GENERAL PROCEDURE

PROCUREMENT PROCEDURE

Doc No.: CSB/GP/PROC/001

Page 1 of 8
Date: 04/07/2009

PROCUREMENT PROCEDURE

Rev. 0

GENERAL PROCEDURE
PROCUREMENT PROCEDURE

Doc No.: CSB/GP/PROC/001

Page 2 of 8

Rev. 0

Date: 04/07/2009

TABLE OF CONTENTS

SECTION DESCRIPTION
PAGE
1.0

OBJECTIVE

2.0

SCOPE
3

3.0

REFERENCES
3

4.0

DEFINITIONS
3

5.0

PROCEDURE
4
5.1 Preparation of Procurement Plan
5.2 MR and MTO Received
5.3 Pre-Prepare RFQ
5.4 Pre-Review Quotation
5.5 If No Further Technical Evaluation is Needed
5.6 If Further Technical Evaluation is Needed
5.7 Commercial Evaluation
5.8 Client Approval
5.9 Prepare P.O
5.10 Expediting Process

6.0

SPECIAL REQUIREMENT

7.0

RECORDS

FIGURE I PROCESS FLOW

GENERAL PROCEDURE
PROCUREMENT PROCEDURE

1.0

Doc No.: CSB/GP/PROC/001

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Date: 04/07/2009

OBJECTIVE
This procedure is set up to provide a systematic guideline on the process
of purchasing material, equipment etc. for CSB, to ensure that purchased
materials conform to the specified technical specification and meet the
delivery requirements.

2.0

SCOPE
This procedure is applicable to the project implementation process and
covers the stages from the contract award to the completion date of the
contract/project. It shall also applicable to any related procurement items
for different project as where it is applicable as decided by CSB.

3.0

REFERENCES
3.1
3.2
3.3

Approved Vendor List

MTO & Items Data sheet
Material Requisition Form

4.0

DEFINITIONS

4.1

CSB

Calidad Sdn Bhd

4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
4.11
4.12
4.13

MTO
MR
PMT
PE
RFQ
PM
TBE
CBE
P.O.
LC
MSR
MC

Materials Take-Off
Materials Requisition
Project Management Team
Procurement Executive
Request for Quotation
Project Manager
Technical Bid Evaluation
Commercial Bid Evaluation
Purchase Order
Letter of Credit
Materials Status Report
Materials Coordinator

GENERAL PROCEDURE
PROCUREMENT PROCEDURE

5.0
5.1

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Date: 04/07/2009

PROCESS

RESPONSIBILITY

Preparation of Procurement Plan

PMT

PROCEDURE

5.1.1 The draft Procurement Plan shall be

based on:
I.
The list of materials to be
purchased.
II.
Field Required Dates
III.
All other Planned Duties for the
various Procurement activities
(from issuing Materials Requisition
to issuance of Purchase Order

PMT

5.1.2 The draft procurement plan shall be

reviewed and agree by the following
personnel
I.
Manager, Procurement
II.
Manager, Originating Department
III.
Project Manager
PE

5.2

MR and MTO Received

5.2.1

5.3

This process is triggered upon

receive of MR and MTO from PMT and
PE will prepare the Request For
Quotation (RFQ). It shall be
determined that the MTO received is
complete with details specification
and items data sheet which has been
approved by PM.

Pre-Prepared RFQ

PE

5.3.1 PE will check the company storage and

yard on product availability within two
until 7 days.
5.3.2 PE will prepare the RFQ and forward to

vendor for invitation for bidding. RFQ shall

be attached with complete specification
from MTO documents and items data
sheet.
MSDS shall be requested for
chemical products.

5.3.2 Invitation will be forwarded to the relevant

numbers of approved/selected vendor that
are listed from approved Clients vendor

PE

PE

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list.

5.3.3 The procedure shall be at least 3

quotations shall be
received for further
technical and commercial evaluation.

PROCESS

5.4

RESPONSIBILITY

Pre-Received Quotation
5.4.1 Upon received of 3 quotations or more, PE

will evaluate the technical data whether it

needs to be evaluated further by the
technical committee.

5.4.2 Sometimes, there will be a case where

PE

more than 3 quotations will be received but

the procedure of evaluation will be the
same.

PE

5.4.3 The criteria for approval are that all the

PE

technical aspect must comply to all the

specification details in the MTO documents.

5.5

If no further Technical Evaluation is

Needed
5.5.1 From Clause 5.4 above, if no further

PE

technical evaluation is needed, PE will

proceed for commercial evaluation as
describe in Clause 5.7

5.6

If Further Technical Evaluation is Needed

PE

5.6.1 PE will forward the quotations for further

Technical Bid Evaluation (TBE) by the PMT.

PMT

5.6.2 PMT will evaluate based on approved

datasheet provided by the Client.

PE
5.6.3 The evaluation report form must be
established for records

5.7

Commercial Evaluation
5.7.1 Upon received documents from Clause 5.5
or 5.6, PE will perform Commercial Bid
Evaluation (CBE). Usually the CBE will

PE

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PE

compare the price that is the lower. PE will

then make recommendation on the CBE form

5.7.2 CBE must be approved by PM and then

submitted to Client for approval.

PROCESS

5.8

RESPONSIBILITY

Client Approval
5.8.1 Upon receive of the CBE together with
all the attachments such as MTO,
quotation and evaluation report, the
Client representative will then check
and approve by signing the CBE form .

5.9

PM

Prepare P.O.
5.9.1 Upon receiving the approved CBE, PE
will fax a preliminary Purchase Order to
successful vendor to get the final
confirmation from areas such as
delivery date, payment term, late
delivery charges etc.
5.9.2 A pre-award meeting shall be
conducted if Procurement Department
has not received any reply from vendor
3 days after PE issues and faxes the
preliminary Purchase Order.
5.9.3 Upon receiving a reply from the vendor
on the acceptance of order, PE shall
prepare and issue Purchase Order (PO)
based on the following authority limit:
Amount
Reviewed and
Verified By
Not Less Than
Head of
RM250,000
Procurement
Department
RM50,000 and
Head of
above
Procurement

Approved and
Signed By
Project Manager

Managing
Director

PE

PE

PE

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Department

5.10

Expediting Process
5.10.1A copy of approved PO is to be
forwarded to the Expeditor. (Refer to
CSB/GP/PROC/02 Expediting
Procedure)

6.0

Expeditor

SPECIAL REQUIREMENT
Manager QA shall maintain a copy of all approved Procedures and control
its distribution on need to know basis as Controlled Copy condition
mentioned above. A revision status list shall be maintained and kept up
to date.
All distribution record and master list of document shall be properly
maintained in file and updated by the respective Department Manager.

7.0

RECORD
All distribution record and master list of document shall be properly
maintained in file and updated by the respective Department Manager.

GENERAL PROCEDURE
PROCUREMENT PROCEDURE

Doc No.: CSB/GP/PROC/001

Page 8 of 8

Rev. 0

Date: 04/07/2009

FIGURE I: PROCESS FLOW

START
INPUT
(RECORDS)

OUTPUT(RE
CORDS)
Procurement Dept receives MR/MTO
complete with specification and items data
sheet approved by PM

Check our storage and yard on

product availibity within 2-7
days

Approved Vendor
List

RFQ
Process

PE prepares RFQ and forwards

to vendor for bidding(REFER
CLAUSE 5.2)

PE receives quotation(REFER
CLAUSE 5.3)

Technical evaluation
process(REFERCLAUSE 5.4)
YES

NO

Commercial
evaluation(REFERCLAUSE
5.7)
PE to prepare CBE and submit CBE to Client
for approval
(REFER CLAUSE 5.8)

PE to prepare P.O to
successful supplier(REFER
CLAUSE5.9)

END

Technical
bid
evaluatio
n
OK