P&P SECTION

Planning is the most basic or primary function of Management. It precedes other functions because a Manager plans before he acts. Planning involves determining the objectives and selecting a course of action to achieve them. It implies looking ahead and deciding in advance what is to be done, when and where it is to be done, how and by whom it is to be done. Planning is a mental process requiring the use of intellectual faculties, foresight, imagination and sound judgment. It consists of forecasting decision making and problem solving. The process of planning consists of;

MANAGEMENT FUNCTION 1.PLANNING INCLUDING FORCASTING 2. ORGANISING -ORGANISATION STRUCTURE 3. STAFFING -RIGHT MAN RIGHT JOB (*) 4. DIRECTING -GUIDANCE TO SUBORDINATE 5. CO-ORDINATION-CORDINATION WITH DIFFERENT AGENCIES 6. REPORTING -MANAGEMENT INFORMATION SYSTEM 7. BUDGETING -ALLOCATION / PROJECTION OF BUDGET

 RECEIVING ROLL ON PLAN/EXTRACT/INDENT MAKE OR BUY DECISION WORKING OUT availability of man hours and machine hours. ON LINE TARGET FEEDING MAKING/FOLLOW UP OF PROD PROGRAMME BUDGETING MATERIAL REQUIREMENT PLANNING REPORTING DATA MANAGEMENT AUDITING MISC. REVIEW MEETINGS ISSUE PRICE FIXATION AND WHAT NOT?

Activities of Planning and Progress Receipt of Indents from DGOS, Navy and Air Force AND Receipts of IFD's from Sister FY Progressing of Indents / IFD's for manufacture and Issue All correspondence with MoD, OFB, Army, Navy, and Air Force for executing the Indents / IFD's and for future plans. In-House Planning activities. Issue of Directives to all Sections / Offices about yearly / monthly Targets. Issue of Manufacturing warrants to Production Shops. Issue of Tool Warrants to Tool Room. Monitoring of Production on Day-to-Day basis. Conducting weekly? Production Review Meetings Coordinating with all the Shops / Offices for availability of Material for Production, availability of Man Power etc. Giving directives to Stores (Issue) for issuing of STORES Liaison work with LAO. Monitoring and forwarding of the completed manufacturing warrants to LAO. Obtaining Cash Compilation Order 2 (CC02) from LAO and forwarding the same to OFB . Planning and obtaining Budget from OFB / for various requirements. Monitoring and Controlling of Budget. Various measures taken for cost control. Arranging Shop Budget and Central Budget Committee Meetings and monitoring the progress thereof. Forwarding of various MIS to OFB Coordinating and arranging Internal Audit by CFA(Fys) and resolving and settlement of various objections raised by them. Coordinating and arranging Test Audit by Director of Audit (CGDA) and resolving and settlement of various objections raised by them. Preparation and submission of Strategic Planning, Short Term Planning, Detailed Project Report to OFB / AVHQ. Preparation and settlement of Loss Statements. Organising Unit Level Management Committee (ULMC) meetings and Local Productivity Council (LPC) meetings and monitoring the progress thereof. Organising Financial Review Meeting (FRM), Inventory Control meetings and monitoring the progress thereof. Circulation of MIS to all Managers and Divisional Heads. Project Planning and monitoring the progress thereof. Industrial Engineering, Rates and Estimates, Works Office, Coordination and Budget planning are all done by Planning and Progress Office at EFA.

THE STRUCTURE
CENTRAL PLANNING :monitors the Vale of Production, Production in terms of SMH and Monthly Capacity Utilisation w.r.t. the laid down targets and w.r.t. the De-rated/re-rate Capacity of the factory COST CENTRE PLANNING :(CCP) with the help of their Drawing Office and Pattern Office prepares the Process Schedule, Tool Schedule and Gauge Schedule. The Process Schedule is sent to the Rates & Estimates Section for preparation of Materials Estimates & Labour Estimates which are essentially required for material planning, manufacturing and detailed operation scheduling.

 RATE &ESTIMATE SECTION : This section issues Indirect Warrants, does Overhead Budgeting, Cost Estimation and take stock of the Annual Accounts of the factory. WORK OFFICE :issue the warrants, monitors its progress and closure. Works Office arranges for Stock Taking on last working day of the financial year and preparation of Semi Statement for the outstanding warrants with the shops. Works Office deals with all matters pertaining to the Warrants, they are designated as the custodian of warrants.

MIS -?
MIS facilitates planning, reduces information overload, improves decentralization, assist coordination and simplifies control. Top Management requires strategic information, Middle Management requires control information and Supervisory Management requires day today operations.

Unit Level Management Committee : GM is the chairman to ULMC and all controlling officers along with LAO act as members. The functions of ULMC are : To review R&D activities . To review production with target. To review cash compilation order 2 with flash value Budget allotment and expenditure. To review the outstanding warrants . To review direct and indirect ratio. To review SWOD expenditure in production sections To review outstanding spot payment cases. To review test audit objections and internal audit objections To review safety of the factory. To review consumption of materials in respect of VOP To review inventory holding of the factory. To review production loss if any. To review overhead expenditure. Any administrative points.

WARRANT
Warrant: It is the order to perform the job. Work Order & Serial : Part-I 01 -Fixed charges, 02 -Variable charges, 03 -Process Material, 04 -Capital services, 05- Repairs & Conversions, 06 -Cost of packing Part-II 10 - Manufacture of stock of articles other than standard packages. 11 - Manufacture of articles for stock for eventual utilisation in issue to civil trade. 70 - Inter Factory Services or IFD 80 - Payment issue to private civil indentures. 90 - Payment services for Army. Warrants are issued based on relevant work Order. Warrants issued under 01 and 02 series is called Indirect warrants. Warrants issued tour production purpose is called Direct warrants. Life of warrant is 3 months from the date of issue. Depending upon the circumstances and merit of the work, the life of warrant may be extended through Work order. For 01 & 02 series warrants (Indirect Warrants) no inspection coverage (i.e, vouchering) is required. 40-series of Work Order. All items produced under this series will be consumed within the factory (ES-Voucher). Acceptance of Inspection Note is called voucher and the items produced under the work order series 10,11,70, 80 and 90 comes under ' O' Vouchers.

 A warrant comprises of two parts viz. Manufacturing Warrant and Material Warrant. A warrant is generally given a 5 digit serial number e.g. 9123/0 where the first digit indicates the year of issue, 2nd to 4th digits indicate the running serial number against a particular work order and the last digit indicates the status viz. 0 for original warrant, 1 for NRR, 2 for NRM, 3 for replacement orders, 4 for additional warrants and 5 for warrants which have been issued in anticipation ofreceipt of extract (e.e. Extract Due Status).

RULES
SOME IMPORTANT RULES REGARDING REJECTION For the information of the participants, few important rules regarding the warrants are quoted. Record of rejections : Rule Ho. 4106 of procedure manual Abnormal rejections : Rule Mo. 41G7 of procedure manual Abnormal rejections during the manufacture will be those, the cost of which is more than 20% of the estimated cost of an item of production taken over a period of 6 months. Rejections, including the cost of rectification for temporary rejection causing inflation of cost more than 20% in the total production cost of an article fating into account the cumulative effect on all the warrants completed during the past 6 months will also be deemed as abnormal. Avoidable and unavoidable rejections : Rule Mo. 4108 of procedure manual: In general manufacture rejection will be taken to whose which are the cost of the process of manufacture of peculiar to the type or production and the nature and type of plant available. All rejections beyond the percentages of unavoidable rejections will be treated as avoidable, and will have to be treated as normal loss. CDGOF No.42/P(C) Dated : 27.10.56 and m of D No. 15(8)/56/4709/D(prod), Dated : 14.07.56. Assessment of actual rejections % for the purpose of regularization of losses : Rule No.4109 of procedure manual. The assessment of actual rejection percentages for the purpose regularisaion of losses on account of rejections should be carried cut with reference to the quantity covered on an individual warrant and not with reference to the total quantity on order for the same store against a particular extract. Exception to this rule may be permitted under special circumstances, where the merit of a case justify such a deviation. Such cases should be reported to DGOF for consideration with full reasons in justification of the proposal. Investigation of heavy losses : 4110 Exercise the expenditure on replacement : 4111 INVESTIGATION OF HEAVY REJECTINS : All rejections in excess of those included in standard estimates should be immediately subjected to a separate or Joint Inspection by Production and Inspection groups and remedial measures taken urgently to avoid recurrence of such rejections. Where similar rejections are found to be persistent, these will be personally investigated by the senior officers. Findings of investigations viz., causes of rejections and remedial measures etc. should be entered in a suitably preformed in triplicate and recorded in the production section, works inspection section and planning and progress section. The replacement warrants should not be issued until rejections have been subjected to through scrutiny, except in case: of extremely urgent items (urgent and priority PX) and where investigation in the causes of rejections must be deferred to avoid delay in supply. 4111 EXCESSIVE EXPENDITURE OH REPLACEMENT All cases where replacements warrants exceed Rs. 2000/- should be incorporated in the statement referred above. The circumstances leading to the rejections should also be shown in the remarks column against these items. Copies of this statements will be endorsed to the CDA (FYS) and the Accounts Officer of the factory concerned (DGOF No.3604/of-11-A/C, Dated : 13.08.46)

MANAGEMENT INDICES
RAW DATA Annual Cost of Production. Value of Material consumed during the year (Director & Indirect Stores consumed). Manpower Cost (Direct labour & Indirect labour + Supervision charge paid during the year). Number of Employees (Other than Casual, Medical, Canteen, Security & DSC personnel). Net capital employed for Building, Machinery, Gas, Water Mains etc. (excluding Stock Piles) as on 31st March of the Year. Finished Goods & Completed Articles as on 31st March of the year. Raw Materials and Component Inventory (Stores in hand & Stores-in-transit) as on 31st March of the year. Work-in-Progress inventory as on 31st March of the year. Value of Disposal during the year (by sale proceeds of surplus, obsolete and waste). Value of waste, obsolete and surplus stores as on 31st March of the year. Value of stores in transit as on 31st March of the year. Value on working stock (Total of slow moving, non-moving and active stock) as on 31st March on the year. Value on Maintenance stores as on 31st March on the year. Capital Value of Plant & Machinery as on 31st March of the year.

MANAGEMENT RATIOS
Manpower Cost / Cost of Production (%) Average Capital employed per employees (Rs. In lakh)

(3) * 100/(1) (5) / (4) C. Average Monthly Emoluments per employee (Rs. ) (3) / (4) *12 D. Cost of Production per man-month (Rs. In lakh) (1)/(4) * 12 E Finished Goods, Completed Article inventory (In terms of number of days of cost of production) (6)*365/(1) Raw material and component inventory (in terms of number of days consumption). (7)*365/(2) Work-in-Progress inventory (in terms of number of days of cost of production). (8)*365/(1) H Waste, obsolete and surplus index (9)/(10) I. Store in transit index (11)/(12) J. Maintenance stock index (13)/14)

Productivity Index Factor X (Output S.M.H. in Lakh) = Factor Y (Input Manhours in Lakh) Piece Work Profit % of the factory as a whole Over Time
O.T. Hours (Hrs.) O.T. Payment (Rs.)

OVERHEAD
Overheads are classified under the two broad Categories Variable Overheads and Fixed Overheads Total Variable Charge of the Section VOH % = . x 100 Total Direct Labour of the Section Total Fixed Charge of the Section FOH % = .. x 100 Total Direct Labour of the Section .

FIXED OVERHEAD 01/XXXZZ/00 ZZ Pay & allowances of Clerical Staff 03 04 05 06

Orderlies GOs & NGOs Security Supervisors

Payment to IEs DA/HRA/CCA Holiday & Leave Pay Compensation under IDA Idle Time IOD/IOFWP Fund Superannuation Charges Training Maintenance of Railway Siding Electric Installations Buildings, Roads MT, OH Cranes etc. Depreciation of Capital Assets Building Machinery under capital grant under RR Fund Welfare Hospital Canteen Lab Welfare Fund Conservancy Factory School DGOF CCofA LAO Care & Custody of Stock 36 Safety measures I&M Expenses Stationery Moveable Shop Fittings 44 Preliminary Expenses 45 In-house R&D 49 in-house training

VARIABLE OVERHEAD 02/XXXYY/00 YY Payment to IEs 01 General Shop Labour 02 Night Duty Allowance 03 Incentive Bonus 04 OT Bonus 05 Idle Time within control 07Sundry Shop Stores 08Tools for general shop use 09Heat Treatment Cost of 13Utilities 14Fuel 16 Maintenance

REPORT: P&P-1 FREQUENCY : WEEKLY MODE OF TRANSMISSION : ARS+MAIL+MIS SUBJECT OF THE REPORTS : VOP, FLASH VALUE & CCO2 FIGURES

REPORT: P&P-2 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS+MAIL SUBJECT OF THE REPORTS : OUT STANDING WARRANTS

REPORT: P&P-5 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : LIBILITY OUT STANDING (SUPPLY TO MHA)

REPORT: P&P-7 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : QUALITY CONTROL/REJECTION

REPORT: P&P-8 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : INPUT COST

REPORT: P&P-9 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : REJECTION BY DGQA

REPORT: P&P-10 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : LABOUR COST

REPORT: P&P-11 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : MACHINE HOURS

REPORT: MM-1 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : MATERIAL MANAGEMENT (SIH)

REPORT: MM-2 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : MATERIAL CONSUMPTION

REPORT: P&P-12 FREQUENCY : MANTHLY MODE OF TRANSMISSION : MAIL SUBJECT OF THE REPORTS : EXTRACT POSITON

REPORT: P&P-16 FREQUENCY : WEEKLY MODE OF TRANSMISSION : ARS+MAIL SUBJECT OF THE REPORTS : WEEKLY PRODUCTION & ISSUE

REPORT: P&P-21 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : OUT STANDING INTERNAL AUDIT OBJECTION

REPORT: P&P-22 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : TEST AUDIT OBJECTIONS

REPORT: FIN-1 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS+MAIL SUBJECT OF THE REPORTS : MONTHLY REPORT ON VOI AS WELL AS CYP, PYP, COMPARISON

REPORT: FIN-2 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : MONTHLY REPORT ON INPUT OUTPUT HOURS , PRODUCTIVITY OT & PW PROFIT

REPORT: P&P-20 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : PIECE WORK PROFIT

REPORT: BUD-2 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS+MAIL SUBJECT OF THE REPORTS : MONTHLY PROGRESS OF EXPENDITURE

REPORT: BUD-3 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : ARS+MAIL SUBJECT OF THE REPORTS : QUARTERLY RETURN ON PAY & ALLOWANCES

REPORT: BUD-4 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : ARS+MAIL SUBJECT OF THE REPORTS : QUARTERLY RETURN ON PAY & ALLOWANCES

REPORT: BUD-5 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : MONTHLY STATEMENT SHOWING LC OPENING PAYMENT

REPORT: BUD-6 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : MONTHLY REPORT IN RESPECT OF STORE & RR

REPORT: BUD-7 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : MONTHLY FORECAST OF FOREIGEN EXCHANGE CASH OUTGO

REPORT: P&P-4 FREQUENCY : QUARTERLY MODE OF TRANSMISSION : ARS+MAIL+MIS SUBJECT OF THE REPORTS : DIRECT & INDIRECT RATIO

REPORT: CT-1 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : PERFORMANCE REPORT ON CIVIL TRADE

REPORT: CT-2 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : CIVIL TRADE REPORT ON OUT-STANDING DUES

REPORT: CT-4 FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : REPORT ON CUSTOMER COMPLAINTS

REPORT: EXP FREQUENCY : MONTHLY MODE OF TRANSMISSION : ARS SUBJECT OF THE REPORTS : REPORT ON EXPORT

REPORT: SPILL OVER REPORT FREQUENCY : WEEKLY MODE OF TRANSMISSION : FAX+MAIL SUBJECT OF THE REPORTS :

REPORT: DAILY PRODUCTION REPORT FREQUENCY : DAILY MODE OF TRANSMISSION : FAX+MAIL SUBJECT OF THE REPORTS :

REPORT : EXTRA IMPORTANT REPORTS FREQUENCY : MODE OF TRANSMISSION : SUBJECT OF THE REPORTS :

REPORT: MONTHLY D.O ON FREQUENCY : BY 15TH MODE OF TRANSMISSION : FAX+MAIL SUBJECT OF THE REPORTS :

REPORT: MONTHLY IMPORTANT INDICES BY FREQUENCY : BY 10TH MODE OF TRANSMISSION : FAX+MAI