Questions and Answers
What is required for purchases exceeding 5 Lakhs?
What is the first step after identifying the specifications of the material to be bought?
If the item is not under contract, what is the immediate action suggested in the process?
What should be done to finalize the technical specifications?
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When would it be deemed 'NOT Approved' in the process outlined?
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What role does the user play in the approval process?
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What happens if specifications are unclear?
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Who is primarily responsible for providing approval for purchases?
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What is the maximum lead time for items that are approved by the sample?
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Which of the following actions is required if items are made as per drawing?
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What document should be raised in SAP as per SOA?
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What occurs if the lead time exceeds the specified maximum?
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Which document is associated with the comparison of offers?
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What is the main objective of the purchasing SOP?
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Who is responsible for creating the purchase request in the purchasing process?
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What types of items does the SOP specifically exclude?
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What is the frequency of the purchasing process as indicated in the SOP?
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Which role is ultimately responsible for the purchase decision as per the SOP?
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What system is mentioned for preparing purchase requests?
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What is the revision number of the documentation?
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What is the purpose of the control point/checkpoint in the purchasing process?
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Which of the following is NOT a way to identify suppliers?
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What is the maximum number of suppliers from which an offer should be obtained?
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Which of the following methods can be used to get offers from suppliers?
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Which aspect is essential when communicating with suppliers for offers?
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Which of the following actions is optional when getting offers from suppliers?
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When securing offers from suppliers, what is a critical first step?
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What is the primary reason for obtaining offers from multiple suppliers?
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Which method is least effective for quickly identifying suppliers?
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What is the maximum validity period of the material price stated?
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What action must be taken after the 6-month validity period of the price?
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What document is associated with the preparation and release of the purchase order?
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What must be done regarding cost approval as per the Purchase SOA?
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How is the purchase order related to vendor pricing information?
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Which of the following is NOT a part of the process mentioned?
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What happens if a fresh quotation is not obtained after the price validity period?
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What is the suggested medium for obtaining a fresh quotation from the vendor?
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Study Notes
SOP - Purchasing (Non-Regular Material)
- Objective: Define the process for purchasing materials that are not routine or regular purchases.
- Scope: Covers general items outside routine purchases and non-capital items.
- Document Revision: 03, with the latest revision date on 17/8/2023.
- Process Owner: Purchasing Department.
Purchasing Process Steps
- User department initiates a request for non-regular items in SAP.
- For purchases exceeding five lakhs, CEO's approval is mandatory.
- Specifications clarified in discussions between purchaser and user department.
- Identification of potential suppliers includes:
- Existing registered suppliers
- Supplier catalog references
- Recommendations from acquaintances.
Supplier Management
- Request for quotes via email or verbal communication regarding specifications.
- Aim to receive offers from a minimum of three suppliers.
- Maximum lead time for procurement processes:
- From approved Purchase Requisition (PR) to Purchase Order (PO) is 15 days.
- Items made per sample must adhere to a maximum lead time of 10 days.
- Items fabricated per drawing also follow a maximum lead time of 10 days.
Approval and Documentation
- Prepare an offer comparison sheet for analysis of supplier offers.
- Raise Purchase Approval Form (PAF) in SAP as per Standard Operating Agreement (SOA).
- The price of procured materials is valid for six months.
- Post six months, fresh quotations or confirmations from vendors through email are necessary for continued approval.
- Release of Purchase Order (PO) is the final step in the purchasing process, adhering to the established SOP.
Control Points and Frequency
- Ensure checkpoints at various stages, particularly before approvals and releases.
- Regular monitoring and updates of the purchasing process are critical for compliance and efficiency.
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Description
This quiz covers the Standard Operating Procedure (SOP) for purchasing non-regular materials, detailing the process from request initiation to supplier management. It highlights the steps required for approvals, specifications, and supplier engagement in non-routine purchasing scenarios.
