SOP For Capex Material/Items Returning Proedure

With the help of this SOP I will highlight the following points.

1) PURPOSE

2) SCOPE

3) DEFINITION

4) RESPONSIBILITIES

5) PROCEDURE

6) RELATED DOCUMENTS

1. PURPOSE:

The purpose of this procedure is to provide guideline for handing over returnable Capex Spares to Store/Warehouse and issuance for refurbishment /repair, re-use, etc. 

2. SCOPE:

This procedure is applicable to all the material including: 

1) Capex Spares (organization/company related) – Removed from workplace.

2) Issuance for refurbishment / repair, re-use, other. 

3. DEFINITION:

(3.1) Revex Spares: 

Spares parts will fall under Revex category if: 

Value = Any (> PKR 100,000/-) and Life <= 1 Year Or 

Or Value <=PKR 100,000/- and Life = Any

All consumables such as filters, gaskets, packing, lubricant, chemical, spark plugs etc fall under Revex category. Such material doesn’t fall under returnable material category.  

(3.2) Capex Spares

All Spares parts of worth Rs.100,000/- or more and life greater than 1 

year. 

(3.3)   Repairable Spares (Capex): 

Material which can be re-used after necessary repair / refurbishment works. 

(3.4) Cannibalized Parts:

Material is faulty / damaged / not usable and can’t be uses as complete equipment but few healthy parts can be used in future. These parts should also be returned to store/warehouse.

(3.5) Un-Usable Material / Scrap: 

Any faulty / damaged part which cannot be re-used will be considered as scrap.

4. RESPONSIBILITIES:

(4.1) Concerned Section Head / Dept Head are responsible to ensure that returnable material be handed over to store/warehouse with proper tagging / packing. 

(4.2) Concerned Section Head / Dept Head of respective sections are responsible for initiating the process for repair for repairable item within one month.   

(4.3) Store/warehouse is responsible for keeping the proper record of all the items received against this procedure. 

(4.4) Store/warehouse is responsible to circulate following reports on monthly basis.

• Capex Spares Issuance Report – Mentioning status of items returned or not returned.
• Capex Items Retuned to Store/warehouse including status for items sent for repair.

(4.5) For scrap / irreparable item, respective dept shall initiate the process through Scrap disposal procedure (controlled document number).

5. PROCEDURE:

(5.1) All used capex spares removed from plant should be returned to store/warehouse within 7 days of its removal from plant.

(5.2) Material will be returned to the store/warehouse through duly approved form (design a return material format) with all necessary information.  User shall handover the material with proper packing, tagging & mention necessary information on material as Material code, Material description, Material physical condition (usable, repairable, repaired, Cannibalized etc).

 (5.3) For repairable items, processing for repairing should be initiated within 30 days of the item returned to store/warehouse. Such items will be issued from store/warehouse through (design an issuance document), and should be returned to store/warehouse through Attachment 01 after refurbishment / repair.

 (5.4) Monthly status of Capex spares issued from Stores (design an issuance report) and Capex Items returned to stores (design a returning report format) will be circulated by store in consultation with FBA Representative. Respective department shall review the list and take necessary action as advised in this procedure.

(5.5)  Non-repairable Capex items handed over to store will be scraped through scrap disposal procedure (controlled document number).  

(5.6)  In case if materials to be issued for first time for installation at plant, it will not fall under the returnable category but attachment No. 5 shall be provided with DN for declaring new items.