Management Responsibility

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The Danelec's system for purchasing products and services under controlled conditions is discussed here. Typical services provided by Danelec are Electrical/Electronic services, plumbing and Air condition service.
Main activities related to purchasing are:
- Procurement source evaluation and selection;
- Maintenance and management of a vendors list;
- Procurement document control;
- Control of purchased items and services;
- Evaluation of subcontractor's performance.
RESPONSIBILITIES
Responsibility for the maintenance and management of the vendor list is divided into Purchasing Manger and Finance Manager. Procurement source evaluation and selection is performed jointly by the involved Project Manager and Quality Assurance Group. Issuance of bids and control activities relative to each purchased item or service are performed within each project under the responsibility of the Project Manager.

PROCUREMENT SOURCE EVALUATION AND SELECTION
Procurement source evaluation is performed to determine subcontractor's capability. The evaluation includes any or all of the following:
- Subcontractor's economical/financial consistency;
- Subcontractor's history and previous Danelec experience with the subcontractor;
- Subcontractor's current records (qualitative and quantitative information);
- Subcontractor's technical and quality capabilities.
Resolution or commitment to resolve unacceptable conditions resulting from procurement source evaluation shall be obtained from the subcontractor prior to selection and contract award. Any subcontractor selected to provide items or services shall have acceptable qualifications and quality programs and shall be capable of performing within the requirements of the procurement documents. Information gathered through the evaluation process is collected and maintained by the Technical Manager in a comprehensive list of vendors.

PROCEDURE DOCUMENT CONTROL
Procurement documents issued by Danelec (e.g. bid requests, purchase orders and contracts) are prepared, verified and approved as a joint effort, of the Administration and Finance, Project and Quality Assurance Groups. The extent of each group's involvement is a function of the item or service procured. Changes in a procurement document are subject to the same degree of control as was utilized in the preparation of the original document.
Procurement documents state applicable requirements for technical performance, quality, acceptability, and documentation. To this purpose, applicable quality related requirements and elements of the Danelec Quality System are identified. Danelec right to stop work for significant quality problems is clearly stated.
The responsibility for compliance with applicable quality requirements and elements of the Danelec Quality System can be delegated to the subcontractor in the procurement documents, or can be retained by Danelec. If the responsibility is delegated, the subcontractor must have a documented and acceptable Quality System. If responsibility for compliance is retained, the procurement documents are used to "pass-down" the performance of specific quality requirements to the subcontractor. The "pass-down" of the specific requirements assures that all appropriate requirements can be met without requiring all subcontractors to have their own quality assurance program.
To verify acceptability, the procurement documents shall provide for Danelec to subcontractors' facilities and records for auditing and inspection.
Documentation required by Danelec to provide evidence that materials, equipment, and services are of specified quality and identified by the procurement documents. The right of Danelec to review and approve this documentation prior to acceptance of an item or service is stated.
Procurement documents are reviewed to assure that applicable Danelec, regulatory and client requirements (performance, quality, acceptability and documentation) have been incorporated and that any changes in the documents, as a result of bid evaluations or pre-contract negotiations, have been made. Reviews of contracts are performed prior to contract award. Administration and Finance, Project and Quality Assurance personnel shall be involved, as necessary.

CONTROL OF PURCHASED ITEMS AND SERVICES
Control of purchased items and services includes, as appropriate:
- Bid evaluation, to verify conformance with procurement document requirements;
- Subcontractor performance verification, e.g. by means of field quality control checks, review of subcontractor prepared documentation, and performance of source audits.
Control is provided, as appropriate, by the Administration and Finance, Project and Quality Assurance Groups. It shall be applied as necessary to assure that an item or service conforms with the procurement documents.