MANUAL TITLE

PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


I. OBJECTIVE

To ensure that the product and materials received and issued are properly handled, stored
and maintained by the responsible personnel of the company.

II. SCOPE

Cover all the activities from receiving of materials from the supplier, checking and inspection
for accuracy, storing of materials up to issuing of items for productions request.

III. DEFINITION OF TERMS

PURCHASE ORDER List that contains item, quantity and total amount of the item that will
be order.

SALES INVOICE A sales invoice is the sale copy of purchase products or services from a
supplier to a customer.

INVENTORY LIST Record that shows all items (consumable materials or tools) and its
quantity that being issued and received by the storekeeper.

ISSUE PASS FORM Form issued by the purchasing officer to the storekeeper during
requisition of items (consumable materials or tools)

MATERIAL REQUEST FORM Form issued to request materials for production use.

IV. EH&S GUIDELINES

1. Wear appropriate PPE when handling and storing of materials in warehouse.

2. Good Housekeeping should be maintained at all times.

3. Report any unsafe condition to the immediate supervision of safety officer for preventing
accident/incident.















V. PROCESS FLOW CHART

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


RESPONSIBILITY PROCESS FLOW INTERFACES/DOCUMENTS

STORE KEEPER SUPPLIER



STORE KEEPER INSPECTION FORM



STORE KEEPER SUPPLIER



STORE KEEPER INVENTORY LIST



PURCHASING OFFICER RECEIPT


PURCHASING OFFICER INVENTORY KEEPER




REQUESTOR MATERIAL REQUEST
FORM


PURCHASING OFFICER MATERIAL REQUEST
FORM


NO


YES


PURCHASING OFFICER MATERIAL REQUEST FORM



STORE KEEPER MATERIAL REQUEST FORM







RECEIVE MATERIALS / ITEM
FROM SUPPLIER
CHECK AND INSPECT FOR
ACCURACY
NOTIFY
PURCHASING
OFFICER
ACCURATE?
STORE THE MATERIAL
ENCODING IN THE SYSTEM
MONITOR INVENTORY
PREPARE AND SUBMIT
MATERIAL REQUEST FORM
TO PURCHASING OFFICER
REQUEST FOR APPROVAL
A
APPROVED?
INFORM REQUESTOR
FORWARD MATERIALS/REQUESTOR
FORM TO STOREKEEPER
ISSUE THE ITEM

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3



VI. PROCEDURE DETAILS

1.0 In warehousing procedure, after receiving the materials or equipment deliveredby supplier,
inspection and checking done by the storekeeper usually occurs at the time of delivery. The
storekeeper who received the materials or equipment should ensure that the quantity and quality
of the delivered goods are as ordered. The storekeeper who is assign to inspect the delivered
item(s) needs to be familiar with the items to be stored. If there are amy problems, the purchasing
officer should be notified at once. The purchasing officer should contact the supplier as soon as
possible to clear up the problem.
2.0 The purchasing officer will now encode the sales invoice from the supplier for reference.
3.0 Storekeeper will be the one who will monitor all items at the warehouse for its inventory.
Every week the storekeeper must submit the inventory list to the purchasing officer for reference.
Schedule for inventory of all items will be every Saturday.
4.0 Issuing of the item will be done by the storekeeper and the requestor will use Material
request form to request some item to the Purchasing Officer and it will be forwarded to the General
Manager or Project Manager for its approval before issuing the item.
VII. REFERENCES
PURCHASE ORDER
SALES INVOICE
INVENTORY LIST
MATERIAL REQUEST FORM

VIII. DOCUMENT HISTORY LOG

REVISION NO. EFFECTIVITY DATE DESCRIPTION OF CHANGE AUTHOR
00 Initial Release Ingrid Kamil Manalo










MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3





Warehouse Management Policy and Procedures Guidelines Outline (Sample)

1. INTRODUCTION (Starting purpose and scope of the warehousing function)
2. STAFFING NEEDS (Minimum and maximum requirements. Provide required skill sets and TORs)
3. STORAGE FACILITIES
Location and site (identifying scenarios for different situations)
Roofing and Flooring (Specify what is required)
Utilities and Services (Identify the minimum standards required)
Security (for goods in all circumstances and staff in conflict environment)
Access
Office (Minimum standard)

4. ORGANIZATION of WAREHOUSE SPACE
Layout
Planning
Operating Schedules
Fire Safety
First Aid
Accessories
Methods of Storage

5. DOCUMENTATION
Goods Receive Note
Waybill
Warehouse Register
Stock Record
Warehouse Bin Card
Store Release
Packing List

6. AUTHORITY and RESPONSIBILITIES
Organizational structure
Schedule of Responsibilities

7. RECEIPT of MATERIALS
Responsibilities and Procedure
Receiving Procedures
Discrepancies

8. MATERIALS in STOCK
Responsibilities and Procedures
Items received damaged
Broken packaging resulting in loss
Stock Levels
Requirements for special storage

9. MATERIALS in TRANSIT
Documentation
Management and movement requirements

10. DISPATCH / RELEASE of MATERIALS
Responsibilities and Procedures
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Collected Materials
Delivered Materials
Materials on Loan
Operational Stock
Returned Materials
Consumables
Gate Pass

11. INVENTORY CONTROL
Carrying out an Inventory Check
Stock Level Adjustments
Purpose
Procedure
Removal of Items from Inventory

12. DATA MANAGEMENT / FILING
Procedure (Outline)

13. REPORTING
Disposal reports
Monthly or weekly or by-weekly inventory reports
Damage reports

14. WAREHOUSE INSPECTIONS
Schedule
Responsibilities and Procedures

15. APPENDICES
Format of documents and templates



























MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3




Department Procedure - - Standard Procedure for materials Control and Warehousing


Table of Contents
1. Introduction
2. Receipt of Material
3. Material Checking
4. Daily Material Receiving Record
5. Material Receiving Notice (MRN)
6. Equipment not Completely Acceptable
7. Material Delivered to Third Parties
8. Material Certificates
9. Material Certificate Register
10. Material Receiving Notice Register
11. Over, Short and Damage Report
12. Over, Short and Damage Report Register
13. Recording of Materials Stocks
14. Storage of Material at Site
15. Material issue at Site
16. Access to Company Warehouse
17. Outshipment of Materials Outshipment
18. Out-Shipment Report Register
19. Other Materials Registers
20. Warehouse Purchase Order and Requisition Files
21. Vendors Cards
22. Disposal of Surplus
23. Scrap Control and Disposal
24. Special Piping Materials
25. Equipment Protection During Construction
26. Q.C. Procedure
27. Flow Scheme Material handling Procedure
28. Material Control by Means of Computer (Piping)
29. Attachment Summary


Material Control and Warehousing

1. Introduction

The purpose of this section on material control and warehousing is to define the standard procedure for
receipt, checking, storing, protection and issue of materials for construction as well as to outline the
administrative procedures for material control. In addition a procedure is included for piping material control
by making use of a computer.

The procedures in this section are written for a fairly large job. On smaller jobs, there may not be same
numbers or titles of personnel available as are depicted here. Nonetheless, the same administrative and
operating procedures must be followed unless the Project procedure Manual calls for something different, or
if permission is received from Home Office Construction Department to vary from the procedure.


2. Receipt of Materials

Prior to arrival of material on site, advice notices or other shipping notifications will be received by the
Material Supervisor. He will record the volume and nature of the shipment and assign a storage location.
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


These documents will be transmitted by the Material Supervisor to the Warehouse Supervisor with a copy to
the related subcontractor(s) (so they can arrange for the off-loading facilities).





Upon arrival, the material is off-loaded onto the foundation or at the storage location previously determined,
in the presence of one or more checkers.

Whenever materials arrives on site without advance notification, the Material Supervisor will (if necessary in
cooperation with the Project Construction Manager), allocate storage and unloading location without any
delay, to avoid demurrage on vendors transport.

All truckdrivers will be directed by the guards to report to the warehouse first. If materials is to be unloaded
at a point other than Company Central Storage the Warehouse Supervisor will direct the trucks to the off-
loading location. A Materials Checkers must be present during off-loading. Truckdrivers delivering a large
piece of equipment will be met at the gate by warehouse personnel to guide them to the designated
unloading area.


3. Material Checking

The shipment must be first be checked to see whether it conforms with Packing Lists and the Marking,
Shipping and Invoicing Instruction issued to vendors by the Home Office Procurement/Shipping
Department, being a part of the Purchase Order. Also the Purchase Order, Purchase Requisition plus
attachments for specific instructions on loading, unloading, delivery, required official documentation, material
certificates, etc., must be checked. On some projects a Purchase Order has been placed with a Shipping
Agent, to what extent the Shipping Agent is involved must also be checked.

If the shipment consists of unpacked goods, such as structural steel, pipe, etc., each bundle or piece is
checked off the carrier by the Checker. The Same applies to boxes, crates or other packed goods.

The Checker signs for the goods that actually received, and not necessarily those shown on the delivery
documents.

Whenever a subcontractor receives Material/Equipment directly, then a copy of a delivery ticket signed by
an authorized subcontractors representative must be retained by Companys Warehouse Supervisor and all
administrative work performed as if Material/Equipment was received in Warehouse and issued to
Subcontractor.

If it is not possible to check materials during off-loading the Material Checker signs carrier delivery slip for
Material received unchecked. Materials must be carefully checked as to quantity, specification and the
condition, immediately after receipt. Before signing carriers freight bill, the checker should count the number
of pieces received and examine for evidence of visible damage. Boxes, crates, and cartons should be
carefully inspected before taking delivery. If material is received damage or not in accordance with packing
list or freight bill the delivering carrier should be requested to make inspection of damage or discrepancies,
and proper notation must be made and acknowledged by carrier on original and copy of freight bill or
packing list.

If concealed damage is discovered at a later date, the carrier should be notified immediately and requested
to make an inspection. Materials involved in any claim should be set aside and redtagged until inspection is
completed and liability has been determined. A signed record is to be drawn up on the result by the parties
concerned and Over Short and Damage Report be made. In the event that the vendor is not responsible
for safe custody of goods during transit, claims shall be processed against the carrier.

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


The Material Checker is to acknowledge the receipt of the goods only by signing the carriers copy of
delivery tickets together with the copy for warehouse records, showing date of receipt and storage location
(Warehouse row G bin 26 or Material yard row B).

The Material Checker then checks the material thoroughly against the requisition and the relevant Purchase
Order to ascertain that the materials meets the specifications and is correct in quantity.






If there is any doubt as to whether or not specifications are being met the Material Checker must report this
to the Warehouse Supervisor for his action.

Upon receipt as outlined above, the material will be tagged to the extent necessary, reflecting P.O. number
and item number and then stored in the allocated location.

All small loose parts such as gaskets, packing rings, bolts, lubricators, gauges, gauge glasses, dripwells,
ink, chart, adjusting pins/keys, couplings, spare parts, etc., delivered as part of equipment, should be stored
in bins in a separate location in the warehouse and clearly tagged with the item number and P.O. number of
the equipment.

Any drawings, materials certificates, catalogues, operating instructions and manual relating to equipment are
to be marked with the equipment and P.O. number and turned over to Warehouse Supervisor for transmittal
to the Site Engineering Department.

When material arrives at site for which no Requisition or Purchase Order is available, the Material Checker
reports this to the Warehouse Supervisor who is turn checks with the vendor, Home Office Purchasing
Department, or in the Field Buyer to see whether material should have been received. If in order, a
Purchase Order number should be obtained.

Upon completion of the above exercise, the Material Checker will turn in delivery tickets, freight bill, etc., to
the Warehouse Administrator for compiling a Material Receiving Notice. When the carrier demands freight
charges for goods that have been ordered on free at site delivery, the freight should be paid from Petty
Cash Funds and the Vendor backcharged via Project Accounting. This Procedure is outlined in the
Accounting in the Accounting Procedure.


4. Daily Material Receiving Record (DMRR)

(Form BN-UC 17 Attachment 1)

The Material Administrator will enter all materials received (from information on freight bills or packing lists),
in a Daily Material Receiving Record DMRR immediately after receipt.

This information should be available from hour to hour for the benefit of the construction forces.

Copies of this report will be distributed before 09.00 hours the day after the receipt of materials at site. The
description of materials received will be in abbreviated form Distribution of the DMRR will be in accordance
with the Document Distribution or Construction Coordination Procedure.


5. Materials Receiving Notice (MRN)

(Form BN-UC 15 Attachment 2)

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


If no shortages, damages or discrepancies are found, a Material Receiving Notice (MRN) is then prepared to
acknowledge the receipt of the material against the relevant Purchase Order. For materials arriving at site
not covered by Requisition or Purchase Order a MRN should be made, after obtaining a Purchase Order
number, with note in the remarks column as no P.O./Requisition is available we are listing materials as
delivered to site. After receipt of P.O. and requisition, material should be checked against these documents
and a revised MRN issued, if required.

Material Receiving Notices must be issued and distributed without delay so that the payment may be made
and advantage can be taken of any terms of payment.




For Field Purchase Order the requisition number should be noted on the MRN. If an Over Short and
Damage Report is involved the Over Short and Damage Report number must be noted on the MRN.

A separate MRN must be used for each shipment

Two or more shipments from one vendor must not be combined, even if they are received the same day and
are applicable to the same order. Materials from two or more packing lists must not be combined on the
same MRN, even if received on the same freight bill. Generally, vendors invoice for each shipment or
packing list separately and the Material Receiving Notice is needed to support each invoice.

As Material Receiving Notices are made, the requisition or Purchase Order is to be marked up to reflect
receipt of the material.

The exact storage location is to be noted on the MRN. This document is issued to update the stock control
system.

When the material received must be inspected by a specialist before an MRN is issued, the Warehouse
Supervisor will send an equipment check sheet to the appropriate specialist (Pumps, Compressors, Heat
Excharges, etc., Electrical and Instrumentation). A copy of this check sheet must be sent immediately to the
Home Office (Expediting Department and Accounting Department). This advises them that the material has
arrived on site and that a MRN will be issued as soon as inspection is done. After the specialist has
inspected the equipment (which must be done within three working days), the check sheet is returned to the
warehouse and a MRN issued immediately.

When goods being received are fully listed or described upon the packing list, this packing list can be used
as an attachment instead of relisting them all on the MRN.

The Warehouse Supervisor is responsible that the MRN is checked carefully, location is given, etc., All
Material Receiving Notices will be signed by the Warehouse Supervisor.

Material Receiving Notices are printed in blocks with a white original, and colored copies, and are to be
distributed in accordance with the Document Distribution List.


6. Equipment not Completely Acceptable

Occasionally a piece of equipment is received on site with discrepancies which involved correction costs of a
minor nature compared with the total Purchase Order value of the item.

So that Company or Client may take advantage of discounts available for quick payment and also in order
not to antagonize vendors by withholding payment of a large sum because of comparatively minor
discrepancies, a partial MRN will be completed with the details of the discrepancy stated on an Over Short
and Damage Report (OS&D Report) with some indication as to cost to field of rectification. This enables
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


the Home Office Purchasing Department to resolve with the Accounting Department how much of the
vendors invoice should be paid.

The Backcharge to Vendor procedure will be followed to ensure that Company does not absorb any cost
relative to rectification.


7. Material Delivered to Third Parties

When materials are delivered by a vendor to third parties (e.g. motors to pump vendors, panel mounted
instruments to panel vendors etc.,) the items are received on site built together. An MRN for each separate
component must be issued, e.g. lone for the motor and one for the pump.





8. Material Certificates

Piping Materials

Each delivery of piping materials, authority and non-authority, will be accompanied by the proper material
certificates.

The Material Checker will check the materials against the certificates. Any discrepancies found on
manufacturers symbol, heat numbers, etc., will be notified to the Materials Supervisor immediately for action
via the H.O. Inspection/Expediting Department.

An O.S.&D Report will be issued recording the certificate and/or material discrepancies. Materials are stored
in a separate location and labeled with the corresponding O.S.&D. Report Number.

The O.S.&D. Report is cleared upon receipt of the correct certificate or upon replacement of the material as
applicable.

Under no circumstances will materials be released for construction unless the correct certificate is available.


9. Material Certificate Register

The register will show:

Company Certificate Number
Fabricators Code
Charge Number
Short Material Description
Schedule/Pressure Rating
Size
Quantity
Any other information required by contract

On completion of the project, Home Office will produce a certificate register following Client requirements
from data accumulated from the material certificate register.


10. Material Receiving Notice Register

(Attachment 2A)
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3



An MRN Register will be maintained by the Warehouse Supervisor.

The register must show:

MRN sequence number.
Date materials received.
P.O. number.
Vendor.
Material Description.








11. Over, Short and Damage Report

(Form BN-UC 16 Attachment 3)

In all cases of materials damaged, lost in transit, short or over shipped by vendor, notation must be made
on the Material Receiving Notice and Over, Short and Damage Report (OS&D Report) completed by the
warehouse.

It is imperative that a clear cross-reference is made, i.e. material Receiving Notice number on Over Short
and Damage report and Over Short and Damage Report number on Material Receiving Notice.

In the remarks column of the Over Short and Damage Report, a note must be made as to the corrective
action to be taken. Company Home Office Procurement/Expediting Department is responsible for this action
for Home Office Purchase Orders, including update of Computerized Material History file if applicable.

In the case of an overshipment on a Home Office Order, this form advises Home Office if the overshipped
quantity can be used by field or if it should be returned to vendor for credit.

Field makes no disposition of this material, either is to use or return until advised by the Home Office. If to be
returned, the Home Office Expediting Department will secure shipping instruction from the vendor and
advice the field by means of an AVO or telex authorizing shipment.

In some cases, it will be the responsibility of the client to decide if over delivered items can be accepted. In
such cases an Over Short and Damage Report is not required. The Client approves the Material Receiving
Notice which should state Overdelivered quantities will be accepted by the Client.

When a shipment from vendor is short, the Over Short and Damage Report Advises Home Office whether or
not materials are needed and the Home Office Expediting Department takes the necessary steps to secure
materials or credit from the vendor. If the shortage is caused by loss in transit, and the material is not
urgently needed, action should be withheld for a reasonable length of time to allow the carrier to attempt to
trace and locate lost items.

When materials/equipment are received damaged or not according to specification, a copy of the O.S.&D.
Report is forwarded to the Site Engineer for the issue of a Non-conformance Report.

When materials/equipment are received damaged, a copy of the freight bill or packing list with
acknowledgement of the carrier (see Item 3.0 Material Checking) should be attached to the Over Short and
Damage Report.

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


If claims on vendors or carrier involve repairs by field forces (after authorization by the Project Construction
Manager or Home Office A.V.O.), costs of materials, equipment and labor must be accumulated and
included in a claim (see Backcharge Procedure).

Over Short and Damage reports shall be distributed in accordance with the Document Distribution List or
Construction Coordination Procedure.


12. Over Short and Damage Report Register

(Form BN-UC 22 Attachment 4)

The purpose of the register is to maintain a record of all Over Short and Damage Reports to ensure that the
Home Office Expediting and Accounting Departments are informed of all reports.






This register shall be maintained by the Warehouse Supervisor. Once a month a listing of all open Over
Short and Damage Reports shall be mailed to the Home Office Expediting Department with a copy to the
Project Construction Manager (and, when required, to the Clients resident Engineer).

All claims on carriers or vendors should be controlled by assigning a Backcharge number and recording it in
the Backcharge register.

Over Short and Damage Report Register

(Form BN-UC 22 Feb. 80 Attachment 4)

Register will show:

Over Short and Damage Report sequence number.
Date.
Purchase Order number.
Material Receiving Notice number.
Vendor.
Description.
Material Receiving Notice clearance number.
Remarks.
Non-conformance report, if relevant.


13. Recording of Material Stocks

(Form BN-UC 46 Attachment 5)

All materials received shall be entered on Material Stock Record Cards, which reflect particulars as shown
on the Material Receiving Notice, Over-Short Reports and Purchase Orders. The complete description of the
material, item number and the exact storage location shall be included.


14. Storage of Material at Site

Upon receipt, all materials not directly delivered to the works or Pipe Fabrication Shop, should be stored
either in the warehouse or material yard.
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3



All small materials, instruments, electrical material, tubing, small pumps, etc., must be stored inside
warehouse.

All large pipe, fittings, valves, etc., will be stored in the warehouse or yard. Materials will not be stored
directly on the ground. An under layer of wood or suitable material should be used.

All pipe must be stored by type, size and schedule on sleepers with at least 10 cm slope for water drainage
and pipe ends (plain or threaded) checked for satisfactory caps/protection. If not already done by vendors,
the Warehouse Supervisor is responsible that all material stored either in the Warehouse or yard is properly
marked and color coded in accordance with the specification.

Hours and materials spent on this marking and coding shall be reported by the Materials Supervisor for
Backcharge purposes.

This color coding must be maintained throughout the storage / construction period. Each member of the
Material Department and Specialist Engineers will be supplied with the copy of the marking and color coding
procedure to facilitate the application of correct marking upon the material when received and the traceability
of the material throughout the construction period.




Corrosion protection is either the Subcontractors or the Warehouse responsibility. Warehouse Supervisor
shall check regularly that this work is properly done.

The Material Supervisor will check on a regular basis the handling and storage of the materials at the
subcontractors shop.


15. Material Issue at Site

(Form BN-UC 74 Attachment 5A)

All materials will be drawn from the warehouse on a Material Requisition which must bear the signature of
the Subcontractors authorized Supervisor or the Company Specialist.

A list of authorized signatures should be kept and should show the following

Name of employee (Printed)
Function (Title)
Signature Specimen

A block of numbers shall be allocated to each subcontractor. Material requisitions shall reflect relative item
numbers, quantity, description, drawing and/or unit number. These requisition shall be issued in duplicate,
the original for the warehouse, the copy for retention by the drawer of the material.

Material requisitions must be checked carefully before material is issued to assure that specific allocation is
given, and that subject material has not been previously issued.

Whenever material has been previously issued, the Material Administrator should write on requisition:
Material already issued, see previous requisition number . . . . . ..

Material should never be issued twice. If delivered by error, the Warehouse Supervisor will collect this
material from the Subcontractor.

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


The Warehouse Supervisor will receive from the Site Engineer a copy of all piping iso/drawings and their
revisions. All issue of material must be marked with red pencil on these drawings. This is for control
purposes and to ensure that no material has been issued twice.

Upon receipt of a revision to a drawing or Isometric Materials have to be checked against the previous issue
of the document. In the event more materials are required, Company should prepare this material and inform
the Subcontractor accordingly. Where materials have been deleted, the Subcontractors shall be requested
to return this material to the warehouse if not necessary for drawings/requisition in hand for issue. The
Subcontractor is informed in writing when deleted materials from one drawing/requisition have been
allocated to another drawing/requisition.

After the relevant materials have been issued, the materials requisition is posted in the Materials Stock
Record Card.

All requisition received in the warehouse must be filed according to requisition number and per
subcontractor. All finals must be filed together. All partial requisition must be filed separately.

If materials requested on a requisition are not in stock, the Warehouse Supervisor should check if they are
on order. If this is the case, the requisition should be filed in an outstanding requisitions file. This file should
be check to see if any requisitions can be further completed. If outstanding materials are not on order he will
send a Photostat copy of the requisition to the Materials Supervisor for further action. Where piping material
is required, other than for an iso/drawing, e.g. for temporary lines, the requisition shall be approved by the
Project Construction Manager or his delegate.




Under no circumstances will material be issued from the warehouse or storage yard to Subcontractor
without the presence of a member of Companys Material Department and use of all required materials
control documents.


16. Access to Company Warehouse

The following personnel have been access to the Company Warehouse at all times during working hours.
They are requested to notify the Warehouse Supervisor before entering the Warehouse:

Project Manager
Project Construction Manager
Area Superintendent
Site Engineer
Office Manager
Material Supervisor
Safety/Security Officer
Construction Specialist
Clients Representatives

All other personnel entering the Warehouse must be accompanied by the Warehouse Supervisor or Material
Administrator or any one of the personnel mentioned above.


17. Outshipment of Materials Outshipment

Report (OSR)

(Form BN-UC 18 Attachment 6)

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Materials which are shipped from the job site, must be covered by an Out-Shipment Report.

This Out-Shipment Report must reflect the Out-Shipment Report sequence number, quantity, item number
and full description of the material, together with the Purchase Order Number upon which the material was
originally received.

Full details of consignees name and address, reason for the shipment and method of shipment must be
given. Out-Shipment reports will be signed by the Materials Supervisor. The Client may request to
countersign these reports. The carrier must sign legibly for receipt of the goods and insert the registration
number of the vehicle carrying the goods.

Out-Shipment Reports must be posted on the Materials Stock Record Cards. If an Out-Shipment Report
involves material being sent out for repair or replacement, a Material Receiving Notice must be made when
material is returned/replaced with a note:

This MRN clears OSR no . . . . . . . . .partially / in its entirety, whichever applies. Material Receiving Notices
for Clearance of Out-Shipment Report must be noted in the Out-Shipment Report Register.

Subcontractors properly which is moved from the site on their own Out-Shipment form must first be checked
by the Company Warehouse, and a properly completed Out-Shipment report must be attached as cover
sheet.

The Materials Supervisor will sign Out-Shipment Report after obtaining approval from Project Construction
Manager.






Materials on Company Home Office Purchase Orders should be out-shipped only after obtaining AVO or
telex approval from the Home Office Expediting/Purchasing Department. An Out-Shipment Report Register
will be maintained on Warehouse by the Material Administrator.


18. Out-Shipment Report Register

(Form BN-UC19 Attachment 7)

This register will Show:

Out-Shipment Report sequence number.
Date.
Name of consignee.
Description of material.
Remarks (used also for Material Receiving Notice clearance number).

A copy of Out-Shipment Report must be mailed to the vendor. Further description of Out-Shipment Reports
should be made in accordance with Document Distribution or Coordination Procedure.


19. Other Material Register

Besides a register for Material Receiving Notices, Out-Shipment and Damage Reports, Out-Shipment
Reports, the Warehouse will maintain the following registers:

19.1 Cable Reel Register
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3




(Form BN-UC 13 Attachment 8)

This register will show a listing of all cables received at site. Including the name of the vendor, size and
quantity of cable, date received, Purchase Order number, Material Receiving Notices number and cable reel
number, and whether returnable or not. Whenever empty reels are returned, the Out-Shipment Report
number and date of return must be posted in this register.


19.2 Oxygen and Acetylene Cylinder Register

Only when purchase by Company.


19.3 Gasoline and Oil Drum Register Returnable Drums

Only when purchase by Company.


19.4 Special Container Register Returnable Containers

In some cases, materials are received at the job site in containers for which special charges are made.
These are charges on invoices for material involved and credited on return. In other cases, they are charged
only if not returned within a reasonable time to vendor. Those items received on Home Office Purchase
Orders will be covered by an AVO from Home Office Purchasing Department advising shipping instructions
and authorizing return when empty.

Items on Field Purchase Orders should be reported by Materials Supervisor to Job Buyer.




19.5 Rail Car Log Book

When materials or equipment will arrived on site or nearby by rail, a rail car log book should be used that will
show rail car number, time and date of arrival. After the railroad company is advised that the rail car is
emptied and ready for transportation the actual time and date the car is taken away by them should be noted
in the log book. In addition, the log book will show the Purchase Order number and a brief description of the
material received.


20. Warehouse Purchase Order and Requisition Files

The Material Administrator shall maintain Home Office Purchase Orders, Requisition, Field Purchase Orders
and Requisition files. The right hand side of the folder will contain the requisition, Purchase Orders and
Amendments. The left hand side of the folder will contain Material Receiving Notices, Out-Shipment
Reports, Over Short and Damage Reports, packing lists, and all other documents pertaining to the Purchase
Order.

The Purchase Order folder is an open file. When the final Material Receiving Notice has been issued,
Purchase Order files will be marked Complete and transferred to another section of the filing cabinet.


21. Vendors Cards

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


The Material Administrator will maintain for Field and Home Office Purchase Orders a card system indicating
names of vendors, description of material and Purchase Order number.

Cards will be field alphabetically. This card system helps to locate Purchase Orders if only the vendors
name is known.


22. Disposal of Surplus

It is our normal practice to dispose of all surplus material as soon as practical.

The procedure for disposing of this material will vary depending upon the type of contract. If materials were
purchased on a reimbursable contract all materials actually belong to the Client, and the Project
Construction Manager disposes of the material in accordance with the Clients wishes as expressed through
their field representative.

However, if the Client requests Company to dispose of the materials, this will be accomplished as stated
below:

Approximately at 85% of job completion all surplus materials is to be inventoried.

The inventory will list the item number, Purchase Order number, vendor and description and value. Tree
copies should be mailed to Home Office Purchasing Department. The Client should also be contacted to
determine if they are interested in acquiring the materials.

The Purchasing Department will investigate possibilities for disposal of the material and subsequently advise
field as to what action is to be taken. After the first surplus list has been issued, revisions to this list must be
issued regularly.

All shipments of material from the job shall be covered with an out-shipment report.







23. Scrap Control and Disposal

23.1 Scrap Control

Subcontractors are responsible for seeing that economical use is made of piping material with a minimum of
scrap. All material moved to the scrap location must be inspected by the Piping Specialist. No alloy material
may be scrapped without the permission of the Piping Specialist.

No fittings may be modified without the permission of the Project Construction Manager e.g. no. 90%
elbows will be cut to make 45% elbows. If for some emergency such a modification is made, the Company
Piping Specialist must instantly notify the Material Supervisor in Writing Giving full particulars.

In addition, if a repair or change is made, every effort must be made to return flanges and fittings to the
warehouse. Flanges in particular can be sent to an off-site machine shop for machining on an economical
basis for later reuse.

Scrap collection locations will be available at site. Subcontractors and the Company Piping Specialists will
be responsible for a weekly collection of scrap in their respective areas and dumping at the indicated scrap
fill locations. All alloy material shall be kept separated by types.

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3



23.2 Scrap Disposal

On a reimbursable job, scrap disposal will be discussed with the Client and the action to be taken
incorporated in the Construction Coordination Procedure.

On a lump sum job it is the responsibility of the Project Construction Manager to dispose of scrap in the
most economical manner and proper (auditable) records shall be kept.


24. Special Piping Materials

A separate storage area in warehouse and yard may be allocated to special piping materials. This decision
is to be made by the Materials Supervisor and approved by the Project Construction Manager.

Upon receipt, materials are thoroughly checked against the requisitions and the relevant Purchase Order to
ascertain that the material meets the specifications and is correct in quantity.

Color coding is verified in accordance with proper specification. Paint shall be of good suitable for outdoor
use, if not suitable, remedial action will be taken immediately. Color coding will be checked on a regular
basis and upgraded if necessary.

Materials are checked against certificates, manufacturers symbol and charge number are verified.

Taking into account the long delivery delay on most special types of material, no extra material, such as for
field changes, lost material by Subcontractor, etc., will be issued unless approved by the Construction
Superintendent.

The Materials Supervisor will notify the Home Office immediately of the additional material requirement even
though it might be covered by contingency material.










Pipe Lengths

The charge number will be transferred as required by the specification or applicable authority. The stamping
will be done by an authorized representative from the Mechanical Subcontractor in accordance with the
instructions of the Company Quality Assurance Manager.


Material Administration

The material administration will be handled in the same manner as for other material.


25. Equipment Protection During Construction

25.1 General

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


This section covers the minimum requirements for the protection of equipment against deterioration from the
time it is received at the construction site until it is placed in operation. It should not be applied to equipment
handling extremely high purity products, where special instruction is required. In addition, additional or
special procedures may be required to protect equipment against more aggressive environments such as
extreme cold or heat, saltwater, spray, windblown dust or sand. These additional requirements will be
furnished in the Construction Coordination Procedure.

It is assumed that materials and equipment are adequately protected for shipment and storage by the
manufacturer in accordance with Purchase Order specifications or manufactures standard practice.

If not protected by the vendor as specified in the Purchase Order, Company Home Office Procurement must
be notified immediately for the purpose of backcharging.

The field must then provide adequate protection.

When proper protection is not evident, the field shall notify Company Home Office Procurement immediately
and make sufficient examination to ascertain that the equipment has not been damaged by the omission.
Additional protective measures specified by the equipment manufacturer shall be performed.


25.2 Documentation

Records shall be kept to document the protection given the equipment while the manufacturers guarantee is
in effect. These records shall be kept from the date of arrival of the equipment at site, showing dates of
application of services of each piece of equipment.

25.3 Rust Preventives

The rust preventives referred to herein are RUST-BAN compounds. Some Clients may procedure their own
rust preventives, in which case their equivalent preventives shall be used.

Preventive suppliers can give more information as to coverage, application temperature, method of
application, drying time and method of removal.

All interior and exterior surfaces shall be clean and dry before any rust preventive materials are applied. For
cleaning of surfaces mineral spirits or solvent shall be used. Kerosene or gasoline shall not be used as
cleaning agent.





RUST-BAN 357

Recommended for bearings and internal faces.

All rotating equipment protected by this compound, shall be turned over once per week, to keep bearings
and other critical surfaces coated. This rotating should be done manually. This must not be carried out with
tools, which will damage or mark motor shafts.

Drain water form all reservoirs once a month and fill up reservoir to the proper level. If the fluid becomes
dirty or contaminated water, reservoir shall be drained, flushed with solvent and refilled.


RUST-BAN 373

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Recommended for exterior surfaces. This preventive has no lubricating properties, thus before placing
protected part in service; it should be removed from bearing surfaces, threads, or areas that come in contact
with lubricants.


MOISTURE ABSORBANTS

When internals, etc., would be very difficult to protect from rust, moisture absorbants are used for protection.
When equipment arrives from the site, the seals shall be examined and damaged seals repaired or
replaced, and the absorbant replaced, if necessary.

Seals shall be protected until the equipment is serviced for start-up.

Moisture Absorbants shall be renewed at time intervals as specified by the manufacturer.


25.4 Machinery

On receipt at the construction site, casing and internals are to be inspected through piping nozzles, etc., to
see if rust preventive has been applied. Protection to be done as follows:

Turbines, Blowers, Agitator, Gear Cases, Centrifugal Pumps and Compressors.

- Flush bearing brackets and gear cases with solvent until clean. Fill with RUST-BAN 357 at least till the
shaft and turn shaft several times to apply a protective coat to the entire shaft and bearings.

- Clean shaft couplings and exposed machine surfaces and coat them with RUST-BAN 373.

- If a pump shipped with mechanical seals installed, fill the stuffing box with RUST-BAN 357. When
mechanical seals are integral with the pump, and the pump is not protected by moisture absorbants or a
blanketing gas, the entire pump should be filled.

- Turbines shipped with carbon rings installed, fill sealed chamber with RUST-BAN 357.

- Vertical pumps shall be filled with RUST-BAN 357 after they are moved to their service location.

- Intermediate shaft supports, if necessary, are to be provided to protect against shaft sag.

- Spare rotating elements are to stored according manufacturers instructions.






25.5 Motors and Generators

Motors, designed for indoor use, and generators are to be stored indoors.
Motors, designed for outdoor use, can be stored outside free from ground protective covering, permitting
good ventilation.
If space heaters are furnished within the units, they shall be connected to the continuous power supply of
the proper rating, when stored outside, or installed at their service location.
Brushes shall be removed from brush holders, and shall be stored in a dry place, when condensation will not
occur.
Coat couplings and exposed machined surfaces with RUST-BAN 373.
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Measuring and recording of installation resistance values to be carried out as stated in the Construction
Coordination Procedure.


25.6 Transformers

Transformers intended for outdoor insulation can be stored outside.

Large indoor transformers may be stored outside, if raised above grade to prevent any damage from surface
water and if a shed roof and tarpaulin siding are provided.

Where units are supplied complete with insulation liquids/gases, these should checked on arrival at site. If
level or pressure is not within vendors tolerances, possible leaks should be located and rectified. Monthly
checks on level/pressure should be made and rectification work carried out when necessary.

Any separately supplied insulation liquid may be stored outside, without protective covering, if laid on their
side at an angle of 45
o,
with the large bung downwards.


25.7 Switchgear, Starters and Control Equipment

Equipment shall be stored indoors in a dry, warm place where condensation of humidity cannot occur.

If high relative humidity or large, rapid changes in temperature are expected, heaters shall be used to
maintain the temperature of approximately 5
o
C above minimum daily temperature.

If space heaters are furnished with in the equipment, they shall be connected to a continuous source of
power of the proper rating.


25.8 Cables

Rotate reels of properly insulated lead sheathed cable 90
o
every two weeks to prevent migrating oil from
collecting at low points.

Measure and record gas pressure in low pressure gas filled cable when received and weekly thereafter.

If falling pressure indicates a leak in the cable, maintain same with dry nitrogen until leaked is sealed.


25.9 Batteries

Batteries should be stored indoors in an inactive area to avoid accidental breakage. Batteries that have been
shipped dry and charged shall have the seals checked regularly and in case of damage, repaired according
to vendors instructions.





Nickel-cadmium and Lead-acid batteries that have shipped dry do not require maintenance. For those
shipped wet, electrolyte levels should be checked and filled required. These batteries should also be
recharged tri-monthly. Watch for over-charging.


25.10 Instruments

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


For instruments a warm, dry and vibration free environment in a secure under cover storage area is
required. Recommended environment conditions are temperature range of 15
o
to 30
o
and humidity between
30 to 40%.

Instrument can be stored in the above environment for up to four months in their shipment cases. Where
cases/packing have been opened the plastic coverings are to be retained and resealed in the manner they
were shipped. Panels to be stored in their shipping cases up-right until moved into the control house.

Instruments installed in outdoor locations shall be protected from weather and mechanical damage.


25.11 Piping

Any protective coatings/paintwork on piping shall be maintained throughout the storage and construction
period, as well as the color coding on piping.


25.12 Flanges

Flanges from 2 and up can be stored outdoors on timber floor or pallets.

All flange faces to be cleaned with a solvent if required and protective coating applied and maintained.

When machinal flange face is damaged, remedial work has to be carried out before use.

Flange facings with 125 RMS (for use with spiral wound gaskets) MUST be remachined before use, if
damaged.


25.13 Valves

Manually operated valves from 2 and up can be stored outside, on a timber floor or pallets.

Large automatic control valves such as slide valves, motor operated valves may be stored outdoors, on
timber floor and with suitable covering over each valve.

Valves stored outdoors shall be inspected every two weeks and coating and rust preventive renewed if
required. On arrival on the site, when spot check reveals remove all flange covers, clean flange faces with
solvent and coat with a rust preventive. Inspect valve stems and valves internals. It necessary clean with
solvent and apply rust preventive coating seat manually operated valves. Plugvalves and soft-seated
ballvalves to be stored in open position. Valves to be stored with spindles in vertical position.

Valve handwheels must not be used for lifting valves, slings etc. must not be passed through valve bore
during handling. Plug any open threaded connection.

Each valve shall be fitted with an aluminum tag securely attached with stainless steel wire.







Each tag shall be clearly stamped with the valve item number. Tags shall normally be closely attached to the
gland bolting. Tags on valves that do not have gland bolting may be attached to the handwheel or other
appropriate locations. Tags shall not be attached through boltholes of end flanges or where handling might
be subject to damage or loss.
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3



If not done so y vendor, warehouse to take action.


26. Q.C Procedure

Reference should be made to the Field Construction Manual Quality Control Section 20, Care and
protection of equipment during construction. If there is a difference in interpretation between this procedure
and the one stated above, the procedure which gives greater protection takes precedence.


27. Flow Scheme Material Handling Procedure

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Arrival of Material at site via Truck or Rail



Unloading at Warehouse yard on site.


Checked as to: - Nr. Of boxes, cover crates,
pieces etc. as shown on delivery receipt.


Delivery receipt signed if in order. Copy
retained.

Freight collect charges if in order will be paid
from petty cash.


Materials are checked as to:
Quantity,
Quality, and
Specifications.


In the event that materials received are not as
per the order an Over, Short and Damage
Report is prepared.















An out-Shipment is prepared to any materials
leaving site. Such shipments may require direct
authorization from Client.

Material not requiring indoor storage are placed
at most convenient point for end use.

Small fittings, bolts, gaskets, valves,
instruments, electric materials will be stored in
Warehouse.

All materials are checked on receipt for proper
protection. Pipe, is checked for color coding.
Fittings and Flanges are checked for color
coding. Valves are checked for proper tag no.
(metal label).

All equipment is checked periodically until
turnover to construction or operators, to insure
proper weather and corrosion protection.

Materials are issued to construction for
installation, upon receipt of a material
requisition.

















28. Material Control by Means of Computer (Piping)

28.1 The site computerized material Stock Control System is programmed for:

(a) Receiving of data from the Home Office mainframe computer.
(b) Transmittal of data from the site to the Home Office mainframe computer.
(c) Various Site Applications:


- Registration of certificates update.
- Registration of material receipts.
- Material allocation per given drawing or batch of drawings.
- Production of material lists for issue of materials.
- Automatic material stock level update.
- Registration of material issued per single item of a single drawing.
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


- Registration of material issued per given batch of drawings.

28.2 A telephone link between the Home Office main Frame computer and the PC at the Site Office
will be established.

Data received from the Home Office:

- Purchase orders information on a continuous basis.
- Material requirements per isometric upon request from site.
- Material description data.

Data transmitted to the Home Office:

- Material receipts on a daily basis to complete the PMC procurement cycle.

28.3 Material Receipts

All data on receipts of material will be entered into the PC on a daily basis.

By entering this data the following occurs:

- Stock levels are automatically updated
- A data file is written which is then transmitted to the Home Office via the link.

28.4 Certificate Register

The information on purchase orders transmitted by the Home Office is written automatically in the
certificate data file.

The following additional data required to be entered:

- Company certificate number
- Charge number
- Quantity
- Vendors code
- Other number/codes required by contract







28.5 Material Availability and Shortage

Data transfer on material take-off is requested from Home Office on a batch of drawings following the
construction priority schedule and following the backlog requirements of the Piping Prefabrication
Subcontractor.

A sample report is run on the site PC that shows availability of material. This may be done per batch of
drawings or for a small group of drawings which could represent a particular piping system. This report
will show these isometrics, (prefabrication and /or erection) and Material Lists that can be met from the
existing warehouse piping material stock.

The report will show Material Lists where only partial issue is possible. In these cases, the missing
material is highlighted. This information is used as a guide for priority expediting purposes.


28.6 Issuing of Materials

MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


For isometrics indicating that the materials are available on request, a Material List will be printed in
duplicate which is used for the issue of materials to the Subcontractor. The Subcontractors authorized
representative signs one copy for the receipt of the material which is held in the warehouse file and one
copy is held by the Subcontractor.

- The printing of the Materials List will automatically reduce the material stock level in the PC.

The Material Lists may be requested:

- For the fabrication items only
- For erection items only


28.7 Issue of Extra Materials to the Erection Contractor and/or Returns of Materials to the Warehouse

The issue of extra materials on drawings for revisions, filed changes, etc. will be done by means of a
Foreman Requisition. The Subcontractor signs copy of the Foreman Requisition for the receipt of
material. The Foreman Requisition is entered in the PC to update the stock control system.

Materials returned to the Warehouse are done by a negative Foreman Requisition is also entered in the
PC to adjust the stock.


28.8 Material on Hold

If may occur that systems of high priority cannot be fabricated or erected due to missing material. The PC
Material Control System allows to put the part of the available material on hold in order that it is not
allocated to a non-priority drawing. The hold can be released if required.


28.9 Reports Available from the PC Material Stock Control System

- Material available overall
- Quantity of material issued/drawing
- Certificate allocation by given purchase order
- Certificate of allocation by a given charge order
- Material shortage by given drawing number or per batch of drawings






28.10 Users Manual


Further details relative to the application of computerized (piping) materials control are given in a
separate Users Manual.


29. Attachment summary

1. DAILY MATERIAL RECEIVING RECORD
2. MATERIAL RECEIVING NOTICE (MRN)
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Item or group of like items or project
required to be purchased

Is aggregate
value in excess
of 20,000?

Are the items
available via another
resource Centre?

Initiate tender procedure

Liaise with appropriate Resource
Centre and place order

2A. MATERIAL RECEIVING NOTICE REGISTER
3. OVER, SHORT AND DAMAGE REPORT
4. OVER, SHORT AND DAMAGE REPORT REGISTER
5. MATERIAL STOCK RECORD CARD
5A. MATERIAL REQUISITION
6. OUT-0SHIPMENT REPORT
7. OUT-0SHIPMENT REPORT REGISTER
8. CABLE REEL REGISTER
9. MATERIAL RECEIPT NOTICE
10. PICKING LIST
11. FOREMENs REQUISITION/PICKING LIST














APPENDIX A
Methods of Purchase





Yes

No


Yes
MANUAL TITLE
PROCEDURE MANUAL
DOCUMENT NO:
PM-SP-04
PROCEDURE TITLE
WAREHOUSE PROCEDURE OF
PROJECT CONSUMABLES
REVISION NO: 00
EFFECTIVELY DATE:
PAGE: 1 of 3


Is there a current contract
covering the purchase of
such items? See
http://www.leedsmet.ac.u
k/fin/purch/puragree.htm

Have identical items and
quantity been purchased
within the previous 12
months

Is aggregate value
below 5,000?


Obtain 3 written
quotations

Place order with the
supplier offering greatest
value for money

Retain written quotations
and details of verbal
quotes on file for two
years for audit purpose

Place order against contract

Are prices still valid?
Was standard
satisfactory?

Is aggregate value
below 1,000?


Obtain 3 written
quotations and
record details

Liaise with appropriate Resource
Centre and place order

The budget holder shall have the
discretion to decide weather or
not to obtain quotations. Place
order





No



Yes






No



Yes Yes




No No


Yes Yes


No No