Page 1 of 4

, AA/CQ/GL/004
Bharat Heavy Electricals Limited Revision No. 00
Corporate Quality, New Delhi Dt: 27.09.2005

Guidelines for inspection management of purchase/bought out

items outsourced to M/s Project Development India Ltd.

1.0 Objective:
BHEL has empanelled M/s Project and Development India Ltd. (PDIL) as third
party inspection agency on behalf of CQS to perform inspection of identified
purchased/bought out items (BOI). These guidelines are framed to ensure smooth
operation of inspection planning, carrying out stage /final inspection and reporting
for NTPC contracts.
2.0. Scope:
This covers processing of request for inspection, planning, coordination with
customer for joint inspection, conducting inspection and issuing final inspection
reports in respect of identified BOI/purchased ordered by various BHEL
manufacturing Units/Engineering Centres/Power Sector within India which
includes:

2.1. All Category-II (Cat-II) and Category-III (Cat-III) bought out items as per LOIs
2.2. Identified Category-I (Cat-I) bought out items as per annexure-I
3.0 SCOPE OF EXCLUSIONS:
3.1 Packages /BOIs ordered by BHEL PEM
3.2 Self manufactured items of BHEL manufacturing units and the raw materials,
inspected by manufacturing units which are further processed at BHEL
manufacturing units.
3.3 Already agreed third party inspection agency as per Quality Plan (items for which
TPI has been agreed specifically as agreed in the QP).
4.0 Definition:
PO -BHEL Purchase orders
Sub PO - Sub PO placed by BHELs main vendor on sub vendors
QP - NTPC approved Quality Plan for Cat-I & Cat-II items and
BHEL approved Quality Plan for other items
PM - PDIL Project Manager
Inspector - PDIL inspector
CHP -Customer Hold Point
MDCC -Material dispatch clearance certificate of NTPC
CQS -BHEL Corporate Quality Surveillance Group
Prepared by Reviewed by Approved by

Raj Bahadur K L Arora A. V. Krishnan

DGM/CQ Sr.DGM/CQ GM/CQ
 Page 2 of 4
, AA/CQ/GL/004
Bharat Heavy Electricals Limited Revision No. 00
Corporate Quality, New Delhi Dt: 27.09.2005

5.0 Procedure:

5.1. For independent inspection:

5.1.1. The request for inspection shall be sent to PDIL by vendor/BHEL Unit.
5.1.2. PDIL shall register the call and ensure availability of applicable inspection
documents with vendor.
5.1.3. The inspection shall be carried by designated person of PDIL, drawn from the list
attached as per annexure-II, within two days for local (within 100KM) and
three days for outstation calls.
5.1.4. Inspection shall be done as per BHEL P.O. and NTPC approved QP/drawings/
Data -sheet and quantity as per NTPC approved BBU.
BHEL shall be responsible to make availability of above documents to PDIL.
5.1.5. PDIL inspector shall verify as applicable: -
i) Material Test Certificate & traceability records of used material.
ii) Vendors internal QC records
iii) Compliance with process parameters as per Quality Plan.
iv) Qualification record of equipment, process & personnel for special
processes like welding, brazing, painting & metal coating etc.
v) Any other record, required as per QP.
vi) Any other specific instructions, including verification of compliance such
as, condition of vendor approval, as applicable.

5.1.6. On completion of inspection, PDIL shall issue final inspection report within 24
hours after completion of inspection enclosing all the relevant stage inspection
reports, final inspection/ test reports and verified document. The copy of final
report shall be sent to unit.

5.1.7. In the initial phase, the copy final inspect report with one copy of relevant
enclosures shall also be sent to concerned CQS Center.
5.2 For Joint Inspection with NTPC

5.2.1 PDIL will take up inspection of the item as per procedure given at 5.1.

5.2.2 In case of joint inspection with NTPC, a copy of inspection call shall be sent by
PDIL to concerned CQS center.
5.2.3 CQS center shall co-ordinate with NTPC to finalise schedule of inspection and
intimate PDIL.
5.2.4 PDIL shall carry out inspection alongwith NTPC representative as per QP
requirement.

Prepared by Reviewed by Approved by

Raj Bahadur K L Arora A. V. Krishnan

DGM/CQ Sr.DGM/CQ GM/CQ
 Page 3 of 4
, AA/CQ/GL/004
Bharat Heavy Electricals Limited Revision No. 00
Corporate Quality, New Delhi Dt: 27.09.2005

5.2.5 PDIL representative is authorized to sign the inspection report and CHP etc. on
behalf of BHEL.
5.2.6 The PDIL representative shall coordinate with NTPC till completion of inspection
and issue of CHP/MDCC and enclose it with the final report.
5.2.7 Concerned CQS Centers shall arrange for resolution, in case of any problem.
5.3. For inspection by BHEL before NTPC inspection
5.3.1 PDIL will take up inspection of the item as per procedure given at 5.1.
5.3.2 PDIL will mention in the report that accepted and cleared for NTPC inspection.
The copy of report shall be given to the vendor for information.
The report shall be sent to BHEL/CQS/Unit QC. After review CQS/Units QC
shall submit the report to NTPC. The clarification if any shall be obtained from
PDIL by BHEL.
5.3.3 M/s PDIL shall ensure necessary coordination till completion of inspection and
issue of CHP/MDCC by NTPC.
5.3.4 M/s PDIL shall send the inspection report to Unit enclosing CHP/MDCC.
5.3.5 Concerned CQS Centers shall arrange for resolution, in case of any problem.
5.4. For inspection by BHEL and verification by NTPC
5.4.1 PDIL shall carry out inspection as per 5.1 above and mention accepted and
cleared for NTPC review. The final report shall be sent to CQS Centre/Unit QC.
5.4.2 CQS/Unit QC shall review the report and countersign it. If any clarification is
required from PDIL, the same shall be obtained by CQS/ Unit QC.
5.4.3 Depending upon jurisdiction of NTPC, CQS/Unit QC shall submit the report to
NTPC for review and obtain CHP/MDCC.
5.4.4 If CHP/MDCC is taken by CQS, it shall be sent to Unit by CQS along with the
countersigned report.

6.0. For activities covered under 5.2 and 5.3 above, parallel inspection call shall be
raised to NTPC-RIOs as per provision of NTPC contract including notice period
mentioned therein.

7.0. Any deviation observed by PDIL during inspection, shall be forwarded to

respective BHEL Units and shall be resolved as per Deviation Dispositioning
Procedure agreed with NTPC.

8.0. CQS will conduct audit/periodic audits to ensure compliance to the specification.

Prepared by Reviewed by Approved by

Raj Bahadur K L Arora A. V. Krishnan

DGM/CQ Sr.DGM/CQ GM/CQ
 Page 4 of 4
, AA/CQ/GL/004
Bharat Heavy Electricals Limited Revision No. 00
Corporate Quality, New Delhi Dt: 27.09.2005

9.0. Feed backs/short comings as received from ultimate customer shall be intimated
to be PDIL for immediate corrective action. Preventive action (if any as decided
by BHEL NTPC shall also be communicated to PDIL for implementation.

10.0. In case of feedback, investigation at Vendors work/PDIL will be conducted by

CQS as deemed necessary.

11.0. List of PDIL/CQS/NTPC offices is enclosed in annexure-III. The jurisdiction of

PDIL/CQS offices are also given to facilitate coordination.
12.0. Following are the coordinators:
CQ, BHEL PDIL NTPC
Shri K.L. Arora Shri Gokul Das Shri S Simlai
Sr. DGM (QC) Chief Engineer(Project) Sr.Mgr. (QA)
Kribhco Bhawan PDIL Bhawan EOC, Sector 24,
Sector-I, Noida Sector-I, Noida Noida
Tele No. 0120-2443499 0120-2544063 0120-2596236
M 9818648926
cqakla@hth.bhel.co.in gdas@pdilin.com ssimlai@ntpceoc.co.in

13.0. Corporate Quality, BHEL shall conduct six- monthly review with PDIL/CQS
Centres/Unit Coordinators to review the operations.

14.0. List of Annexures:

i) List of identified Category-I items as per Annexure-I
ii) List of Authorized Inspectors of PDIL as per Annexure-II
iii) List of PDIL, BHEL & NTPC offices as per annexure-III

Prepared by Reviewed by Approved by

Raj Bahadur K L Arora A. V. Krishnan

DGM/CQ Sr.DGM/CQ GM/CQ