1 / 62

WMS & COSTING

WMS & COSTING. B.VIJAYNATH Sr.AFA/Fin. MAINTENANCE WORKSHOPS. Undertakes repairs and maintenance of various kinds of Rolling Stock. Manufacture components/duplicates and spares. Building activities of rolling Stock such as Coach / Wagon Building. SET UP OF WORKSHOPS. Administrative wing-

kohana
Download Presentation

WMS & COSTING

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. WMS & COSTING B.VIJAYNATH Sr.AFA/Fin

  2. MAINTENANCE WORKSHOPS • Undertakes repairs and maintenance of various kinds of Rolling Stock • Manufacture components/duplicates and spares • Building activities of rolling Stock such as Coach / Wagon Building

  3. SET UP OF WORKSHOPS Administrative wing- Controls, directs and supervises Specialized activities in SHOPS Smithy, Painting, Carriage, Wheel, Millwright……

  4. Q3. What is the classification of Artisan staff in the workshops? A3. The classification of the artisan staff is as under a. Highly skilled b. Skilled c. Semi skilled d. Unskilled. (W.121) Q4. What are the maximum number of hours a worker can work in a workshop in a day? A4. Not more than 9 hours a day. (W.205)

  5. Q5. Who maintains the initial records of attendance on a workshop? A5. Time office is responsible for the maintenance of initial records of Attendance of artisans in Workshops which are eventually the records for payment. (W. 210) Q6. What is a Job Card? A6. A Job Card may be defined as a record that shows the time worked by a workman on individual operations. (W.506)

  6. Q7. What is Route card. ? A7 . A Route card is an authority for the shops to undertake manufacture of components / assembly for which work order is issued. This is an exact replica of Process Sheet with adequate space provided for the inspection staff to record the results of inspection or checking on completion of each operation.(W. 916) Q8. What is the maximum period of late attendance in a workshop? A8. The permissible time of late attendance is up to half an hour in the morning session for which proportionate wages are deducted. (W.213)

  7. Q1. What is the objective of Production Control Organization (PCO)? A1. The objective of the PCO is to ensure continuous production in the Workshops besides 100 % capacity utilization in the shops. (W.111) Q2. Who excersises Budgetary control over Workshop Expenditure? A2. The responsibility for Budgetary Control in the workshops rests with CWE, together with the Associate Finance. (W.104)

  8. Q9. What is Proforma on cost? A9. The Proforma on cost is commonly known as Indirect charges and intended to include as General Administrative overheads which would so be included in commercial costing. (W.702) Q10. The cost of operation of General plant and machinery is chargeable to which on cost? A10. The cost of operation of General plant and machinery is chargeable to General on cost (Labour and Stores) (W.707)

  9. Q11. How on cost charges are absorbed in the cost of production? A11. The on cost charges are absorbed through “Standing work orders” issued separately. Q12. What is a Time sheet? A12. Time sheet is a record that shows the time for which wages are earned by each workman during a wage period for various works on which he has been engaged. (W.503)

  10. Q13. What is work order? A13. Work order is defined as an Authority to commence Work and incur expenditure for any job under taken in a workshop. Q14. What is a standing work order? A14. A standing work order is a work order which conforms to Revenue Accounts classification and continues to remain unchanged year to year. (W.807)

  11. Q13. What is work order? A13. Work order is defined as an Authority to commence Work and incur expenditure for any job under taken in a workshop. Q14. What is a standing work order? A14. A standing work order is a work order which conforms to Revenue Accounts classification and continues to remain unchanged year to year. (W.807)

  12. Q15. What is job order? A15. A job order is a work order issued for the purpose of manufacture operations in a workshop and is used in job costing. (W 809) Q16. What is the nature of WMS account? A16. WMS account is a Capital Suspense Account under Plan Head 7200 under Demand number 16.

  13. Q17. What is workshop General Register? A17. The compilation of expenditure booked under various work orders in a summarized form is known as Workshop General Register (WGR) and is prepared monthly. (W. 1201) Q18. What is an Outturn statement? A18. An Outturn statement is a statement that shows the expenditure incurred on completed works and incomplete works for which adjustments have to be made during the month. Closing balances in the Out turn statement agree with the outstanding balance under WMS accounts. (W. 1204)

  14. Q19. How the acquisition of Rolling stock is done in Railways? A19. The acquisition of Rolling stock is done through the Annual Rolling Stock Programme. Q20. What is the codal life an Electric Locomotive? A20. 35 years.

  15. Q21. What is the number of hours of work per week in workshops? A21. No adult worker shall be required or allowed to work in a factory for more than 48 hours in any week. Q22. What are the normal hours of work in workshops? A22. The normal working hours of Labour in Railway Workshops are 8 ½ hours of week days and 5 ½ hours on Saturday.

  16. Q23. What is departmentalization of Workshops? A23. Departmentalization of workshops is the division of workshops into shops to undertake activity. Shops are divided into two categories. They are 1) Process shops (Manufacturing shops) 2) Job shops (Repair shops) Q24. What is the tool for analysis of workshop expenditure? A24. The analysis of workshop expenditure is carried out with the aid of system of WORK ORDERS

  17. Q25. What is the importance of Load Chart? A25. The LOAD CHART is very important in regulating the work in Workshops because the issue of Work Orders should be carefully regulated by the Production staff with the help of these Load Charts. So that no job order, other than that for new construction involving large outlay, is left outstanding in the shops for more than three months and no shop is loaded with work in excess of two months' maximum out-turn of the shop.

  18. Q26. What is a Process sheet? A26. Process sheet is an important factory forms because it records full particulars of the item to be manufactured, material specifications, allowed times of operations involved, complete route of production etc. It is the basic record from which other important factory forms emanate.

  19. Q27. Why WMS is operated in Railways? A27. Railways are a commercial concern. Costs incurred in their workshops affect maintenance cost of the running the Railway. Any extravagance in workshops is likely to tell upon the operating costs resulting in erosion of profits. It is therefore necessary to have proper cost control over expenses incurred in workshops. For this purpose a suspense head of WMS is needed under which all expenses incurred in a workshop are accumulated and analyzed so as to pinpoint sources of waste and inefficiency.

  20. Late attendance in workshops The workmen coming late after 3 minutes but up to half an hour in the first period will be treated as late by half an hour in that period and should lose wages only for half an hour. Those coming late by over half an hour should not be allowed to enter the workshop during the first period and should lose half a day's pay. Workmen coming late after expiry of the concession of 3 minutes in the second period will not be admitted into the shop and shall be treated as absent in that period.

  21. NEED FOR MAINTAINING WMS Railways being commercial concern costs incurred in Workshops affect maintenance costs of running of Railways. Any extravaganza will tell upon operating costs and erosion of profits.Necessary to have cost control over expenses. WMS pinpoints sources of wastage and efficiency.

  22. NEED FOR MAINTAINING WMS The jobs and the allied activities undertaken in workshops are multifarious. It is essential to arrive at the unit cost of repair activity/manufacture for the purpose of allocation and budget framing.

  23. RESUME ON WORKSHOP MANUFACTURING SUSPENSE ACCOUNT WMS is a capital suspense head of account under PH 7200 and forms part of inventories in the Railway Balance Sheet. Hence, unusual balances and balances beyond the specified limits attract Dividend Liability and is a point of concern for the Zonal Railway. To ensure control over Expenditure of the Workshop Manufacturing Operation (for the outturn of services and manufacturing goods) the Suspense Head maintained in WAO's will enable the Management to understand the outflow of cash element wise i.e. Direct Labour, Direct Material, Direct Expenditure vis-à-vis with outturn of the workshops.

  24. Review of WMS Account identifies. • Capacity utilization of the workshop. • Deployment of skilled Labour and their utilization in Manufacturing operations / Service operations (POH etc.) • Close watch of material drawals to Shop Floor and their consumption pattern. • Identification of Quantum of On Cost as a percentage to Direct Labour and control the overhead expenditure.

  25. Element-wise details of WMS Account: - Debits Shop Labour: The cost of wages incurred in a workshop as a 'Direct Cost' to operations i.e. Artisans of various shops is booked to WMS Account on accrual basis. This is done through operation of 'Labour Suspense.' It is checked to see that the bookings under the Labour Suspense is cleared continuously to WMS Account to represent the actual cost of production.

  26. Depot Stores: Actual consumption of stores done through form S-1313 by the Executive is passed through SMS JV and is checked to see that the debits booked to WMS are correct by ensuring correctness of rates and quantities (Abnormal shop drawals). Direct Purchase: Purchases made through Non-Stock Indents are accounted under this element of item. Same are checked to see that the Funds are available under PU - 04 and the repeated purchases made through NS Indents are proposed for stocking to attain the advantages of Bulk Purchases.

  27. Miscellaneous Adjustments: Items under this head are checked to see that Inter-Shop transfer of materials should be as minimum as possible, since abnormal transfer transactions indicates lopsided planning by Production Engineer.

  28. Credits: Capital, DRF, DF, OLWR: The adjustments made through Capital Works are checked to see that unless the asset is created and the order is finalized, the expenditure should not be booked to 'Capital Head'. Capital work orders are reviewed and abnormal delays in progress of works are identified and reported.The outstanding Capital Work Orders towards closure of Final Accounts should be 'NIL', unless there are any throw forward works (RSP works).

  29. Capital Stores Suspense: • Manufacture Stores: The rates under manufacture stores are checked to see that they are certified by the Cost Accountant and are revised periodically. • Returned Stores: While affording credit under Returned Stores points to be checked are (I) Scrap items for their rates (Borings, Turnings, Non-Ferrous Items). (ii) Reclaimable items are identified and classified as "Stores in Stock".

  30. 3. Revenue Operations: Demand No. 6: The bookings to Demand No.6 (Repairs to Carriage & Wagons), are taken from the total expenditure appearing against the individual Standing Work Orders, separately under the heads labour and Stores. The labour component of the expenditure in the WGR is based on the total labour hours against each work order multiplied with the Average hourly Rates of respective categories of Artisan Staff, while that of the stores portion is taken from the drawals of stores indicated in the Issue Notes, Work Order wise. The expenditure booked through the Standing Work Orders are reviewed to see that the same are closed every month and co-related with the physical out turn.

  31. Demand N0.7: All the works relating to workshop Machinery and Tools, Service Motor Cars, Cranes and other unclassified equipment in the workshop are carried out against different work orders. As is done in respect of Demand No.6 above, the bookings of Labour and Stores are extracted from WGR, Work Order wise as well as activity wise and finally cleared to Demand No.7 with Corresponding credit to WMS Account.

  32. Miscellaneous Manufacturing Revenue: Generally, a transaction pertaining to sparing to material, Wheel Sets, Cost of execution of Divisional Work Orders are accounted for under the subject head.

  33. The following points need scrutiny • That the rates at which the debits are passed on to other units are as per the latest books rates and sparing of material does not in any way resulting shortages in the shops. • The rates charges for wheel sets are as per the latest PL number. • With respect of Divisional Work Orders, it must be ensured that the expenditure incurred on Labour and Stores Elements are charged to the consignees in full together with the overheads.

  34. As a matter of general Norm/Parameter, it must be ensued that in respect of Repair Shops the Closing Balance is not in excess of 3% of Gross Credits, while for manufacturing shops by closing Balance unto 6% of Gross Credits is permissible.

  35. Monthly Review of Balances under WMS • All items are current, under taken upon issue of proper Work Order under sanction of CA

  36. Balances should consists of Labour/Material/On-cost only related to unfinished jobs/ jobs completed awaiting adjustments

  37. No credit items • Deposit has been made where job done for outsiders • No inefficient balances, promptly carry out periodical adjustments w.r.t., over/under charges

  38. THANK YOU

  39. Structure of Railway Workshop Accounts B.VIJAYNATH WAO/LGD

  40. Freight traffic on Indian Railways Revenue earning freight traffic of IR during the first quarter of 2007-08 (April to June) amounted to 185.25 million tonnes, up 5.35% over the 2006-07 first quarter level of 175.84 million tonnes. The earnings from goods traffic this year amounted to Rs 11025.44 crores up 9.95 % over last year’s first quarter earnings of Rs 10028.11 crores

  41. Freight revenue earning of Indian Railways

  42. Indian Railways Purpose Statement • Our Purpose is to play a Central role in India’s Overall Economic Growth by providing Customer focused Cost effective Transportation solutions. We will do this through and integrated transport system which includes the railways and other modes of transportation.

  43. Purpose statement • Our transportation business will cater to Three target customer segments • Freight • Passenger • Sub-urban Passenger

  44. PLAY ON VOLUMES • Challenges ahead • Bringing down unit cost of freight at current prices by 50% over 5 years. • Universalisation of 22.9 t axle load • Increasing axle load for iron ore to 25 from 22.9 • Improving loaded empty ratio to 75% over 3-4 years • Transformation of IR from bulk to multimodal transporter. • Technology udgradation and modernization • Construction of DFC

  45. EXECUTIVE V/S ACCOUNTS/AUDIT

  46. Sample cases • IP Phones • 130 Personal Computers • Replacement of Xerox with Digital copier • Way leave arrangements for Water supply • Failed cases of open tenders

  47. MAINTENANCE WORKSHOPS • Undertakes repairs and maintenance of various kinds of Rolling Stock • Manufacture components/duplicates and spares • Building activities of rolling Stock such as Coach / Wagon Building

  48. SET UP OF WORKSHOPS Administrative wing- Controls, directs and supervises Specialized activities in SHOPS Smithy, Painting, Carriage, Wheel, Millwright……

  49. Indian Railways is a Government Concern It is run on Commercial basis Accounts to be maintained on Commercial basis as well as Government basis

  50. Commercial concern Accounts • How Capital is being utilized • Debtors and Creditors • Gaining or losing • Sources of gains / losses • Solvent or insolvent In Railways called as Capital and Revenue Accounts.

More Related