SAMPLE COMPANY                                        Page 1 of 5
SOP # 06-2  Revision:                  Prepared by:             _
Effective Date:                        Approved by:             _


Title:         PURCHASING PROCEDURES

Policy:   Procurement of all inventory, supplies and capital
          equipment will be facilitated through the Purchasing
          Department.  The Purchasing Department will be
          responsible for using good purchasing methods for
          optimizing price savings, quality or value of products,
          vendor working relationships, and for assuring proper
          inventory control and inspections as required by
          company policies and all regulatory and customer
          contract requirements.

Purpose:  To provide procedures for procurement methods and
          completion of related documents.

Scope:    This procedure applies to the purchase of all inventory
          items, supplies and capital equipment for all
          departments within the company.

Procedures:

1.0  Order Determination and Requisition

1.1  The reorder quantity of standard production inventory items
     will be determined per available stock on hand in
     conjunction with the requirements to satisfy the monthly
     production plan (sales forecast).  Safety stock amounts as
     determined for each inventory item will be observed.

     The quantity requirement will be compared to vendor pricing
     schedules and the economic order quantity will be
     determined.  Purchase Orders will then be prepared and
     placed accordingly.

1.2  For non-inventory production items, including supplies and
     engineering components, a Purchase Requisition (Exhibit 1)
     will be prepared by the originating individual or
     department.  Requisitions should be completed and approved
     with the following items and any additional supporting
     documentation:

     a.   Complete description with part or model numbers if
          available.
     b.   Quantity required.
     c.   Date required.
     d.   Requesting department and accounting code.
     e.   Recommended vendor or source if applicable.

PURCHASING PROCEDURES                                 Page 2 of 5


     Purchasing will analyze terms, vendor, pricing, quantity
     breaks, etc., and will order accordingly in the company's
     best interest.  Purchasing will notify the requestor of any
     material variances prior to placement of the order.

1.3  Vendor selection for inventory and non-inventory items will
     be in accordance with the company's procedures for Vendor
     Selection, Files and Inspections.


2.0  Order Placement

2.1  Purchasing will be responsible for completing a company
     Purchase Order (Exhibit 2) for all orders.  The Purchase
     Order should be completed with all applicable information
     and authorized and entered into the Purchase Order Log.

     Orders can be placed with the vendor either by telephone or
     by Fax or mail.  When placing orders by telephone, the
     vendor contact and date of order should be noted and a
     confirming copy of the order sent to the vendor.

2.2  Purchasing will be responsible for following-up on shipping,
     delivery, expediting and partial shipments of ordered items
     to assist manufacturing with consistent production flow and
     other departments operational requirements.  Purchasing can
     either telephone vendors or use a Purchase Order Follow-Up
     Form (Exhibit 3) to verify, trace or expedite orders.


3.0  Recordkeeping and Matching

3.1  When Purchase Orders are issued, the Purchasing and
     Accounting copies will be placed in an Open Purchase Order
     File until the items are received.

3.2  Items will be received in accordance with the company's
     procedures for Receiving and Inspection.  The completed
     vendor's packing list and/or Receiving Report will be
     forwarded to Purchasing.

     Purchasing will then match the receiving paperwork to the
     open purchase order.  The Accounting copy with the receiving
     paperwork and supporting requisition paperwork will be
     forwarded to Accounts Payable.  The Purchasing copy will be
     filed in the Closed Purchase Order File.

     For partial shipments, a photocopy of the Purchase Order and
     the receiving paperwork will be forwarded to Accounts
     Payable.  The original Purchase Order will be kept in the
     open file until all items are received.