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QUALITY CONTROL DOCUMENT BNL/QCD-PPC-106
Issue Date:
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QUALITY CONTROL DOCUMENT

PROCEDURE FOR PROCUREMENT

OF

BRIDGSITE NIGERIA LTD

DOC NO BNL-QCD-PPC-106

001 IDC 18/01/16 Issued for Internal review T. A. D. H. C. U.

Revision Status Date Revision memo Issued by Checked by Approved by

This document has been generated by an Electronic Document Management System. When printed it is considered as a for information only copy.
The controlled copy is the screen version and it is the holder's responsibility that he/she holds the latest valid version.
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CHANGE (S)/AMENDMENT (S)

The change(s)/amendment(s) noted below have been made and approved by the Managing
Director/CEO for issue.

Change/Amendment No. Date Page Description of Change/

Amendment
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TABLE OF CONTENTS

1.0 SCOPE .......................................................................................................................................................... 4

2.0 SUMMARY ................................................................................................................................................. 4
3.0 SUPPLIER EVALUATION, SELECTION AND CONTROL ................................................................... 4
4.0 PURCHASING ............................................................................................................................................ 5
5.0 MATERIAL RECEIVING........................................................................................................................... 7
6.0 SUPPLIER CORRECTIVE ACTION REQUESTS ..................................................................................... 9
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1.0 SCOPE

This procedure defines the requirements for evaluation and selection of critical suppliers, purchasing critical
materials and services, monitoring supplier performance, receiving incoming purchased product, and for verifying
incoming purchased product to ensure it meets requirements.

2.0 SUMMARY
Critical materials or services are those materials or services which are incorporated into final product, or
which have a direct impact on the companys product or quality system, or which are otherwise deemed as
critical by management.
Office supplies, administrative consumables, furniture, etc. are not critical materials, and therefore not
subject to this procedure.
Bridgsite understands it is responsible for the conformity of all products purchased from suppliers,
including product from sources defined by the customer.
The Procurement Manager is responsible for implementation and management of receiving activities.

3.0 SUPPLIER EVALUATION, SELECTION AND CONTROL

The procurement department evaluates new suppliers. This department has both the responsibility and authority
to approve and disapprove suppliers.

New suppliers are evaluated in accordance with the following criteria:

Pricing
Availability
Reputation / references
Location
Shipping terms and capabilities
Quality system certification status (ISO 9001 certification preferred)
Quality of samples received (incl. testing results)
On-site audit results
Telephone interview results
Written survey results
Customer mandate
Sole source / OEM status

Where a customer mandates a special process source, both Bridgsite and any suppliers must use the required
supplier; this usage may override Bridgsites approval status rules.

In some cases, a formal risk assessment may be conducted as part of the evaluation and selection of a potential
supplier, or in order to determine if a problematic supplier should be retained; see [Risk Management Proc.].
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The Procurement Manager will maintain an Approved Supplier List which lists all evaluated and approved
suppliers, their approval status, and the scope of their approval (commodities for which they are approved.)

Suppliers who meet any of the evaluation criteria, in the judgment of the person conducting the evaluation, may then
be entered into the purchasing system and items may be purchased. However, the supplier is entered into the
Approved Supplier List (ASL) on a CONDITIONAL basis, pending inspection or review of products or services
rendered.

Upon successful receipt or review of products or services, the manager may then advance the suppliers status to
APPROVED.

If the results of review of product or service received are insufficient or otherwise lacking, the buyer may then elect
to change the suppliers status to DISAPPROVED, or to leave it at CONDITIONAL until further orders are received
and reviewed.

A supplier may also be listed as RESTRICTED, where certain purchasing restrictions are placed on the supplier.
This may be useful to limit what products may be purchased from a supplier, or to place other conditions.

The Approved Supplier List indicates the supplier, location, approval status (Approved, Conditional, Disapproved,
Restricted), and the scope of approval (typically commodity type or product family). Re-approval of suppliers is
continual and ongoing based on the suppliers ability to meet the criteria above. For Restricted status, a note of the
restriction must also be included.

Suppliers used for at least six months prior to 18th January 2016, have been grandfathered into the system as
Approved, provided they have no outstanding quality issues on record, and only upon the decision by Procurement
Manager to do so.

4.0 PURCHASING

In order to purchase critical materials or items, an employee will submit a Requisition Form to Procurement. This
form must be approved by an appropriate manager, in accordance with the following approval authorities, based on
currency value of the purchase:

Position Authorization Value (N)

Admin Manager 50,000
Project Manager 100,000
Finance Manager 150,000
General Manager 200,000
Managing Director Above 200,000

If the requestor has indicated a preferred supplier, Procurement will ensure the supplier has been approved in
accordance with the section above; if the proposed supplier is not approved, Procurement will either use an
approved supplier, or contact the requestor and resolve the issue.
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Procurement may purchase items directly, without a Requisition Form.

For some purchases, Procurement may elect to submit competitive requests for quotes from potential suppliers
before making a purchase.

Purchases may only be made using APPROVED suppliers. Purchases from RESTRICTED suppliers must be made
in accordance with the restrictions noted in the ASL.

If a new supplier is to be used, a CONDITIONAL supplier may be used, in accordance with the conditions noted in
the ASL.

Purchasing shall then generate a Purchase Order (PO) to the supplier.

Each PO must contain the following information at a minimum:

Items to be ordered, identified clearly (typically to include catalog number, part number, etc.)
Date of delivery desired
Quantity
Pricing
In addition, the following information shall be included on the PO if applicable:

requirements for approval of product, procedures, processes and equipment

requirements for qualification of personnel
quality management system requirements
the identification and revision status of specifications, drawings, process requirements,
inspection/verification instructions and other relevant technical data
requirements for design, test, inspection, verification (including production process verification), use of
statistical techniques for product acceptance, and related instructions for acceptance by the organization,
and as applicable critical items including key characteristics
requirements for test specimens (e.g., production method, number, storage conditions) for design approval,
inspection/verification, investigation or auditing
requirements regarding the need for the supplier to:
o notify the organization of nonconforming product
o obtain organization approval for nonconforming product disposition
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o notify the organization of changes in product and/or process, changes of suppliers, changes of
manufacturing facility location and, where required, obtain organization approval
o flow down to the supply chain the applicable requirements including customer requirements
records retention requirements
right of access by the organization, their customer and regulatory authorities to the applicable areas of all
facilities, at any level of the supply chain, involved in the order and to all applicable records

The PO shall be reviewed and approved before release to the supplier; this is indicated by the inclusion of the
Procurement Officers name entered onto the PO.

A copy of the PO shall then be sent to Warehouse/Storage to await receipt of the items.

5.0 MATERIAL RECEIVING

Incoming items are received from various shipping carriers and staged for receiving.

The Receiving Clerk will conduct an immediate visual examination of the packaging of each received item, looking
for obvious damage. If such damage is found, the Receiving Clerk will hold the driver, and notify Procurement if an
immediate refusal should be conducted.

Once items are accepted without any visual damage, the driver may leave.

The Receiving Clerk will then conduct an incoming receiving inspection for each package, checking the following
against the Purchase Order:
Correct quantity received
Correct items received
Items received on time or late
Obvious damage to items inside the packaging.
Items on backorder
Any problems will be noted on the Material Receipt Form and Procurement alerted. Procurement will advise the
Receiving Clerk as to what actions to take. In the interim, the questionable received items must be segregated away
from accepted items, and marked or tagged as AWAITING DISPOSITION or similar language.
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Depending on the severity of the problem, Procurement may alert the supplier and attempt to resolve the issue over
the phone, or may submit a full Supplier Corrective Action Request (SCAR) per the procedure [Corrective
Preventive Action Proc.].

The Material Receipt Form shall be used to track the quality of products received by suppliers; this form is then
summarized or sent to Procurement for evaluation and consideration of any changes to the suppliers current
approval status in the Approved Vendor List.

Once items are deemed acceptable, Warehouse will determine if the items require additional precision inspection by
QC. If so, these items shall be sent to QC for dimensional or precision inspection. QC will notify the Receiving
Clerk of the results of the inspection, and allow release if they are acceptable. If the items are unacceptable, the
controls set forth in the procedure [Control of NCP Proc.] are to be followed.

QC will maintain records of inspections of incoming items.

For accepted items, the PO will be stamped RECEIVED with the date received; any backorder or other notes may be
indicated on this PO. This PO is then returned to Purchasing for review and filing.

Accepted items may then be staged for routing to the appropriate location, either to inventory or to the buyer.

Items entered into inventory shall be marked with the company PO # and material or item number or description, if
the packaging does not already include this information.

Any received certificates of conformity, test reports, certificates of analysis, etc. will be forwarded to QC for review.
QC will review these reports for adequacy and to ensure they reflect the actual lot received. If there are any
problems, QC or Purchasing will notify the supplier to submit a corrected certificate. If the certificate is acceptable,
QC or Purchasing will stamp or initial the report, and file it accordingly.

All items are to be handled carefully, in a manner that will not introduce damage, foreign objects, or deterioration.

Only certified fork truck or lift operators may operate receiving or warehouse vehicles.
As required, broken down packages shall be relabeled so that split items are readily identifiable if aster packaging
labels are destroyed.
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Only authorized persons may enter or remove items from inventory; this authorization is recorded within employee
training records.

Materials handlers must abide by all company safety rules and training while working in the areas.

No product may be released for use prior to receiving inspection.

Items with a shelf life (expiration date) are to be labeled with an expiration sticker, based on the manufacturers
product guidelines, unless such a label has been affixed by the manufacturer. Bridgsite management may override
manufacturer guidelines for expiration if they document the basis for doing so and maintain this on file in
Procurement.

Tools received with calibration certificates, or those tools which are known to need calibration, must be submitted to
QC for inclusion in the calibration records prior to delivery to the buyer. See the section on calibration in the
[Quality Manual Doc] for more details on calibration activities.

Management will use information provided by Receiving and Purchasing on supplier incoming inspection results to
re-evaluate suppliers and adjust supplier ratings accordingly.

6.0 SUPPLIER CORRECTIVE ACTION REQUESTS

The Procurement Department maintains a system of Supplier Corrective Action Requests, or SCARs. This allows
for the flow down of corrective action requirements to a supplier when a supplier is found to be responsible for a
particular nonconformity.

Any procurement officer or manager may submit a SCAR Form to a supplier that has shown quality problems or the
potential for nonconformity.

SCARs are routed to the suppliers representative for root cause analysis and action planning.

Failure of a supplier to respond to a SCAR, or to respond with an insufficient action plan, may mean adjustment in
that suppliers evaluation standing.