Download - Akshaya Patra (Final Report)

Procurement Plan at The Akshaya Patra Foundation, Bangalore.

Team Nonna’s

BACKGROUND OF THE MIDDAY SCHOOL MEAL PROGRAM

In 2001, the Supreme Court of India directed state governments to introduce cooked lunches

in all government and government assisted primary schools within six months. The subsidy

offered by the central and state governments added up to only one to two rupees per child,

and this was not sufficient to prepare a nutritious meal. As a result of the failures of the

Supreme Court mandate and previous programs, and frustration at the inability to provide a

basic meal to students, a group of talented and diverse individuals came together to think of a

creative and innovative method to implement a school feeding program that could feed a

large number of children with little cost, thus forming the Akshaya Patra Foundation.

Akshaya Patra answers the Indian Supreme Court’s call for a viable midday meal program

and also works to solve many of the hunger and educational issues facing India. Nutrition and

school performance are closely related and Akshaya Patra is working towards eradicating

hunger while promoting education.

DETAILED STUDY

The strategic importance of procurement

Procurement process is the term used by businesses to describe the buying process, and can

refer to the purchase of supplies or services. The goal of the procurement process is to buy

the exact product or service when needed for the most favourable price. Identifying a need is

the first step in the procurement process.

1


Team Nonna’s

STAGES OF PROCURMENT

Pre – procurement

The beginning step in the process of procurement is the recognition that there is a need or

wants for a particular good or service. Before there is a chance for the acquisition of goods,

there has to be the desire to actually gain possession of something in particular.

The term pre-procurement refers to the timeframe before a tender for a particular product or

service has been issued. Activities undertaken in the pre-procurement phase can include

structured discussions between suppliers and procurers, a market survey on the availability of

certain products and procuring research & development (R&D) services.

During Procurement

Typically a purchase requisition (PR) will be sent to the buyer indicating what product or

service is needed. Selecting a supplier typically involves calling out for tenders to multiple

suppliers and comparing the bids to determine which supplier can best meet the needs of the

business. The buyer will request a specific quantity and delivery date based on the

requirements outlined on the purchase requisition. Determining the price paid usually

includes comparing bids then negotiating the best price. The buyer should ensure all bids are

an accurate reflection of the work to be performed or service provided and include all

applicable taxes. This way, the total landed cost is known before the purchase order is placed.

2


Team Nonna’s

It is also necessary to understand the lead time and expected quantity to be delivered. Based

on the actual need date, any accepted quote should meet the required date.

Post – procurement

The last step involves taking possession of the desired good or service, ensuring that the item

is in compliance with all the claims made by the supplier, and rendering payment according

to the terms worked out with the supplier. In some cases, it may be possible to engage in the

acquisition of services and goods prior to supplying payment. At other times, payment may

be necessary before taking possession. With both scenarios, the consumer usually has a short

period where it is possible to reverse the acquisition and move on to another option.

Post procurement quality control:

a) Sampling.

b) Rejected materials.

OBJECTIVES & SCOPE

The need for a model quality assurance system

Quality assurance is a wide-ranging concept which covers all matters that individually or

collectively influence the quality of a product.

Evaluation of information on quality is often lacking, and inspections at manufacturing sites

are not routinely performed to a consistent standard.

3


Team Nonna’s

The implementation of a quality assurance system in procurement, including systems for

prequalification, storage and distribution, may affect costs. However, the benefits of ensuring

quality outweigh the cost investment because they reduce the possible losses caused by the

purchase and supply of substandard products.

Problem Definition

Identification of procurement based problems right from selection of suppliers, incoming

materials, delivery and storage with regards to quality assurance at The Akshaya Patra

Foundation, Bangalore and suggestions of suitable and effective alternatives.

RECOMMENDATIONS

Documentation of policies and standards

Documentation is a critical part of a quality assurance system. TAPF should have a

comprehensive documentation infrastructure, which should include policies, guidelines,

norms, standards, manuals, procedures, records and related documents.

All activities of each section or department should be performed and documented in a

standardized manner, following approved written procedures. The main elements of the

documentation system of this model are described below.

Quality manual:

4


Team Nonna’s

The purpose of such a manual is to document the quality policy as defined by management in

relation to the various activities undertaken by the procurement agency. There should be

policy statements and a quality policy in terms of the agency’s activities and objectives.

Standard operating procedures (SOP’s)

TAPF should have written, clear and detailed standard operating procedures (SOPs) for all

the activities to be performed in the premises. The content of each SOP, particularly the step-

by-step descriptions of activities and approved recording or reporting formats should reflect

the operations of the particular procurement agency.

Elements of standard operating procedures

Title and number describes clear indication of the activity to be performed.

Objective: what is to be accomplished and/or achieved with the SOP.?

Scope: level or depth, or how widely, the SOP is applicable.

Responsibility: list the person(s) responsible for performing the activities listed in the

procedure. It may be useful to refer to the position rather than the name of the person.

Action: sequence of action steps to be followed, from the beginning to the end of the process,

to perform the activity.

Code of conduct

5


Team Nonna’s

The procurement agency should design, authorize and implement a written code of conduct.

The code of conduct should describe the policy of the procurement agency regarding the

conduct of staff in respect to their activities. It should be followed by all personnel.

Maintenance of records:

Records of all operations should be maintained and kept in a suitably organized manner.

Sufficient areas for the storage of records, including product information, manufacturers’

information and inspection reports, should be available.

Access to these areas should be restricted to authorized personnel only, as confidential

information may be filed.

6


Team Nonna’s

VENDOR REGISTRATION

1. Name of food business ………………………………………………….…………………… Telephone No. ………………………………………………………

2. Address of premises ……………….....................................................................................……………….....................................................................................

3. Postal Code ………………….................

4. Type of premise

Farm/small holding Food Manufacturing/processingCatering HotelPrivate house used for a food business Wholesale/cash and carry Premises used by a number of businesses Distribution/warehousing Moveable premises Retailer Market Other: please give details ……………………………………………….

5. Does your business handle or involve any of the following?

Frozen foods Canned foods

7


Team Nonna’s

Fruit and vegetables Dairy products Delivery service Bulk Storage Use of private water supply Other: please give details ………………………………………………..

6. Does your business posses any quality certification?If YES,Please specify………………………………

7. What kind of Quality Assurance measures does your business consider to ensure the freshness and retainment of nutritive value of raw materials?

8. How long have you been in business?

No. of years……………….

9. Are vehicles used for transporting raw materials from the premises?YES/NO

----------------------------------------------------------------------------------------------------------------

The main aspects while choosing any prospective vendor is

QUALITY

PROXIMITY

COST

This is an effective tool which helps in performing a thorough background check of the

prospective vendors. Also, helps to determine the capability of the vendor to supply raw

materials. Shortlist vendors based on the requirements and specifications.

8


Team Nonna’s

Helps to enhance the prioritization of vendors.

9


Team Nonna’s

VENDOR EVALUATION

10

Vendor Name:

Vendor Number:

Date:

Buyer:

Vendor Rating:

PURCHASINGCriteria Yes No Comments

Provides cost-saving alternatives

Offers competitive pricing

Backorders are held to a minimum

Supplies current catalogs

Provides status of orders

Apprises system of any potential delays or problems

Promptly replaces any rejected items

Is courteous and helpful

interested in maintaining account and relationship

Provides quality products

Addresses complaints within a reasonable time

Maintains up-to-date inventory end stock

Provides notice of any special offers or promotions

RECEIVINGCriteria Yes No Comments

Delivers goods and/or services on time

Consistently delivers product in good condition

Packages products to restrict damage in transit

Provides accurate delivery receipts

Provides courteous service

Packs a shipment list with delivery

Provides proper credit for items not received or rejectedStrives to provide cost savings


Team Nonna’s

Evaluation of potential suppliers

This will involve getting to know more about vendors who can supply goods or services that

will meet all the specifications, including the price range. This may involve taking bids on a

project, negotiating prices, or accepting proposals. Over time, one or two suppliers are likely

to stand out from all other vendors. Once the final decision is made between the two

remaining suppliers, the time has arrived to move on to the final stage of the procurement

process.

PROCUREMENT – The Akshaya Patra Foundation

QUALITY

COST

SERVICE

TAPF procurement processes are structured to support these performance drivers.

The challenge is to maintain stability and cohesion internally and with core suppliers.

The philosophy is to develop long term, sustainable relationships with suppliers.

Deming's Quality Assurance Cycle

There are 4 steps in this cycle,

Plan

11


Team Nonna’s

DO

Check

Action

The above processes are followed by successful manufacturing organisations to ensure better

functioning of the operations.

PROCUREMENT – Other Quality Issues

Delay in transportation from Vasantpura storage area to TAPF stores.

Poor communication between senior management and those responsible for adhering

to quality procedures.

Potential hazards during raw material handling at vendor’s site, during transportation

and after the delivery of the raw materials.

Categories of hazards

Physical Hazards: stones, dust, insects, etc

Chemical Hazards: incidental or unintentionally added chemicals, as well as

naturally occurring toxins.

Biological Hazards: Microbial activity

Procurement reasons that may lead to these quality problems and issues

12


Team Nonna’s

Production pattern in the country

Various factors have contributed to surplus of foodstuff in some states while, others are still

deficient. Hence transportation from these procurement areas to consumption centres all over

the country will be affected. If production was uniformly surplus in all states, items could be

procured in areas of consumption. Though the FCI is required to give the grains to TAPF

according to the schedule provided, it becomes increasingly difficult to be able to adhere to

the schedule due to its own constraints.

Limited Choice

As procurement of rice, wheat, animal grain, pulses and dals are to be channelised through

single agency, i.e. Food Corporation of India, there is very little option and choice left for

TAPF to make decisions.

Flush Season

Because of the infancy of organised storage system in India, farm products are marketed in

very limited periods, known as flush season. If the product is not procured during the flush

season vigorously, it will not be possible to procure these at economical rates later. The high

rate of inflow of such products during very limited period and their procurement within the

time frame causes its own problems.

13


Team Nonna’s

Fresh supplies

Due to long duration transportation to consumption areas because of distance constraints, it is

becomes increasingly difficult to retain the freshness and nutritive value of food stuff also

considering the varying time, temperature aspects.

QUALITY CONTROL MEASURES

Local sourcing was an important way of securing supplies and achieving consistency,

whilst maintaining a degree of loyalty amongst the supply base this should be

consistent with the underlying philosophy of TAPF.

developing long term, sustainable relationships with their suppliers,

Create a culture of quality that support at the top and permeates the supply chain

Business with only reputable suppliers who specify remaining shelf life ensuring

better quality goods and services.

Reverse osmosis: A technique which involves diffusive mechanism used to separate

impurities and solute enabling pure solvent to permeate through the system. This

system can be used in the treatment of water which is obtained from Municipality.

Continue using random sampling methods. Also try and inculcate systematic

sampling, is a statistical method involving the selection of elements from an ordered

14


Team Nonna’s

sampling frame. For example, for rice, for every 20 kilos, keeping 2 kilos as the

sampling quotient, sampling tests can be conducted.

Request vendors to submit a checklist or questionnaire containing product information

for assessment.

Contract inspectors to perform inspections at the vendor site where procurement at

initial level takes place. The extent and quality of these inspections may vary

according to the resources available. Mutual recognition and coordination of such

inspections is necessary.

TAPF can implement their own internal quality assurance systems important to ensure

that the system is adapted to reflect the activities of each specific task in the

procurement process.

To ensure a high degree of consistency, TAPF can maintain no more than two

potential sources of supply for all major raw materials.

CONCLUSION

Quality control – a dynamic concept.

Quality control is concerned with the product, while quality assurance is process–

oriented. Even with such a clear-cut difference defined, identifying the differences

15


Team Nonna’s

between the two can be hard. Quality control can cover not just products, services, and

processes, but also people. Employees are an important part of any company.

Evolves from initial plans as experience grows. Quality control achievement evaluates

whether or not the end result is satisfactory

Procurement quality involves determining capability of a supplier to satisfy

requirements. And TAPF must ensure that these are identified as the core suppliers

and work on building long term relationship to cater to sustainability on the long run.

Vendor Management - Drives the selection, motivation and evaluation of its suppliers

VENDOR MANAGEMENT

Procurement processes can be structured to support the performance drivers – Quality,

Service and Cost. Integration is the key, with purchasing and supply chain management

functions working alongside the product development team helps to develop business plan on

a long term. Flexibility is the key as the dynamic market environment makes it difficult to

plan with certainty. The challenge is to maintain stability and cohesion internally and with

core suppliers.

This can be difficult when working quality into each step in the process and receiving

material that doesn’t conform to the standards necessary for the chain. This leads to product

variations that must be addressed, such as whether to rework and use, return to the vendor, or

scrap the material altogether.

16


Team Nonna’s

The long-term goal of these recommendations is the design and implementation of a uniform

and harmonized system that will ensure procurement of products of defined quality for

supply to children, prison inmates and old aged.

While most organizations recognize that quality affects demand and cost, the degree of

uncertainty in the distribution channel itself, which impacts quality through management’s

efforts to procure adequate stock of product during peak demand, must also be considered.

The food industry is no exception when it comes to suffering as a result of natural variations

in such agricultural parameters as precipitation and temperature. Understanding the potential

risks to agricultural production and food processing capacity relies on statistical analysis of

historical information.

Quality assurance in procurement stage at TAPF

Quality assurance is a wide-ranging concept which covers all matters that individually or

collectively influence the quality of a product ie the cooked meal. It is the totality of the

arrangements made to ensure that TAPF is of the quality required for their intended goal,

which is cater to hot, hygienic and nutritious food to underprivileged kids. Quality assurance

therefore incorporates several factors and it is an integral part of all key activities in

procurement.

The implementation of a quality assurance system in procurement, including systems for

prequalification, storage and distribution, may affect costs. However, the benefits of ensuring

quality outweigh the cost investment because they reduce the possible losses caused by the

purchase and supply of substandard products.

17


Team Nonna’s

Prequalification of raw materials and vendors/suppliers, purchasing, storage and are complex

processes that may be involved in the entire chain.

Prequalification:

The prequalification process can be conducted at two major levels, i.e. product-related

assessment and vendor related assessment.

Product-related assessment should ensure that the correct product is specified by

TAPF. Assess whether the manufacturer is offering a product that meets the

predetermined norms and standards in terms of safety, quality and efficacy.

Vendor-related assessment should ensure that the vendor is able to produce the

product as specified in the quality specifications information.

MODEL QUALITY ASSURANCE SYSTEMS

Creation of a model quality assurance system to be adopted and implemented by

procurement department, TAPF.

Creation of quality control guidelines to harmonize the evaluation of data and

information on products as part of the prequalification procedure.

Creation of unified standards for inspection of manufacturers and suppliers to assess

compliance with good manufacturing practices (GMP).

18


Team Nonna’s

19


Team Nonna’s

QUALITY ASSURANCE PLAN CHECKLIST

GUIDELINES FOR THE QUALITY ASSURANCE PLAN CHECKLIST:

This checklist is provided as part of the evaluation process for the Quality Assurance Plan. The objective of the evaluation is to determine whether the document complies with TAPF QA development methodology requirements.

Attached to this document is the DOCUMENT REVIEW CHECKLIST. Its purpose is to assure that documents achieve the highest standards relative to format, consistency, completeness, quality, and presentation.

20


Team Nonna’s

AUTHOR REFERENCE (Project Identifier):

Designated Reviewers: Start Date: Completed Date:

Area Reviewed: Comments:

1:

2:

3:

4:

Summary Reviewer:

21


Team Nonna’s

To be completed by Author To be completed by Reviewer

REQUIREMENTAUTHOR

X-REFERENCE Page #/Section

#

AUTHOR COMMENTS COMPLY REVIEWER COMMENTS

Y N

1.0 GENERAL INFORMATION1.1 Purpose: Describe the purpose of the Quality

Assurance Plan.

1.2 Scope: Describe the scope of the Quality Assurance Plan as it relates to the project.

1.3 System Overview: Provide a brief system overview description as a point of reference for the remainder of the document, including responsible organization, system name or title, system code, system category, operational status, and system environment and special conditions.

1.4 Project References: Provide a list of the references that were used in preparation of this document.

22


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

1.5 Acronyms and Abbreviations: Provide a list of the acronyms and abbreviations used in this document and the meaning of each.

1.6 Points of Contact:

1.6.1 Information: Provide a list of the points of organizational contact (POCs) that may be needed by the document user for informational and troubleshooting purposes.

1.6.2 Coordination: Provide a list of organizations that require coordination between the project and its specific support function (e.g., installation coordination, security, etc.). Include a

23


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

schedule for coordination activities.

24


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

2.0 SCHEDULE OF TASKS AND RESPONSIBILITIESBased on the tasks described in your Project Plan, provide a schedule of the QA activities for the duration of the project. Tasks may include, but are not limited to, those listed below:

Identify Standards and Guidelines Evaluate Software Tools Evaluate Facilities Evaluate Software Products Review

Process Evaluate Project Planning, Tracking, and

Oversight Processes Evaluate Requirements Analysis Process Evaluate Design Process Evaluate Code and Unit Testing Process

25


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

Evaluate Integration Testing Process Evaluate Acceptance Testing Process Evaluate Release Process Evaluate the Corrective Action Process Evaluate Storage and Handling Process Evaluate Deviations Evaluate Risk Management Process

26


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

3.0 SYSTEM DOCUMENTATION3.1 Documents by Phase: List and briefly describe

the documentation expected to be produced during this project. Depending on the size of your project, this may include, but is not limited to, the documents in the following subsections:

3.1.1 Initiate Phase:

Needs Statement Project Plan Quality Assurance Plan Feasibility Study Cost/Benefit Analysis Risk Analysis

27


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

3.1.2 Define Phase:

System Support and Acquisition Plan (initial)

Functional Requirements Document Data Requirements Document System Security and Privacy Plan Internal Audit Plan Project Plan (updated)

3.1.3 Design Phase:

System/Subsystem Specifications Database Specifications Program Specifications System Support and Acquisition Plan

(final) Validation, Verification, and Testing

Plan (initial) Training Plan (initial)

28


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

Project Plan (updated)

29


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

3.1.4 Build Phase:

Installation and Conversion Plan (initial) Test Plan User’s Manual Operations Manual Maintenance Manual Validation, Verification, and Testing

Plan (final) Training Plan (final) Project Plan (updated)

30


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

3.1.5 Evaluate Phase:

Test Results and Evaluation Reports Installation and Conversion Plan (final) Project Plan (updated)

3.1.6 Operate Phase:

Pilot Test Results Training Material Project Plan (updated)

3.2 Discipline for Documentation Standard Practices: Describe the criteria that will be applied during review and evaluation of all lifecycle documents.

31


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

4.0 REVIEWS AND AUDITS4.1 Review Process: Define the steps of the review

process and the procedures that will be used to conduct reviews.

32


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

4.2 Formal Reviews and Audits:

4.2.1 Lifecycle Reviews: Include a schedule of reviews and include how the results of each review will be used on the project.

Typically, the lifecycle reviews include:

Requirements Review Design Review Specification Review Preliminary Design Review Critical Design Review Test Readiness Review Formal Qualification Review Production Readiness Review Acceptance Test Review Post-Implementation Review

33


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

4.2.2 Audits: Describe the audits that will be conducted on the project and when they will be scheduled.

4.3 Informal Reviews: Outline the types of informal reviews that will be conducted.

4.4 Review Reports: Identify QA reports that will be produced throughout the project lifecycle and their uses.

4.5 Review and Audit Metrics: Describe the metrics that will be used to capture management information, and how they will be analyzed and reported.

34


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

5.0 TESTINGIdentify the roles and responsibilities of the QA function in relation to testing throughout the various stages of the project.

6.0 PROBLEM REPORTING AND CORRECTIVE ACTIONDiscuss QA responsibilities and activities concerned with the reporting and tracking of project-related problems and resolutions.

6.1 Problem/Issue Documentation: Explain how problems and issues will be documented.

6.2 Report Metrics: Describe how metrics from the above reports will be collected and analyzed to determine and coordinate corrective actions.

35


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

7.0 TOOLSDescribe the tools that will be used for QA and the methodology employed to implement usage of the mentioned tools.

8.0 PROJECT CONTROLS8.1 Product Control: Identify how QA will monitor

the methods and tools used to maintain and store controlled versions of system products.

8.2 Supplier Control: Describe the provisions for assuring that products provided by suppliers meet established requirements.

9.0 TRAINING

36


Team Nonna’s


REQUIREMENTAUTHOR


#


Y N

Identify the training activities that will be provided to meet the needs of QA on this project.

37


Team Nonna’s

BIBLIOGRAPHY

Raw material procurement and delivery for the food processing industry.

(www.esri.com/industry/agriculture/business/procurement.html)

The value of effiency in food industry.

(www.marshall.edu/library)

Effect of raw materials storage and quality concerns

(www.marshall.edu/library)

Plans to introduce new regulations for procurement of raw materials.

(www.foodbizdaily.com)

Quality Assurance Systems: A practical approach.

(www.cplbookshop.com/contents/C2007.html)

An article on Model Quality Assurance designed by WHO.

Quality metrics:

Product metrics are for describing characteristics of product such as it’s size, complexity,

features, and performance. Several common product metrics are mean time to failure, defect

density, customer problem, and customer satisfaction metrics.

Mean time to failure metric is, to put it plainly, the average time the product runs before

experiencing a crash, which is important for systems like air traffic control that are required

to have no more than a few seconds of down time in a full year.

FAQ at TAPF

Quality Policy, TAPF.

38

http://www.foodbizdaily.com/

http://www.marshall.edu/library

http://www.marshall.edu/library

http://www.esri.com/industry/agriculture/business/procurement.html