Applicability of ISO 9001:2000 Clause 7.4 to 'Internal' Purchasing?

[Paul Morrow]

Applicability of 7.4

Hi

My organisation as part of a group, replenish our stock from within the group. In the eyes of ISO 9001:2000 are we 'purchasing' as per 7.4?

 

[David Hartman]

Hi

My organisation as part of a group, replenish our stock from within the group. In the eyes of ISO 9001:2000 are we 'purchasing' as per 7.4?

If you are describing the process of receiving material, or raw stock, from another organization within your group/corporation then I would recommend that whether you refer to it as "purchasing" or not I don't know and wouldn't really care. You should have similar (or even the same) controls in place.

After all these controls are not recommended by the Standard just to make life tough for you, but to help you towards ensuring that you are going to receive exactly what you want, when you need it.

 

[RoxaneB]

Hi

My organisation as part of a group, replenish our stock from within the group. In the eyes of ISO 9001:2000 are we 'purchasing' as per 7.4?

My company "purchases" product from our some of our sister facilities. These sisters can be found on our Approved Vendor List and are subject to the same treatment as a non-related supplier (on paper anyway! )

 

[Paul Morrow]

I think whether or not the clause is of value is a different point. I would like to know peoples experiences on if the process we employ for replenishing our stock from within our group has to meet the requirements under 7.4?

 

[David Hartman]

I think whether or not the clause is of value is a different point. I would like to know peoples experiences on if the process we employ for replenishing our stock from within our group has to meet the requirements under 7.4?

If your going by experience only - then yes. In my experience with approximately 9 different companies that had the same situation, the sister division was treated as a supplier and as Roxane stated they were added to the Approved Vendors List (and then treated as a sole-source vendor).

 

[RoxaneB]

I think whether or not the clause is of value is a different point. I would like to know peoples experiences on if the process we employ for replenishing our stock from within our group has to meet the requirements under 7.4?

"...whether or not the clause is of value..." Are you going for a good system or one that just gets the piece of paper on the wall? (no offense intended...I'm just curious)

If you want a definitive answer, I'd suggest you contact your Registrar. Explain the situation and ask for their interpretation.

For my organization, yes, our sister facilities need to meet our Purchasing requirements. We even issue Customer Complaints should they fail to do so.

We state on our orders what our requirements are. They are subject to the same evaluation. They face the same consequences should they not meet our requirements.

Why?

Because their action of supplying us with product is key to our ability to meet our Customers' requirements.

So ask yourself this....this activity of "replenishment from within the group"...is it vital to your facility's ability to meet your Customers' requirements?

 

[RoxaneB]

If your going by experience only - then yes. In my experience with approximately 9 different companies that had the same situation, the sister division was treated as a supplier and as Roxane stated they were added to the Approved Vendors List (and then treated as a sole-source vendor).

Okay, we need to stopping posting like this, Dave! Is this a case of "great minds think alike" or "monkey see monkey do"?

 

[Paul Morrow]

OK perhaps some background may help.
We don't have a registrar, were not ISO approved, however we are creating a documented QMS with the intention of becoming approved in the near future.
I cannot see the value of an approved vendor list in our situation and of course AVL's are not a a requirement.
Were trying to minimize the bureacracy within our QMS and to meet 7.4 could significantly (if we have to) create controls that as of this time, not been necessary. So, can someone (perhaps from a certification body) tell me if replenishing our stock from within our group i.e., we are not purchasing it we are just moving it on, we have to meet 7.4.1,2 and 3.
Thank you.

 

[SteelMaiden]

It does not really appear that the case that you describe would strictly fit under the purchasing clauses. That being said, you better really have your process and process controls laid out well for the acquisition of this material from another division to show what is being done to meet all customer requirements (and expectations for those who like to separate them ) I think that it would be easier to treat them as a supplier (imho) at least as far as verification of "purchased" product, as it does not sound like you will all be using the same QMS or gaining certification together?But, I am no expert, and I don't work for a registrar, so I may be way off base.:ca:

 

[Paul Morrow]

Thanks for your responses David, Roxanne and SteelMaiden.

I guess I always assumed that our activity would come under purchasing however on examining the process and ISO. And seeing that all we do is dip into the group demand plan and call off product once a week or so I'm not sure. Certainly the focus of the purchasing clause within ISO over the years would appear to be ensuring you cover yourself contractually. From that perspective in our situation, its rather cumbersome.

Any more thoughts please?