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Section H: STORBROOM ~PBRATIONS <br />Page 56 <br />A large, secure external storage bay is used to store <br />large inventory items that have a low turnover. <br />(Many of these items are parts that were included <br />with original plant construction contracts.) In <br />spring 1991, the storeroom was equipped with a <br />security alarm system, requiring employees to en- <br />ter acode number to enter the storeroom after <br />regular hours. <br />^ PUR.CHASING <br />Purchasing serves an important function for the <br />plant. Not only has the on-site purchasing agent <br />increased the plant's ability to efficiently and ef- <br />fectivelypurchase goods and services, it has saved <br />thousands of dollars annually. Timely delivery of <br />materials and services at the lowestpossible cost is <br />one positive result of using established purchasing <br />procedures. <br />The storeroom maintains a petty cash fund of <br />$700. The fund is used to purchase items that cost <br />less than $50 and to reimburse employees for <br />purchases paid for with personal funds. <br />Department order forms are used for purchases of <br />$50 to $1,000. After the form is matched to the <br />^ INVENTORY CONTROL <br />The inventory control system has developed from <br />crude estimations to a sophisticated computerized <br />system thatassures accurate and efficientmonitor- <br />ing of material flows and consistent availability of <br />needed parts and supplies. Careful planning is <br />essential to determine what type and quantity of <br />items to stock. Storeroom staff must have items <br />and supplies in stock to meet work requirements, <br />yet not maintain an excess inventory that ties up <br />available working capital and increases handling <br />and storage costs. <br />For an item to be stocked in the storeroom, it must <br />meet one of the four following criteria: <br />• Be a frequently used item, such as batteries, lamp <br />bulbs, fasteners, or cleaning supplies. <br />The small bay, which was originally used as a <br />storeroom for gaskets, small equipment, and infre- <br />quently used miscellaneous items, was converted <br />into a storage area. The existing parts were moved <br />to the main storeroom. <br />Paints and thinners are kept in a paint room in <br />locked cabinets that are approved for flammable <br />liquids. <br />invoice, it is processedforpayment.Purchase order <br />forms are used for purchases of more than $1,000. <br />This form requires a detailed description or speci- <br />ficationsand an explanation of the purpose for the <br />purchase. Purchase orders must be authorized by <br />the section manager. Purchase orders over $10,000 <br />must be authorized by the Wastewater Division <br />director. <br />To initiate thepurchasingprocess, a requisitionfor <br />supplies is submitted to the purchasing agent de- <br />scribingthe item and the quantity and date needed <br />and signed by the designated supervisor. <br />• Be an item of demand that, when purchased in <br />bulk, offers considerable cost savings, such as <br />lubricants, fittings, and specialty items. <br />• Be an item that is available only through a <br />manufacturer and that cannot be delivered in <br />time for emergency repairs, such as bearings, <br />gears, and electrical parts. <br />• Be an emergency item needed to make critical <br />repairs on process equipment, which if unavail- <br />able would result in unsatisfactory wastewater <br />treatment performance, such as pump parts, <br />motors, and electrical parts. <br />The computerized inventory system helps staff <br />maintain needed stock items. To ensure consistent <br />availability, each stock item is given a specific <br />reorder point. The reorder point is established by <br />