1

Procurement standard description

This organisation’s policy on the purchase of goods and services is as follows: Requirements are always written down for new orders from suppliers and sub-contractors. Checks are carried out from time to time to ensure that these requirements are being met and that the requirements are appropriate.

The above policy shall be applied as outlined in the following sections.

Evaluation of sub-contractors

The ability of a supplier to provide high quality goods and services shall be considered against how crucial those goods and services are to the production by of services that are themselves of the requisite quality.

Suppliers or sub-contractors are advised of this organisation’s quality management system's requirements and its objectives and an agreement shall be obtained from the supplier to comply with the QMS.

Factors influencing depth of audit

Compliance audits are planned and scheduled so as to audit all critical activities at a frequency commensurate with the level of risk involved.

The following matters will influence the depth of a compliance audit:

Suppliers of minor goods and services where quality does not impact on the finished product or service - minimal.
Existing suppliers with a proven record of satisfactory supply - minimal.
Suppliers with recognised certification body (JASANZ, Lloyds) registration for the class of product or service concerned - minimal.
Suppliers with poor product quality or known to have no documented system for process control - maximum.

Minimum - surveillance over time and random sampling of goods or services. Maximum - on-site audit.

Where supply is of crucial importance

Where the supplied goods or services are of crucial importance to the quality of this organisation’s services, or the supplier is suspected of having process control deficiencies, then a compliance audit shall be performed on the suppliers quality management system.

The compliance audit shall be carried out by trained, qualified and independent auditors using approved procedures. staff or nominated agent qualified in conducting quality audits. The object of the compliance audit is to determine the following:

Whether the suppliers quality management procedures are documented.
Whether the documented procedures are being followed.
Whether the procedures are effective.
Identify opportunities for improvement business procedures and the quality management system.

The supplier must be able to demonstrate capability to supply to the quality requirements either at the time of the evaluation or prior to commencing work on the contract.

Checklist

The approved audit procedures specified above notwithstanding, when a supplier or sub-contractor is selected the following matters shall be assessed:

Quality management system.

Process and output.

Registrations e.g., AS or ISO certification.

Methods of product handling and dispatch.

Records of achievement in meeting production schedules.

Where possible, the evaluations of other purchasers.

Other information relevant to assurance that a supplier will not compromise the quality management system.

Process control

A specification of the intermediate and final process control and inspection procedures used by the supplier shall be obtained in writing and a commitment from the supplier that these procedures are followed shall be obtained.

Suppliers subcontractor control

An evaluation of the supplier includes an evaluation of the supplier's control over sub-contractors and an assessment on the quality management system of the sub-contractor's product and its quality information.

On-going evaluation

These checks are periodically updated and the selection criteria are re-evaluated to ensure that they remain appropriate.

Project manager

The project manager or purchasing officer ensures that the the procedures are followed and that, where required, the assistance of the Quality Manager is obtained.

Supplier register

A register of acceptable sub-contractors shall be established and maintained.