Podcast
Questions and Answers
According to the Stock Write-Off & Disposal process, what is the objective related to moribund materials?
According to the Stock Write-Off & Disposal process, what is the objective related to moribund materials?
- To ensure that all identified moribund materials which cannot be used elsewhere are written-off for disposal (correct)
- To ensure that moribund materials are repurposed within the organization
- To ensure that moribund materials are sold to external parties
- To ensure that moribund materials are stored indefinitely
What type of stock processing shall be treated as disposal stock?
What type of stock processing shall be treated as disposal stock?
- Excess, obsolete, or damaged stock once approved (correct)
- All obsolete stock regardless of approval status
- Stock with minor damages
- Stock nearing expiration date
What is the requirement before disposing of an item from inventory?
What is the requirement before disposing of an item from inventory?
- Confirmation from the primary user department that there is no further use for the item (correct)
- Approval from the finance department
- Consultation with external disposal experts
- Approval from the warehouse manager
How should the disposal of goods conclude, according to the Stock Write-Off & Disposal process?
How should the disposal of goods conclude, according to the Stock Write-Off & Disposal process?
What is one of the objectives of the Stock Write-Off & Disposal process?
What is one of the objectives of the Stock Write-Off & Disposal process?
In what manner should moveable assets be removed, if approved?
In what manner should moveable assets be removed, if approved?
Who is responsible for identifying materials to be disposed in the User Department?
Who is responsible for identifying materials to be disposed in the User Department?
What is the purpose of the Disposal Request Form (DRF)?
What is the purpose of the Disposal Request Form (DRF)?
Who is responsible for registering DRF details and circulating the list of materials to other departments?
Who is responsible for registering DRF details and circulating the list of materials to other departments?
When is a Disposal Request Form (DRF) forwarded to Finance & Accounts (F&A)?
When is a Disposal Request Form (DRF) forwarded to Finance & Accounts (F&A)?
Who reviews DRF to determine if potential hazard exists and contacts HSE or ETSD for technical input?
Who reviews DRF to determine if potential hazard exists and contacts HSE or ETSD for technical input?
What is considered in making a recommendation for disposal?
What is considered in making a recommendation for disposal?
Who approves or endorses for higher approval based on asset book value?
Who approves or endorses for higher approval based on asset book value?
What happens if a Disposal Request Form (DRF) is not approved?
What happens if a Disposal Request Form (DRF) is not approved?
What documents are included in Input/Output Documents?
What documents are included in Input/Output Documents?
What are the Performance Measures related to?
What are the Performance Measures related to?
Study Notes
- Upon completion of a project, the Project Manager and Supply Chain Manager review residual/surplus materials.
- Materials may be returned to inventory or disposed of.
- Guidelines for disposal include materials that are no longer fit for use, in excess of requirements, obsolete, or damaged.
- Disposal requests must be processed in a controlled, detailed, and transparent manner.
- Disposal Request Form (DRF) is used to initiate the disposal process and track progress.
- For stock disposal: Asset holder (User Department) identifies materials to be disposed, obtains approval, and forwards approved DRF to SCM MRP Controller.
- SCM MRP Controller registers DRF details, circulates list of materials to other departments, and arranges for transfer to other departments or disposal.
- For asset disposal (excluding direct expense materials): SCM MRP Controller forwards DRF to Finance & Accounts (F&A) for adjustment to stock records.
- F&A endorses DRF and returns net book value to MRP Controller.
- SCM MRP Controller reviews DRF to determine if potential hazard exists and contacts HSE or ETSD for technical input.
- Recommendation for disposal is made based on review, including methods of disposal such as sales to third party, auction, or destruction.
- Approval of disposal is sought from the approving authority.
- User Department approves or endorses for higher approval based on asset book value.
- If DRF is not approved, it is returned to the disposal originator.
- If DRF is approved, it is forwarded to the MRP Controller and Warehouse for disposal process to commence.
- Input/Output Documents include Approved Disposal Request Form (DRF) and Approved Materials Issue Voucher (MIV).
- Performance Measures include timeliness of circulation and response to list of materials to be disposed, accuracy of the DRF, and accuracy of the MIV.
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Description
Learn about the process of writing off and disposing of moribund materials and non-moving items according to NNPC Stocking Policy and Asset Management Principles.
