ORDNANCE FACTORY BOARD PROCUREMENT MANNUAL 2018

Maintaining an uninterrupted and reliable flow of material of the requisite quality is an inescapable necessity for seamless manufacturing. Indian Ordnance Factories, being engaged in manufacture of military hardware, has to adhere to this inescapable necessity. The challenges in material procurement in Ordnance Factories are as follows: (i) Major parts of the inputs required for production of military hardware are of very stringent specifications that are normally not applicable in commercial settings, and therefore are available only as Made-to-Order. (ii) Low quantity requirement and demand fluctuations restrict the interest of potential suppliers. (iii) Specifications of Inputs are mostly governed by JSS, GOST and other defence specifications, and do not have scope for use in other fields of application. (iv) Diverse product range with common procurement procedure. (v) The requirements of Ordnance Factories are not always adequate for vendors to keep the production lines customised for a unique product range, running throughout the year. b) The above indicated fundamental necessities and challenges comprise of the basic fabric of the procurement policy and govern the procurement decisions in ordnance factories. c) It is imperative that material purchase be made following systematic, efficient and cost effective way, in compliance with laid down procedure in this Manual, while ensuring timely positioning of the material.