CSL TECHNOLOGIES (M) SDN BHD

LRC TECH (M) SDN BHD

PURCHASING CONTROL PROCEDURE

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Revision No.
Effective Date
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REVISION HISTORY
Rev
No.
00

Effective Date
01/11/2010

Affected
Page
All

Change Descriptions

Reviewed
By

Approved
By

New Issue

Document Distribution Acknowledgement:

Dept. /
Position

Business
Development
Director

Admin

Sales &
Marketing

Design

Production

R&D

Acknowledge
ment
Date

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CSL TECHNOLOGIES (M) SDN BHD

LRC TECH (M) SDN BHD
PURCHASING CONTROL PROCEDURE

1.0

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PURPOSE
The purpose of this procedure is to define the methods to ensure control and effective
management of supplier selection, evaluation and re-evaluation, purchasing processes so that
purchased material satisfy the companys needs and requirements, as well as customers needs.

2.0

SCOPE
This procedure applies to all purchasing activities and it shall cover all purchased products
that have direct impact to the quality of products supplied by the company, including raw
materials and parts, and trading items.

3.0

DEFINITION
HOD = Head of Department
PR = Purchase Requisition
PO = Purchase Order
ASL = Approved Supplier List
MR = Material Requisition

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CSL TECHNOLOGIES (M) SDN BHD

LRC TECH (M) SDN BHD
PURCHASING CONTROL PROCEDURE
4.0

4.1

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PROCEDURE DETAILS
PURCHASING PROCESS

Process Flow

Description

Raise Purchase
Requisition (PR)

Obtain Quotation from

suppliers

Approve?
YES

Issue
Purchase Order

Personnel

- Requestor to raise Purchase

Requisition.

- Purchase
Requisition
(CS-F27)

- Requestor

- Obtain quotation from supplier.

- Quotation

- Purchasing
personnel

- PR

- HOD /
Director

- Purchasing will generate PO once the

PO is approved by Director.

- Purchase
Order (CS-F24)

- Purchasing
- Director

- Review PO and verify.

- Arrange for transmit PO to supplier.

- PO

- Account

- Check & verify the order confirmation

from supplier against PO (if any).

- PO

- Account

- Received goods from supplier, refer to

Production & Delivery Control process
for details.

- Refer to
Production &
Delivery Control
Process

- Obtain approval based on amount

limit:
NO

Documents
/ Ref.

Purchasing Dept approving

limit is RM5,000

End

Any amount above the limit

shall require approval from
Director.
- Abandon PR if not approved.

Review PO and
verify. Fax/Email

Check & verify order

confirmation/ delivery
date

Received Goods

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CSL TECHNOLOGIES (M) SDN BHD

LRC TECH (M) SDN BHD
PURCHASING CONTROL PROCEDURE

4.2

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Supplier Selection & Evaluation

Process Flow

Description
- Gather new supplier information such
as: Company profile
Business track records
Quotation
A copy of the relevant license
/certification

Select Supplier
a) Credit Terms
b) Price
c) Past Performance
d) Customers
recommendation
e) Approved Body

NO

Approve?

YES

Register Supplier

Monitor performance
& Yearly Evaluation

- Evaluate the new supplier capability in

meeting the companys requirements.
- The supplier qualification criteria
include but not limited to the following Reliability
Price
Credit Term
Technical Support
Recommended by Customer
Sample Evaluation
- Record the evaluation results in the
Supplier Registration Form & obtain
Director approval.

Management Review

Personnel
- Purchasing

- New Supplier
Registration
Selection &
Evaluation
(CS-F25)

- Purchasing

- Register the approved supplier in ASL

once the new supplier has been
approved.

- ASL (CS-F38) - Purchasing

- Monitor the performance of existing

supplier at once a year.

- Supplier
Performance
Assessment
(CS-F26)

- Purchasing
/ Director /
HOD

- Supplier who meets the requirement

will be remained in Approved Supplier
List, otherwise disqualified.

- Supplier
Performance
Assessment
(CS-F26)

- Purchasing

Approve?

Update Approved
Supplier List

Documents
/ Ref.

- The outcomes from the evaluation will

be analyzed and reviewed during
Management Review.

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- MR