How Can I Secure a Budget for Safety Gear in a Purchasing-Controlled System?

Dear All, I have a problem in my new company. The system is different here; the purchasing of PPEs is under the control of the Purchasing Department. There is no budget allotted for the Safety Department. Please tell me how to solve the problem. What should be the percentage of the budget for the Safety Department? Please guide me on how to proceed.

Looking forward to your suggestions.

Thank you.

Regards,
Thiyagarajan.P

Dear Thiyagarajan, most of the safety equipment is considered capital equipment. While the purchase department may control the budget, the purchase decision will be made by your management. You should talk to your management and obtain their approval. Safety is of paramount importance and should not be subject to budgetary provisions. The purchase of safety equipment can be a collaborative effort between you and procurement professionals.

Thanks,

Dinesh V Divekar

PERSONAL PROTECTIVE EQUIPMENT is linked with ANNUAL EMPLOYEE EXPENDITURE, whereas other equipment is considered as ANNUAL EXPENDITURE - WORKING CAPITAL. Your management can derive the PPE BUDGET - PER EMPLOYEE. There should be a buffer of a minimum of 10-20% due to wear and tear of PPE.

With profound regards,

First of all, collect the data for 2 or 3 years regarding the consumption of PPEs. Decide on a nominal quantity of PPEs. Get quotations for the items. Present this to management for a new capex budget and obtain approval. Once approved, submit an indent to the purchasing department for material procurement. Every year, collaborate with the purchasing department to review the previous year's consumption and allocate cost codes for the PPEs. Prepare the cost budget on a yearly basis.

Hope you understand.

It seems no budget provision has been made for the purchase of PPE. If you feel there is a need to purchase PPEs, then go ahead and do some estimation, prepare a budget, and get it approved by Management. Right now, you are in the first month of the Financial Year, and this is the right time to get your budget approved by management.

You need to thoroughly study the situation in your factory to determine the quantity of different PPEs you need to purchase for the current year and accordingly arrive at the figure. Last year's budget or its utilization may not be the right and only parameter.

The Importance of Safety Practices

Safety plays a vital role whether at work or home. However, the general trend is to overlook issues when they arise, hoping that they won't cause a serious problem. We, as 'Indians,' have a poor value on human life, and that is a fact, however technologically advanced we may have become.

Safety is a Frame of Mind

Safety is a frame of mind, which must not only be preached but practiced. Having safety manuals and PPE equipment alone is not enough. You need to actively participate and ensure safe practices are followed.

Personal Protective Equipment (PPE)

PPE is a tool that ensures we safeguard ourselves when working in areas prone to accidents or health issues. It comes in the form of safety glasses, ear defenders, hard hats, work gloves, steel toe shoes, and so on.

Based on the employee strength and wear and tear, these items need to be ordered and stocked up. These can be procured based on quotations from different vendors, meeting the basic standards or ISI guidelines as per the law.

Capital Expenditure on Safety

Capital expenditure in terms of safety goes towards adequate lighting, meeting or exceeding minimum safe practices, annual trainings, expenses on fire safety equipment, etc.

It does not matter if the Purchasing department plays the role of procurement; that is the case in most big companies. What matters most is whether safe practices are being adhered to.

Dear All, thank you for your valuable suggestions. I have escalated my problems to the management. As per the discussion, I will prepare a list for PPE and the amount of consumption for this year. This list will also contain the ISI standards. After completing the list, I will post it in Cite HR for your comments.

Thank you all.

Regards,
Thiyagarajan.P