If the materials required are available then the storekeeper will issue the

If the materials required are available then the

This preview shows page 7 - 14 out of 27 pages.

* If the materials required are available, then the storekeeper will issue the materials to the production dept.
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* * If the materials are unavailable due to smaller quantity or insufficiency then the store clerk will issue a Purchase Requisition Note to the Purchasing Dept. * This document is to inform the purchasing manager to initiate the purchase of the materials as the materials are almost finished or have reached the reorder level. * The store clerk will indicate the quantity, code and description of materials on this document.
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* * The Purchasing manager will contact the suppliers to supply the materials hence a Purchase Order (PO) will be sent to the suppliers. * A Purchase Order is a document to order materials from suppliers where quantity, description and price of materials will be indicated on the document. * A copy of purchase order will be sent to the Goods Received Dept and Accounts Dept.
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* * Suppliers will send the materials to the Goods Received Dept together with a copy of invoice and delivery note. * The Goods Received Dept will check the quantity, the description and coding of the materials against the actual details of invoice and the purchase order. * Once everything is satisfied, a Good Received Note (GRN) will be issued by the Good Received Dept which confirms the quantity of materials and its description and suppliers information are verified accordingly. * Then, the materials, the GRN will be sent to the Inspection Dept to check the quality of materials.
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* * The Inspection Dept will check as to the quality of the material whether it reaches the company’s standard quality or other specification required. * Once satisfied, an Inspection Report will be issued and later the materials, a copy of GRN and the Inspection Note will be send to the store to be kept. * Once the procedures above have been carried out, the Accounts Dept will make the payment to the suppliers.
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* * To ensure all materials are properly kept and stored in accordance and efficient manner to avoid material pilferage, deterioration and material losses. * Thus, well equipped stores need to be maintained to ensure substantial contribution to efficient operations. * Nowadays, all materials use coding system to classify the materials for store keeping and usage reason. * Bin card system is used for keeping detailed receipts and issues of materials for storekeeping purposes (in quantity terms).
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* * Need to control the stock level to ensure sufficient stocks of materials are maintained to meet production requirements and to avoid stockout from happening. * Stockout is a situation where stocks of materials are insufficient and will result to stoppage in production and company will not be able to meet the customer’s needs and requirement and as a result company will loose its revenue and good faith.
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  • Spring '16

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