10.0 Brief Introduction:

As a part of the assignment, the Scrutiny of Reports pertaining to Material Receipt, GRN & Receipt Inspection in respect of Warship Projects viz. P15A, P15B & P17A for the month of Dec’17, Jan’18 and Feb’18 was carried out in the form of Spot Check. Accordingly, on receipt of relevant documents/details from the Stores & Inspection Dept., the preliminary scrutiny of all 224 Nos GRN’s was carried out in accordance with Purchase Manual guidelines mentioned under Chapter No.20-Receipt of Items. Based on the above scrutiny, it was observed that there were delays from the date of receipt of material till preparation of GRN and from preparation of GRN till date of carrying out receipt inspection and hence a detailed scrutiny of the 10% of randomly selected GRN's was carried out and report was submitted.

10.1 Background:

During the Spot Check, a detailed scrutiny of 29 GRNs were carried out to assess the reasons for delay in preparation of GRNs and receipt inspection. The following general reasons are found for the delay.

A. Raising GRN:

• Suppliers failed to provide necessary documents during the delivery of consignment, such as 3rd party inspection report, TC, Packing list etc.
• In case of direct supply on-board ship, the request for regularization by raising the GRN is not forwarded to the Stores by Planning Department within 2 / 3 days as stated in the clause 20.2 of Purchase Manual.
• An inordinate delay in obtaining in principle approval from the functional Director is also noticed in case, regularization is not done within 2/3 days.
• The discrepancy noticed during the receipt of consignment is not immediately conveyed to the respective Commercial Department by the respective Stores.
• Delay is also observed in raising the GRNs by Stores without citing any reasons.
• Non release of PO in the System and non-issue of necessary amendments (GST Tax Code etc.) to the PO by the Commercial Depts. before delivery of items.
• Delay in raising GRN for items received in Anik Chembur Yard.
• Description of item in PO & Challan/Invoice is not matching.

B. For Receipt Inspection:

• The required documents like TPI certificate, TCs etc. for carrying out receipt inspection are not provided by the suppliers along with the items.
• Inspection Department failed to communicate the discrepancy of documents to Commercial Department in time.
• In case of 3rd party inspection, the co-related stamping was not found on the item and hence TPI is required to be contacted.
• In case of major equipment’s / systems the break-up of deliverable with price break-up are not indicated in the PO. Order amendment takes considerable time as PR to be revised by Design before revising the PO and GRN and hence delay in receipt inspection.
• In one of the cases it is observed that the description of item in PO and the TSP are not matching. On scrutiny it was observed that the final description after TNC meeting was not incorporated in the TSP and hence clarification was to be sought from Design Department.

10.2 Implementation:

The following systemic improvements have been suggested viz:

1. All the documents required to be submitted during the delivery of item by the supplier is to be clearly indicated in the PO.

2. In case of main equipment / systems, the amendment to the PO incorporating the details of deliverable and price break-up should be prepared well before its delivery after obtaining necessary details from the suppliers. The PO should have a clause stating that the list of deliverable along with price breakup should be submitted immediately on approval of drawings and OAP.

3. Necessary amendment in the case of GST / HSN, if required should be issued prior to delivery of item.

4. Design Department should ensure that TSP be amended incorporating the deviations accepted during the TNC meeting (if any) and the same to be enclosed along with the PO.

5. In case of direct supply on-board ship, the requisite documents for regularization be forwarded to the Stores as per Clause No.20.1 of PM.

6. The discrepancies in supply of items should be informed to the concerned Commercial Departments and suppliers immediately on receipt.

7. A weekly review meeting be conducted by OIC (S & I) with Stores and Inspection Executives to address various issues in raising GRNs and receipt inspection.

8. A monthly review meeting be held by GM (M) with Stores and Inspection Departments and a monthly report be put up to functional Director for his information and intervention if any.

10.3 Impact and Benefits:

Based on the above Spot Check and detailed investigation, Director (Shipbuilding) has constituted a committee for Study of existing Material Handling Systems in Store. D(S) as well as Director (Submarine & Heavy Engineering) has also issued a circular for implementation of the aforesaid systemic improvements suggested by Vigilance Dept., which would result in ease of material handling in stores and shall also help in overcoming the delay in preparation of GRN & Receipt Inspection.

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