INDUSTRY OBSERVATION REPORT

Dt: 18.12.11 - 20.12.11

PREPARED BY: I.STANLEY ARUN PRABAKAR

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ACTIVITES:

1. Customer's inquiry review

2. Proposal preparation

3. Work order release

4. Drawings Approval

5. Purchase Request

6. Store& shop floor coordination

7. Inspection & Delivery

8. Documentation

1. Customers Inquiry :
Initially the Contract is submitted by our end clients briefing their requirement. Based on the customers requirement given in the contract specification either we prepare the drawing with our draftsman else we review the dwg given by our customers to understand and pull out the datas in terms of Material MOCs, their quantities, inspection requirement, any special instructions if applicable. These inquiries are then logged into our Internal ORACLE system and generate the Inquiry No for our records and future references.

2. Proposals Preparation :
After reviewing the contract, we do an elaborate costing with all the details gathered from the drawing. The prices for the materials could be availed form our purchase department. Based on the BOM, we prepare proposals after taking into consideration all the direct and indirect cost that mite incurr during the execution of the order. Meanwhile these datas are logged into our Oracle system to generate a formal inquiry and post it to our client for their comments/acceptance. Any additions/ deletions are done based on their comments and the same is incorporated in our proposal by updating in Oracle.

3.Work Order Release :

After the confirmation we receive orally / thro mail / LPO (Local Purchase Order) from our client against the submitted proposal, we will start processing the order by first creating the Work Order No for this job in our Oracle system. This work order no shall be referred for all the activities involved against this job till the complete execution.

4. Drawing approval :
The production against the released work order can be commenced only after the receipt of formal drawings approval from our customer. Incase of any changes in required by our customer we shall incorporate the same as Rev-01, Rev-02, etc and submit the dwgs for approval. If these dwgs calls for any addition / deletion in scope from that of proposal, corresponding changes shall be effected in our proposal cost.

5. Purchase request :
Based on the approved drawing we received from our customer the Bill Of Material is extracted and a separate request against this work order is made to our purchase dept. for the procurement of the requisite Materials for the execution of the project. The inventory availability is checked with our stores dept to avoid surplus procurement.

6. Store & Shop floor coordination :

The purchase request given has to be monitored for the timely delivery of all materials at our yard Stores, as the materials availability plays major role in executing the order as per the commitment given to our customer. Meanwhile, after the receipt of matls at our stores, we have to coordinate with our shop floor foreman by informing the Materials arrival and providing with the job route card to start the fabrication activity. We also should ensure the proper coordination among the labors to finish the job as scheduled.

7. Inspection :
Right from the receipt of materials at our yard stores, to the delivery of job, various stages of inspection is involved. As per the customers contractual requirement the quality requirements are met through inspection by either our in-home inspectors or by Third Party Inspection agencies. All the Inspection are carried out as per standards and the inspection reports are recorded. On successful inspection the job is delivered to our client.

8. Documentation :
At every stage, starting from inquiry to delivery all the documents are logged in a file for our future reference and records. This will include QC Dossier, with all drawings and test reports, test certificates, Certificate of confirmity, etc In future if there is another similar requirement, this document shall be referred.

FOR REMARKS & GUIDANCE :