B.E.S.T
(Brihanmumbai Electric Supply and Transport)
[T1 engineering department]
Introduction:
(Brihanmumbai Electric Supply and Transport)
[T1 engineering department]
Introduction:
The Bombay Electric Supply and Transport Company were municipalized and came to be known as Bombay Electric Supply & Transport Undertaking. The Undertaking has completed 50 years of its municipalisation on 7th August, 1997.
At present, there are 3380 buses carrying 45 lakhs passengers daily on 335 routes. Special transport arrangements are made and extra buses under various action plans are operated during the year on various social/ religious occasions. The undertaking also pays special attention to operate extra buses to clear the stranded passenger traffic on account of dislocation of railways, heavy rains and similar such events. The undertaking also operates extra buses on Saturdays, Sundays and Holidays to clear the excursion traffic at various picnic points.
We visited the Dadar office of BEST and spoke to Mr. Prabhu, the Deputy Materials Manager (T1 engineering department).
Need for vendors:
As previously mentioned BEST has 3380 busses on the road, these busses are wholly owned by BEST. There are about 3500 spare parts purchased by the BEST from different vendors. BEST’s engineering department, gets the parts from different vendors and gets them assembled to have a whole working bus. The BEST also has a work shop at all of its 27 large depots where the busses halt for repairing and other servicing works, thus requiring vendors for the regular supply of spare parts.
Vendor selection:
BEST is a municipal corporation controlled body, therefore there is no specific system for selecting vendors. There are corporation laid down guidelines which guide the department to the selection of the right vendor. The BEST follows the tender system of vendor selection. Tenders are invited for different parts of their inventory whenever required. If the purchase indent (a requisition for materials whenever they fall below a certain level.) is above Rs.50000, a print advertisement inviting tenders from different vendors is placed. If the purchase indent is below Rs.50000, the tenders are invited from only those vendors who are previously known to have supplied that specific kind of product. These tenders are posted on the notice board outside the office of the materials manager. Competitors have to submit their respective tenders to the materials manager within a stipulated time. Such a tender is called a casual tender.
This rule does not apply for proprietary vendors/suppliers, i.e. the vendors who have the sole authority to supply specific materials by a previous agreement.
The most important factor of selection of a vendor has traditionally been cost, but in recent years as the quality of service has come under immense scrutiny, attention is also being paid to the quality of the materials being procured.
Levels of inspection and vendor evaluation:
At BEST the incoming materials are inspected only at one level, i.e. when they come in from the vendors. The Inspecting Officers do the inspection at the store of the BEST. The method of inspection is that of selecting random samples from the incoming materials and testing them for stability and also performing various chemical and mechanical tests wherever necessary. Once the product is approved only then is it used on the busses. If the respective products do not meet the required specifications, they are flatly returned to the vendor for rework and modification to meet the specifications or if this is not possible, the materials are returned to the vendor who has to supply the whole lot again.
BEST is an organization where bureaucracy and politics play a major role in the day to day workings, therefore there is not much practical scope for vendor evaluation and processes such as these. But the organization does have annual checks on their regular suppliers/vendors, grading them or blacklisting them from time to time.
Inventory control and lead time:
The BEST Corporation follows the perpetual inventory system, thus maintaining a stipulated supply of the essential materials required. Thus implying that they have a certain pre-determined benchmark set, by which the purchase indent is raised when this level is touched. The only way of increasing any lead-time is by producing the purchase order as quickly as possible.
Vendor relationship:
BEST does not maintain any kind of long-term relationship with any vendor, except with the proprietary suppliers. Very rarely the same vendor is approached for a specific kind of work. Although during the course of business transactions the relationship between the vendor and the buyer is absolutely formal.
Factors responsible for the selection of vendors.
1. Performance history
2. Production facilities and capacities.
3. Price.
4. Technical capabilities.
5. Financial position.
6. Procedural compliance.
7. Communication system.
8. Reputation and position in the industry.
9. Desire for business.
10. Management and origin.
11. Operating controls.
12. Repairs service.
13. Attitude.
14. Impression.
15. Packaging ability.
16. Labor relations record.
17. Geographical location.
18. Amount of past business.
19. Training aids.
20. Reciprocal arrangements.