BANGALORE

QUALITY SYSTEM Prepared

by
Approved
by
PROCEDURE
DOC NO: QAP / 08 TRK RVM

Revision No. & Date: 00 / 15/12/2009

PROCUREMENT OF MATERIALS (PRODUCTION - ACG.).
1. PURPOSE:
To ensure that materials (includes products / components / parts and job processing)
required for production of finished products are planned and procured to meet production /
delivery schedules of products.
To select and approve suppliers through evaluation on the basis of their ability to meet
specified requirements and to evaluate the performance of the supplier periodically in line
with QMS Procedures, EMS Procedures & OMS Procedures.
2. SCOPE:
Applicable to procurement of materials / job processing required for production and servicing
of AC Generators and associated spares and any production aids as required.
Applicable to evaluation, selection, approval and registration of suppliers for purchased
product.
Applicable for supplier re-evaluation.
3. RESPONSIBILITY:
HOD – PP & MM - ACG.
4. REFERENCE:
ISO 9001:2008 (QMS) – Clause 7.4, ISO 14001:2004 (EMS) & ISO 18001:2007 (OHSAS)
5. PROCEDURE:
5.1 PROCUREMENT OF MATERIALS
5.1.1 Materials required for production of TDPS products as per Sales Order / monthly
production program, material are procured against the specific products / projects
or combination of products / projects, except for procurement of safety materials,
consumable, hard wares & stock items.
5.1.2 Materials required and quantities to be procured are received from design dept in
the form of BOM / AOI.
5.1.3 PP & MM dept. shall receive the Manufacturing indent from marketing which
forms the basis for production planning.
5.1.4 PP & MM will prepare activity schedule for orders, which forms the basis for
design & for initiating planning action for long lead items.
5.1.5 PP & MM dept will prepare a monthly production program, based on
requirements / priorities of marketing. Refer Work Instruction No TJM009.
5.1.6 PP & MM dept shall work out material requirement against each of the project
in the production Programme / activity schedule from the specified BOM, advance
ordering information etc., and take action for procurement. This work is divided
among PP&MM personnel as per work instruction – TJM 004.
5.1.7 PP & MM dept shall release purchase order / LOI on approved suppliers for
procurement of components or raw materials.
5.1.8 Suppliers are selected from the approved suppliers list.
5.1.9 In case of emergency, a new supplier, not yet approved can be considered
for procurement by taking approval of factory chief. Depending on supplier’s
request & based on their performance, they may be considered for inclusion in
the approved supplier list subsequently.
5.2 Consumables/Production Aids/Maintenance spares/Instruments etc.:
Materials covered under this category are procured based on the purchase Request
received from concerned departments in format no. T68018R0 Production consumables
ALL INFORMATIONS CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND THE PROPERTY OF TD POWER SYSTEM PVT., LTD.
REPRODUCTION OF THESE IN ANY FORM IS TO BE DONE WITH THE SPECIFIC PERMISSION OF THE COMPANY.

TDPS – 02 UNCONTROLLED COPY IF PRINTED Page 1 of 5

BANGALORE
QUALITY SYSTEM Prepared
by
Approved
by
PROCEDURE
DOC NO: QAP / 08 TRK RVM

Revision No. & Date: 00 / 15/12/2009

PROCUREMENT OF MATERIALS (PRODUCTION - ACG.).
like welding electrodes, brazing rods, brazing flux, paint, gases, safety items, etc. are
procured based on stock & consumption.
5.3 Contents of Purchase Order:
5.3.1 Purchase Orders shall contain the below given information as relevant for the
specific material being ordered:
a. Material Code.
b. Description.
c. Drawing No with latest Revision status.
d. Quantity .
e. Delivery Schedule.
f. Scope of supply, as / if applicable.
g. Machine No / Project / Frame .. as applicable.
h. Warranty Period .. as & if applicable.
i. Test Certificates / Reports, as / if applicable.
j. Inspection at.
k. Attachments, if any.
l. Commercial details like Price, Taxes & Duty, transportation, Payment terms,
etc.,
m. Any other special Notes / Remarks, as applicable.
5.3.2 Purchase orders shall be authorized by HOD - PP & MM or General Manager –
Manufacturing.
5.3.3 Any changes/modifications required, in the original purchase order already
issued to the supplier shall be affected by means of amendment to original PO
and issued to supplier.
5.3.4 P.O may be for service contract or for supply of material / components of
products manufactured from either suppliers’ own material or TDPS supplied
material in which case required material will be issued to the suppliers under a
separate Chelan governed by statutory requirements.
5.3.5 PP & MM dept. shall ensure that the relevant drawing /document as per PO. Is
available with the supplier.
5.3.6 Drawings and document issue and control to the suppliers are recorded in
drawing control register, ref. Work instruction TJM011.
5.3.7 PP & MM dept shall keep a scanned copy PO / PO-amendments issued by them
and accordingly ensure that the required material is planned and followed-up for
deliveries (based on production Programme) on the due dates and monitor
processing at the suppliers.
5.4 Materials received at TDPS are handled as per Work Instruction No. TJM007. Issue of
materials to manufacturing is handled as per Work Instruction No.TJM008. A Goods
Receipt Note is created for each supply & the same is signed by Q.A for having
accepted the supply. The GRN is then forwarded to Finance Department for bill passing
& effecting payment to suppliers.
5.5 Supplier evaluation, approval & registration of supplier:-
5.5.1 Suppliers are evaluated and approved on the basis of their capability to effect
supplies of required quality levels.
5.5.2 The method of evaluation consists of one or more of the following methods:
Method I: Supplier capability survey.
ALL INFORMATIONS CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND THE PROPERTY OF TD POWER SYSTEM PVT., LTD.
REPRODUCTION OF THESE IN ANY FORM IS TO BE DONE WITH THE SPECIFIC PERMISSION OF THE COMPANY.

TDPS – 02 UNCONTROLLED COPY IF PRINTED Page 2 of 5

BANGALORE
QUALITY SYSTEM Prepared
by
Approved
by
PROCEDURE
DOC NO: QAP / 08 TRK RVM

Revision No. & Date: 00 / 15/12/2009

PROCUREMENT OF MATERIALS (PRODUCTION - ACG.).
Method II: Based on past performance.
Based on past performance as decided jointly by a team comprising of HOD’s of
PP&MM, Q.A, & Manufacturing & Engineering. These suppliers are included in
approved supplier list.
Method III: ISO 9000 or other quality system certified company:
A Supplier capability survey form, duly filled, will be obtained along with ISO-
9000 certificate copy. No separate evaluation / survey is deemed necessary, in
case of proprietary/branded item supply. The evaluation is applicable only in case
of non-branded item supply.
5.5.3 The evaluation of supplier’s capability through survey is as follows;
5.5.3.1 Receipt of letter by PP&MM from supplier, requesting registration / offering
to supply materials.
5.5.3.2 HOD- PP&MM & to decide whether supplier evaluation is required
immediately or to file the request for future use.
5.5.3.3 If it is decided to evaluate, supplier capability survey form in the relevant
format is sent to the supplier seeking registration and is obtained back,
duly filled in.
5.5.3.4 HOD-PP&M scrutinizes the details furnished by the supplier & arranges for
the visit of all/some members of supplier evaluation team for detailed
evaluation at supplier’s premises. Supplier evaluation team consists of
the following persons:
T.MIYANISHI SAN / S V MANJUNATH
R.VASUDEVA MURTHY (Leader).
T.R.KRISHNA MURTHY – PP&MM.
R.K.VARNA – MANUFACTURING
S. PRABHAMANI / VISHWANATH HANGARI – ENGINEERING
N.S. RAMESH / PRASANNA / M.R.MANJUNATH, VENKATESH -- QA.
SHRIPAD HEGDE – SUPPLIER QUALITY
5.5.3.6 The supplier evaluation team examines the supplier’s facility & quality
control systems with reference to requirements for the materials
intended to be procured from the supplier and verifies the correctness of
the information provided by the supplier in the capability survey form and
gives it’s report to HOD-PP&MM. The report shall, among other aspects,
include one or more of the following recommendations;
A To approve the supplier straight away.
B To disapprove the supplier if the facilities / quality systems or any
other critical aspects are found totally inadequate w.r.t. our
requirement.
C To re-evaluate -- list of improvements required to be made by the
supplier before granting approval. This is mainly if the deficiencies
noticed by the team are major in nature in the opinion of the team
members. This implies re-evaluation where the improvements made
by the supplier are verified to the team’s satisfaction.
D To approve, but-improvements are required, this is mainly if the
deficiencies are not major / critical in the opinion of the team
members. List of improvements required to be made by the supplier
are recorded.

ALL INFORMATIONS CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND THE PROPERTY OF TD POWER SYSTEM PVT., LTD.
REPRODUCTION OF THESE IN ANY FORM IS TO BE DONE WITH THE SPECIFIC PERMISSION OF THE COMPANY.

TDPS – 02 UNCONTROLLED COPY IF PRINTED Page 3 of 5

BANGALORE
QUALITY SYSTEM Prepared
by
Approved
by
PROCEDURE
DOC NO: QAP / 08 TRK RVM

Revision No. & Date: 00 / 15/12/2009

PROCUREMENT OF MATERIALS (PRODUCTION - ACG.).
E To be approve after trial order.
5.5.3.5 If the recommendation is to disapprove, the same will be conveyed to the
supplier by way of a formal letter.
5.5.3.6 If the recommendation is to re-evaluate, list of required improvements
recommended by the S.E.T. is sent to the supplier with instruction to
implement the recommendations and call for re-evaluation.
5.5.3.7 If the recommendation is to approve and insist on improvements to be
made, approval is granted to the supplier with the recommended list of
required improvements and a time schedule to comply with the same is
collected from the supplier. This is monitored periodically as per the
drawn schedule.
5.5.3.8 If the recommendation is to approve after trial order, a trial order/s is
placed on the supplier. Q.A / Engg. Will inspect the supply against the
trial order and based on its feed back, supplier’s approval is decided by
HOD-PP&MM.
5.5.3.9 When ever a supplier is approved, an approval letter is sent to the supplier
vide format no T68020.
5.5.3.10 The approved supplier is allotted with a supplier code and included in
approved supplier’s list.
5.5.4 Supplier directory is updated as and when a new supplier is approved, an
existing supplier is disapproved or category of supplier is changed based on
periodic supplier rating.
5.6 Self inspection status :
QA can recommend self-inspection status for specific suppliers based on their
performance rating. This is conveyed to the supplier by HOD-PP & MM.
5.7 Periodic supplier rating: -
5.7.1 Supplier performance is evaluated and rated once in six months provided the
supplier has affected supplies during the period considered. The period
considered for rating is April – September and October – March.
5.7.2 The following factors are considered for supplier rating: -
A. Quality level of the supplies made (Quality rating)
B. Competitiveness of the prices quoted by the supplier (Price rating).
C. Adherence to delivery schedules (delivery rating).
5.7.3 Supplier rating is done as below: -
The weight age factors considered for rating are as below;
A 75% for quality.
B 15% for delivery.
C 10% for price.
5.7.4 The quality rating is calculated by Q.A as per formulae in the relevant work
instruction and furnished to HOD-PP&MM. (Work Instruction No. TJM003)
5.7.5 A supplier has to score a minimum of 75 over a scale of 100 in quality rating to
continue as an approved supplier.
5.7.6 PP & MM converts the quality rating received from Q.A, which is for 100 marks to
75 marks in order to calculate the total supplier rating.

ALL INFORMATIONS CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND THE PROPERTY OF TD POWER SYSTEM PVT., LTD.
REPRODUCTION OF THESE IN ANY FORM IS TO BE DONE WITH THE SPECIFIC PERMISSION OF THE COMPANY.

TDPS – 02 UNCONTROLLED COPY IF PRINTED Page 4 of 5

BANGALORE
QUALITY SYSTEM Prepared
by
Approved
by
PROCEDURE
DOC NO: QAP / 08 TRK RVM

Revision No. & Date: 00 / 15/12/2009

PROCUREMENT OF MATERIALS (PRODUCTION - ACG.).
5.7.7 Delivery & price ratings are calculated by HOD-PP&MM as per formulae in the
relevant work instruction.
5.7.8 Quality & other ratings are consolidated to arrive at total supplier rating.
5.7.9 Supplier performance is evaluated and suppliers are rated under A/B/C
categories as follows:
1 A – for score of 91 & above.
2 B - for score between 81 & 90.
3 C - for score between 65 & 80
4. D - for score below 64
5.7.10 Based on the rating, supplier performance / status is communicated to the
supplier through the supplier performance rating appraisal sheet.
5.7.11 Supplier’s response for the above communication will be obtained to ensure
effective implementation of corrective measures.
5.7.12 Supplier falling under category `C’ continuously for three (3) consecutive
periods & ‘D’ for 2 periods will be considered for deletion from the approved
supplier directory.
5.7.13 HOD – PP&MM is authorized to delete any supplier from the approved list for
reasons outside the preview of the supplier rating aspects.

5.8 Periodic supplier audit: - Audit is carried out on selected suppliers based on criticality of
the product supplied to the performance of our product. The selected supplier shall
undergo audit as per the audit plan prepared by PP&MM dept. Based on the audit
results. Corrective actions are initiated and implemented by the supplier/s for
improvement.
6 REFERENCE DOCUMENTS/RECORDS:
Sales Order.
Work instruction for calculation of supplier rating.
Work Instruction for Material Receipt & Issues – Stores activity.
Work Instruction for Order handling & Production Program updating.
Supplier capability survey form.
Supplier audit plan.
Supplier audit report.
7 REVISION DETAILS:
Sl. Rev. Date Brief Details of Basis for
No. No. amendment Amendment
1 00 First Issue

ALL INFORMATIONS CONTAINED IN THIS DOCUMENT IS CONFIDENTIAL AND THE PROPERTY OF TD POWER SYSTEM PVT., LTD.
REPRODUCTION OF THESE IN ANY FORM IS TO BE DONE WITH THE SPECIFIC PERMISSION OF THE COMPANY.

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