STANDARD OPERARTING PROCEDURE FOR Form no: NNF/PRD/SOP/05

FIRST IN FIRST OUT Date: 20/01/2020

Responsibility: Store Revision Level: 00 Page No: 1 of 1

1.0 OBJECTIVE
1.1 The objective of this FIFO System for Raw Material Storage is to establish a standardized
and efficient process for managing incoming raw materials within the company. The
primary goal is to ensure the utilization of raw materials based on the FIFO principle
(First In, First Out), thereby minimizing waste, preventing material expiration, and
optimizing inventory turnover.

2.0 SCOPE
2.1 The scope of this procedure encompasses the entire raw material management process,
from the moment of receipt to the utilization in production. It applies to all incoming
raw materials, including but not limited to materials such as 316, 17-4ph, 4605.

3.0 RESPONSIBILITY
3.1 Purchase: Responsible for ensuring that each batch of raw materials is properly labeled
with essential information upon receipt.
3.2 Store: Responsible for the physical storage and arrangement of labeled boxes based on
arrival dates.
Maintains an accurate inventory log or database that records essential details for each
batch, including arrival date and quantity.

4.0 ACCOUNTABILTY
4.1 Production Head

5.0 OPERATING PROCEDURE

5.1 Purchase ensures that each batch of raw materials has raw material name, batch
number, & Supplier name in the box.
5.2 Store ensures to write the date of arrival prominently on each and every box.
5.3 Store then place the boxes with the older arrival date towards the front and the latest
towards the back.
5.4 During material retrieval for production, always selects the box with the older arrival
date (FIFO principle).
5.5 Store team has to maintain an inventory log and updates it each time materials are
taken from the inventory.
5.6 Internal Auditor must conduct periodic audits as per plan to verify consistent
adherence to the FIFO system.

Prepared by Approved by MR

STAMP