • Retain documented information

Mapping ISO 45001 to OHSAS 18001

ISO 45001:2018 clause clause OHSAS 18001:2007
Context of the organization (title only) 4 New requirement (see also 4.6h in Management review)
Understanding the organization and its context 4.1 New requirement (see also 4.6h in Management review)
Understanding the needs and expectations  of workers  and other interested parties 4.2 4.4.3.2 Participation and consultation (in part)(see also 4.6b and c in Management review)
Determining the scope of the OH&S management system 4.3 4.1 General requirements (in part)
OH&S management system 4.4 4.4.1 Management system General requirements
Leadership and worker participation (title only) 5 4.4.3 Communication, participation and consultation (title only)
Leadership and commitment 5.1 4.4.1 Resources, roles, responsibility, accountability and authority
OH&S Policy 5.2 4.2 OH&S policy
Organizational roles, responsibilities andauthorities 5.3 4.4.1 Resources, roles, responsibility, accountability and authority
Consultation and participation of workers 5.4 4.4.3.2 Participation and consultation
Planning (title only) 6 4.3 Planning (title only)
Actions to address risks and opportunities (title only) 6.1 4.1

4.3.1

General requirements

Hazard identification, risk assessment and determining controls

General 6.1.1 4.4.6 Operational Control
Hazard identification and assessment of risks and opportunities (title only) 6.1.2 4.3.1 Hazard identification, risk assessment and determining controls
Hazard identification 6.1.2.1 4.3.1 Hazard identification, risk assessment and determining controls
Assessment of OH&S risks and other risks to the OH&S management system 6.1.2.2 4.3.1 Hazard identification, risk assessment and determining controls
Identification of OH&S opportunities and other opportunities to the OH&S management system 6.1.2.3 New Requirement
Determination of legal requirements and other requirements 6.1.3 4.3.2 Legal and other requirements
Planning action 6.1.4 4.3.6 Operational Control
OH&S objectives and planning to achieve them 6.2 4.4.6 Objectives and programme(s)
OH&S objectives 6.2.1 4.4.6 Objectives and programme(s)
Planning to achieve OH&S objectives 6.2.2 4.4.6 Objectives and programme(s)
Support(title only) 7 4.4 Implementation and operation (title only)
Resources 7.1 4.4.1 Resources, roles, responsibility, accountability and authority
Competence 7.2 4.4.2 Competence, training and awareness
Awareness 7.3 4.4.2 Competence, training and awareness
Communication 7.4 4.4.3.1 Communication
General 7.4.1 4.4.3.1 Communication
Internal Communication 7.4.2 4.4.3.1 Communication
External Communication 7.4.3 4.4.3.1 Communication
Documented information (title only) 7.5 4.4.4

4.4.5

4.5.4

Documentation

Control of Documents

Control of records

General 7.5.1 4.4.4

4.4.5

4.5.4

Documentation

Control of Documents

Control of records

Creating and Updating 7.5.2 4.4.4

4.4.5

4.5.4

Documentation

Control of Documents

Control of records

Control of Documented Information 7.5.3 4.4.4

4.4.5

4.5.4

Documentation

Control of Documents

Control of records

Operation (title only) 8 4.4 Implementation and operation (title only)
Operational planning and control (title only) 8.1 4.4.6 Operational control
General 8.1.1 4.4.6 Operational control
Eliminating hazards and reducing OH&S risks 8.1.2 4.3.1

4.4.6

Hazard identification, risk assessment and determining controls

Operational control

Management of change 8.1.3 4.3.1

4.4.6

Hazard identification, risk assessment and determining controls

Operational control

Procurement(title only) 8.1.4 4.4.6 Operational control
General 8.1.4.1 4.4.6 Operational control
Contractors 8.1.4.2 4.3.1

4.4.3.1

4.4.3.2

4.4.6

Hazard identification, risk assessment and determining controls

Communication

Participation and consultation

Operational control

Outsourcing 8.1.4.3 4.3.2

4.4.3.1

4.4.6

Legal and other requirements

Communication

Operational control

Emergency preparedness and response 8.2 4.4.7 Emergency preparedness and response
Performance evaluation (title only) 9 4.5 Checking (title only)
Monitoring, measurement, analysis and performance evaluation (title only) 9.1 4.5.1 Performance measurement and monitoring
General 9.1.1 4.5.1 Performance measurement and monitoring
Evaluation of compliance 9.1.2 4.5.2 Evaluation of compliance
Internal audit (title only) 9.2 4.5.5 Internal audit
General 9.2.1 4.5.5 Internal audit
Internal audit programme 9.2.3 4.5.5 Internal audit
Management review 9.3 4.6 Management review
Improvement (title only) 10.0 4.6 Management review
General 10.1 4.6 Management review
Incident, nonconformity and corrective action 10.2 4.5.3

4.5.3.1

4.5.3.2

Incident investigation, nonconformity, corrective action and preventive action (title only)

Incident investigation

Nonconformity, corrective action and preventive action

Continual improvement 10.3 4.2

4.3.3

4.6

Legal and other requirements
Communication
Operational control

Procedure for Design and Development

1. SCOPE

This procedure covers all roles, responsibilities, and authorities related to the Design process at XXX

2. PURPOSE

The purpose of this procedure is to define the design control process used by XXX during the design and development of its products and services.

3. REFERENCE DOCUMENTS

3.1 XXX Quality Manual.
3.2 Procedure for Correction and Corrective Action.
3.3 Procedure for Production.
3.4 Procedure for Purchase.
3.5 Procedure for QA.
3.6 Business Development and Marketing Procedure
3.7 Procedure For Review of Customer Requirements

4.TERMS & DEFINITIONS

4.1 Design verification: Testing aimed at ensuring that all design outputs meet design conditions imposed at the beginning of the process.

4.2. Design validation: Testing aimed at ensuring that a product or system fulfills the defined user needs and specified requirements, under specified operating conditions. See also validation.

4.3 Design review: A design review is a milestone within a product development process whereby a design is evaluated against its requirements in order to verify the outcomes of previous activities and identify issues before committing to – and if need to be re-prioritise – further work. The ultimate design review, if successful, therefore triggers the product launch or product release.

5.0 RESPONSIBILITY AND AUTHORITY

The Design Manager is responsible for implementation and management of this procedure.

6.0 DETAILS OF PROCEDURE

6.1. Design Planning

6.1.1. The Design Manager plans the stages and controls for Design and development, by taking into account:

  • Nature, duration and complexity of design activities
  • Required process stages, including applicable design activities
  • Required verification and validation activities
  • Internal and external resources needed
  • Interfaces between persons involved in Design
  •  Design regulations, standards

6.1.2. The design planning documentation shall be recorded electronically and/ or in hard copy form, as appropriate. This will include the Design Team comprising of the assigned design engineers, support staff, subordinate third party providers, and the responsibilities and authorities for each. Where third parties are utilized, this shall define the approved points of contact.
6.1.3. The Design Manager must ensure that the Design Team:

  • Implements design control
  • Generates the design plan and schedule
  • Reviews changes to product or service design
  • Defines activities of verification and validation

3.1.4. At any stage, the Designers must maintain design control with history of changes as per Design Change Log.

6.2. Design inputs

6.2.1 Design “inputs” are the requirements for the final product or service.
6.2.2 According to the preliminary design, the Design Manager decides whether to involve customers with the Design team, and creates the Design Task, which contains the input data that defined the request for product or service.
6.2.3 The product or service specifications/ requirements are maintained in the Document Register by the Department Head.

6.3 Developing the Design Plan

6.3.1 According to the Design Task , the Design Team creates the Design Plan and defines:

  • • The design phases
    • All activities related to phase realization
    • Input elements of each phase
    • Responsibilities of team members for each phase
    • Phase realization deadlines
    • Phase deliverables
    • Resources needed
    • Changes in phases and approval of changes
    • Design phase status (reviewed, validated, verified and completed)

6.3.2 The Design Plan will be updated as the design work progresses.

6.4 Design Outputs

6.4.1 Once design inputs are captured, the production of design outputs may begin. Typically, these are:

  • Drawings
  • Specifications
  • Models
  • Standards and specifications, work instructions, method statements etc.

6.4.2 The Department Head oversees the development of the appropriate design outputs, including those produced by third party providers.
6.4.3 All design outputs must be developed so they properly address the applicable design input requirements.

6.5 Design Controls

6.5.1 Design Reviews and Verification

6.5.1.1 The Designer/ Drafter of the design output shall review the Design.
6.5.1.2 Additional verification shall be performed by peer, expert designers or by a third party.
6.5.1.3 The Design Manager shall then perform design verification, to check that the design inputs have been addressed satisfactorily in the design outputs. Records of design verification are maintained as formal approvals. The design process may not proceed until all design outputs are verified as having addressed the design inputs.
6.5.1.4 Should the design review/ verification phase identify any problems/changes, the Design Team shall suggest actions to resolve them. These actions shall be recorded in the Change Review Record.
6.5.1.5 After phase review, the Department Head approves the start of the new phase by signing the Design Plan.

6.5.2. Design Validation

6.2.1 Design validation is performed by Consultants/ Client Representatives by comparing the design documents with the project specifications and the design data.
6.2.2 The Design Team conducts validation before release of product or service.
6.2.3 The Design Manager will ensure necessary actions are taken on problems/changes identified during the review or verification and validation activities.

6.6. Design Changes

6.6.1 Where changes/ variations are required in the design, the customer shall request these formally, or the customer’s approval obtained prior to commencing any work.
6.6.2 The Design Manager shall review the change request and record his approval in the Change Review Record.
6.6.3 The status of all design changes shall be maintained in a Design Change Log.
6.6.4 Applicable design data or documents will be revised with their revision indicator incremented and updating of Document Register. Obsolete design documents shall be removed from circulation, or identified as such, to prevent their unintended use.
6.6.5 Changed designs must go through the same design review, verification and validation as the original design.

7.0 RETAINED DOCUMENTED INFORMATION

7.1 Change Review Record (D&D / QF/01)
7.2  Design Plan (D&D / QF/02)
7.3 Design Task (D&D / QF/03)
7,4 Design Change Log(D&D / QF/04)


Procedure for Logistics

1. SCOPE

This procedure covers all roles, responsibilities, and authorities related to the Logistics process at XXX

2. PURPOSE

The purpose of this procedure is to manage vehicles and other heavy equipment use in an efficient and effective manner, to encourage the safety of vehicles, drivers and passengers and to minimize damage to  XXX’s vehicles.

3. REFERENCE DOCUMENTS

3.1 XXX Quality Manual,
3.2 Procedure for Correction and Corrective Action.
3.3 Procedure for Production.
3.4 Procedure for Purchase.

4.TERMS & DEFINITIONS

4.1. Heavy equipment: Heavy equipment refers to heavy-duty vehicles, specially designed for executing construction tasks, most frequently ones involving earthwork operations. They are also known as heavy machines, heavy trucks, construction equipment, engineering equipment, heavy vehicles, or heavy hydraulics.
4.2. Logistics: Planning, execution, and control of the procurement, movement, and stationing of personnel, material, and other resources to achieve the objectives of a campaign, plan, project, or strategy. It may be defined as the ‘management of inventory in motion and at rest.’

5.0 RESPONSIBILITY AND AUTHORITY

5.1  Logistics officer
5.2. Supply Chain Manager
5.3. Store keeper
5.4. Drivers and Helpers

6.0 DETAILS OF PROCEDURE

6.1. Transportation Management

6.1.1. Wherever applicable, the term vehicle to be applied to heavy Equipment and driver or the operator of heavy Equipment.
6.1.2. Usage of vehicles and other Equipment for personal use are prohibited; responsible person besides paying for the loss will be subject to legal action.
6.1.3. Vehicles/Heavy Equipment should not be used after official working hours, unless there is a need for it based on the work plan.
6.1.4. Logistics Officer should prepare a Transportation and Routing work plan with approvals work plan by the Project Coordinator.
6.1.5. The Transferring Party must load products to vehicle according to Transportation and Routing work plan.
6.1.6. The Driver receives other related documents (Return Note/Rework Report/Scrap Report/Delivery Note) and signs indicating the materials are in his possession, are on the way and transports the materials.
6.1.7. When loading materials from site/production, Return Note and Rework/Scrap Report is prepared by Site Engineer/Supervisor and given to driver.
6.1.8. When loading is from Warehouse, Delivery Note is prepared by Storekeeper and given to driver.
6.1.9. The Driver delivers the Return Note and Delivery Note to transferring party.

6.2. Safe working guidelines

6.2.1. In case of accident drivers should immediately report the incident and type of damage or involving personal injuries to the local law enforcement agency and to his supervisor as soon as possible and the supervisor to visit the accident site to ensure and be able to decide what caused the accident and who the blame goes to.
6.2.2. Drivers who fail to adhere to vehicle usage policies and procedures are subject to disciplinary action according to the severity of the infraction. If a violation occurs while operating XXX’s vehicle, all fines are the responsibility of the driver.
6.2.3. Transportation is responsible to ensure all drivers are well aware of traffic regulations and abide by those rules.
6.2.4. The driver should take every precaution to ensure the safety of passengers. No person may ride in a vehicle unless properly restrained by a seat belt It shall be the driver’s responsibility to ensure that all passengers are properly restrained.
6.2.5. All traffic and parking laws are to be obeyed. Posted speed limits are not to be exceeded, nor is the vehicle to be operated above safe driving speeds for road conditions. All traffic and parking violations and fines, including any late fees or penalties, are the responsibility of the driver involved. Failure to promptly pay a violation or fine may result in disciplinary action.
6.2.6. The driver of vehicle shall take every precaution to ensure the safety of the vehicle and its contents. The driver shall lock the vehicle and take the keys.
6.2.7. The driver should ensure tires are in good condition and the air pressure is correct, lights and signals are clean and working.
6.2.8. The driver should ensure oil and antifreeze/coolant is at proper levels and shock absorbers do not show any signs of leaks meanwhile the braking system in top working order
6.2.9. The driver should try to consider the safety distance while driving behind the driver in front – more in bad weather or at night.
6.2.10. The driver should ensure to pass on the left, but only where it’s permitted and where you can see enough clear space to pass comfortably. Be especially alert in heavy traffic – for sudden stops, cars passing or moving in and out of lanes, debris, construction, or potholes.
6.2.11. The driver should constantly check rearview and side mirrors for approaching traffic.
6.2.12. The driver should obey the speed limit and other rules of the road use windshield wipers, lights, and defroster in rain and snow. Turn on headlights as soon as it starts to get dark.
6.2.13. Cell phones should not be used by drivers when operating and driving vehicles.
6.2.14. The Driver should have a valid licenses and permits and be well aware of all the traffic rules and regulations of the country.

6.3. Responsibilities of Fleet/Heavy Equipment Supervisor

6.3.1. To keep all the vehicles ready, functional and fully equipped with supplies and accessories based on the seasonal requirement and make sure efficient use of all transportation means.
6.3.2. Usual repair and technical maintenance of all vehicles and transportation facilities in accordance with the vehicle’s manufacturing company catalogue.
6.3.3. Monitoring all transportation facilities including vehicles power generation machines, workshop and other transport related machinery during official hours.
6.3.4. Ensure all vehicles have license plate, usage permit, log books, and legally have no barrier to be used by the driver.
6.3.5. Monitoring the cleanness, technical maintenance, for all vehicles are done properly and timely.

6.4. Vehicle Management guidelines for requesting fuel, lubricants and other spare parts

6.4.1. Driver to put a Requisition Form after the vehicle reached the given norm of (i.e. changing engine oil).
6.4.2. The requisition should be approved by the Fleet/Heavy Equipment Supervisor.
6.4.3. The Requisition form should be filled for requesting of needed material from the stock. If the spare parts were not available in the stock, storekeeper will recommend purchase from market in the same form.
6.4.4. Next step is to visit Store for receiving the required spare parts/supplies for the vehicle.
6.4.5. The driver will then have to go to the Maintenance for the physical maintenance (changing engine oil, filter, air filter, diesel filters and etc.).
6.4.6. For useless spare part the Spare Register that is used for the parts and supplies that are no more in use and has been depreciated should be filled and returned to stock along with those depreciated spare parts/ supplies.

6.5. Vehicle Maintenance guidelines

6.5.1. Fleet Supervisors must provide the driver with required amount of fuel and lubricants used during the travel and ensure the vehicle is fully functional and operational.
6.5.2. Log Sheets for all vehicles should be kept up to date and KM and dates of usage should be listed at the beginning and end points of all trips. Users of the vehicles must write the Starting KM, destination of the trip and the end of travel KM counter into the Vehicles log book.
6.5.3. Fuel consumptions differs by type of vehicle, engine, Cylinder and type of fuel (Petrol, Diesel) of vehicles and are calculated per KM. Drivers are responsible to check and ensure the KM counter at the vehicle is functional and should verify it with the Fleet Supervisor.
6.5.4. All vehicles and Heavy Equipment of XXX based on the technical specification of the manufacturing company should be kept functional and operational as well should be operated based on the manufacturing company’s catalogue for routine and seasonal maintenances. Fleet/Heavy Equipment Supervisor is responsible to ensure all the vehicles maintenances and cleanups are done in timely manner logged in Vehicle Maintenance Log and based on the schedules maintained in Vehicle Maintenance Schedule. Critical Spare parts must be maintained in Spare part Register.
6.5.5. Vehicles and Heavy Equipment should be kept in a safe and covered area during night times and official holidays. The Transportation department should ensure safety and security of the vehicle parking.
6.5.6. Drivers are responsible to coordinate with Fleet /Heavy Equipment Supervisors for technical maintenance, cleaning services and take good care of their assigned vehicles based on need and given schedules and to ensure their vehicles have enough fuel and other required lubricants to operate normally. Preventive and Breakdown Maintenance must be carried out at authorized agencies and must be managed by Fleet Supervisors.
6.5.7. Driver to put a Requisition form explaining the type of technical problem in the vehicle to Fleet/Heavy Equipment Supervisor.
6.5.8. The Supervisor will approve the request and refer it to the Maintenance Supervisor. The Maintenance supervisor will inspect and check the vehicle and will provide their findings and feedback.
6.5.9. Fleet/ Heavy Equipment Supervisor to put a Requisition form to the Procurement Department describing the technical issue of the vehicle and list down required spare parts for the vehicle to be replaced based on the recommendation and findings of the Maintenance Supervisor committees.
6.5.10. Once approved, the Procurement department to procure and coordinate the purchase of the approved spare parts with the contractor/Vendor.
6.5.11. Once the spare parts are provided it should be checked by the Fleet/Heavy Equipment Supervisor for their review and confirmation. Meanwhile, all paper works including the purchase bills and approved requests should be prepared and sent to Finance department for processing and payments.
6.5.12. Driver to take the vehicle to the workshop or authorized Agency for maintenance and replacing the spare parts, and to return the damaged spare parts to stock.

6.6. Quarterly Maintenance

6.6.1. Check #1 Include but is not limited to full check of the vehicle from front wheel and continued to the rear wheel of the vehicle, vehicle should be placed in workshop, for the technical inspection and test drives, if any faults identified then the vehicle should be parked for maintenance following the procedures explained in above for replacing any damaged spare parts, and should be recorded in the vehicle maintenance history log book.
6.6.2. Check #2 is more detailed in comparison to check #1 and includes, opening, cleaning and refreshing lubricants of front and rear wheels, checking brakes, brake pads, shock absorbers, metal compression coil springs, as well as same maintenance and checks are applicable on the rear wheels of the vehicle. Furthermore all lubricants for gearbox, steering wheel, brake and other necessary parts
6.6.3. Weekly, Monthly and Quarterly Checklist should be maintained as per the Checklist for each vehicle/equipment.

7.0 RETAINED DOCUMENTED INFORMATION

7.1 Vehicle Log (QMS F 103)
7.2 Automobile maintenance schedule (QMS F 104)
7.3 Vehicle Maintenance Log (QMS F 105)
7.4 Transportation & Routing Plan (QMS F 106)
7.5 Spare Part Register (QMS F 107)

 

Procedure for Project Management

1. SCOPE

This procedure applies to all projects executed / supervised by XXX, including activities starting from planning for the project, and up to handing over of the project to the owner.  

2. PURPOSE

The purpose of this procedure is to establish and maintain an organizational framework for the process of supervising the execution of projects, which take place as part of the services provided by XXX

3. REFERENCE DOCUMENTS

3.1 XXX Quality Manual,
3.2 Procedure for Correction and Corrective Action.
3.3 Procedure for Logistics.
3.4 Procedure for QA
3.5 Procedure for Production.
3.6 Procedure for Purchase.
3.7 Procudure for Training.
3.8 All documents used by Consultant.

4.TERMS & DEFINITIONS

4.1 Project Consultant: wherever it is mentioned in this procedure, it means the Consultant’s Project Manager.

.5.0 RESPONSIBILITY AND AUTHORITY

5.1 Executive Director
5.2 Sr. Project Managers
5.3 Site Manager
5.4 Design Manager
5.5 Health And Safety Officer
5.6 Store keeper
5.7 QA/QC Manager
5.8 Site Engineer
5.9 Site Surveyor & QS

6.0 DETAILS OF PROCEDURE

6.1 General

6.1.1 Once the contract is signed, Sr. Project Manager submits a file to the Concerned Site Manager, this file contains at least the following documents:

  • Contract and tender documents.
  • Priced bill of quantities (BOQ); along with price breakdown.
  • Method Statement.
  • Priced Resources.
  • Project drawings & designs.
  • All correspondence and studies related to the project.
  •  A report that gives suggestion and a brief about the project

6.1.2 After signing a Project contract, the Executive Director in Co- ordination with Sr. Project Manager, assigns the project execution team which includes the following staff:

  1.  Sr. Project Manager
  2. Site Manager
  3. Design Manager
  4. Health And Safety Officer
  5. Store keeper
  6. QA/QC Manager
  7. Site Engineer
  8. Site Surveyor & QS
  9.  Any other staff required.

6.2 Issuing Production Work Order

6.2.1 Site Manager received the requirements form the Project Consultant/Client.
6.2.2 Site Project Manager checks the specifications and measurements according to the project requirements.
6.2.3 Site Manager sends the Work Order for Design Manager to start with the project deign.
6.2.4 Site Manager approves the design and gets the final approval from the Project Consultant/Client.
6.2.5 Site Manager after getting the final approval from Project Consultant /client, sends the approved work Order for Design Manager to start manufacturing design.

6.3 Planning

6.3.1 Site Manager holds an opening meeting with the Project Team; in order to introduce the supervision team and exchange the related project documents with all concerned parties. During this meeting, Sr. Project Manager provides the attendees with all project forms and template that should be used by the contacting team.
6.3.2 Site Manager supervises preparing the following set of documents in order to be submitted to the Sr. Project Manager;

  1. Detailed project plans for each stage of the project (This includes Time Schedules, HR plans, and Procurement Schedules). These plans explain all activities, timeframes, workforce, and materials to be used for each stage.
  2. Project’s organizational structure & project’s staff C.V’s.
  3. Relevant designs & drawings.

6.3.3 Sr. Project Manager reviews submitted plans and requests for changes, if needed; after discussing these changes with the Site Manager.
6.3.4 Sr. Project Manager provides revised plans to the Executive Director-Contracting for approval.
6.3.5 Executive Director-Contracting signs and stamps the plans indicating his approval. Copies of the approved plans are kept with the Sr. Project Manager and Site Manager for progress follow-up.
6.3.6 Based on the approved plan, Site Manager Coordinates with Project team in order to prepare a Procurement Schedule; indicating all planned purchases for the project. This forms should recursively be updated during the project; in accordance with the actual purchases and their dates.
6.3.7 Sr. Project Manager ensures that all received Submittals Forms from the Project Consultant /Client are logged using the Contractor’s Submittals Log (that is approved by the Project Consultant / client.
6.3.8 At the beginning of each week, Site Manager prepares Weekly Work Schedule for each project; indicating planned activities for the project in the upcoming week. Knowing that this schedule should be compatible with the project’s overall plan.
6.3.9 Once it is prepared, a copy of this plan should be submitted to Sr. Project Manager.

6.4 Approvals

6.4.1 Staff Approval:
6.4.1.1 Site Manager submits the project’s organizational structure (O.S.) and staff CVs, to the Sr. Project Manager for approval.
6.4.1.2 Sr. Project Manager compares the titles and qualifications of the submitted staff C.V.s and ensures that they comply with the contract’s agreed-upon requirements.
6.4.1.3 If Site Manager is not satisfied with any of the staff, a formal letter is sent to the Sr. Project Manager to change that employee. This letter should indicate the reasons for not accepting the employee.
6.4.1.4 Staff is approved through formal letters sent by Executive Director – Contraction.
6.4.1.5 A copy of all sent approvals shall be maintained by the project’s Site Secretary.
6.4.2 Design:
6.4.2.1 The design planning is dependent upon the project and its needs, as soon as the Project has been assigned, the design is prepared as follows:

6.4.2.1.1 The review of design input (client needs and wants, acceptance criteria) taking note of any conflicting requirements, if any.
6.4.2.1.2 Any statutory/regulatory/safety obligations must be adhered to, irrespective of whether the client requests it.
6.4.2.1.3 The documented design output showing how proposed service meets the Client’s input requirements are then verified.
6.4.2.1.4 Control changes/modifications to the established design is authorized by Project Consultant / client and controlled by using the work Order.
6.4.2.1.5 Validation of the design output is carried out by the client / consultant

6.4.2.2 Project Consultant /Client submits to Site Manager the relevant drawing(s) for the work to be completed. Afterwards, the submitted Drawing is submitted to the site Manager and Design Manager. Submittals log is updated accordingly.
6.4.2.3 Design Manager receives the work order from Site Manager.
6.4.2.4 Design Manager starts doing the design for the project and then sends it for Sr. Project Manager, if there is any adjust on design the Design Manager will adjust it and resend it to Design Manager.
6.4.2.5 Design Manager prepares the design which is subject to verification and checking in-house to ensure that it meets the requirements
6.4.2.6 Site Manager approves the design and gets the final approval from the Project Consultant /Client .
6.4.2.7 Design Manager after getting the final approvals issues work order to production manager to start the production process as per the production procedure.
6.4.2.8 Site Manager after completing manufacturing design starts ordering the materials from Store keeper.
6.4.2.9 Products are then installed as per the approved project plan.
6.4.2.10 The revisions of all documents/ drawings should be logged, archived, and maintained in a way that makes it easy to retrieve them.

6.4.3 Materials Approval
6.4.3.1 Site Manager should obtain approve of all materials used in the project from Project Consultant/Client.
6.4.3.2 Sr. Project Manager get sample material for production department.
6.4.3.3 Site Manager performs the necessary tests on a sample before approving the Material. If tests were unsatisfactory, Site Manager coordinates with the production manager/procurement manager to solve the issue and get new material.
6.4.3.4 Site Manager Co-ordinates to get final approval from Project Consultant/Client .
6.4.3.5 All approved samples are kept with the Site Manager in a specific room in the project site (Sample Room). Samples are identified using a label that includes martial name, origin, and supplier’s name. Samples room should be safe and access-controlled. In addition, it should provider all necessary conditions to safeguard the kept samples.
6.4.3.6 Site Manager uses the approved sample to compare the actual used materials in execution.
6.4.3.7 Project’s Submittals Log is updated by the concerned Site Secretary with each received Submittal form.
6.4.3.8 Copy of tests results and examination reports are kept in the specific project file by Site Secretary.

6.5 Storage – in site

6.5.1 Records are maintained for receipt, inspection, acceptance and issuing material as per the production procedure.
6.5.2 All stored products are identified clearly for easy accessibility.
6.5.3 Store Keeper control in and out products.
6.5.4 Regular Stock taking is performed as per the production procedure.
6.5.5 If needed any unavailable material are order by the site Manager.
6.5.6 At the end of project storekeeper sends all excess and damaged materials for the main store with delivery note.

6.6 Project Execution Follow-up

6.6.1 During the project’s execution, Sr. Project Manager receives on a daily basis the Daily Project Report from the Site Manager that shows the day’s work progress.
6.6.2 In the presence of the related staff . Site Manager holds weekly meetings with the Sr. Project Manager to discuss the performed work and to plan for work to be performed next, problems or obstacles that may interrupt the project progress are discussed in the meeting as well.
6.6.3 Minutes of meeting is prepared for each weekly meeting, which includes date and time of the meeting, attendees, points discussed, decision made, any pending issues to be investigated, and plans for the next week.
6.6.4 The minute of meeting is signed by all attendees. Site Manager – through Site Secretary – keeps a copy of all minutes of meetings in the project’s files.
6.6.5 A copy of the minutes of meeting is forwarded to Executive Director- Contracting.
6.6.6 At the end of each month, Site Manager prepares a “Monthly Report” that summarizes the executed work during the month, in addition to percentage of project completion, expenditure, cost of used materials and staff, and occurred major issues (if any). In addition, photos of the current status of the Project are attached to this report before it is submitted to the Sr. Project Manager by a formal letter for approval.

6.7 Quality Control:

6.7.1 When a phase ends, or a work package is going to be handed over to the client, the QA/QC site checks whether the work is complying with the required specification.
6.7.2 In case of non-conformity, QA/QC site Quality Control officer prepares a CIR in which he will explain the case, the root cause and the required corrective action as explained in the Continual Improvement procedure.
6.7.3 QA/QC Site shall follow-up with the concerned staff and Site Manager to ensure implementing the corrective actions and closing the CIRs.

6.7.4 QA/QC site ensures that all measurement instruments used in the project are calibrated. Site Manager should maintain all calibration certificates, as well as he is responsible for maintaining the validity of the “Calibration Certificates” for all measurement items used in the site location. He should also maintain a Measurement Equipment List that includes all measurement equipment that are used in the site. This list should regularly be updated with the expiration dates of the equipment calibration – if applicable.

6.8 Variation Orders

6.8.1 A need for a variation order appears when changes in the design are required, when the Project consultant/client decides to add, change or cancel some works or deal with damaged works caused by other parties.
6.8.2 Once there is a need for variations, an official Variation Order Form  is prepared by Site Manager and then approved by the Executive Director- Contracting.
6.8.3 In case the variation order includes change in time and cost, Site Manager coordinates with the Sr. Project Manager and Sr. Estimator in order to estimate that financial and technical (Schedule) changes related to the variation order.
6.8.4 Once the Variation Order is approved by Project Consultant/Client; the Site Manager coordinates with Design Manager in order to reflect changes on the shop drawings as well as the project plan.
6.8.5 Variation order related work can start only after obtaining the approvals from Project Consultant and Client on both drawings and offer.

6.9 Occupational Safety

6.9.1 Health & Safety Officer is responsible for making sure that all “safety” sings are well-prepared and distributed all over the work place.
6.9.2 All employees shall ensure that their employees receive safety orientation prior to starting work on any project.
6.9.3 All Employees shall ensure that they comply with all safety regulations that apply by Kuwaiti local laws or by the agreed with the Company. A safety plan shall be prepared by Health & Safety Officer. Through this plan, safety requirements are reflected on the site location.
6.9.4 The safety plan should be approved by Site Manager before being put into action. after approval a copy of this plan is sent to the Health & Safety Officer, who is responsible for making sure that all staff are complying with this plan.
6.9.5 On regular basis, Health & Safety Officer checks the work location in order to identify any safety violations.
6.9.6 In case of finding any safety violations, Health & Safety Officer prepares a Safety Violation Notice, indicating the case, its causes and what should be done in order to deal with this potential hazardous situation.
6.9.7 A copy of Safety Violation Notice is officially submitted to the concerned contractor/staff.
6.9.8 The details of the violation is discussed in the weekly progress meeting.
6.9.9 In case any accident takes place inside the work location, Health & Safety Officer fills the Accident Report; indicating the details of the case, what exactly happened and what are the root cause for the accident and what was done in order to deal with the accident.
6.9.10 First Aid Kits should be maintained within the site location, whereas it could be used for minor accidents. However, for major accidents; Health & Safety Officer or any present employee should call for emergency
6.9.11 Project Site – Safety Checklist is provided to the Health & Safety Officer. In addition, all applicable health & safety work instructions are communicated to the concerned project staff.

6.10 Handing Over

6.10.1 At the end of each stage of the project and after doing necessary quality control checks, Site Manager prepares a “request for inspection and approval” in order to be submitted to the Project Consultant/Client.
6.10.2 Project Consultant/Client inspects the finished work and, if rejected, he provides his written notes and reasons for rejection to the Site Manager.
6.10.3 Site Manager works with the concerned staff in order to deal with the Project Consultant/Client comments /feedback. He should ensure that the rejected work is corrected within the assigned time listed in the project schedule and in a way that is compatible with the contract signed.
6.10.4 When the project ends, Site Manager prepares a formal letter to inform the Project Consultant/Client that the project is completed.
6.10.5 Based on the received letter, Project Consultant/Client forms a committee that inspects the whole project’s contractual works and prepares a Snag List that contains a list of remaining works (if any).
6.10.6 Prepared Snag List is signed by both Project Consultant/Client and the Site Manager.
6.10.7 Site Manager agrees with the Project Consultant/Client on the timeframe to finalize the work items mentioned in the Snag List. Afterwards, this Snag list is signed by two sides of the contract.
6.10.8 After finishing all remaining works, the Site Manager sends another formal letter to the Project Consultant/Client, who checks the performed works again and – if acceptable – prepares and signs an “Accomplishment Letter” to indicate project completion.
6.10.9 All documents are filed in their proper files by the Secretary.

7.0 RETAINED DOCUMENTED INFORMATION

7.1 Weekly Work Schedule (QMS F 093).
7.2 Request for Substitution ( QMS F 094).
7.3 Daily Project Report ( QMS F 095).
7.4 Job Site Instruction ( QMS F 096).
7.5 Job Site Instruction Log ( QMS F 097).
7.6 Measurement Equipment List ( QMS F 098).
7.7 Variation Order Form ( QMS F 099).
7.8 Safety Violation Notice ( QMS F 100).
7.9 Accident Report (QF-PM-101).
7.10 Job Order ( QMS F 102)

Procedure for Production

1. SCOPE

This procedure covers all roles, responsibilities, and authorities related to the Production process at XXX.

2. PURPOSE

This procedure identifies and establishes plans for production processes which directly affect product quality. It is designed to ensure that these processes will be carried out under controlled conditions.

3. REFERENCE DOCUMENTS

3.1 XXX Quality Manual,
3.2 Procedure for Correction and Corrective Action.
3.3 Procedure for Logistics.
3.4 Procedure for QA
3.5 Procedure for Purchasing.

4.TERMS & DEFINITIONS

4.1 Quality Plan:

A quality plan is a document, or several documents, that together specify quality standards, practices, resources, specifications, and the sequence of activities relevant to a particular product, service, project, or contract.

4.2 Special process:

These are the processes, results of which cannot be fully inspected and ensured after the completion of the process.

5.0 RESPONSIBILITY AND AUTHORITY

5.1 Production Manager
5.2 Coating Production Manager
5.3 Factory General Foreman
5.4 Factory Supervisor
5.5 Store Manager & QA/QC
5.6 Packing & QC
5.7 Store Keeper
5.8 Maintenance Supervisor

6.0 DETAILS OF PROCEDURE

6.1 Quality Control

  • Store manager & QA/QC checks and approves specifications / data sheet received from Sr Project Manager and issues to production Department.
  • Based on the customer’s requirements and commitments, the Production Manager. plans production based on daily basis in Master Production Plan and Status Report.
  • Production Manager intimates Project Manager daily on the status of production progress through Daily Production Report
  • Work Instructions are provided to operators describing:
    • The operations to be carried out
    • Safety precautions to be adopted
    • Inspection and Checks to be carried out.
  • Process Specifications are given to supervisors describing:
    • Important process control parameters & limiting values, the machinery and Equipment to be used.
    • If the material need for coating, the material first send for coating Dept.
    • Method of achieving required product quality etc.
  • Product characteristics are periodically checked as per Inspection & Testing section of this procedure for ensuring compliance with requirements.
  • It is ensured that machinery provided can meet the needs and that capability is maintained by periodic, planned preventive maintenance.
  • Instruments are calibrated.
  • Handling and Storage facilities are such that the quality of product does not deteriorate.
  • New equipment and production processes are established by Design department in consultation with Production and QC Depts.

6.2 Coating

  • Degreasing: This is the first stage, removal of oil, grease and other unwanted contaminants like dirt from the surface.
  • Water Rinse – 1: In this stage, a proper water wash is performed. Whenever components are degreased, they should be rinsed.
  • Derusting: In this stage, rust and scales are removed from the component by means of acid solution.
  • Water Rinse – 2: In this stage, a proper water wash is performed as the derusting process is followed by one or two water rinses to remove all traces of acid.
  • Phosphating: In this stage, the clean surface of the component is coated within a thin layer of phosphate or chromate salt by using a phosphating.
  • Water Rinse – 3: The above operation is followed by one or two water rinses.
  • Passivating: After the surface of the phospated component is chemically  cleaned, the Components are dipped into a solution of hot chromic acid for a period of 12 to 24 hrs, which tends to passivate the phosphated surface and protect it from rusting until the components are ready for painting.

6.3 Inspection and Testing:

6.3.1 Incoming Inspection:

  • Incoming products are received and physically verified by Storekeeper based on P.O as per procurement procedure.
  • Incoming raw materials are verified/inspected/tested for receiving inspection to ascertain conformity with specified requirements by Store  QA/QC.
  • Store  QA/QC prepares as QC plan according to which the products are regularly inspected. A QC plan form is necessary.
  • Material not in QC plan Form are verified / inspected in accordance with purchase order specification/details to ascertain conformity with specified requirements by QC or concerned department.
  • Extent of incoming inspection is planned on the basis of control exercised on the supplier’s usually quality of works. They may be accepted on the basis of:-
  • Scrutiny of test certificate / documentation furnished by supplier or
  • Sampling inspection or
  • 100% Inspection
  • Incoming products that are verified to be conforming to specified requirements are released to stores and records of inspection are maintained indicating approval authority.
  • Products found non-conforming are clearly labeled and segregated.
  • Procurement officers contact the concerned external provider regarding their non-conforming products.

6.3.2  In process Inspection

  • The QC plan describes the stages during processing of a product at which inspection / verification for conformance is necessary, details and extent of checks are defined in the QC Test Plan.
  • In-process inspection may be carried out by:-
  • Patrol inspection.
  • Sampling inspection of specified quantity at specified intervals.
  • When results of in-process inspection are satisfactory, the products are allowed to go to the next stage after details are recorded in QC Plan Form and authorized.
  • When results are not satisfactory, the process is stopped for investigation and correction before restarting the production process.
  • Products are identified for inspection status as per Product Labeling and Identification and records are maintained.

6.3.3 Final Inspection

  • Products are taken up for final inspection after QC ensures that the product has passed all previous tests of in-coming and in-process stages satisfactorily.
  • Final inspection is based on sampling plans as per quality test plan.
  • Products found conforming are so certified, identified for inspection status and released for dispatch. Results of Inspection are recorded in Pre-Dispatch Inspection Report.
  • When contractually required, Test Certificates are issued to the customer.
  • Products found non-conforming are labeled, segregated and are recorded in NC Register and concerned employees are notified for review and remedial action.
  • Records of final inspection of various products  are approved by Store Manager & QA/QC  and the records are maintained.

6.4 Special Processes: –

  • Special processes used in XXX like welding, Painting, Galvanizing, Sandblasting is mentioned in Special Process Qualification Report.
  • Special process control plan are prepared by the production manager
  • Special process control plan provided for special process are meticulously followed by the production department.
  • The process parameters, personnel and equipment are qualified based on satisfactory results.
  • It is ensured that special process is carried out only by qualified personnel using standard equipment and operating within qualified range of process parameters. The record of qualification of special process is recorded in Special Process Qualification Report.
  • Control parameters mentioned in Special process control plan are carefully measured and recorded at specified intervals.

6.5 Maintenance:

  • Maintenance Supervisor is responsible to plan and carry out periodic preventive maintenance based on the Preventive Maintenance Chart to ensure continued process capability.
  • Based on conditions of use and experience, periodic maintenance work on machines is planned by maintenance Supervisor. Maintenance is done based on maintenance schedule.
  • Work instructions for Periodic maintenance like checking, filling of oil/grease of production machine are provided to Technicians for execution.
  • Scheduled maintenance plans are executed by maintenance personnel and records are maintained in respective machine file.
  • When breakdown occurs necessary repair / rectification work is carried out and records are maintained in Breakdown Maintenance Report. Production Supervisor reviews the record and maintains records of down time hours, spares consumed and approximate cost of spares/repair.
  • Root cause analysis and corrective records shall be maintained for all the major machine break downs. The records shall include details of breakdown experienced/attended, the effectiveness of action taken and preventive action if any.
  • Machine Details like capacity, location and spares parts of machine shall be maintained in the respective Machine History Card.
  • Maintenance Supervisor plans to procure and stock essential spare parts to ensure maintenance with minimal down time. List of critical spares and existing stock is maintained.
  • All the spares / accessories with shelf life shall be identified with label containing details like: Name, location of use/application and date of receipt etc.

6.6 Product Labeling and Identification:

  • Production department refer to the Project Identification Number for identification at the time of storage and dispatch.
  • Identification at stores (In-coming.): Incoming material are identified by label, Inspection status is indicated by color code i.e. Green – Conforming and with Yellow sticker on label for Hold/Awaiting inspection & Red sticker for Rejected / Non-Conforming product. Details of each material  is recorded in the Receiving Inspection
  • IN-Process Identification: Each Job Order has a unique identification number and the product is identified through this number. Details of the semi finish/finish product are recorded. Product status is indicated by color code at bottom of the label, i.e. Green – Conforming and with Yellow sticker on label for Hold/pending decision & with Red sticker for Rejected / Non-conforming product.
  • Finished Product: Each tested and accepted Product is Labeled ‘Inspected OK’ stamp. Hold and pending decision is identified with yellow sticker marked as ‘HOLD” and non-conforming drum is identified with Red sticker marked as ‘REJECTED’.
  • Dispatch Identification: At the time of packing and dispatch a label  is provided to each finish product, which is identified by label. Care is taken to ensure the identification is complete in all respect including customer requirements as mentioned in the Specification.
  • Job orders are received from Project Managers/Sales Managers
  • Job orders are prioritized by Production Manager and a production plan is made accordingly
  • Project Manager/Sales Manager is informed of the estimated completion date
  • The job order is processed as per the production plan, and as per the coating section within the procedure
  • Project Manager/Sales Manager is informed of the completion/delay of the job order
  • Job orders’ status is reported to Project Manager on a daily basis

6.7 Handling, Storage, Packaging, Preservation and Delivery

6.7.1 HANDLING:-

  • Following equipment are provided for convenient and safe handling of product at all stages:
  • Hydraulic Trolley.
  • Overhead cranes.
  • Pallets .etc.
  • Necessary care is taken during handling of products, so as to ensure no damages.
  • Conditions of stock are periodically inspected to detect deterioration, if any was found. Timely corrective action should be implemented as per Procedure for correction and Corrective action

6.7.2 STORAGE

  • Records are maintained for receipt, inspection, acceptance and issue of Material.
  • All stored products are identified clearly for easy accessibility.
  • Fire extinguishers, checked at regular intervals, are available for use in case of emergency.

6.7.3 PRESERVATION

  • Precautionary measures for storage of raw materials, spare parts, packaging materials etc. are taken to preserve quality of product and protect against deterioration due to environmental factors like humidity and dust.
  • The finished products which can be affected by environmental condition are preserved by plastic / tarpaulin covering, during wet season and sand storms.

6.7.4 PACKAGING

  • Materials are packed to prepare them for transportation.
  • Packing activities are carried out ensuring :-
  • Good quality packing material.
  • Customer specific packing requirements.
  • Inspection after packing.
  • Identification label for finished goods.
  • Transportation of finished goods are done as per the Logistic Procedure 

6.8 Incentive Scheme

  • Production Manager issues an incentive scheme for the production staff based the available production capacity and historic production data
  • Production incentive scheme is approved by Managing Director
  • Based on the achieved number of finished products, if the production target is achieved, production staff are rewarded as per the approved incentive scheme.

7.0 RETAINED DOCUMENTED INFORMATION

7.1 Job Order ( QMS F 088)
7.2 Production Plan( QMS F 089)
7.3 Order Entry ( QMS F 090)
7.3 Delivery Note ( QMS F 091)
7.4 Stock Level Sheet ( QMS F 092)

Procedure for Contract

1. SCOPE

Applicable for Outsourced processes

2. PURPOSE

To ensure effective control on Outsourcing.

3. REFERENCE DOCUMENTS

3.1 XXX Quality Manual,
3.2 Procedure for Correction and Corrective Action.
3.3 Procedure for Manufacturing.
3.4 Procedure for QA
3.5 Procedure for Purchasing.

4.TERMS & DEFINITIONS

4.1 Outsourced Processes: 

An “outsourced process” is a process that the organization has identified as being needed for its operations and quality management system (QMS), but one which it has chosen to be carried out by an external provider outside the managerial control of your facility and may not be subject to the same QMS as your organization.

5.0 RESPONSIBILITY AND AUTHORITY

Contract Manager is responsible for review, establish and maintain this procedure and CE is responsible for the approval of this procedure. Project Manager and other concerned Manager are responsible for compliance of this procedure.

6.0 DETAILS OF PROCEDURE

6.1 Contractor Registration

The need for contractors will be identified by the contract executive. The need could arise out of the business plan or request by Project Manager. The pre qualification parameters will be defined at the organizational level by the Contract Manager. The parameters would include:-

  • The minimum experience in similar work
  • Minimum value of contracts handled by contractor in past in individual capacity.
  • Acquaintance of contractor with city / local norms.

The Contract Manager will invite details from contractors. Invitation could be through a newspaper advertisement, word of mouth or through associates. The new contractor will be required to submit the following documents:

  • Company Profile (legal entity status) of contracting firm
  • Credentials and work done
  • List of equipment
  • Financial Statements (Balance sheet, Profit and Loss statement)
  • Current project in-hand
  • Staff Details and Plant and Machinery details

The eligibility of a contractor will be determined on the basis of information submitted vis-à-vis the pre-qualification parameters.  If the parameters are not met, then the contractor will not be considered for registration and communication of the same will be sent to the contractor. In case the pre-qualification parameters are met a site visit will be organized at one or more projects of the contractor to get an understanding of the execution specific parameters like quality, finishing, safety etc. The observations of the site visit will be captured in a site visit report. The inspection team puts its observations in a site visit. Report and comprises of one representative each from execution, contract and quality department. The contract executive will then collect the information and prepare a contractor assessment report. The final assessment includes parameters like – market reputation (clientele/developers worked with in past), staff strength (labour – skilled/semi-skilled), equipment, etc. The type of work that can be awarded to the contractor will be decided by the contract Manager and the entry level rating of the contractor will also be decided. In case the contractor rating is not satisfactory the contractor will not be considered for registration and same will be communicated to the contractor and the details will be captured in the contractor database. In case the contractor rating is satisfactory the contractor details are captured in a registration form. The registration form consists of the following details:-
Details of company – Name and type of entity, contact details
Registration details
Details of resources – plant and machinery, manpower, material
Financial details – turnover, financial statements, latest income tax clearance etc.
A report of short listed contractors will be forwarded weekly to Contract Manager for approval. Contract Manager will review the details and rating of the new contractors. If the contractor and rating are not acceptable the contractor will not be considered for registration in the database and the details will be updated in the contractor database. In case the contractor and the rating are acceptable, the Contract Manager will sign the contractor registration form and the details will be updated in the contractor database.

6.2 Contractor Selection

 Determination of method of appointment of contractor
The Contract Manager in coordination with Project Manager will decide the type of contract to be awarded. Types of contract can be classified as below:
• Lump-Sum Contract
• Item Rate Contract
• Turnkey Contract
• Cost Plus Contract

Based on the decision taken by Contract Manager , the contracts department personnel will determine the category of contractor required as well as the period of the contract. The contract can be awarded through three methods. Based on the requirement, contracts Manager will identify the best suitable method. Methods for appointment of contractors are:

1 Appointment through Tendering Process
2 Appointment through Competition Process
3 Appointment through Preferred Vendor Selection

6.2.1  Selection through tendering process

The contract Executive will prepare a tender document. The tender document will consist of : company covering letter, scope of work, bid qualification criteria, bill of quantity (BOQ), tender drawings/plans, technical specifications, standard terms of project, special terms of business, completion period, commercial terms (bank guarantee/performance guarantee/insurance etc.) cut-off date and time for the closing of the bid.

The tender document will be forwarded to Contract Manager for review. The required changes will be made by contracts department personnel in case of any changed recommended by Contract Manager and will be signed by Contract Manager. Registered contractors who are considered under tendering process category will be identified by contract executive from the contractor database. The contractors to be identified for bid are decided by contracts department in consultation with Project Manager/MD.

The criteria for identification are available & current work load of contractor apart from the experience in required job. A Notice Inviting Bids for the tender will be sent to the applicable media by  the contract executive. Notice inviting bid for the tender should be sent minimum number of contractors. (Not less than 3). A signed copy of tender documents will be distributed to the interested contractors on the decided date.

Duly filled and sealed tender bids, both technical and financial will be received from contractors by the contract executive on the decided date. . Any bid, received after the cut off date/time, will not be considered valid for negotiation. Technical bid will be first evaluated by contracts department. The contractors who do not pass the technical bid will be rejected and the contractors who pass the technical bid will be considered further for price bid evaluation.

After the contractors are finalized for price/financial bid, a preliminary cost comparison is formulated. Rates quoted by contractors for every item will be compared with company’s expected rates. Based on the comparison, the list of items with rate variations more than tolerable limits of company rates will be prepared and contractors will be called for discussion for the same. If any anomaly is found in the discussion, contractors will be asked to submit the fresh bid for the identified items and based on fresh bids, cost comparison sheets will be prepared. If any anomaly is not found, the preliminary cost comparison sheet will be finalized.

Comparative sheets will be analyzed in detail and the same will be compared with budgeted cost. Rounds of negotiations will be conducted by contracts department. Details of every negotiation round shall be documented by the  contract Executive. Based on the negotiations and comparative sheets, HOD contracts will finalize the contractor. Contractor finalization note shall be generated and will be signed by all the concerned parties.

6.2.2 Selection through Competition process
Contract Executive will prepare an inquiry for the work to be contracted and get approved from head of contracts. Once the inquiry is approved and signed by head, it will be forwarded to contractors selected from contractor database. Contract Executive will receive the quotes on date mentioned in the inquiry. Once the quotations are received, contract Executive will compare the costs of different quotations. Through comparative analysis,  negotiation will be carried out with bottom three contractors.

Based on the negotiation, two lowest contractors will be determined and cost comparison sheet will be updated by the contract executive. Cost sheets of both the lowest contractors will be compared with company’s budgeted cost. The Contract Manager will carry out rounds of negotiation with both the contractors. Based on negotiations, contractor providing lowest rate would be considered and finalized note will be prepared. Finalized note will be sent to director for approval.

  •  If Managing director does not approve the contractor, contract manager will approach other contractors.
  • If director approves the contractor, contractor will be finalized and detail contract agreement will be prepared.

Contract agreement will be signed by contractor and the Managing director. Selection for minor works based on standard rate list. BOQ for the minor works will be received by PM at site. The items under minor works shall be verified for its inclusion in the rate list. If the items are not included in the rate list, rate analysis will be done by PM with contract executive and the same will be forwarded to Contract Manager for approval. If the items are included in the rate list, the contract Manager shall identify whether suitable registered contractor is available or not.

  • If the suitable contractor is available, the contractor shall be identified from the contractor database and will be finalized.
  • If the suitable contractor is not available, contracts department will identify new contractors for the same. New contractors must get registered with the company. Follow the “contractor registration” process for new contractor’s registration. After the approval and registration, contractors shall be asked to quote for the concerned work. Cost comparison sheet will be prepared and the contractor will be finalized by the PM and contracts department.

6.2.3 Preferred Vendor
This type of contracting is preferred when organization decides to do a corporate tie-up with a particular brand/make for large volume of work valid for a period of time e. g. Cranes,  Lifts, water pumps etc. Summary of the volume of contracts to be issued and volume of work and period of work shall be prepared by the contract executive.

Rate analysis of the items under this method will be carried out. Cost comparison sheet shall be prepared. Comparative sheet will be compared with the budgeted cost and will be forwarded to the Contract Manager for the discussion. If it is not found feasible, other modalities will be worked out. If it is found feasible, the item will be short listed for enquiry. As per the enquiry done, contract executive will receive the details of work for bulk orders. Based on the details, contracts executive shall identify the options for bulk orders. Vendors will be asked to quote for the selected orders. After receiving the quotes, comparison statement on various offers will be prepared. Contract Manager contracts will negotiate with the vendors and finalize the suitable vendor. After the vendor finalization, vendor note shall be prepared. Vendor Note includes the details of vendor & the agreement of bulk supplies. E.g. Percent of discount on the MRP prevailing at the time of requirement or flat rate for a year or two etc.

6.3 Preparation of work order

Based on the finalized details of the contractor, contract executive will prepare a draft work order and the same will be forwarded to the Contract Manager for approvals. After making necessary changes in the draft work order (if any), the final work order will be prepared by the contracts personnel and will be approved and signed by the Contract Manager.
6.3.1 Amendment of work order
Project Manager (PM) will suggest the amendment details to the contract manager. The need for the amendment is noticed by PM in case of any one of the situations:

  1. Scope of work getting modified due to site conditions (Extra work)
  2. Quantity of work getting modified beyond the limit stated in the contract (Extra items)
  3. Rate of one or more items in the Work Order getting changed due to site conditions

Impact of amendment on project cost and progress of the project will be noted by PM and the same along with the amendment details will be forwarded to the Contract Manager. After getting the approval from Contract Manager, new work order incorporating the required changes will be prepared by the contracts department. Amended work order shall be signed by the concerned persons.

6.4 Evaluation of Contractor

Contract Manager will identify the evaluation parameters for rating contractors. The evaluation parameters would include broad parameters like- Schedule adherence, material wastage, rework, safety measures at site, work quality, billing efficiency (errors and frivolous claims), interaction experience, etc. Contractor evaluation will be carried out every six months. Contracts Executive shall distribute the evaluation forms to the site, contracts personnel and quality assurance department. Contractor evaluation is to be carried out by awarding points for each parameter.
Contractors will be stratified as Grade A; Grade B, Grade C vendors respectively

Vendor Grades

Point Scoring Range

Decision

Action

Grade A 70- 100 Retain Give bulk of business
Grade B 40 – 69 Retain Ask for further improvement
Grade C 00-39 Discontinue De list

After evaluating the contractors based on feedback forms received from quality assurance department and site, if the contractor gets grade C, contractor will be de-listed and details of the same will be communicated to the concerned departments. Briefing on improvements needed for the work will be given to the contractors under Grade B. Key concerns of contractors will be understood and documented by the persons communicating with the contractors regarding improvement.  A report on contractor evaluation will be prepared and forwarded to the HOD contracts.

7.0 RETAINED DOCUMENTED INFORMATION

7.1 Contractor Evaluation ( QMS F 083)
7.2 Contractor appointment processing time( QMS F 084)
7.3 Open work orders till date( QMS F 085)
7.4 Work awarded without work order( QMS F 086)
7.5 New contractors identified( QMS F 087)

Procedure for Purchasing

1. SCOPE

Applicable for Purchasing activity carried out as well as carried out at HO, all location as well as carried out at all sites.

2. PURPOSE

To ensure that the Purchase product confirmed to specified requirement and suppliers are evaluated and selected on the basis of their ability to meet purchases product requirement.

3. REFERENCE DOCUMENTS

3.1 XXX Quality Manual,
3.2 Procedure for Correction and Corrective Action.
3.3 Procedure for Manufacturing.
3.4 Procedure for QA
3.5 Procedure for Contract.

4.TERMS & DEFINITIONS

4.1 Supplier Evaluation:

Supplier evaluation is the process to access new or existing supplier base on their delivery, price, production, and quality of management, technical and services. A standard supplier evaluation framework shall be used in all cases for the existing and potential suppliers.

5.0 RESPONSIBILITY AND AUTHORITY

Purchase Manager is responsible for review, establish and maintain this procedure and CE is responsible for the approval of this procedure.
Project Manager and other concerned Manager are responsible for compliance of this procedure.

6.0 DETAILS OF PROCEDURE

6.1 Conducting Materials research and development

6.1.1  Purchase Executive must scan the domestic as well as international markets for the latest and cost-effective material used in the construction industry through sources like references from existing suppliers, in house staff, competitor database, industry referrals, and Industry magazines.
6.1.2 The research findings will be collated by the purchase department personnel into a summary sheet and the same will be forwarded to the Purchase Manager  for review.
6.1.3 In case the Purchase Manager selects a material profile which interests him, he will issue instructions to obtain further information on the same. Demonstration for the same will be called for from the concerned vendor
6.1.4 The material sample will be analyzed on the following parameters:
i. Impact on the P/C (Performance to Cost)
ii. Quality Implications
iii. Adequate availability
iv. Logistic Constraints (if any)
v. Ease of incorporation in construction process
vi. Special Conditions other than existing (if any)
6.1.5 Report comprising of the analysis of the material sample and the recommendations will be forwarded to the Purchase Manager for a final decision. The report of the above findings will be retained in the database for future reference.

6.2 Vendor Registration

6.2.1 The need for identifying a new vendor will arise in the following cases:

  • Current number of approved vendors is lower than the acceptable norm
  • Item is critical to the business operations of XXX
  • Lead time for an item is high and there is a need to reduce it for reducing inventory holding costs.
  • There has been no change in the vendor profile over the last 1 year.

6.2.2 The company will endeavour to procure mainly from approved vendors. Based on the market  research conducted and other sources i.e. reference from the third party, business associates, the procurement department will invite the identified vendors for registration with the company.
6.2.3 Vendors will be approached and requested to submit their profiles and product details. The purchase department will screen the vendors on the basis of the following parameters:

  • Product- type , grade, specification,
  • Current & potential manufacturing capacity,
  • Market reputation,
  • Creditworthiness,
  • Financial background,
  • Legal entity status,
  • Experience in the industry

An initial vendor enquiry report will be prepared capturing the above information. In case the Head of procurement department is not satisfied with the findings, the vendor is rejected and the reason for rejection will be captured and attached along with the vendor profile in a separate rejected vendor file for future reference. If the procurement department is satisfied, then a joint factory visit will be carried out by a team comprising of the procurement and quality assurance department personnel respectively.
The joint team will submit a factory visit report. In case the factory visit report is satisfactory, additional details (if any) are called for. All the relevant vendor information will be captured in the vendor database and the same will be updated on a continuous basis.
A monthly report on new vendors identified will be forwarded to the Purchase Manager for review. Approved vendors will then be classified into different categories based on the type of order to be awarded. An entry for approved vendors will be made in the system along with an entry level rating. After approval vendor code is allotted to approve vendor and is registered in vendor database. Rejected Vendors are informed and the same is updated in the vendor database along with reasons for rejection.
The vendor database will contain the following information like:

  • Vendor’s name, address, telephone, telex & fax numbers
  • Main group codes of items supplied
  • Key contact person
  • Legal entity status
  • Status – whether manufacturer, dealer or trader
  • Vendor rating
  • Permanent Account Number

6.3 Procurement Planning

6.3.1 Arrive at an enterprise wide procurement plan

Purchase department will receive the BOQ comprising of a schedule of materials needed for the entire project from the estimation department as well as a final project schedule suggesting the timelines based on milestones defined. Based on the BOQ and final project schedule, the Purhcase Manager will make an enterprise wide procurement plan   consisting of quantum of consolidated material over a period of time (yearly/ monthly/ quarterly) for all projects. The enterprise wide Purhcase plan will be forwarded to the HOD for approval. If the plan is approved, the same will be documented, circulated and monitored in the department. Changes suggested (if any) will be incorporated and resent to Purchase for approval.

6.3.2 Yearly materials requirement planning

Based on the enterprise wide procurement plan and the material requirements of all the Project sites, Purchase Executive will consolidate the requirements and then prepare a schedule of requirement for the quantities required for monthly and annual consumption. The material requirement is consolidated to arrive at quantity for each construction material and the schedule of material requirement.

6.3.3 Monthly Categorization and Deciding Purchase Mode

The Purchase Executive will carry out an analysis of criticality v/s quantum and accordingly categorize the materials. Based on the categorization, materials are classified for the decisions like direct purchase, rate contract and strategic alliance. If the material is critical and quantity is high and rate of the material seems to be fluctuating, the procurement department will decide to get into a rate contract. If the material requires standardization, the Purchase Manager can go in for a strategic alliance with the vendors.  Materials covered under this mode can be decided by the Purchase Manager. If either rate contracts or strategic alliance are not feasible then decision to go in for direct purchase can be taken.

 6.4 Identification and Selection of Vendor

Details of the materials requirements received from the estimation department will be identified and studied by the Purchase Executive. Vendors will be identified for strategic alliance and enquiries will be floated. The vendors will be identified based on market research and other details available with the purchase department. Based on the offers received from vendors, quoted prices will be compared with the budgeted cost. If the cost doesn’t exceed the budgeted cost, the agreement will be prepared and forwarded to the Purchase Manager for approvals. If the cost exceeds the budgeted cost, approvals shall be obtained from the BU head or Managing Director (as the case may be) with the appropriate reasons. Intimation regarding the same shall be sent to the purchase departments across all locations.

6.5 Rate Contract

Identify materials and enter into contract. Based on the material requirement plans received from the estimation department, the quantum of materials for rate contract will be identified by the purchasing department. A detailed cost analysis of the materials will be carried out by Purchase Executive. A cost analysis will be done taking into account the past prices, present rates and fluctuations in the rates of the material etc. The purchase executive will constantly scan the industry for price movements in the domestic and international sector.
The purchase executive will then identify the vendors and invite them to discuss the quantum and rates of the materials. Negotiations will be carried out to arrive at the pre-decided rate. A vendor approval note will be generated and forwarded to the Purchase Manager for approval. List of approved vendors is maintained in the database.  After the final approval from the Purchase Department, contract conditions shall be formulated and documented. This contract document will be approved by the legal department. Contract conditions will include clauses like material specification, agreed price, delivery time, price fluctuations, payment terms and considerations, quality parameters etc.  Intimations regarding same will be forwarded to all purchase departments across all levels.

6.6 Select Vendor

Based on indent received from the site, the Purchase executive shall ascertain whether the material indented is covered under rate contracts or strategic alliance. If the material is not covered under any of the above, the purchase  executive will prepare enquiry letters and forward it to the purchase manager for approval. After approval, the enquiries will be floated along with the material list to at least three approved vendors from the vendor database.
Vendors will be requested to send their quotations to the purchase  department. The same will be opened by the purchase manager. The purchase executive will prepare a comparative rate chart highlighting the vendors offering the second lowest and lowest quote. The purchase Manager will then renegotiate with both of these vendors to arrive at the most competitive quote.
A verbal quote may be accepted at this level provided the vendor follows up with written (revised) quotation within 24 hours. The comparative rate chart will be updated with the revised quotes to determine the least quote vendor. The comparative rate chart will be signed by the Purchase executive who made it and also by the Purchase Manager. Only in certain exceptional case, the MD will be consulted and approval will be obtained. In certain cases where the vendor offering lowest quote is not given the contract, the MD should be informed and reasons for the same should be formally documented.

6.7 Receive Material Requisition

6.7.1 Receiving a requisition
The project manager/Concerned department Manager will identify the requirement of material  and verify the quantity against the procurement budget. The Project Manager/ Concerned Manager will enter the following details in the system: items required, specifications, quantity, desired delivery date. The Project Manager has to approve the requisition online and only then can it be viewed by Purchase Manager. The indent raised by site shall be received at the purchase executive . The purchase executive shall determine whether the delivery date mentioned in the intent is as per the ‘Lead Time Schedule’. If the delivery date does not meet the lead time schedulethe project manager will be required to provide justification for the same.
6.7.2 Inter-Site Transfer of Material
If the delivery date meets the lead time schedule, the store coordinator will check the availability of stock at the central warehouse or other sites in the vicinity for the same material and inform the purchase executive accordingly. If the stock is available at the central warehouse or other sites, a material transfer note will be prepared through the system and the same will be forwarded to the project manager. If the required quantity is not available at a central warehouse or other sites, purchase order   shall be raised for the required material.

6.8 Preparation of Purchase Order

A purchase requisition will be prepared by the Concerned Manager and shall be forwarded to the Purchase Manager/Executive with the prior approval of the project manager through the system. Based on the requisition received from the site, the Purchase Manager/Executive will prepare the purchase order which will be system generated. The purchase order for direct materials shall be raised on the basis of rate contract as entered into. The purchase order for finished materials will be raised on the basis of the long term contract with the strategic partner. The purchase order for regular material shall be raised on the basis of monthly ‘base rate’ determined. The project manager will ensure that the cost is within the budgeted cost. In case the cost exceeds the budgeted cost, the Purchase Manager will provide reasons for the same and obtain approval from the CEO. The purchase order will be approved as per limits specified in the authority matrix. The PO will then be sent/ emailed to the vendor.

6.9 Vendor performance evaluation

A vendor evaluation policy  will include
i. Criteria for vendor evaluation
ii. Parameters for evaluation
iii. Frequency of evaluation
Vendors will be evaluated once in a quarter, semi-annually or annually as decided by the management. The evaluation shall be carried out by filling up the vendor evaluation form & vendor rating from.
The form is to be filled in by the sites; purchase department; quality assurance team. An average score is to be worked out of scores given by sites; purchase department; quality assurance department & accounts departments
Vendors will be evaluated on four key parameters on a weighted average scale (totalling to 100 points)

  • Price – preferential price treatment,
  • Efficiency in delivery – ability to supply within a short notice apart from the normal lead time delivery,
  • Ease in dealings – Responsiveness to XXX issues, complaints, proactiveness in dealings, billing errors
  • Consistent quality

The evaluation will be carried out based on consignments received during the applicable half financial year. Vendors to be stratified as Grade A; Grade B, Grade C vendors respectively

Vendor Grades

Decision

Action

Grade A Retain Give bulk of business
Grade B Retain Ask for further improvement
Grade C Discontinue De list

Discussions will be held with Grade B vendors by Purchase Manager on a proactive basis to determine the root cause and initiate corrective action. Based on vendor ratings, management may decide to re-allocate business shares to vendor with high performance levels. No vendor (for an item) will be de-listed without prior intimation to the respective user department Manager/Purchase and vendor itself.  The vendors de listed will need to follow the vendor registration process for being re-considered as approved vendors, if they so desire. Purchase Manager  shall forward the rating report to the Project Manager and MD.

6.10 Material Bill Passing

The  Purchase/QA engineer will receive the 1st copy of PO from vendor for the material supplied. He will verify it against the Purchase materials. This will be entered in GRIN entry module of the system to work out the bill amount to be paid to vendor.  The vendor will send the bill. Bill passing department will verify the bill. After verification of the bill according to the PO qty & rate, invoice entry will be made in the system. Once the bill is passed, it will be forwarded to the accounts department for releasing payment. Accounts department will review the invoice and release the payment.

7.0 RETAINED DOCUMENTED INFORMATION

7.1 Purchase Order ( QMS F 075)
7.2 Vendor Registration Form ( QMS F 076)
7.3 Vendor Rating Form ( QMS F 077)
7.4 Vendor Evaluation Form ( QMS F 078)
7.5 Comparative Rate Chart ( QMS F 079)
7.6 Project Procurement Schedule ( QMS F 080)
7.7 Corporate Procurement Plan ( QMS F 081)
7.8 Lead Time Chart( QMS F 082)
7.9 Receipt and verification/ raw material( QMS F 083)