1. FY2021 Management Review
Post FY 2020 Minutes
FY2020 FY 2021 CURRENT
ISSUES / TOPICS ACTION ITEMS STATUS
CY2020 PURCHASING Dept.
Importation of major equipment for plant use Repack 3 Done – Operational
● To plan purchases ahead CPF to conduct Budgeting lecture on the end users CPF to schedule date
● To implement CAPEX Pending Pending - CPF to schedule the Training / Seminar ( CPF Gave Reading
Materials for Effective Budgeting)
● To update inventory and stock level prior to ordering Hire Stock man Personnel Done – c/o Dandilo M.
● Lead-time Lead Time on the Stock items already given to stock
man / stock custodian
Stockman and other department
● Updated payment Continuous follow up in finance department most of the supplier still not updated ( aging 30 days, 60 days , 90 days
, 6 month and 12 months
● Re-negotiate credit term Cannot negotiate yet as payment still not updated Pending- most of the supplier still not updated on payment
● Consistent monitoring of delivery Daily communication with supplier with PO in the
morning
Implemented, warehouse man
1. Finance:
Prompt payment to suppliers Finance to discuss on action taken on this issue Finance to discuss on the status
a. Proposed projects to include Budget and Cost-and-Benefit
analysis
ACParas to determine which materials are needed
for his projects prior to budget planning – ACP
submitted summary of project with Pros and Cons
ACP - implemented
b. Projects with High-value items must be discussed with and
approved by MDs to minimize risk of non-moving assets/stocks
implementing in some projects
c. Better communication
d. Detailed specifications on items being ordered Already discussed with stockroom custodian Implemented with item code no.
e. Avoid rush orders Most request still in rush orders
2. Contents:
1.
1. Post FY 2021 Minutes
Post FY 2021 Minutes
2.
2. Organizational Chart
Organizational Chart
3.
3. Job Description
Job Description
4.
4. Duties & Responsibilities
Duties & Responsibilities
5.
5. Detailed Duties & Responsibilities (Annually, Semi Annual, Quarterly, Monthly & Daily)
Detailed Duties & Responsibilities (Annually, Semi Annual, Quarterly, Monthly & Daily)
6.
6. Purchasing Flow Chart
Purchasing Flow Chart
7.
7. Resources
Resources
8.
8. Forms
Forms
9.
9. Documents & Records
Documents & Records
10.
10. Departmental Objectives
Departmental Objectives
11.
11. Root Cause & Action Plan
Root Cause & Action Plan
12.
12. Surveillance Audit 2021
Surveillance Audit 2021
13.
13. Internal Customer Satisfaction
Internal Customer Satisfaction
14.
14. KPI - Timeliness of Service
KPI - Timeliness of Service
15.
15. KPI – Timely Correction of NC’s
KPI – Timely Correction of NC’s
16.
16. Active Suppliers
Active Suppliers
17.
17. Top 50 Supplier
Top 50 Supplier
18.
18. Process Affecters Diagram
Process Affecters Diagram
19.
19. SWOT
SWOT
20.
20. Accomplishment & Trials
Accomplishment & Trials
21.
21. Changes on CY 2018 – 2019
Changes on CY 2018 – 2019
22.
22. Expectation from Purchasing
Expectation from Purchasing
23.
23. Expectation on other Department
Expectation on other Department
3. FY2021 Management Review
Post FY 2020 Issues & Topics
CY2020 CURRENT
ISSUES / TOPICS STATUS
Expectations from Purchasing Dept.
On-time or improved delivery Improved on some items as Payment on
agreed credit terms still not met
To offer more alternative suppliers
Alternative Supplier is available but credit
terms still an issue
On-time submission of reports
Submitted when as needed by MD's except
for KPI
To outsource other Pest Control service provider
Already source out but Price is too High –
Retained Chemsol as Pest control service
provider
For Replacement: Filter for drinking water Replaced Already
To outsource other Calibration parties
Existing Supplier already replaced
Proposed projects to include Budget and Cost-and-Benefit
analysis
Implemented on some projects already
prior MD’s Approval
5. Job Description
Particularly ensure the following
(a) That all purchase are made against properly authorized requisitions ( Approved by Department Head,,
showing the correct and detailed description, specification and quantity
(b) That all the materials requisitioned are duly ordered from the right source after full enquiries on most
competitive price taking into account the trade discounts and tax benefits and good quality.
(c ) That the right quantity of the goods consistent with the quality and the specification required is bought.
(d) That the deliveries of all goods are received within the stipulated period.
(e) That claims due to shortages or any other discrepancies are settled promptly.
(f.)To ensure continuity of supply by maintaining effective relationship with existing supplier and
developing other supplier/service provider .
(g.) To ensure the supplier will be paid with in the agreed credit terms.
6. Purchaser Duties and
Responsibilities
Checking of requisitions/purchase indents.
Selection of suppliers for issue of enquiries.
Do enquiries and obtaining quotations.
Analysing quotations and bids etc., and preparation of comparative statement (quotation charts).
Issuance of Approved Purchase Orders.
Following up of purchase orders for delivery.
Verification and submission of suppliers’ bills to see that payments are made promptly.
Correspondence and dealing with suppliers, forwarder, broker, Customs, etc., regarding shortages, rejections ,
Delivery ( sea freight, Airfreight, ) etc., reported by the Department.
Maintenance of vendor performance records/data.
Keeping various Department/Division informed of the progress of their order in case of delay in obtaining supplies.
Serving as an information centre on the materials’ knowledge i.e. their prices, source of supply, specification and
other allied matters.
Development of reliable and alternate sources of supply.
7. Purchaser Duties and
Responsibilities
In-charge in company vehicle registration
In charge in company vehicle preventive maintenance schedule ( L300, Starex, Lifting Equipment, Generator,
Waste Water System, Boiler, Cooling Tower, Air Compressor, Air-conditioned Unit )
In-charge in importation of all major equipment for plant use (DZC).
In-charge in importation of all major equipment for plant use (Malaysia).
Assist Bank Transaction
Assist delivery to others if and only if LC ( Mr. Leo Charita ) is not available
Process importation of equipment ordered outside the Philippines ( Importation )
Computation of Landed Cost of equipment being imported for Finance Budgeting on payment
Sourcing of Freight forwarder service provider
Sourcing of Brokerage service provider
Compute Estimated Duties and taxes for all importation orders
Monitor in transit shipment ( location, ETA, ETD )
Coordinated in the arrival of shipment on the end user, DZC + Others
8. Purchaser Duties and
Responsibilities
In-charge in pick-up of orders . ( Rush orders, Urgent requirement and below minimum order delivery
order
Coordinates YCO Equipment, Forklift, Reach truck, 10 wheeler wing van repair requirement
Process PO for YCO Vehicle 10 wheeler, Forklift, Reach Truck
In-charge in YCO Trucking Purchases
Purchase Raw materials for others production
Purchase Equipment and packaging materials for OTHERS.
As needed Purchase item needed by Malaysia
Other Task assigned by MD’s and other department
As Needed Bank Transaction
As Needed Driver
9. Purchaser Duties and
Responsibilities
Coordinates with WASSC, Requirement
Process PO for WASCC, Uniform, PPE, Office Supplies, Office Equipment repairs & Services needed
10. Detailed Duties
& Responsibility Annually
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
QA/Maintenance/Warehouse
1 Sample Water - Department of Health * Intertek January 300
2 Boiler iffluent Testing - Smoke Emmission November 15
3 Stock Room Inventory ( Year End ) December 480
4 Fixed Asset Inventory December 480
5 Prepare PO for Water Sample ( Micro, Chemical, Physical) December 210
6 Year End Inventory December 960
7 Managemant Review Presentation December 960
8 Managemant Review - preparation of Report December 1440
9 YCO Truck Van Permit December 930
10 Aircompressor Conditioning 120
11 Genset Conditioning 120
12
Distribution of Love gift - DZC, Winall, YCO Partners - Bank,
Partners December 480
13 Purchase of DZC Christmas Party Raffle December 480
14 Purchase of Christmas Party Shirt December 360
11. Detailed Duties
& Responsibility Annually
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
Registration Company Vehicle& MD's Vehicle
16 L300 FB January 23
17 Smoke Emission January 23
18 TPL Processing January 5
19 Transmit Document to LTO January 120
20 Pick Up - New OR Regitration January 90
21
22 Starex UOH923 March 20
23 Close Van AAB923 March 20
24 Toyota MRS BES 203 March 20
25 Prado AIA 2653 March 20
26 Peugeot NCD 2393 March 20
27 Eco Sport NAU 3463 March 20
28 Smoke Emission March 45
29 TPL Processing March 5
30 Transmit Document to LTO March 120
31 Pick Up - New OR Registration March 90
12. Detailed Duties
& Responsibility Annually
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
Registration Company Vehicle& MD's Vehicle
34 Ford Explorer - ZKN 176 June 95
35 Smoke Emission June 45
36 TPL Processing June 5
37 Transmit Document to LTO June 120
38 Pick Up - New OR Regitration June 90
39 Land Cruiser TOV 117 July 95
40 Smoke Emission July 45
41 TPL Processing July 5
42 Transmit Document to LTO July 120
43 Pick Up - New OR Regitration July 90
44 Isuzu Dmax - EMA 518 August 50
45 BMW - BEW 728 August 50
46 Smoke Emission August 45
47 TPL Processing August 5
13. Detailed Duties
& Responsibility Annually
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
Registration Company Vehicle& MD's Vehicle
50 Registration of 10 wheeler Truck RMN 789 September 27.5
51 Registration of 10 wheeler Truck RLM 529 Septemeber 27.5
52 Registration of 10 wheeler Truck AAT 4019 Septemeber 27.5
54 INOVA ASA 54109 Septemeber 27.5
55 Smoke Emission Septemeber 45
56 TPL Processing Septemeber 5
57 Transmit Document to LTO Septemeber 120
58 Pick Up - New OR Regitration Septemeber 90
59 Registration of 10 wheeler Truck RMB210 October 95
60 Smoke Emission 45
61 TPL Processing October 5
62 Transmit Document to LTO October 120
63 Pick Up - New OR Regitration October 90
14. Detailed Duties
& Responsibility Semi - Annual
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
Semi Annually
64 Suppliers Evaluation June June, December 960
15. Detailed Duties
& Responsibility Quarterly
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
Quarterly
66 Water Analysis - Waste Water March, June, Oct, Dec 960
Quarterly
17. Detailed Duties
& Responsibility Weekly
Week Covered
Item No.
Description of work Activities Estimated Time
minutes
Weekly
Weekly
71 Petty Cash replenishment 120
72 Outside Purchase Schedule 360
73 Purchases of raw Materials 300
74
Coordinate material Custodian on PR seved &
unserved 120
75 Attends operational Meeting
Wednesday / as
scheduled 240
18. Detailed Duties
& Responsibility Daily
Item No.
Description of work Activities Estimated Time
minutes
YCO
Process PR - and Purchase request
Vehicle Preventive Maintenance - Request
* Forklift 30
* Reach Truck 30
* 10 Wheeler Truck 30
* Company Vehicle 30
Win-All
Process PR - and Purchase request + others 30
Malaysia
Process Request + Other concern 30
Others - Grashielle 30
19. Detailed Duties
& Responsibility Daily
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
DZC
Providing all Departmnet Query and concern
( QA, WareHouse, IT, Maintenace, Production,
R&D ) + Phone Concern 60
Receipt of PR & PO base on approved PR -
review 15
Planning And scheduling of PR-PO orders 20
Sending Inquiry with the supplier 60
Coordinate with other department and or
requesting parties with regards to specification 60
Sourcing of Material and Supplies base on PR 60
Negotiating with Supplier 30
Preparing Camvass Sheet 45
Preparing Purchase Order 10
Followimnng UP Purchase Order 30
Material Withdrwal pricing 15
20. Detailed Duties
& Responsibility Daily
Month Covered
Item No.
Description of work Activities Estimated Time
minutes
Others - instructed by MD's 90
Others 1.2 instructed by MD's
Reports
Project Cost Summary 2 hrs. Occasional
Bank Transaction As needed
1 hr depends on
transaction
Driver As Needed
1 hr depends on
transaction
others 2 hrs.
21. Purchaser – Frequency of Duties & Responsibilities - Summary
Position : Purchasing
Date Updated : July 20, 2020
FREQUENCY AND EQUIVALENT HOURS
FREQUENCY
TOTAL
TOTAL
HOURS Total Annual
hours
Equivalent
days Total working
Days in a year
Variance
# Days
Variance #
HRS
MINS
(FREQUENC
Y)
Annually 17,393.50 289.89 289.89 24.16
Semi-Annually 1,440.00 24.00 48.00 4.00
Quaterly 960.00 16.00 64.00 5.33
Monthly 540.00 9.00 108.00 9.00
Weekly 1,140.00 19.00 912.00 76.00
Daily 615.00 10.25 3,198.00 266.50
Others 90.00 1.50 468 39.00
TOTAL 22,178.50 369.64 5,087.89 423.99 288.00 (135.99) (1,087.93)
Average OT /
Year 480.00
Variance (607.93)
22. Purchasing - Present Manpower
Present Manpower Designation Total no. of Manpower
1
Purchasing
Officer 1
TOTAL 1
24. Purchasing Forms
Item No. Particulars Frequency Origin Recipient
1. Purchase
Requisition
As needed Production
Maintenance
Warehouse
Q.A.
Admin
YCO
Purchasing
Department
2. Purchase Order As needed, with
corresponding PR
Purchasing Supplier
3. Abstract of Bids Purchasing
MD’s
4. Suppliers
Evaluation Form
2x per year End user Purchasing
5. Receiving report Per delivery Warehouse Accounting
Purchasing
6. Delivery Receipt As needed FSG End User
Purchasing
7. Suppliers sales
Invoice
Warehouse
Stockroom
Custodian
Purchasing
Accounting
25. Document & Record
Internal & External
Item
No.
Particulars Frequency Origin Recipient
4 Quotation / Proposal Always Supplier Purchaser
5 Service Contract As Needed Supplier Purchaser /
Finance
6 Suppliers Quotation Upon request Supplier Purchaser /
Finance / MD
7 Suppliers Master List Updated from time
to time
Purchaser Purchaser /
Auditor
26. Document & Record
Internal & External
Item No. Particulars Frequency Origin Recipient
8 Suppliers
Evaluation Form
Bi-Annual Customer :
Warehouse
Maintenance
Production
QA
Admin
Purchasing
Purchaser
9 Suppliers
Scorecard
Bi-Annual and or
as needed
Customer :
Warehouse
Maintenance
Production
QA
Admin
Purchasing
Purchaser
27. Resources used by
Purchasing
Manpower 1. Purchaser
2 . PO Approver (MD’s)
Equipment Computer
Telephone
Mobile Phone
Internet
Company vehicle (L300 FB )
Printer
Fax Machine
Materials a. BUDGET
b. PR – w/ specified goods to order
c. Supplier Quotation
d. AOB
e. Receiving Report
f. Job order
Information a. Receiving Report
b. Completeness of delivery
c. Quality Approved
d. Reject
28. Purchasing Departmental
Objectives FY 2021
Internal Audit year FY2021 ( May 2020 – April 2021 )
• No Internal Audit Conducted for the year 2018 & 2020
30. Internal Audit 2021 NC’s
Purchasing – Root Cause & Action Plan
Internal Audit Findings
Identified Non-Conforming Procedure / Process/ Regulatory
NC’s - 1
Non Conformance:
NC # 1
NC # 1. DZC QM 05-03-02
To serve quality product and services on time that is appropriate for company orientation an to develop and find suppliers that will provide
the product and services needed by the company
Findings:
Findings: During the time of audit it was noted that there were unfulfilled and delays in serving the Purchase requisition.
1. Bostwick Consistometer
2. Dye Powder
3. pH Meter
4. PPE boots
5. Lab gown
6. Water treatment and Chemical pump
7. Curve Conveyor
8. Blower Screen Cover
Risk
Risk :
: Undelivered Goods that may hamper the operation of DZC
Root Cause:
Root Cause: Budget Issue, Overdue Account, Out of Stock – due to pandemic
Action :
Action : Consistent monitoring of order until such time delivered and receive by warehouse custodian
To make strategic process on how to minimize and or experience delay on delivery
Finance to update overdue account on suppliers
To source alternative supplier
32. Surveillance Audit 2021
Internal Audit Findings
Identified Non-Conforming Procedure / Process/ Regulatory
NC’s - 0
OFI’s - 2
Opportunities for improvement :
Control of Extremely provided Product, process And Services
1. Objectives and targets were implemented initially only on coal supply, other supplies and extremely provided services are yet to be
1. Objectives and targets were implemented initially only on coal supply, other supplies and extremely provided services are yet to be
included in the timely serving of purchase requisition
included in the timely serving of purchase requisition
2. Comment & recommendation not fully utilized I the performance evaluation of service provider and suppliers. This is a form of giving
2. Comment & recommendation not fully utilized I the performance evaluation of service provider and suppliers. This is a form of giving
justification to ratings provided to external services and impose improvement overall
justification to ratings provided to external services and impose improvement overall
52. Purchasing
SWOT
STRENGTH
STRENGTH WEAKNESSES
WEAKNESSES
Leadership Error Prone on Spreadsheets , PO
Customer Focus Just in Time Delivery
- Production
- Maintenance
- Warehouse
- RM/PM
- YCO
- WASSC
- Malaysia
- QA
- R&D + Others
Existence of ISO certified Purchasing Procedure
Multi Tasking ( No Minor And Major Finding for the last
ISO 3 Audit done by CIP
Interacts well in discussion and accepts
recommendation
Knowledge and expertise in the job
Responsive
Management Support
Time Management
Company OPPURTUNITY
Company OPPURTUNITY Company THREATS
Company THREATS
To add additional manpower as expediter to work hand
in hand wit the Purchaser
Additional Labour Cost
New Purchasing ordering Software
Additional operating equipment investment for the
company
Supplier OPPURTUNITY
Supplier OPPURTUNITY Suppliers THREATS
Suppliers THREATS
Updated Suppliers Payment Delivery on Hold,
New Strategies willing to stock inventory for us Longer Lead Time + minimized downtime
Willingness to improve service, quality and delivery Supplies stock out
53. Accomplishment - FY 2021
Accomplishment;
1. Registration of all company vehicle without penalty – 100% on time
2. Importation of Kolowa Exhaust fan from Taiwan – Production ventilation improvement
3. Importation of Rezpack 3
4. Rehabilitation of DZC Plant Feeder line upgrade and rewiring of old electrical lay-out
5. Renewal of Truck Van Permit with savings
6. Support YCO on their operation requirement
7. Support Win-all on their operation requirement
8. Support bundling requirement on finding location, space, and other requirement needed in their operation
9. Purchase all YCO requirement needs on the rep[air of YCO Vehicles
10. Work Hand in Hand with R&D for others
54. Purchasing Trials - FY 2021
• 1. Delayed Payment too Suppliers
• 2. Credit term from Supplier change due to non payment
• 3. Limited stocks of goods in the market due to pandemic
• 4. Lock of manpower due to LCharita
• 5. Rush Orders
• 6. Not Budgeted PR’s
• 7. Non delivery of PO due to on hold account
55. Changes done
in FY 2020 - 2021
Particulars 2020 2021
Manpower Leo Charita concentrates on the
following
1.Collection, NAI
2.Collection DZC
3.Collection and delivery of
others
4.Submission of DZC Invoice
5.Submission of NAI Invoice
6.Win-All Concern
7.YCO Concern
1. No Replacement yet for Leo Charita
Information a. Receiving Report –
updated and transmitted to
purchasing daily
a. Updated Delivery lead-time
a. Updated c/o Dandilo Mesia
b. Updated
56. Changes done
in FY 2021 - 2022
Particul
ars
2020 2021 2022
Manpowe
r
Leo Charita
concentrates on the
following
1.Collection, NAI
2.Collection DZC
3.Collection and delivery
of others
4.Submission of DZC
Invoice
5.Submission of NAI
Invoice
6.Win-All Concern
7.YCO Concern
1. No Replacement yet 1. No Replacement
Informati
on
a. Receiving Report –
updated and
transmitted to
purchasing daily
a. Updated Delivery
lead-time
a. Updated c/o Dandilo Mesia
b. Updated
a. Same
58. FY 2022 COST SAVINGS – OT
Department Savings
1.06
-
1.06
0.85
1.31
0.48
0.52 0.54
-
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22
FY 2022 Vaerage OT Per Day
59. FY 2022 Proposed Changes
Proposed Changes Benefits Time Table
Requisitioner to submit Expenditure and
operating expences for the month base on
production usage for the month
Finance can alolocate Budget Ahead May 2022
Stockman to work with Purchasing deparment
as an expiditer, in charge of petty purchases
that supplier cannot be delivered
This eliminates Purchaser to lessen out
of office work
May 2022
Finance, Accounting department to Submit
Status of RFP and payment to Supplier,
Suggest to consider to create KPI on the
timeliness of Payment
To ensure on time Payment and will
not hamper delivery of order as not to
hamper production process
May 2022
60. Expectations
from other department in FY
2021
1. Minimize / prevent Rush Order
2. On time Payment Base on approved credit terms on suppliers
3. Complete specification indicated in PR.
