Administration Manual - B.E.S.T. Undertaking.

1523
Materials getting out of stock due to Engineering
Reasons/indenter’s actions
e.g.
i) Delay in forecasting requirement
ii) Delay in furnishing recommendations
iii) Delay in inspection of materials received from supplier.
iv) Incomplete/Inadequate specification
v) Erratic consumption
vi) Disputed rejection
vii) Incorrect/low forecasted requirement etc.
15.2 Materials getting out of stock due to Materials
Management Reasons.
restrictions etc.
a) Delay in raising of recoupment slip.
b) Delay in processing of tenders, placement of
P.O.’s
c) Calculation error in working out quantity to be
put on tender
d) Delay in raising of Low Stock Form/Nonprocessing
of Low Stock Form.
e) Non-follow up with the suppliers.
f) Improper Co-ordination with Audit, Accounts,
Engg. Depts. etc.
15.3 Materials getting out of stock beyond the control
of Engg. Dept./M.M. Dept.
15.4 Steps to control Stock outs
a) Failure of supplier/strike/Lock outs
b) Non-availability of alternate source.
c) Non-availability materials, import
d) Erratic price rise of materials etc.
i) Advantage of rates received against the tender
under process to procure urgent needs.