SOP Library

SOP NO: GM-DL01

Mission: Stabilization

Area: Grains Marketing (GM)

Activity: Dispersal (GM-DL)

Title: General Guidelines on the Classification of Milled

Stocks for Dispersal to MMO

Date Approved/Issued: 03/29/88

Date Effective: 04/15/88

Digest:

I. TERMS OF REFERENCE

A. RATIONALE

During the recent export operations of the agency, problems were encountered on the
classification of stocks received from miller-contractors which are subsequently delivered to the
Metro Manila Office (MMO). This technical transaction as experienced by MMO and its
regional/provincial source of stocks resulted to alleged misclassification. As a temporary
solution, the Export Pre-Classification. As a temporary solution, the Export Pre-Classification
Center (EPCC), which provides for a joint classification by SQAOs from MMO and the source
of stocks was set up. Its effectiveness prompted the MMO to recommend the adoption of the
EPCC concept in the normal/regular dispersal operations.

B. OBJECTIVE

1. To resolve the issue on the varying classifications between source province and MMO.

2. To minimize stock movements effected by rejection of stocks.

 3. To provide for a better control on the agency's dispersal operations particularly on stock
classification in order to pinpoint the responsibility and accountability for the
classification
made.

C. SCOPE

These guidelines shall cover the procedures on the classification of milled stocks coming from
regions I, II, III, IV and V for direct dispersal overland by millers to MMO.

D. BASES

MMO-SOP No. 21 on Export Pre-Classification issued and effective on 02 March 1987.

Metro-Memo 87 DO-MSS H-08 dated 10 August 1987 on the Classification of Stocks

Dispersed to MMO.

Minutes of the meeting attended by representatives from Regions III and IV, MMO, DMO,
TSD, TRDD, TRDD and MSD on the problems in the classification of stocks delivered by
millers to MMO held at the MSD conference room on 11 September 1987.

Discussions in the meeting attended by representatives from Region III, MMO, DMO, TSD,
TRDD and MSD on the creation of the MSQAC for stock classification held at the NFA Region
III Staffhouse on 6 November 1987.

II. IMPLEMENTING GUIDELINES

A. Creation of Classification Teams

1. There shall be created Metro Manila Office Standard Quality Assurance Teams
(MSQATs) which shall be solely responsible for the inspection and final classification of
direct stock deliveries to MMO by miller contractors.

2. A MSQAT shall be composed of a duly authorized representative each from the MMO and
source region. Such representatives shall be Standards and Quality Assurance Officers
(SQAO) with proven skill, competence and integrity in stock classification. Selection of
same shall be left to the discretion of the Head of Office.

3. A TSD representative shall be present at all times to act as arbiter for the team in case of
differences of opinion. Where there are more than one MSQAT created in a given period
at least one roving TSD representative shall be assigned to perform the required
arbitration function.
 4. Assignment to the MSQAT shall be done on rotation basis. No representative shall be
assigned in any given place for an indefinite period of time.

5. All representatives to the MSQAT shall be under the administrative jurisdiction of the
MMO management.

6. Field offices may be authorized to hire personnel to replace a member of the classifier
pool who may be designated to take the place of the SQAO assigned to the MSQAT
subject to the usual procedures on the request for hiring.

7. This MSQAT set-up shall be temporary in nature pending the establishment of a more
precise classification standards, policies and procedures. It shall be effective during
milling seasons as determined by DMO and TSD.

B. Classification of Stocks

1. As a general rule, there shall be no need to conduct stock classification at the source
province prior to dispersal to MMO. However, preliminary classification may be made at
the option of the miller-contractor/NFA provincial management.

2. Stocks coming from Regions I, II, III, IV and V transferred overland shall be classified at
MMO designated terminal warehouses where the MSQATs are stationed. Stocks for
export shall be pre-classified at one of the terminal warehouses as classified at one of the
terminal warehouses as determined by MMO prior to acceptance.

2.1 Source regions in coordination with MMO shall have the option of putting up a center
depending on the availability of manpower.

3. Stock deliveries direct from miler-contractors shall be supported by an Authority to Deliver

(ATD-Exhibit I). Copy distribution shall be as follows:

Copy 1 - Receiving Warehouse Supervisor

2 - Source Province
3 - Miller

3.1 The ATD shall be controlled and numbered by the concerned provincial office as
follows:

AAA - YY - MM - XXXX

where AAA corresponds to the three-letter code of the source province, YY

represents the last two digits of the year, MM represents the month number, and
XXXX corresponds to the sequential numbering starting from 0001.

3.2 There shall be one (1) ATD per truckload of stocks.

 3.3 All inappropriate items shall be cancelled by putting ( X ) strike-overs in all blank
spaces provided.

4. Upon arrival of stocks from the source province, the MSQAT shall conduct the following:

a. Unsealing of trucks and visual classification of stocks;

b. Classification and thorough analysis of stock;

For export stocks only

c. Determining the terminal warehouse where stocks should be delivered in

coordination with the MMO Marketing Operations Office (MOO);

d. Sealing of trucks for unloading at terminal warehouses outside of the MSQAT's

vicinity.

5. Procedures on the classification of stocks shall follow SQCD-TRSD SM-1: 1975 Standard
for Grains Sampling as well as other pertinent standards to be further issued by
management. For export stocks however pre-classification shall be done at the
peripherals only with the samples taken from the exposed bags.

6. Analysis of the grain samples shall generally be done at daytime.

7. Policies and procedures on the direct stock delivery by miller to any NFA terminal
warehouse outside the source province as governed by Items II.B.3.2 to 3.3 of SOP No.
GM-PG02 SOP on Contracted Rice Milling issued and effective December 18, 1986 shall
be waived in favor of the policies stipulated in these guidelines.

8. Stocks for local distribution shall be documented using the usual warehouse documents.

9. For export stocks, a pre-numbered Classification Slip (Exhibit II) shall be used to document
the classification made by the MSQAT. The Slip shall also be used for local stocks if
classification shall be done at a center. It shall be duly signed by the members of the team
and conformed to by the miller's representative. The TSD SQAO shall sign only in cases
of arbitration. Copy distribution shall be as follows:

Copy 1 - Warehouse Supervisor

2 - MSQAT
3 - Miller

9.1 The Slip shall be pre-numbered as follows:

AA - XXXX XXX
 Where AA corresponds to the warehouse code of the MSQAT's station
and XXXXXXX corresponds to the sequential numbering starting
from 0000001 at the beginning.

9.2 There shall be one (1) slip per truckload of stocks.

9.3 All inappropriate items shall be cancelled by putting (X) strike-overs in all blank
spaces provided.

9.4 The MMO General Administrative Office shall be responsible for the control and
issuance of the classification slip to the MSQAT.

10. The MSQATs shall be held accountable for all classifications made as manifested in the
"Classified by" portion of the documents.

11. In case of contention of the MSQAT's classification, re-trials of another set of samples may
be conducted up to a maximum of three (3) times in the presence of the miller's
representative/terminal warehouse SQAO.

11.1 Representative samples on all classifications made shall be properly labelled and
submitted by the MSQAT to the MMO Technical Services Office (TSO) for future
reference.

12. The ATD/Classification Slip shall be shown to the SQAO at the terminal warehouse upon
delivery of stocks and one copy subsequently attached to the original of the corresponding
warehouse document.

No stocks shall be received without the ATD and proper classification by the MSQAT.

13. The Warehouse Supervisor of the terminal warehouse shall acknowledge receipt on the
"Served" portion of the slip and shall indicate therein the corresponding WSR number on
copies 1 and 3.

14. Unloading of the stock for export shall be stopped upon the discovery of a material variance
in classification with the MSQAT. Such variance shall be immediately communicated to the
concerned MSQAT for check/verification.

14.1 Material Variance as used in these guidelines shall refer to difference in

classification which would effect the acceptability of the stocks in question, e.g.
different variety code, condition, milling degree, % head rice/brokens, etc.
Differences in the percentages of the quality characteristics of grains within the
acceptable limits and not effecting a change in variety code shall not be considered
as material variance.

15. The Directorate for Marketing Operations (DMO) shall be responsible in furnishing TSD with
the schedule of stock dispersals to MMO one week in advance.
C. Reporting and Monitoring System

The MSQATs shall prepare a Monthly Accomplishment Report (Exhibit III) indicating therein the
activities undertaken for monitoring and reference purposes. It shall be prepared in four (4)
copies, copy distribution of which shall be as follows:

Copy 1 - TSD-C.O.
2 - MMO-Director's Office
3 - MMO-TSD
4 - Source Region

D. Documentation System

These guidelines shall follow the standard procedures on the technical documentation for milling
transactions including the procedures on the use of the Authority to Deliver as an official
document of the agency's dispersal system.

E. All other pertinent provisions/policies not inconsistent with the herein provisions shall still be in
force and effect.