KLU PROJECT OVER VIEW

● KLU Introduction● Purchase Process ● AMC(Annual Maintenance Contract ) purchase

process ● Inventory Management – Stores● Construction Procurement Process

KONERU LAXMAIAH UNIVERSITYIntroduction 1.1 KLU LocationThe KLU is located in a 50 acre campus abutting Buckingham Canal, about 9 km. from Vijayawada railway station, at Tradeswomen, Guntur District, Andhra Pradesh.Vijayawada is located on the banks of river Krishna in the State of Andhra Pradesh and is historically a cultural, political and educational center, popularly known as ‘Vidyalawada’. The city is well connected by National Highways and Railways with Chennai (440 Km.), Hyderabad (275 Km.) and Vizag (385 Km.). It is a main junction for trains running from North to South India. We have daily flights to Vijayawada (Gannavaram Airport) from various airports like Chennai, Hyderabad and Bangalore.

PURCHASE PROCESS

● All the materials are segregated into Groups

● Process Flow for Procurement Process:Indent from DepartmentsIndent Approval by ChairmanRequest for QuotationsCollect QuotationsQuotations ComparisonVendor SelectionPurchase Order CreationInward slipMaterial Receipt at Stores along with the billPhysical Quality check by expertsAttach the approval Order with bill and send to accountsPayment to Vendor Dispatch the Cheque to Vendor.

● Constructions Procurement will be same as the above processes.

● No Import Procurement process

● No Subcontracting Process

● Number of Materials in KLU is 10,000/-(Approximately)

● Number of Vendors is 400 (Approximately)

Requirements in Purchase

● Bill Wise material price should be tracked.● As on today there is no code for materials.

Material Code need to be created.● Number of Purchase Orders created on daily

basis.● Material wise source of suppliers.● Material wise purchase price history.

Annual Maintenance Contract

● Aqua Guard Maintenance –Eureka Fobs● Air Conditioner and Cooler Maintenance – LG,

Voltas● LIFT Maintenance –Johnson● House Keeping● Cleaning● Water Supply● DG Set Maintenance

Maintenance Dept. procurement Process

●Process Flow:-Indent from DepartmentsIndent Approval by ChairmanRequest for Quotations from Maintenance DepartmentCollect QuotationsQuotations ComparisonVendor SelectionService Order CreationGate entry slipMaterial Receipt at Stores along with the billStock receipt details, Central stores will inform to the department Consumption of the material. Send the bill to the Purchase department Purchase department attach the approval Order with bill and send to accountsPayment to Vendor Dispatch the Cheque to Vendor.

Requirements in SAP

● Services wise price should be tracked.● As on today there is no code for

services.Services are tracked with service description.Service codes to be created.

● Automation of Gate entry and inventory process

Manpower Procurement Process:Department wise manpower requirement indent will be sent to the Chairman for approval. After the approval manpower requirement the same will be informed to the external contractor. Labor rates are already established.

Gate Entry Slip: Gate entry slip will be prepared at gate. This slip consist of labor details ,entry time and reporting to which department. After the work Gate out time will be

maintained in the register. Based on the Gate in and Gate out working hours will be calculated. Every week Workers gate entry statement will be prepared and Gate entry

sheet will be submitted to the maintenance department.Payment Process: Payment voucher and the gate entry statement will be submitted to

the chairman for the approval for payment, after the approval payment voucher submitted to the accounts Department. Accounts will issue the check for the approved amount.

RGP (Returnable gate pass): Whenever the material is required to send out form the Campus, At stores RGP slip will be prepared. This slip consists of Requisition code, date

of issue, Item description, and quantity and service order details.At the time of receipts of RGP, at gate they will cross check the requisition code, RGP

Code and receive the material and send to material to the Central stores.NRGP: Non- Returnable Gate Pass: NRGP Document will be created in two scenarios.

Material Return to the VendorMaterial transfer from Central stores to Administrative Office.Material Return to the vendor: Incase of any rejection, material will be send back to the vendor with the NRGP slip and bill.Material Transfer from Central stores to AO: Based on the stock availability at central stores, AO will raise an indent slip for material, quantity required and send to the Central

stores, Central store will prepare NRGP document with material and quantity and the send the material to the AO.

Inventory-Stores● Items are segregated into groups:

Hardware,Electrical,Plumbing,Paints,GeneralItems,Stationery Items

●Process Flow for Receipts:Goods receipt from the vendor Gate entry slip preparation Send the material to the central storesPhysical stock checking receive the material and updated the stock registers.

●Process flow for Material Rejection:Goods receipt from the vendor Gate entry slip preparation Send the material to the central storesPhysical stock checking IF the stock rejected Prepare the Non returnable gate pass Attach NRGP with bill and send back the material to the vendor.

●Process flow for material Indent process:Material requisition slip from the department Stock availability check issue the material top the department and update the stock registers.

●RGP Document Process Flow:Gate pass request from Departments Prepare RGP document in the stores Material issue to the party Material receipt ref to the RGP document to the central storesInform the receipt to the department stores Goods issue to the department.

Requirements in Stores

● Stock balances should be match with the Ledger, system and physical balances.

● Inventory automation.● Provision to do the physical inventory checking

Stores Operations●All 31 department required items will be stores in Central stores. There are no departmental stores. Once the material issued from central stores are considered as consumed. ● Every Year in the month of April before the

academic year starts, all the department will send the stationery requirement with the department head signature to the central stores.

● Central stores will prepare the consolidated statement of the stationery requirement and send to Administrative Office for chairman Approval

●After the Chairman approval Stationery requirements will send to the purchase office for procurement.● Purchase office issue quotation and select the

vendor and issue the purchase order for the stationery items.

● And Purchase offices request vendors to send the materials to the Vaddeswaram Central stores

● Once the material reaches to the gate, gate entry slip will be prepared and send the material to the central stores from gate.

●Physical stock verification will happe at gate. when the material is accepted then update the registers with the receipts.● If the material is rejected, stores will prepare

the NRGP slip and send the material back to the vendor.

●

●Goods issue Process:Department material requirements will send in ‘Material requisition and Indent Slip’ signed by the department head. Indent slip consists of Indent slip number, department details, Material description, quantity required, quantity issued and remarks. ● If the material is available at stores, stores will

issue the material and update in quantity issues in the material requisition indent slip and update in the stock register.

●RGP (Returnable gate pass): Departments will raise a requisition to central stores to issue RGP gate pass signed by the department head. This request consists of the party number, material to be sent and the quantity of the material.

● Based on the Department request, stores will prepare RGP document and maintain the party number in the RGP document. This document consist of three copies white, green and yellow.. White copy will issue to stores, green copy issue to the party and yellow copy will be kept in the central store records.

● RGP receipt: With reference to the RGP document, material will be received in the central stores. From central stores, it will send to the departments.

The Construction Department will prepare the indent and send the Indent to Chairman for budget approval, after the approval the Indent will be sent to the purchase officer .The Purchase office will issue quotation and get the quotations from the multiple vendors and prepare consolidate statement for Vendor selection.

After the Vendor Selection Purchase order will be raised for the material indented and ask the vendor to supply the material to the central store.At the time of material receipt, gate pass will be prepared at the gate and send the material to the central store. After the physical Verification at central stores, stocks will be updated in the stocks Ledger register.For Cement Material: Stock for the Cement material will be kept in the separate stores and the stock records will be maintained by the construction department. Iron Material will be consumed based on the construction requirement on daily basis. Scrap can be tracked. Scrap sales Process is exists.

Daily Labor Wages:Based on the construction requirement daily labor services will be procured. For Daily wages NMR will be prepared .At the gate entry gate in ,gate out and labor requirement department details will be maintained. Weekly Labor Payment Statement will be prepared on weekly basis and the send the statement for Chairman Approval. Based on the nature of services payment will be made by Cash or Cheque. Labor Contract:In the labor contracts process, material will be supplied by the KLU and Vendor will perform the services internally with in the KLU Premises. Vendor Services will be tracked reference to the contract and pay to the vendor by Cheque after the Chairman approval.Grills Procurement Process:Construction Department will give the design and the material specifications to the Vendor with the purchase order. Vendor will prepare the Grill and send it to the KLU. After the Gate entry process the Grill will be sent to the central stores and from central stores it will be sent to the Construction Department.Budgeting Process:Construction department will prepare the estimated budget and submit to the chairman for the approval. Once the approval is done procurement process follows for the project.Budget tracking will be monitored at Construction Department as well as in the accounts department. If the Budget gets exhausted and needs an extension an Indent would be raised to the chairman for the supplement budget for the project. Budget process is done manually.Majority of the construction will go more then one year.Scrap sales Process:For Scrap sales KLU will call for customers Quotations and finalize the price. The sale of the scrap is done in Cash.