MATERIAL MANAGEMENT. Spares are inevitable for a smooth running of any system. Stores and inventory play a major & significant role in economical operation of any organization.
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Spares are inevitable for a smooth running of any system.
Stores and inventory play a major & significant role in economical operation of any organization.
Proper storage and transaction of materials result in providing better services and in optimising material resources.
Different procedures and practices are being followed by different organisations for stores management.
For ease of operation and better exchange of information it is imperative to have uniform procedures within different stores of an organization.
“STORE’S STANDARDISED PROCEDURES AND FORMATS” VOL-I & VOL-II
These documents shall be reviewed and updated every 3years.
2) Maximum stock level
It is the level beyond which it shall not be desirable to hold the stock. It is decided keeping in view the overall investment, storage space limitations, inventory carrying cost etc. Inventory stock holding norms for maximum level for different category of stores has been defined in the Corp MM circular No. 16 dtd. 4.4.96. The inventory for O&M spares instore shall be maintained as per norms fixed from time to time by Corp. OS/RHQ OS. Norms for administrative items shall be decided by HOD (HR).
3)Minimum Level (Stock)
It is the level below which the stock in hand shall not be allowed to fall so as to ensure the availability of materials for meeting effectively the service requirements
4) Common Pool Material”
Stockofmaterials, (except personal/ administrative /civil maintenance items) available beyondstock holding norms i.e. as per Corp.MMcircular no.16 dt.4.4.06 and/or equipments/ spares available beyond OS norms, shall be deemed to be as surplus material under “Common Pool”.It shall exclude quantum of materials to be issued for “Work in Progress” (WIP)/ Construction.
Sl No Category of store stock holding
A) Construction Store
i) Cement 2 months consumption
ii) Steel section 4 “ “
B) O&M store/spares
(excluding insurance spares)
i) Indigenous spares 9 months consumption
ii) Imported spares 12 “ “
C) Tools and consumables 6 “ “
(for testing equipment & T&P)
D) POL/Gases 3 “ “
(excluding SF6 gas)
SF6 Gas 9 “ “
E) Scrap 12 months accumulation
“Common Pool” material shall be meant for use of entire corporation and further deemed to be under control of Corp. MM although its upkeep/custody, till issued, shall be the responsibility of concerned store where it is lying.
5) Re-Order Level
It is the level for any item at which action for the procurement of material shall be initiated. Re-order level/quantity of any item is based on procurement lead time, consumption rate as well as uncertainties in usage of items which may differ from substation to substation. However,re-order level for periodical consumable O&M items such as SF6 gas/transformer oil etc. shall be followed as per norms fixed by CC( OS)/RHQ (OS) from time to time. Re-order level for other inventory items, if possible, can be fixed by individual Store-In charge in consultationwith O&M-In charge of Substation/Transmission Line/RHQ (OS) so to keep the inventory available all the time to meet any eventuality.
6) Lead time (LT)
It is the time required to procure material i.e the time lag between the receipt of indent and the physical receipt of material in store. This shall be fixed by the store in charge based on passed experience.
Lead Time = Administrative LT + Supplier’s LT +
7) Safety stock
This is the quantity of material to be added to the ROL for covering the uncertainties in :
a) Estimation of lead time b) Estimation of lead time usage
Safety stock shall be fixed for each material or a group of material based on past experience and proper analysis
9) Mandatory Spares
10) O&M Spares
12) Control Number :
Control no. is a number alloted by store in charge to a particular voucher/issue/transfer of material which controls all connected transactions and posting in accounts books etc.
13) Bin :
It is a space/container identified for storing a particular material. Bin(s) shall be identified with a number for its identification and traceability.
14) Bin Card :
It is a card indicating the quantity of material in stock, its transaction record at any point of time. Bin card no. shall be same as that of the Bin.
15) Top/History Card :
It is a card indicating name of suppliers for a material and supply status against various PO/LOA/STV/MTNs.
1) Main group Code 2 Digits
2) Make Code 2 Digits
3) Sub System Code 2 Digits
4) Item Code 4 Digits
Also have Location Code 3 Digits
1) Ist Digit Region/CC/RLDC
2) Next two digits Store location
Code : 29 CG 37 0000
Generally materials are received in the store from the following sources
Material receipt & handing over certificate (MRHOV) :
Materials supplied by vendors & received, inspected, accepted by site in charge and directly issued to site in charge or their contractor are regularised through MRHOV. This is done to avoid double handling and re-transportation etc. Here materials are delivered directly at site and entries are made in records maintained by the concerned site.
On the inside cover of the SRV file, an index shall be drawn with columns such as :
SRV control no.
Quantity column shall be further subdivided as per the following classification of material
a) T/L Material
b) S/S material
c) Testing equipment
h) Miscellaneous items
Generally issue of material from stores shall be in modes as indicated below
a) Issue of material through “Store issue voucher” (SIV) by store for use in O&M and works/administrative requirement /individual requirement as per rule/disposal etc.
b) Issue of material for transfer to other stores within the region through “Store transfer voucher” (STV)
c) Issue of material for diversion to stores of other region through MTN
Receipt of material:
Issue Of material:
Regional standing committee designated as SSID
Sub Station level standing committee
Sale of surplus :
The recommendation of the committee on recommendation of Corp,MM ,the region can dispose as per DOP. SEBs/Utilities to be preferred.
Sale of scrap :
Stock verification is carried out tocheck stockdiscrepancy arising out of :
The store shall assist the finance to ensure that the PSL balance tallies with the stock ledger and Bin card.
No discrepancy : Verified found correct
Discrepancy : Short/Excess
Discrepancy voucher in 3copies
Original copy-Store incharge
Second copy – Finance
Third copy – Retained by verifier
In case overall discrepancy in the store for the entire region is considerable value wise, an A-B-C analysis may be carried out with categories as defined below :
i) A-Category item > or = Rs One lac
ii) B-Category item < or = Rs 10,000 and < 1lac
iii) C-Category item < Rs 10,000
i) 90% or more for A-Category item
ii) 80% or more for B-Category item
iii) As much as possible for C-Category item
Regional C&M Department of RHQ will advise action plan to all stores of the region
Store in charge shall submit report of the reconciliation efforts made and its outcome to Finance department of Group /RHQ.
Main objectives of proper storage are as follows:
i) To keep material in scientific manner and safe from all kinds of damage, deterioration and spoilage.
ii) To ensure materials in custody are available in perfect and serviceable condition for use.
iii) To reduce capital investment in store
iii) Insurance policy
iv) Material is hypotheticated
i) Store hygiene
iv) Segregation of infested material
vi) Proper handling
i) Stored in dry rooms over polythene/plastic sheets on a raised platform and away from walls to avoid ingress of moisture.
ii) Bags should be placed close together to reduce circulation of air.
iv) Piles should be covered with plastic/polythene to prevent ingress of moisture from top.
v) Mixing of cement of different batches should be avoided.
i)Should be stored in raised ramps without accumulation of water at the base
i) Protect cylinders against mechanical damage
ii) Keep valve caps in place unless they are in use
iii) Avoid exposure to excessive heat
Centralised insurance policy is taken for all stores of the Region from RHQ
i) Approval by HOD of indenting deptt./ HR (only for items of personal use).
ii)Contingent claim/ imprest adjustment note.
iii) Certification to the effect byindenter that
19) Procedure And Documentation for “cash/spot purchases” :
In case of cash/spot purchase amounting up to Rs.1,000/- the same need not be routed through stores. These purchases may be made after clearance of indent by HOD of indenting deptt. And/or certification from HR (only for personal entitlement items) that items have become due for purchase. Purchases shall be done as per provision of DOP.
These purchases shall be entered in ‘Cash/Spot Purchase Register’ to be maintained by each departmental head.After recording the items in the register, bills shall be submitted to F&A directly along with the following documents :