Project No, P-JKIGPG GLOBAL PROJECTS GROUP | Document No.| _P-iktGPG-100-16-PRO-0002 SJaep Revision No. 0 MATERIAL CONTROL, Page tof tt PROCEDURE [Issue Date Dec 13, 2016 MATERIAL CONTROL PROCEDURE Dee 13, 2016 o Issued for Use ne Date Revision Description Prepared | Checked | Approved| Project No. P-JKIGPG | GLOBAL PROJECTS GROUP =| Document No.| _P-uktGPG-100-16-PRO-0002 Sapp 8 MATERIAL CONTROL, Page 2o0f11 bec Issue Date Dec 13, 2016 Revision Summary Propared | Checked | Approved Dec 13, 2016 ° Issue for Use MAA Lex RTProject No, P-JktGPG PAJK(GPG-100-16-PRO-0002 GLOBAL PROJECTS GROUP | Document No. MIAPP Revision No 9 MATERIAL CONTROL Page 3of 11 PROCEDURE Tesue Date Dec 13, 2016 Table of Contents PURPOSE SCOPE DEFINITIONS ROLES AND RESPONSIBILITIES 44 EXPEDITER 4.2 QCINSPECTOR 4.3 PURCHASING COORDINATOR 44 LOGISTIC COORDINATOR 48 MATERIAL COORDINATOR 46 WAREHOUSE / STORE SUPERVISOR 47 STOREKEEPER 48 MATERIAL CONTROL INTERFACING 6 — PROCEDURE 5.1 PLANNING AND PREPARATION OF WORK Rone 5.2 RECEIVING, UNPACKING AND INSPECTION MATERIAL 5.3. DISPOSITION FOR NON-CONFORMING MATERIALS 54 MATERIAL STORAGE 5.5 REQUISITION AND ISSUING 5.6 STOCKTAKING OF MATERIAL 5.7 LOAN AND RETURN SLIP 6.8 RETURN AND DISPOSAL DOCUMENTATION FOR MATERIAL CONTROL REFERENCE DOCUMENTS APPENDIXGLOBAL PROJECTS GROUP =| Document No.| _ P-JktGPG-100-16-PRO-0002 Project No. P-JKIGPG ape a ; MATERIAL CONTROL Page 4of 11 ia I PROCEDURE | Issue Date Dec 13, 2016 1 PURPOSE This Material Control Procedure outlines the system with regard to the receipt, unpacking, inspection, storing and issuance, hand over and disposal of project materials procured by Contractor and GPG Furnished Materials. 2 SCOPE This procedure applies to all aspects of material control carried out by Contractor, wherein materials are either supplied by Contractor or furnished by GPG. ‘Subcontractors supplying their own materials will be completely responsible for their own material control system and subcontractors shall report all materials that are supplied to Contractor. 3. DEFINITIONS GPG Global Projects Group Site All GPG construction sites, including temporary storage or lay-down areas Inspection Check, review, and verify the compliance of incoming goods with) applicable specifications, drawings, codes and standards GPG furnished materials | Those materials procured by GPG that will be supplied to Contractor for fabrication, construction and installation purposes Contractor supplied materials [Contractor supplied materials refers to those materials furnished by Contractor as required by Contract scope of work used for fabrication, construction, and installation. Expediting refers to monitor and supervise manufacture schedule from Expediting ‘supplier based on specified contract requirement and to make sure the delivery meets the scheduled as stated in the contract, Concession Permission to use or release a product that does not conform to specified |requirements. Product has a very minor non-conformity that has no negative impact on the form or function of the finished work. Concession products shall be kept in record and traceable. Non-Conformance Non-conformance product refers to those products whose characteristics does not conform to technical requirements and specification NCR Non-Conformance Report _ iP Inspection and Test Plan al MRIR Material Receiving Inspection Report MRS Material Requisition Sheet _— OSDR ‘Over, Shortage, & Damage Report _Sjarep Revsonn,| 1 Project No. P-JKIGPG GLOBAL PROJECTS GROUP | Document No.| _P-JktGPG-100-16-PRO-0002 MATERIAL CONTROL Page 5 of 11 PROCEDURE Issue Date Dec 13, 2016 Qalac Quality Assurance / Quality Control PL [Packing List _ PO Purchase Order [Boa ~_|Bill of Quantity RFQ_ Request for Quotation 4 ROLES AND RESPONSIBILITIES 44 42 43 44 45 EXPEDITER An Expediter reports to Procurement Manager for expediting of materials purchased by Contractor. He shall be responsible to monitor and follow up the delivery schedule and expediting the delivery of materials once Purchase Order is issued as well as tracking the progress of the materials Procurement in a timely manner according to project schedule. Expediter shall coordinate with Project Controller regarding periodic status of material expedited, QC INSPECTOR Review quality document related to material procured and liaise with Material Coordinator to conduct the inspection on the incoming material. Identify non-conforming items, prepare Non-Conformance Report (NCR), maintain the Register, and prepare Corrective Action Reports. PURCHASING COORDINATOR Purchasing Coordinator reports to Procurement Manager for purchasing document preparation, purchasing material as per engineering document, including delivery of all project material related reports such as OSDR and NCR to Vendors. LOGISTIC COORDINATOR Logistic Coordinator reports to Procurement Manager for packing, unpacking, and transportation purchased of materials. Logistic Coordinator shall coordinate with QC Inspector regarding packing quality control requirements MATERIAL COORDINATOR Material Coordinator is responsible to report to Construction Manager for overall control of materials, including tracking, receiving, checking, inspection, storing, issuance, handing over and disposal of material. His duties also include forecasting material availability and arranging and notification of replacement for shortage or damaged material| Sapp Revision No. ° Project No. P-JKIGPG. GLOBAL PROJECTS GROUP =| Document No.| _P-JktGPG-100-16-PRO-0002 MATERIAL CONTROL Page 6 of 11 PROCEDURE Issue Date Dec 13, 2016 46 47 48 WAREHOUSE / STORE SUPERVISOR Warehouse Supervisor shall report to the Material Coordinator for the receipt, storage, issuance and inventory of all materials. He is also responsible for unloading, handling and transporting of the materials. STOREKEEPER Storekeeper reports to Material Coordinator. He is responsible for the receipt, storage, issuing and inventory of material at warehouse and open storage area(s). MATERIAL CONTROL INTERFACING Engineering Manager, Procurement Manager and Material Coordinator are the key personnel of material control interfacing. RFQ and MRS shall be approved by Engineering Manager before transferred to Procurement Manager. Flow of coordination among Engineering, Procurement and Construction groups shall be implemented as illustrated the following diagram: ENGINEERING PROCUREMENT CONSTRUCTION Engineering Procurement Material Manager [*———>} Manager [*——>| Coordinator Note : The personnel required for the tasks above will vary depending on project size and location. PROCEDURE Material control includes controlling the status of Material Bill of Quantity (BOQ), Request for Quotation (RFQ), Material Request Sheet (MRS), Purchase Order (PO), Manufacturing Status Reports, Material Delivery Status Reports, purchasing material as per engineering document, delivering purchased material to project site, receiving of material on site, unloading of material into warehouse or open storage areas, unpacking, inspection material, the issuance of material to the construction group, handling of surplus material and tracking material flow from engineering stage to construction / installation stage.| Saree Revision No. 0 Project No. P-JKIGPG. GLOBAL PROJECTS GROUP =| Document No.| _ P-JktGPG-100-16-PRO-0002 MATERIAL CONTROL, Page Toft PROCEDURE Issue Date Dec 13, 2016 5.1 5.2 PLANNING AND PREPARATION OF WORK (@) Receiving BOQ and RFQ from Engineering Manager regarding material to be purchased, purchasing the material and delivering the material to the site. Those activities include preparing all documents for each activity such as Purchase Order, Packing List, shipping / delivery schedule, cargo information and other documents regarding delivery activity (b) Receiving and reviewing shipping / delivery schedules, cargo information, and detail packing lists prepared by Logistic Coordinator at the main project office. (©) Planning for required manpower and equipment, including offloading location and destination of storage areas, Activity 5.1 (a) is under responsibility of procurement personnel reporting to procurement manager. Other activities shall be under Material Coordinator responsibility. RECEIVING, UNPACKING AND INSPECTION MATERIAL Receiving, unpacking and inspection of material includes cargo-receiving activity at transporter delivery point, cargo handling and unpacking activity and inspection of received material. During these activities, such document shall be issued as follows: (a) Material Receiving Inspection Report (MRIR) (b) Over, Shortage, Damage Report (OSDR) (©) Non Conformance Report (NCR) if there is any non-conformance or exception on the received material. Material Coordinator shall identify and verify the material received with complete document and check that the quantity is in compliance with the Purchase Order and Packing List. There will be unique signs to separate Contractor Supplied Material and GPG furnished material. Material receiving inspection shall include the quantity of material, material documentation (Material Test Report or Mill Certificate), visual and dimensional check, material identification, and material condition & quality. GPG has right to ask random check to material / equipment in such way that Contractor can assure function ability of the equipment. Should material complies with Purchase Order requirement and specification then the “Accepted” tag shall be attached. If the documentation or the material does not conform to the specification and Clarification is required, then the "Hold" tag shall be attached. If material is not acceptable, then the "Reject" tag shall be attached[Bree feenie| Project No. P-JktGPG_ GLOBAL PROJECTS GROUP =| Document No.| _ P-JktGPG-100-16-PRO-0002 MATERIAL CONTROL Page 8 of 11 PROCEDURE Issue Date Dec 13, 2016 53 For all material received, a Good Received Notification is to be completed in the SAP system. This ensure Payment, Partial Payment, or Non-Payment case by case. For GPG furnished material, following are receiving inspection by Contractor as minimum - Material Specification and Heat No. / Plate No. - Material Test Report, when required by the Code - Any applicable document, when required by the Code - Material Bill of Quantity from GPG Only material accepted based on inspection result could be utilized by Contractor for material usage for project purpose. General stages for the NCR procedure for findings to material inspected are as follows: * Record the non-conformance findings * Identify and segregate products subject to NCR at a designated area. For bulk quantity of non- conforming products which cannot be ease segregated, the area(s) of non-conformity shall be marked such that itis visible to other user. ‘* Prepare recommendation and review disposition / rectification proposed by responsible parties * Determine corrective action to rectify the non-conformance items. * Conduct re-inspection for the re-worked or repaired items. DISPOSITION FOR NON-CONFORMING MATERIALS Non-conformance or unqualified material shall be labeled and located at dedicated area. Warehouse shall segregate the "Reject" material from the "Accepted" material and place in identified area. Upon inspection on Contractor supplied material, Contractor shall be responsible for material replacement and / or repair. Unqualified materials which has a very minor non-conformity that has no negative impact on function of the finished / construction work shall be labeled and marked for concession reason. This material usage shall be confirmed by Contractor Discipline Engineer and QC Inspector with approval from GPG Project Manager. Contractor shall report the unqualified GPG furnished material to GPG Project Manager. GPG Site ‘Team based on information from Project Manager will then advise the impact due to economic losses to Procurement. Procurement will follow up to submit feedback to the material supplier for claimProject No. PAJKIGPG: GLOBAL PROJECTS GROUP | Document No. _P-JktGPG-100-16-PRO-0002 _| Saree Revaion No 0 if MATERIAL CONTROL Page 9of 11 PROCEDURE Issue Date Dec 13, 2016 5.4 MATERIAL STORAGE The following guidelines shail be followed when storing materials: (@) Securing the area on site for material storage. () Provision of suitable weather-tight warehouse / storage facilities, including air-conditioned storage areas where necessary within the area (c) Optimizing the use of available space within the storage facilities, and providing all rack, pallet, sleepers, natural drainage etc., which is necessary for the appropriate storage of materials in advance of their receipt. (@) Grouping of material with clear identification by tags, labels, codes etc, to prevent misuse, loss and avoid possibility of contamination from other material. (©) Ensuring that all materials stored in the open storage areas are adequately protected, i.e., b y tarpaulins or the like, to prevent deterioration. (f) Providing well-secured temporary lay down for materials that should wait for a certain period before transporting to its designated place. (9) Maintaining a high degree of housekeeping within the storage facilities, (h) Ensuring that all hazardous materials are stored and handled with the most care in accordance with the laws and regulations applicable thereto. () Piping and structural material whether plain or fabricated, shall be stocked on the timber skids or equivalent supports. It shall be ensure that height of skids or supports is sufficient enough to Prevent from being flooded and getting contaminated with mud on the ground. @ Secure area - fenced with security personne! and lighting provided for night works as anticipated. Material must be entered into the Material Storage Entry Log which identifies the location for easy collection at a later date. 5.5 REQUISITION AND ISSUING The following guidelines shalll be followed when storing materials: (a) Receiving and reviewing material requisition from construction group in Material Requisition ‘Sheet (MRS) after obtaining approval from Construction Manager. (b) Issuing of materials to the Construction Group by issuing Material Issuance Slip. (©) Control and co-ordination of issue of material,Project No P-JktGPG GLOBAL PROJECTS GROUP | Document No.| _P-JktGPG-100-16-PRO-0002 APP RaRTN : MATERIAL CONTROL Page 10 of 11 PROCEDURE Issue Date Dec 13, 2016 5.6 STOCKTAKING OF MATERIAL ‘Stocktaking of materials will be carried out by the Storekeeper in order to compare actual quantities held in stock with quantities indicated on the Material Storage Entry Log. A report will be prepared by the Material Coordinator. 5.7 LOAN AND RETURN SLIP During the construction period, work equipments and tools may be issued on a loan basis. in this case, a Loan and Return Slip shall be used. Storekeeper shall keep these Loan Slips and use them to confirm the return of the equipments / tools when the work is completed. 5.8 RETURN AND DISPOSAL Return of issued materials may occur due to mistakes in issuing, over issuing, changes in planned work, etc. On completion of the construction work, a list of surplus or residual materials shall be Prepared by the Storekeeper and submitted to the Material Coordinator. Material Coordinator will submit a request to the Construction Manager for residual material disposal or surplus material transfer. ‘Surplus shall be defined as the difference between the purchased quantity and installed quantity. 6 DOCUMENTATION FOR MATERIAL CONTROL, The following forms / documents are to be used for the tracking and controlling of material: (a) Material Receiving Inspection Report Once cargo has been received at storage facility, Material Coordinator assisted Warehouse / Store Supervisor and QC Inspector shall perform unpacking inspection and record the material in the Material Receiving Report. This document shall be used to report the quality and condition of materials received and confirmed during the unpacking inspection. If material is damaged or quantity discrepancies are found, these details shall be recorded in the MRIR and details shall be reported through OSDR. (b) Over, Shortage or Damage Report This document shall be used to report any overage, shortage, or damage to materials, and will be the basis for further action such as repairs, replacement, additional PO, insurance claims, etc.Project No. PouktGPG GLOBAL PROJECTS GROUP | Document No.| _P-JktGPG-100-16-PRO-0002 | Saep Revision Ne 0 MATERIAL CONTROL Page 11 of 11 PROCEDURE Issue Date Dec 13, 2016 (c) Material Request Sheet This document shall be used to record receipt, issue and inventory of materials. ‘The Storekeeper shall record manually the issued quantities of the dividual items requested. (a) Loan and Return Stip This form shall be used to record the loan and return of material and special tools, which may be borrowed on a loan basis to the Construction group. The Construction Group shall fill the Loan / Return Slip and submit it to Material Coordinator for approval 7 REFERENCE DOCUMENTS NIA 8 APPENDIX Appendix 1 - Material Receipt Inspection Report ‘Appendix 2 - Material Request Sheet Appendix 3 - Overage, Shortage & Damage Report Appendix 4 - Loan and Retum Siip ‘Appendix 5 - Non Conformance Record (NCR) ‘Appendix 6 - Material Tracking ListPO “APP oy MATERIAL RECEIPT INSPECTION REPORT MRIR NO Global Projects Group PROJECT Project No. CLIENT PIPE PLATE SHAPE TTING MOTOR [omiers SUPPLIER D.0.NO TRANSPORT ARRIVAL BATE REGENED OATE ves DAIS 7, “The foowing material have been checked agai te crus devery or and ee oauore MATERIAL DESCRIPTION ca eagle il ceria devery oder and meet requreent forwneh hey ar tne deta a below ITEM at DESCRIPTION & DIMENSION | GRADE Ci MILL CERT. NO. ACCEPT | HOLD | REJECT | REMARK NO [Rea] RECO phe [ | REMARK (OTHER DOCUMENT PER P.O. Prepared by Reviewed & Checked by ‘Approved by DATEAPP CONTRACTOR LOGO | GLOBAL PROJECTS GROUP | PROJECT NAME : | MATERIAL REQUEST SHEET | Document No Page [= of | ‘Drawing No. Date No. Deseription Unit Smt Required “Approved Prepared By: Check By: ‘Approved By: Name: . Name: _ Name: Date: Date: Date: Note: Distribution 1. Warehouse ~ Original 2.Material Control - Copy 3. Construction - Copy 4, Engineering ~CopyAPP covrRacToR L060 GLOBAL PROJECTS GROUP. PROJECT NAME: OVERAGE, SHORTAGE & DAMAGE REPORT Deamon : c Page ]:] | of P.O.No. : MRIR No.: Vendor Sapper ——[ Date: Copy of Material Receiving Report: YES NO Photographs Attached: YES NO Non-Conformance Report Attached: ‘YES NO. Quantity Ne Desi us cone on [et [eves | S27 | Damage enna Ao UseAsts Reprint Bote, Rope D. Abc Ver of verge Sates Coa Claim Against: Contractor ‘Vendor Others, -ion By CotactrSie Cinna Of Otis Prepared By: Check By: “Approved By: Name: Names Name: _ _ Date: Date: Date: Note: Distribution 1. Procurement = Original 2. Warehouse Copy 3. Material Control -Copy 4, Engineering - Copy| | SAPP CONTRACTOR LOGO GLOBAL PROJECTS GROUP PROJECT NAME: LOAN AND RETURN SLIP Document No. Page of Date : Loan Return Na. Code Description Unit REQ” | arp | ory | RECD By Requested By: ‘Acknowledged By: “Approved By: ‘Name: ‘Name: ‘Name: Date: Date: Date: Note: Distribution 1, Warehouse ~ Original 2. Requestor - CopyNON CONFORMANCE REPORT (NCR) Saree NCR No. Global Projects Group CONTRACT NO, PROJECT NAME TEM DESCRIPTION PO. NO, LOCATION [1 Workshop / Manufacturer DESCRIPTION OF NON-CONFORMANCE Worksite 1 Other Documentation discrepancies 1 Failure or damage due to Material deviation / substitution 1D. Out of measurement tolerance 1D Deviation of design, calculation, ete 1D Work method is not comply with procedure / spec Ci Testing as required is not performed 1 Others, specify DISTRIBUTION REQUIRED TO: OEM OPEOE OPM OSUPV OAC LD PROC Las (EM ‘Eng. Mgr, PE :Project. Eng, E Eng, PM Project Mar, SUPV “Supervisor, PROG: Procurement, QS; Qly Surveyor) 1. STATEMENT OF FACT / REFERRENCE REPORT 2. CAUSE OF NON-CONFORMANCE ‘3. PROPOSED ACTION / SOLUTION O USEASIS 4. DISPOSITION PLAN (REASON) REPAIR (METHOD FOR REPAIR) REWORK (METHOD FOR REWORK) |_ T_RETURN TO SUPPLIER / VENDOR 5. BACKCHARGED CLAIM TO O Yes a NO CONTRACTOR / SUPPLIER / VENDOR & FURTHER INSPECTION a YES a NO (ATTACHED SEPARATE SHEET AS REQUIRED) 7. ATTACHMENT Date 1D Sketch / Drawing 1D Calculation Prepared by Sign i Inspection Report / Procedures (NCR Originator) 1 Statement / Warranty Letter a Checked/Evaluated by Disc. Leader Sign &. CLOSING OF NCR Verified by Conformed by = Date Date Sign Sign 9, NOTES ‘Approved by QA/QC Mgr / Engineering Mgr Date Signcao ae “crour | CONTRACTOR LOGO MATERIAL TRACKING LIST Date Issued: 5 Page: of te ‘Materia Code / Pat Onters BOQ spe MRS PL MRIR ‘OSDR LRS Code Description Unit [ No./Rev | OTY ‘No./Rev | OTY | No./Rev | QTY | No/Rev | QTY | No./Rev | QTY | No./Rev | QrY BOQ - _ Billof Quantity Prepared By: ‘Approved By: Received By: MRS - Material Request Sheet PL Packing List MRIR - Material Receiving & Inspection Report OSDR - —_Overage, Shortage & Damage Report Name: Name: Name: LRS Loan and Return Slip Date: Date: Date: Distribution 1. Procurement “Original Note: 2. Warehouse Copy 3.Material Control - Copy 4, Construction Copy 5. Engineering Copy