Trinity Operating Procedures - TOPs

TOP-PURCH: Raw Material Purchasing

Rev: 12/06/2017

Scope: This procedure covers the purchasing of raw material (primarily metal bar stock)

Procedure:

STEP	WHO	WHEN	INFO TO USE	WHAT TO DO
1	Buyer	Daily	Customer order and specifications; inventory info in M2M	Run and check Material Outlook spreadsheet; call up On Hand by Location Report in M2M to check for having an adequate supply of material that meets the specifications of the Job Orders.
2	Buyer	Standard BOM and Router requires a change in the size or a change in the process after the Job Order is opened	M2M Job Order number; PDF file of Customer PO	Update the Job Order BOM and Router as needed and email to Forging Engineer for approval.
3	Forging Engineer	Upon receipt of an email from Buyer requesting approval on the Job Order BOM and Router changes	Job Order BOM and Router; email form Buyer; customer's original PO	Use information from Buyer to review and approve Job Order BOM and Router changes.
4	Buyer	Upon identifying the need to purchase material (due to a customer order or a low stock condition)	Material Outlook spreadsheet; On Hand by Location Report in M2M: Material Availability Report in M2M	Determine ordering needs per purchasing policy; e-mail, telephone or fax selected raw material suppliers with list of needs (material may only be purchased from suppliers approved per TOP-SAPVL, but unapproved suppliers may also be asked for consideration); inquiries for all purchased material and services related to product we sell must clearly describe the material/services requirement, including all applicable specifications and supplemental requirements.
5	Buyer	After receiving quotations back from suppliers	Supplier quotations; customer orders; specs	Review supplier quotations; within 3 business days of quotation solicitation, if need a waiver on specifications or delivery from the customer, ask Customer Service Representative to perform step 4; if an unapproved supplier needs to be considered, petition QA Manager to add supplier to Approved Supplier List
6	Customer Service Representative	As requested by Buyer	Customer order; info from Buyer	Contact customer, inform them of material availability difficulties and renegotiate specifications, delivery or price; update in computer; return to Buyer
7	Buyer	Upon decision to place purchase order	Supplier quotations, customer orders;specs	Enter Purchase Order* information into computer (supplier, grade, size, quantity, delivery, specifications and price); if customer order is being held pending material order, complete step 1.
8	Buyer	After printing	Purchase Order	Email Purchase Order to supplier; file  Open PO FIle; submit link to the current Flowdown Document with the Purchase Order to the supplier at the time of order
9	Buyer	As supplier acknowledgment arrives	Purchase Order and acknowledgment	Compare acknowledgment with PO in Open PO FIle; if discrepancy, contact supplier and resolver; attach acknowledgment to PO copy in  Open PO FIle
10	Buyer	If PO needs to be changed or canceled	Customer change order, notice from supplier, etc.	Negotiate change with supplier (possibly involving Customer Service Representative to negotiate with customer as well); finally change Purchase Order in M2M as in steps 5-7, except "Revised PO" imprinted and sent to vendor

* Purchasing Policy:

1. Raw material may be purchased for three purposes:
1. To meet the requirements of specific customer purchase orders, including material overages to ensure adequate yield, within credit limits stipulated by the CFO.
2. To support customer supply contract requirements, based on moving averages, averages of recent business levels, and contract-specific quantities. Supply contracts require the endorsement of the CFO.
3. To purchase larger quantities of material to take advantage of volume pricing, purchasing opportunities for forecasting, or short term demand, but only with the specific approval of the CFO.
2. Raw material purchases that exceed $50,000 per single item or $100,000 per purchase order must be approved by the CFO.

Revision history: