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: CSB/SD/PROC/003
GENERAL PROCEDURE
Page 1 of 9 Rev. 0
MATERIAL HANDLING CONTROL
Date: 11/07/2009
PROCEDURE
INDEX OF CONTENTS
1.0 INTRODUCTION 2
2.0 OBJECTIVES 2
3.0 DESCRIPTION 2
3.1 General 2
3.2 Material Receiving (For Contractor supplied) 2
3.3 Material Receiving (For Owner Supplied) 3
3.4 Material Identification and Marking 4
3.5 Material Handling 4
3.6 Material Storage and Preservation Control 5
3.7 Material Issuance and Surplus Control 5
3.8 Material Colour Coding 6
1.0 INTRODUCTION
The Material Control and Handling Procedure form an integrated part of the Contractor
Quality Management System. The development of this procedure is in line with the Contractor
processes management and the requirement in ISO 9001:2000 Standard.
This procedure is applicable for all materials and equipment that shall be used for the
construction and installation activity that are controlled by the Contractor.
2.0 OBJECTIVES
3.0 DESCRIPTION
3.1 GENERAL
The material handling process starts with the receiving of the purchase orders and other
supporting documentation from the Procurement for Contractor materials and for Owner
supplied materials, the material handling process starts from the receipt of material at site
including inspection as stipulated on contract document.
The Material Control Coordinator and/or the Storekeeper are responsible for the receiving of
the materials at the work site. They are also required to make a necessary arrangement for
the receiving, storage, handling and preservation prior to the receiving of the material. Upon
arrival at site / store, the material shall be checked against the supporting documents (P.O,
D.O, Certificates, and Data Sheets, etc.) to ensure that there is no discrepancies in quality
and quantities. The Material Control Coordinator / Storekeeper shall prepare Material
Receiving Report (MRR) and forward to Discipline Inspector for further inspection.
The MRR shall be signed by relevant personnel upon completion of all inspection.
Subsequently if the material is satisfactory, Request for Inspection (RFI) shall be forwarded to
the Owner for their inspection, if required, and if is found acceptable then the same is allowed
for use.
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In both inspections (internal or with the Owner), if the material was found not in compliance to any
of the requirement, the finding shall be recorded by the Inspector in the Material Discrepancy
Report (MDR) and immediately communicate the issue to the Contractor Project Manager and
Procurement for further action.
The Material Control Coordinator / Store Keeper shall update the Material Status Inventory Report
as necessary with the accepted material information. The Material Control
Coordinator/Storekeeper shall then prepare a ‘Material Delivery Advice’ and forward it to the
Procurement Department in the Head Office.
3.3.1 The Owner and or their appointed transporter shall be responsible for
shipping, custom clearing, transporting to site and unloading of all free issue
materials, equipment, and etc. in the designated area at work site. The
unloading of materials shall be done such as item wise, size wise and tank
wise as well by category wise.
3.3.2 The Material Control Coordinator and / or Store Keeper are responsible for
the receiving of the free issue materials, equipment and etc. at the work
site. They are also required to make a necessary arrangement for the
receiving, storage and preservation prior to the delivery of materials.
3.3.3 Upon delivery of materials / equipment at site by Owner/transporter, the
following steps shall be followed:
a) The Owner/Transporter and Contractor`s Representative shall jointly
inspect all the delivered items against the delivery order (DO), shipping
documents and relevant drawings and shall verify the quantity as well as
the physical damages, if any, during the transportation and unloading at
site. The Contractor`s representative (Material Control Coordinator) shall
prepare Material Receiving Report (MRR) and shall be signed by all parties
representative if no shortage in quantity and physical damage (during
transportation).
b) During the above inspection, if any shortage in quantity against delivery
order (DO) and found any physical damage during transportation the
finding shall be recorded in the Damage/Non Conformity Report and
signed by Owner/Transporter and Contractor`s Representative and
immediately communicate the issue to the Owner`s and Contractor`s
Project Manager for further action.
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3.3.4 Upon completion of all the above, the following activities shall be carried out:
a) The Owner`s Representative and Contractor`s Representative
(discipline inspector together with Material Control Coordinator) shall
jointly inspect all materials, equipment, etc. thoroughly with the use of
necessary tools, equipment, etc. item by item against the data sheet,
drawing, design calculation, etc. to ensure there are no discrepancies
in quality. The Contractor`s Representative shall prepare Material
Inspection Report (MIR) and shall be signed by both parties (Owner /
Contractor Representative).
b) During inspection the following shall be followed:
If the materials found satisfactory without any discrepancies in quality
and then the same is allowed to use.
If the materials are acceptable but with minor discrepancies and not
required any rectification/replacement shall be recorded in the
Material Inspection Report (MIR) with supporting document such as
photos and the extent / type of discrepancies and signed by both
Owner/Contractor`s Representative and then allowed to use.
That material that is not acceptable and not possible to rectify shall be
rejected. In such case the same shall be brought to the attention of
Owner`s and Contractor`s Project Manager with supporting documents
evidence for their further action to procure or replace the materials.
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Specific item number. (The item number if not specified by any support
documents shall be the one that is established by the Material Control
Coordinator/Storekeeper. ‘Accept’ (Green), ‘Reject’ (Red) or ‘On hold’
(Yellow) marking or segregation shall be marked or tagged accordingly
after the inspection as an evidence for inspection status. A color system
as mentioned above has been established and shall be made known to all
related personnel. A copy of the above color code shall be displayed
prominently at all work places.
The material shall be segregated by ‘Accept’, ‘Reject’ or ‘On Hold’ areas. The
areas shall be clearly marked accordingly.
3.4.2 For Owner Materials
Piping materials shall be painted on the outer surfaces with the identification
colors for material, type and schedule/ rating as per Owner color coding
procedure for piping. All other Owner’s supplied materials shall come with
proper tags / marking / nameplates as the case may be for easy identification.
Proper care shall be taken to ensure that tags / marking are not damaged
during handling /installation.
Materials that are sensitive to corrosion shall be handled without getting in contact with ferrite
materials. If carbon base tools are to be used, the contact surface shall be isolated.
Suitable lifting gears shall be utilised during handling heavy load materials and ensure the gears
that are used will not deteriorate the quality of the products/parts.
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Suitable storage area shall be established at site and shop to ensure the conformity of the
product or parts of the product are maintained. The marked-up storage area plot plan layout
may be prominently prepared and displayed.
In general the storage areas are divided into four main categories namely:
Covered Warehouse – Priority for the material that may easily deteriorate in quality and
security if stored in outdoor.
Covered warehouse with air conditioning – Priority for the materials that may easily
deteriorate in quality if stored in covered warehouse without air conditioning.
Out Door Storage – for that material that have very low probability of deterioration in quality
and security with or without minimum preservation (Weatherproofing material – canvas or
plastic sheeting).
Special Out Door Storage – For material that easily deteriorate in quality and quantity but
unable to be stored in the Covered Warehouse due to special reasons (size, mobility, safety,
etc.). This type of storage shall be accompanied with a comprehensive preservation program
(to be established at site for case to case basis).
Storage method in all the above areas shall also be considered and ensure the type that used
will not deteriorate the quality of the products/parts and maintain easy handling at all time. No
materials shall be stored on the ground except in the Covered Warehouse with raised
concrete floor.
Suitable barricaded or separation areas shall be prepared for corrosion sensitive material
from ferrous base material.
Supplier’s special storage requirement (such as welding electrodes, fluxes, tools etc.) shall be
strictly followed to maintain the quality of the material.
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At the end of the project all the Material Status Reports will be reviewed and physical
verification will be carried out to determine consumption and / or surplus material status.
Material Status Report will be prepared to record remaining materials at site. The Project
Manager must obtain approval from the General Manager (Commercial) for the disposition of
the saleable surplus material. Disposition of scrap material is under the jurisdiction of Project
Manager.
In the event that the surplus material is required to be returned to the Owner the
Material Control Coordinator/Storekeeper shall complete a ‘Material Return Voucher’
(MRV) and obtain approval from the Project Manager. The approved MRV shall form
as a delivery order and receiving confirmation for the return items. The Project
Manager shall ensure that the Owner sign receipt and stamp the MRV. This format is
applicable for both materials that supplied by the Owner and the Contractor.
The colour coding for all piping material shall be as per Owner specific requirement. Owner’s
colour coding requirement will be provided by Owner to the Contractor. Proper care shall be
taken by the Contractor to ensure material tags are tied / secured to the respective items and
or not lost or damaged during handling / storage / installation.
Necessary records shall be compiled in the final documentation package as required by the
contract and this completed document shall be maintained.