Center for Advanced Studies in Water

Standard Operating Procedures (SOPs)

For Store / Inventory Management

Mehran University of Engineering & Technology

Jamshoro
 SOP Control Information
SOP No. 02
SOP for: Store/Inventory Management
Drafted By: Director Administration (USPCAS-W)
Reviewed By: Project Management Unit (PMU)
Approved By: BoG (USPCAS-W)
Date of Approval: 28th January, 2019

Responsible Owner:

Director Admin USPCAS-W, MUET Jamshoro

Review Schedule:

To be reviewed and updatedon yearly basis

Document History

Version
Edited by Approved by Effective Date
Number
1 PMU BoG 1st March, 2019

Communication Plan

This SOP will be communicated in hard and soft format to all concerned.

1. Scope

This SOP is meant to provide effective inventory control and management of

consumable and non-consumable store items of the center including ordering, receiving
and proper handling of receipts, storage, issuing equipment, apparatus, materials and
supplies, generation of periodic status reports and performance of other related duties
as necessary to ensure safety and security of the store items.

2. Purpose

The purpose of this SOP is to specify the procedures and processes to be observed by
the Center for effective management of store items while meeting the demand of faculty
and staff of the center in timely manner and as per their requirements. This Document
should help maintain Centre’s store/warehouse in such a way that loss of inventories
and damage stays minimal during the execution of the day-to-day activities. This SOP
also aims to help Centre’s administration to preserve the balance between consumable
and non-consumable stuffs in the store. However, the successful implementation of this
SOP will make the Centre’s inventories sustainable. The following procedure and
guidance are designed to ensure effective management of the store.

3. General Procedures for Inventory Control

1. Only authorized persons shall have access to the Store House.

2. All materials will be received at the store and store personnel / department
concerned will be notified promptly on receipt.
3. The approved consumable and non-consumble items shall be stored in the
designated locations after inspection clearence.
4. The Hazardous items must be separated from the main stores.
5. The rejected items shall be returned and offical advice must be given to the
Procurement Manager.
6. The non-consumable expensive items must be stored in the steel cup boards.
7. The relocation / rearrangement of non-consumable item must be ensured to
Store Personnel.
8. For non-consumable items such as Laboratory equipments, furniture etc., proper
gate pass should be filled after approval of online transaction to be made.
9. The Gate pass should be ensured at the main exit gate of the Center.

4. Step Wise Procedure

1. Generation of Demand
2. Receiving and Inspection
3. Inspection of Fixed Assets
4. Return of Consumed and Non-Consumed Items
5. Issuance Procedure of Consumed and Non-Consumed Items
6. Identification and codification
7. Record Keeping and Maintenance of Record
8. Scrap

1. Generation of Demand

b. All kinds of demand items (Consumable and Non-Consumable) which are not
available in the store will be processed through online store software which can
be accessed through the following link: http://sop.water.muet.edu.pk
c. The Stores Supervisor will process administrative approval of the required items
within three working (3) days after the receipt of item(s) requisition.
 d. In case of disapproval of the demand the decision will be communicated to the
employee by Director Administration or concerned Departmental Head.
e. After administrative approval, the demand will be completed within a week.
f. All the employees are required to fill demand form for the accountability and
record keeping purposes.
g. Verbal demand will not be processed.

2. Receiving and Inspection

Stores Personnel shall provide inward materials after ensuring the following.

a. Stores personnel received Supplier Delivery Challan (DC)

b. Supplier Delivery Challan / Invoice bears the reference of the purchase order.
c. In case consignment received without any documents is noticed in the
documents received, Purchase official will be notified immediately for obtaining
necessary information for in warding.
d. Acknowledgment of receipt of consignments is subject to final check and
approval.
e. Acknowledgment of receipt will be generated in the form of Goods Receiving
Note (GRN) which must be system generated and signed by Store In-charge /
Store Supervisor.
f. Receipt of laboratory equipment will be generated after the satisfaction and
clearance by the concerned Lab supervisor or concerned departmental head.
g. Receipt of consumables, i.e. chemicals, lab wears, etc.is generated after Lab
supervisor clearance.
i. The damaged items / broken seal of consumable and non-consumable items are
to be returned immediately, and the concerned person makes a note on Delivery
Challan.
h. All items shall be received on all working days only during working hours.
i. It has to be ensured that every item received in stores is checked from quality
angle.

3. Inspection of Fixed Assets

j. Inspection of Fixed Assets / Physical stock taking/ stock verification.

k. Inspection of the fixed assets is essential to make things, physical count.
l. A physical count of fixed assets is planned on a quarterly basis.
m. Director Administration forms a committee to physically verify the Fixed Assets
and submit a report on it.
n. This Report shows the result of assets count and gets the idea how the condition
of the fixed assets is – are they broken and not being used (they may exist, but a
fixed asset should also be used in Institute), or maybe they will not be usable for
 their remaining useful life? Those are the questions physical asset count should
also address.

4. Return of Consumed and Non-Consumed Items

a. Rejected items returned to the vendor.

b. The unsatisfactory report of the goods information provided to the Procurement
Manager.
c. Unsatisfactory report letter must be written to the vendor within a week’s time by
Procurement Manager.

5. Issuance Procedure of Consumed and Non-Consumed Items

a.No Verbal requisition is entertained.

b. All the Faculty and Admin staff place their request for Consumable and Non-
Consumable Items in the online store software. The required link is mentioned
below. http://sop.water.muet.edu.pk
c. After approval of the Consumable and Non-consumable item, the respected staff
collects their approved demand from Store.
d.Custodian of Non-consumable / fixed asset is responsible for the asset.
i. In case of loss of the Non-consumable / fixed asset, a committee is to be
constituted.
ii. Inquiry / Interrogation will be made from the concerned employee and the
decision of inquiry is communicated to the Employee and concerned
departments.
e.The request for the consumable items, i.e. stationary, supplies, etc. at least for one
month for the smooth flow of office requirement.

6. Identification and codification

a. Tagging is the process of numbering fixed assets and allows the tracking of the
movement of fixed assets from location to location.
b. Tagging allows the positive identification of assets. It can
i. Provide an accurate method of identifying individualassets,
ii. Control the location of all physicalassets,
iii. Act as theftdeterrence,
iv. Aid in preventive maintenance of fixed assets,and
v. Provide a common ground of communication for the Finance Office and the
assets'users.
c. The tag number is entered in the asset master record of Asset Register
d. Asset tags are pre-printed labels with bar-codes.
e. Asset tags should be consistently placed in the same location on each
 similar asset type. The tags should be placed, if possible, where they can
be

 Easily accessible forviewing

 Easily identifiable without disturbing the operation of the asset
 This will assist in the audit inventoryprocess.

7. Record Keeping and Maintenance of Record

E-record of Asset is maintained.
8. Scrap
a. The list of depreciated items is updated biannually.
b. Depreciated asset is return to the University Main Store.