SUPPLIER EVALUATION & CONTROL OF OUTSOURCED ACTIVITIES

PROCEDURE
Doc.# SP-02 Date 15-02-2014

Issue/Rev. 1/02 Page ~1~

Supplier Evaluation Procedure

PREPARED BY REVIEWED BY APPROVED BY

Management Representative Executive Manager: General Manager:

Date: Date: Date:

 SUPPLIER EVALUATION & CONTROL OF OUTSOURCED ACTIVITIES
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REVISION HISTORY
Issue Rev No. Revision Date Details of Modification DCR No.

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 SUPPLIER EVALUATION & CONTROL OF OUTSOURCED ACTIVITIES
PROCEDURE
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1.0 PURPOSE:

The Purpose of this procedure is to establish a system for the evaluation/qualification of suppliers
and for their re-evaluation.

2.0 SCOPE:

This procedure applies to all suppliers of material and services of TRISTAR.

3.0 TERMS & DEFINITIONS

MR Management Representative
GM General Manager
MS Management System
Supplier Term Supplier includes the Subcontractor
TRISTAR Tristar Transport & Contracting & Tristar Engineering & Construction.
PM Project Manager
PE Project Engineer

4.0 REFERENCES

ISO 9001:2008, Clause 7.4, 4.2.4, ISO 14001:2004 Clause 4.4.6 OHSAS 18001:2007 Clause 4.4.6

5.0 RESPONSIBILITIES & AUTHORITIES

5.1 Purchasing Manager
5.1.1 Maintains the List of Approved Suppliers
5.1.2 Evaluates the Suppliers as per GMs directions
5.2 Construction Manager
5.2.1 Evaluates the Supplier of Services (Subcontractors)
5.3 EM
5.3.1 Decides the status of favourite suppliers
5.3.2 Decides the Criteria to be used for the evaluation of suppliers.
5.4 PE
5.4.1 Provides delivery records and assessments of suppliers to MR.
5.5 EHS Team
5.5.1 Advise on the legal requirements relating to supplier, product and service.
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6.0 PROCEDURE
6.1 QUALIFICATION OF SUPPLIERS

6.1.1 Suppliers of material and services shall be evaluated /qualified before placing an
order and they shall be entered in the approved list of suppliers.

6.1.2 Suppliers are selected/pre-qualified against the following criteria as a minimum:

a) Nomination by Client ( Excludes other requirements)

b) EHS Policy
c) Original Distributor/ Sole Agent ( Excludes other requirements)
d) Market Reputation
e) Appropriate certification/accreditation related to Quality & EHS.
f) Payment Terms & Conditions

6.1.3 This shall be done at the stage when new suppliers are contacted for the supply of
any material/Services by using supplier authorization form SP-02-F01 and a list of all
authorized suppliers shall be maintained.
6.2 FREQUENCY & MECHANISM OF EVALUATION/ RE-EVALUATION
6.2.1 Suppliers with greater volume of transactions and or critical suppliers to the nature
of Tristar business will be selected as per 80/20 rules for evaluation, and supplier
evaluation committee will select the suppliers and evaluate them by using SP-02-F03
and summary of all the evaluated suppliers shall be maintained as per SP-02-F04.
6.2.2 The frequency of the suppliers Re-evaluation shall be on the following basis:
a) Annually
b) On new project basis
c) At the discretion of GM in case of any failure or non-conformance by any
supplier.
6.2.3 However, favorite suppliers, identified by TRISTAR, are exempted from re-evaluation
for new projects and shall be re-evaluated only on annual basis.

6.3 RE-EVALUATION CRITERIA OF SUPPLIERS

6.3.1 Suppliers shall be re-evaluated on the one of combination of the following criteria as
a minimum:
a) On time delivery
b) Quality of product ( rate of rejection)
c) Timely response to inquiries
d) Service and after sale service and
e) Results of IMS Audits conducted by TRISTAR during the re-evaluation period. At
least once in a year or on project basis suppliers should be audited.
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6.4 PROCEDURE FOR OUTSOURCING OF A PROCESS

6.4.1 It is responsibility of GM to decide as per the project requirements, where TRISTAR

will choose to:
a) outsource a process to a subcontractor for execution of works
b) Hire manpower to work under supervision of TRISTAR’s supervisory staff for the
execution of works.
c) Where as per the discretion of GM, TRISTAR chooses to outsource the works to a
subcontractor the following procedure should be adopted.
d) GM contacts or asks anyone to contact the subcontractors to submit quotations
for the works.
e) A meeting is arranged with the subcontractors as per the discretion of GM
f) Pricing, and other terms and conditions of the subcontracting works would be
the agenda of the meeting.
g) GM approves the subcontractor, based on the above meetings and other
considerations.
h) Once the subcontractor is approved, he is asked to submit his pre-qualification
documents for the approval of client/client representative (if required).
i) Once the approval of client/client representative is obtained, the subcontractor
is asked to sign the contract.
j) Once the subcontract agreement is signed a copy of the same is sent to PRO for
registration in Labor Department.
k) Before the start of works by the subcontractor a kick off meeting is arranged (if
deemed necessary by PM).
l) QA/QC briefs the subcontractor about the project procedures and hands over
forms & checklists etc. (Soft Copies).
m) Subcontractor is asked to submit the Project Organization chart and nominate a
coordinator for QA/QC issues.
n) HSE Department briefs the subcontractor regarding the HSE procedures of the
project and any other specific requirements.
o) If according to the volume of works, subcontractor cannot provide a coordinator
for QA/QC and HSE related matters, subcontractor is asked to follow TRISTAR’s
QA/QC and HSE Procedures.

6.5 PROCEDURE FOR HIRING MANPOWER

6.5.1 As per the project requirements, Project Manager may request the Managing
Director to provide manpower where TRISTAR’s own manpower is not available or
insufficient.
6.5.2 GM, upon such request contacts or asks someone to contact organizations for the
supply of manpower to submit the quotations
6.5.3 The procedural steps defined above are followed.
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6.6 SUBCONTRACTOR’s RESPONSIBILITIES

6.6.1 All subcontractors shall be responsible for the following:

a) To prepare material submittals on the provided forms, and submit to TRISTAR
for their review and onward submission to client.
b) To inform on the prescribed forms , works ready for client’s inspection and
attend the inspection by client
c) To conduct/or pay costs of any tests, as per the project requirements and terms
of contract.
d) To close all NCRs as per the project requirements, relevant to their works.
e) To prepare and submit Operations & Maintenance Manuals (if required)
f) To obtain final taking over certificate from TRISTAR, this will be given after
approval of client for the purposes of final settlement.

7.0 FORMS
7.1 Suppliers Authorization Form SP-02-F01
7.2 List of Authorized Suppliers SP-02-F02
7.3 Supplier Evaluation Sheet SP-02-F03
7.4 Summary List of Evaluation SP-02-F04

8.0 RECORDS

Mode of Minimum
No. Record Title File Location Owner Destruction
Storage Retention

Suppliers Filing Purchasing Purchasing 5 years Shredding

1
Authorization Form Manager

Purchasing Purchasing
List of Authorized Filing Manager 5 Years Shredding
2
Suppliers
Purchasing Purchasing
Supplier Evaluation Filing Manager 5 Years Shredding
3
Sheet
Purchasing Purchasing
Summary List of Filing Manager 5 Years Shredding
4
Evaluation
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Purchasing Purchasing
5 Other Records Filing Manager 5 Years Shredding