6.1 Item Code and Replenish

QUALITY MANAGEMENT SYSTEM LEVEL 2
Procurement and Logistics Manual

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Contents:
6.1 Item Code and Replenishment
6.1.1 Scope
6.1.2 Definition
6.1.3 Responsibility
6.1.4 Procedure
6.1.4.1 New Item Coding

6.1.4.2 Replenishment Process
6.1.4.2.1 Rig( Store , Consignment ) Items

6.1.4.2.2 Cairo Warehouse Store Item
6.1.5 Flow chart
 New Item Request Process

 Rig Replenishment Process
6.1.6 Documents
 Appendix A: New Item Request Form

 Appendix B: Rig Stock Material Replenishment Requisition (SMRR)
 Appendix C: Cairo Stock Replenish Requisition (SR)
Prepared By: SHM/MS Reviewed By: KS/AM/IHE/SH Approved By: OK
Date: Date: Date:


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6.1.1 Scope
This procedure is meant to be used as a guideline for item code creation and handling of stock
items materials requisitions to ensure maintaining minimum stock levels without causing any
delay to the operations.
6.1.2 Definitions
 Item Code
The way of identifying and categorizing specific items. This code helps identify where each
item is related to specific equipment. There is two categories of item code classification:
 Stock items:
An item is considered to be stock if it is ordered frequently, and has a code number.
Stock records are kept at the rig and Cairo Warehouse. Stock Item is monitored by the
Stock Control Section in Cairo Office. Also, the item should be a spare part for equipment
located at the rig.
There are two types of Stock items:
- Store Items:
Standard spare parts which used in all EDC rigs and have regular consumption
kept at Rig & Cairo Warehouse for continuous operation. These items are
recorded and coded at Cairo Warehouse Stock System and monitored by the
Stock Control Section.
- Non-Store Items:
Standard spare parts which are used for specific rig without regular consumption
and are necessary for safe and continuous operation. These items shall be coded
and recorded at the rig warehouse stock system and monitored by material men.
The inactive items in rigs should be reviewed by the technical team to advise the
decision either by keeping or transferring to Cairo W/H).
 Non- Stock items:

An item is considered a non-stock when it is purchased for direct use for a specific rig or
project and not spare part for equipment doesn’t have a direct impact with Operations and
should be immediately consumed and is not kept in stock.

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 Stock Coding
Each item in EDC Main / Sub-Warehouse shall has a code number consisting of:
 Function Group : XXXX

 Assembly : XXX
 Manufacturer : XXXXXX
 Serial : XXXX
Example: 1271.003.MISSON.0021
 Stock Level:
Minimizing investment in stock without affecting the operation, the quantity of each stock item
at the Warehouse is calculated based on annual consumption, rigs demand and lead-time.
 SMRR:
Stock Material Replenishment Requisition, which be generated from ERIAS for requesting
stock items on rig.
 SR:
Stock Requisition, which be generated from ERIAS to replenish EDC store inventory.
 Consignment Agreement:
Agreement between EDC and supplier to keep the needed inventory with full control and
replenish by supplier to meet EDC requirement based on agreed list of items with monthly
follow Up showing EDC current balance, rigs demand and annual consumption to let supplier
rebuild inventory based on lead-time, EDC pays only for consumed items.
 Consignment Types:
 Indoor consignment Items are stored at EDC facilities.

 Outdoor consignment Items are stored at Supplier facilities.
 Stacked Rigs:
Rigs are stacked and stopped to operate and SC obligates to use their inventory instead of
Releasing SR.

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6.1.3 Responsibility
 Stock Control Manager: is responsible to ensure that the requirements of this

procedure are implemented.
 Requester: is responsible to:
- Fill the New Item Request Form with the needed information from technical
team and send it to Stock Control section.
- For stock items: Issue SMRR to Stock control section in weekly basis.
 Stock Control Section: is responsible to:
- Ensure that New Item Request Form is properly filled-in based on provided
data.
- Update oracle inventory system for items description and part number.
- Review the SMRR issued by the Rigs and issue SR to replenish Cairo
Warehouse stock.
6.1.4 Procedure
6.1.4.1 New Item Coding
 Requester shall issue “New Item Request form” (Appendix. A), and fill in the information
required by Stock Control to handle it properly.
 Stock Control section receive batches from requester for adding new items and classify
items depends on category and Equipment model.
 Stock Control section create new item code in Oracle system and notify the Requester by
new codes bi-weekly.
(Ref.to Ch.1 “Purchasing Procedure”&Ch.4”Warehouse Receiving of Materials”)
6.1.4.2 Replenishment Process
6.1.4.2.1 Rig ( Store , Consignment )Items
 Rig Material Man shall issue the “Stock Material Replenishment Requisition” (SMRR)
(Appendix. B), send to Stock Control Section.
 Stock Control Section shall review the SMRR for Store items to ensure:
- Full correct details.

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- The required quantities fill within minimum and maximum (1-3 Months),
- If not match with minimum and maximum resend to get rig feedback and
Superintendent Approval by mail.
- Record the requisition number.
 SC Section shall upload the approved SMRR in the system and print packing slip to
warehouse.
Note:
 If the “Store items” in SMRR are not available in Cairo Warehouse, the SC Section
shall mark this items as reserved in the system with the SMRR no.
 The consignment items to be delivered to the rig within 2-3 weeks from SMRR
upload date in oracle.
 Supplier shall update the consignment sheet with the updated on hand, on order
and in transit. In addition, re-build his inventory by PO and forward it to EDC for
record.
6.1.4.2.2 Cairo Warehouse Store Item
 SC shall upload transaction batch received from Sub-warehouses.

 SC shall extract replenishment report from oracle system on weekly basis that show one
year back consumption, sub-warehouses demand, on order quantities and on hand
availability.
 SC shall issue “Stock Requisition form” (Appendix. C) To replenish the store items at
Cairo Warehouse to cover rigs demand and stock level.

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6.1.5 Flow chart
 New Item Request Process.
New item Request Process

Requester
1 to 9 Send New Item Code form

15 to 23 with full data
10 to 13
24 to 27
Valid No
Stock Control
Yes
Classify items depends on Create new item codes in

category and equipment oracle system and notify the
model requester

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 Rig Replenishment Process
Rig Replenishment Process

Rig
Replenish its demand depend

on rig requirement by SMRR
No
SUPT Review SMRR

Approved
Batch
Operation
Yes
Print Pick slip to

Yes Available warehouse to
Upload Approved handle
Stock Control
Amendment No
batch to oracle
Consignment
Issue SR from
Consignment

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6.1.6 Documents
 Appendix A: New Item Request Form

Level 2

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 Appendix. B: Rig Stock Material Replenishment Requisition (SMRR)

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 Appendix. C: Cairo Stock Replenish Requisition (SR)

Level 2

6.1 Item Code and Replenish

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QUALITY MANAGEMENT SYSTEM LEVEL 2

Procurement and Logistics Manual