Indent for consumables raised by user department or the planning department
Indent send to stores to check the availability of materials Requisition done through ERP system Material available The store in-charge sends the approval to the Project Manager Indent forwarded to purchase department Purchase department invites quotation from vendors Comparative statements of quotations made Selection of vendor Ordering of Material from Selected Vendor if no Code is entered in ERP system for purchase order Purchase order send to HO for approval
Procurement of Free Issue Material i.e. Owner supplied Material
The dates for procurement and receiving of free issue are fixed at the start of the project.
The owner issues notification to the contractor to receive the free issue material according to these dates.
Invoice copies are made by the work contractor showing the requirement of the material.
For free issue materials, the work contractor does not place any purchase indents.
The planning in-charge prepares an item wise Material Issue Voucher and submits it to the Managing Contractor for withdrawal of material.
The Work Contractor (WC) advises the Management Contractor (MC) about the receipt of material and the certificate after the material is received on site.
After the receipt of the materials, the work contractor inspects the material.
The work contractor’s Material Controller along with the MC’s Material controller check the materials against the packing list, purchase order etc. for item conformation, quantity and visual damages.
The following records are made
Goods Receiving Report (GRR)
Over / Short Supply, Damage (OSD) and Non-Conformance Material Report (if applicable)
The OSD report is made if the quantity received is more or the material received is defective.
WC’s Material Controller then informs the WC’s QC (Quality Controller) for quality inspection.
WC’s QC raises an RFI (Request for Inspection) to MC’s QC.
WC’s QC along with MC’s QC then carry out receipt inspection to verify that the material is confirming to purchase specification requirements, all traceability, Test Certificates etc are available and are complying.
The observations of the WC’s QC and MC’s QC are recorded in “Receipt Inspection of Materials”.
In case of any non conformity, the WC’s QC informs the MC’s QC for further actions and decisions.
The WC along with the MC jointly inspect all materials for any defects, damages, and shortages and check the bills of material, certificates, and documents for any errors and issue Over, Shortage and Damage (OSD).
Stores Management Role of Store Section in Stores Management
The Store Section maintains a proper and up-to-date record of all material received and issued at site.
The Stores also ensures proper stocking, stacking and preservation of material.
It shall see to it that the material stored is easy to retrieve to prevent damage and deterioration.
Storage and Issue shall be done as per First-In-First-Out (FIFO) System, i.e. the material that has been procured first will be used up first.
The Store-in-charge receives, provides identification and ensures traceability, if applicable, of all materials in the stores.
If the material procured is not for immediate use, then the Store-in-charge ensures that the material is stored in a suitable environment and maintained during storage to prevent loss, damage, or degradation.
The test / batch certificates of all materials are received along with the material and are forwarded to the Quality Control Section at site.
Material receipt record is maintained in the Daily Material Receipt Format.
For all goods received, stores must prepare Material Receipt Note (MRN).
Purchase order ( P.O) no. for which MRN is prepared must be filled in all MRN’s.
As acknowledgement of material receipt and acceptance, a stamp is provided on the back side of the vendor’s bill / challan .
The store record is maintained in a ledger and all issues are done through issue requisition only.
Any material is not allowed to go in or out of the store without a gate pass.
The Store-in-charge ensures that the material is not issued without proper authorization.
Store section ensures that a buffer stock of all critical and fast moving items like spares, consumables etc. is maintained and any problem being faced is brought to the notice of the Site-in-charge.
The minimum stock level of critical items is maintained as per the lists provided by the planning section.
The Store Section is authorized to raise a purchase indent in consultation with the Planning Section for maintaining the minimum stock level of critical items. A register is maintained showing the status of purchase indents.
The Store section also keeps in touch with the Procurement section for procurement of indented materials. The register showing the status of indented items is updated as soon as any material is received on site by them against their purchase indents.
The Store section inspects the condition of all stored materials having a shelf life periodically and takes preventive measures for such materials.
The records maintained by the stores are Daily Material Receipt ; Stock & Issue Record; and List of minimum stock levels of critical consumables (from planning section).
Flow chart for Receipt of Materials at site Material at gate Security checks delivery receipt/challan and put ‘IN’ stamp on DR/challan and noted in the register Security informs to store and QC Store checks challan/DR QC does the visual checks Material is accepted Store inform buyer Buyer/Store In-charge sends the material to vendor back Security puts ‘OUT’ stamp on challan/DR QC takes the sample for testing of physical properties Weigh the material at site/nearby place Transporter unloads the material Store enters in DMR and update in system Store issue the material and maintain the stock status Security puts ‘OUT’ stamp on challan / DR no Yes
The Store-in-charge should always be available in the store.
He should enforce proper control, keeping vigil on the stock, issues, discrepancies, abnormal consumption, accumulation of sub-standard inventory etc.
He should coordinate with the site execution team lead by the Construction Manager for smooth running of the project.
He should keep the Construction Manager (CM) updated with the position of all essential commodities so that the CM is able to take suitable action for restocking of items before they go out of stock and the work is hampered.
On receipt of authorised requisition, the required materials should be issued to the user section in the least possible time as possible.
Once in every month he should send the certified physical closing balances of holding stock to HO for comparing with the system balances and record.
Role of Planning Department (Section) in Store Management
The Planning Department on site also plays an important role in management of materials and stores.
The Planning Section ensures the availability of owner supplied materials and consumables after inspection and analyses the record of material consumed and balanced quantity. All record about the owner supplied materials is maintained by the planning section.
The planning section prepares an activity schedule, breaking activities into a micro level and deploys manpower, equipment, and consumables for completing the work in scheduled time.
It also prepares a list of minimum stock level for consumable materials and monitors the stock level against it.
A copy of this minimum stock level is sent to the store section for maintaining the level of such materials.
Daily status report of stock level is collected from the Store section.
The Planning section revises the minimum stock level from time to time and informs the Store section accordingly.