KLU PROJECT OVER VIEW

KLU Introduction

Purchase Process

AMC(Annual Maintenance Contract ) purchase

process

Inventory Management Stores

Construction Procurement Process

KONERU LAXMAIAH UNIVERSITY

Introduction
1.1 KLU Location
The KLU is located in a 50 acre campus abutting Buckingham Canal,
about 9 km. from Vijayawada railway station, at Tradeswomen, Guntur
District, Andhra Pradesh.
Vijayawada is located on the banks of river Krishna in the State of
Andhra Pradesh and is historically a cultural, political and educational
center, popularly known as Vidyalawada. The city is well connected by
National Highways and Railways with Chennai (440 Km.), Hyderabad
(275 Km.) and Vizag (385 Km.). It is a main junction for trains running
from North to South India. We have daily flights to Vijayawada
(Gannavaram Airport) from various airports like Chennai, Hyderabad
and Bangalore.

PURCHASE PROCESS

All the materials are segregated into Groups

Process Flow for Procurement Process:Indent from

DepartmentsIndent Approval by ChairmanRequest for QuotationsCollect
QuotationsQuotations ComparisonVendor SelectionPurchase Order
CreationInward slipMaterial Receipt at Stores along with the billPhysical
Quality check by expertsAttach the approval Order with bill and send to
accountsPayment to Vendor Dispatch the Cheque to Vendor.

Constructions Procurement will be same as the above processes.

No Import Procurement process

No Subcontracting Process

Number of Materials in KLU is 10,000/-(Approximately)

Number of Vendors is 400 (Approximately)

Requirements in Purchase

Bill Wise material price should be tracked.

As on today there is no code for materials.
Material Code need to be created.
Number of Purchase Orders created on daily
basis.

Material wise source of suppliers.

Material wise purchase price history.

Annual Maintenance Contract

Aqua Guard Maintenance Eureka Fobs

Air Conditioner and Cooler Maintenance LG,
Voltas

LIFT Maintenance Johnson

House Keeping

Cleaning

Water Supply

DG Set Maintenance

Maintenance Dept. procurement

Process
Process Flow:-Indent from DepartmentsIndent Approval

by ChairmanRequest for Quotations from Maintenance

DepartmentCollect
QuotationsQuotations
ComparisonVendor
SelectionService
Order
CreationGate entry slipMaterial Receipt at Stores along
with the billStock receipt details, Central stores will inform
to the department Consumption of the material. Send the
bill to the Purchase department Purchase department attach
the approval Order with bill and send to accountsPayment
to Vendor Dispatch the Cheque to Vendor.

Requirements in SAP

Services wise price should be tracked.

As on today there is no code for
services.Services are tracked with service
description.Service codes to be created.
Automation
process

of

Gate

entry

and

inventory

Manpower Procurement Process:

Department wise manpower requirement indent will be sent to the Chairman for approval.
After the approval manpower requirement the same will be informed to the external
contractor. Labor rates are already established.
Gate Entry Slip: Gate entry slip will be prepared at gate. This slip consist of labor
details ,entry time and reporting to which department. After the work Gate out time will be
maintained in the register. Based on the Gate in and Gate out working hours will be
calculated. Every week Workers gate entry statement will be prepared and Gate entry
sheet will be submitted to the maintenance department.
Payment Process: Payment voucher and the gate entry statement will be submitted to
the chairman for the approval for payment, after the approval payment voucher submitted
to the accounts Department. Accounts will issue the check for the approved amount.
RGP (Returnable gate pass): Whenever the material is required to send out form the
Campus, At stores RGP slip will be prepared. This slip consists of Requisition code, date
of issue, Item description, and quantity and service order details.
At the time of receipts of RGP, at gate they will cross check the requisition code, RGP
Code and receive the material and send to material to the Central stores.
NRGP: Non- Returnable Gate Pass: NRGP Document will be created in two scenarios.
Material Return to the Vendor
Material transfer from Central stores to Administrative Office.
Material Return to the vendor: Incase of any rejection, material will be send back to the
vendor with the NRGP slip and bill.
Material Transfer from Central stores to AO: Based on the stock availability at central
stores, AO will raise an indent slip for material, quantity required and send to the Central
stores, Central store will prepare NRGP document with material and quantity and the
send the material to the AO.

Inventory-Stores

Items are segregated into groups:

Hardware,Electrical,Plumbing,Paints,GeneralItems,Stationery
Items

Process Flow for Receipts:Goods receipt from the vendor Gate entry slip

preparation Send the material to the central storesPhysical stock checking

receive the material and updated the stock registers.
Process flow for Material Rejection:Goods receipt from the vendor Gate
entry slip preparation Send the material to the central storesPhysical stock
checking IF the stock rejected Prepare the Non returnable gate pass Attach
NRGP with bill and send back the material to the vendor.

Process flow for material Indent process:Material requisition slip from the
department Stock availability check issue the material top the department
and update the stock registers.

RGP Document Process Flow:Gate pass request from Departments Prepare

RGP document in the stores Material issue to the party Material receipt ref to
the RGP document to the central storesInform the receipt to the department
stores Goods issue to the department.

Requirements in Stores

Stock balances should be match with the

Ledger, system and physical balances.

Inventory automation.

Provision to do the physical inventory checking

Stores Operations
All 31 department required items will be stores in
Central stores. There are no departmental stores.
Once the material issued from central stores are
considered as consumed.

Every Year in the month of April before the

academic year starts, all the department will
send the stationery requirement with the
department head signature to the central
stores.
Central stores will prepare the consolidated
statement of the stationery requirement and
send to Administrative Office for chairman
Approval

After the Chairman approval Stationery

requirements will send to the purchase office for
procurement.

Purchase office issue quotation and select the

vendor and issue the purchase order for the
stationery items.
And Purchase offices request vendors to send
the materials to the Vaddeswaram Central
stores
Once the material reaches to the gate, gate
entry slip will be prepared and send the
material to the central stores from gate.

Physical stock verification will happe at gate.

when the material is accepted then update the
registers with the receipts.

If the material is rejected, stores will prepare

the NRGP slip and send the material back to
the vendor.

Goods issue Process:Department material

requirements will send in Material requisition
and Indent Slip signed by the department head.
Indent slip consists of Indent slip number,
department details, Material description, quantity
required, quantity issued and remarks.

If the material is available at stores, stores will

issue the material and update in quantity
issues in the material requisition indent slip
and update in the stock register.

RGP (Returnable gate pass): Departments will raise a requisition to

central stores to issue RGP gate pass signed by the department head.
This request consists of the party number, material to be sent and the
quantity of the material.

Based on the Department request, stores will prepare RGP document

and maintain the party number in the RGP document. This document
consist of three copies white, green and yellow.. White copy will issue
to stores, green copy issue to the party and yellow copy will be kept in
the central store records.
RGP receipt: With reference to the RGP document, material will be
received in the central stores. From central stores, it will send to the
departments.

The Construction Department will prepare the indent and send the Indent to Chairman for budget
approval, after the approval the Indent will be sent to the purchase officer .
The Purchase office will issue quotation and get the quotations from the multiple vendors and
prepare consolidate statement for Vendor selection.
After the Vendor Selection Purchase order will be raised for the material indented and ask the
vendor to supply the material to the central store.
At the time of material receipt, gate pass will be prepared at the gate and send the material to
the central store. After the physical Verification at central stores, stocks will be updated in the
stocks Ledger register.
For Cement Material: Stock for the Cement material will be kept in the separate stores and the
stock records will be maintained by the construction department.
Iron Material will be consumed based on the construction requirement on daily basis. Scrap
can be tracked. Scrap sales Process is exists.

Daily Labor Wages:

Based on the construction requirement daily labor services will be procured. For Daily wages NMR
will be prepared .At the gate entry gate in ,gate out and labor requirement department details will be
maintained.
Weekly Labor Payment Statement will be prepared on weekly basis and the send the statement for
Chairman Approval. Based on the nature of services payment will be made by Cash or Cheque.
Labor Contract:
In the labor contracts process, material will be supplied by the KLU and Vendor will perform the
services internally with in the KLU Premises.
Vendor Services will be tracked reference to the contract and pay to the vendor by Cheque after the
Chairman approval.
Grills Procurement Process:
Construction Department will give the design and the material specifications to the Vendor with the
purchase order. Vendor will prepare the Grill and send it to the KLU. After the Gate entry process
the Grill will be sent to the central stores and from central stores it will be sent to the Construction
Department.
Budgeting Process:
Construction department will prepare the estimated budget and submit to the chairman for the
approval. Once the approval is done procurement process follows for the project.
Budget tracking will be monitored at Construction Department as well as in the accounts
department. If the Budget gets exhausted and needs an extension an Indent would be raised to the
chairman for the supplement budget for the project. Budget process is done manually.
Majority of the construction will go more then one year.
Scrap sales Process:
For Scrap sales KLU will call for customers Quotations and finalize the price. The sale of the scrap
is done in Cash.