AMC - M&P in Workshop Accounts

 

AMC - M&P in Workshop Accounts  

• Source: Rolling Stock Code 2022 -11th chapter

• AMC stands for Annual Maintenance Contracts  

 

• Millwright Organization in PUs/Workshops/Open Line - Responsible for maintenance of M&P assets 

 

• The need of AMC - With increasing sophistication and extended use of electronics based control system in M&P, the skills of Millwright staff have not been upgraded to keep pace with maintenance requirements.  

 

• So the AMC is entered with the OEMs - Original Equipment Manufacturers or their authorized agents for maintenance of M&P Assets   

 

• OEM stands for Original Equipment Manufacturer

 

• However, efforts shall be made to get the Millwright staff trained in maintenance of M&P items to gradually reduce the expenditure on AMC

 

• If possible, AMCs can be entered at the time of purchase of M&P items itself by factoring the AMC cost along with the Purchase Price.  

 

• Object of AMC:  To provide a high up-time for the M&P items by providing a reliable maintenance support.  

 

• Alternative to OEMs - In case OEMs are not responsive or quoting exorbitant rates/unacceptable conditions  - Considered proven sources for AMC of M&P items.    

 

• The above contents are applicable to all establishments of Rolling Stock Production & Maintenance i.e., Production Units, Workshops & LCDs of Open Line Establishments.  

Key points for MCQ: 

1. AMC stands for Annual Maintenance Contract  

2. OEM stands for Original Equipment Manufacturer 

3. M&P stands for Machinery & Plant  

4. L C D stands for Locomotive sheds and Carriage and wagon Depots

5. Millwright organzation - Responsible for maintenance of M&P items 

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Outturn Statements - Workshop Accounts

 

Outturn Statement - Workshop Accounts

• Source: Rolling Stock Code 2022 

• Prepared every Month

• Prepared from WGR - Workshop General Register 

• Showing all Work Orders (Completed, awaiting adjustment, On hand) 

 

• Purpose: Charging the Total expenditure incurred in the Workshops to the Accounts Heads (like Plan Heads, Revenue Heads like erstwhile Demand Nos 5,6,7) and transfers to the Other Railways etc. 

 

• Divided into Two parts i.e., Part I and part II 

 

• Part I - Adjusted Items   - Completed in the on hand month

 

• Part II - Awaiting Acceptance    - equals to Closing Balance of WMS - Workshop Manufacturing Suspense7

Part I - Adjusted Items  - Completed and adjusted in the Month on hand. They are as follows: 

1. Home Line Capital Works (Plan Heads 21 - Rolling Stock and 41 - M & P) 

2. DRF works 

3. DF works 

4. Capital Stores Suspense (Plan Head 71 - Stores Suspense)  

5. Home Line Revenue Account (Erstwhile Demand Nos 5,6 & 7) 

6. Works done for Divisions, Home Line Depts, Foreign Railways 

7. Other Government Depts & Public bodies 

8. Home Line Railway Employees 

Part II - Awaiting Acceptance - They are as follows: 

1. Manufacturing Works 

2. Stores Dept Works 

3. Works done for Home Line Depts & Divisions 

4. Works done for Foreign Railways, Other Govt Depts, Railway employees & Private bodies 

5. Works Executed on Grouping Work Orders  

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Differences between Incentive schemes of CLW & Group Incentive

Differences between Incentives schemes of CLW & Group Incentive

Source: Annexure 4.2 of Rolling Stock Code 2022 October 

SN	ITEM	CLW System		Group Incentive
1	Basis for Incentive	Individual & Time completed		Shops & Outturn
2	Staff / Shops categorized as	Direct Workers (DW) Essentially Indirect Workers (EIW)		Production Group  Support Shops  Support Depts
3	Incentive %	DW - 100 % Incentive EIW - 80 % Incentive of DW		Production Shops - 100 % Incentive  Support Shops - 80 % Incentive of Average Incentive of Production Shops  Support Depts - 50 % Incentive of Average Incentive of Production Shops
4	Shop SEs/SSEs Incentive Bonus	15 % of their Basic Pay  No linking with the staff incentive		Maximum 15 % of their Basic Pay Linking with the actual incentive of their shops  15 % - If Shop incentive is 15% or more than 15 %  Less than 15 % - If Shop Incentive is less than 15 %, (SEs/SSEs get proportionately)
5	Penalty & Quality	No penalty clause in respect of quality factor		Penalty clause is existed in case of bad quality and excess detention of Rolling Stock
6	Incentive assessed for	For each & every nature of repairs on the Rolling Stock		Unit of Account is SPU - Standard Production Unit
7	Linking of Incentive with the minimum targetted Outturn of Entire PU / Workshop	Incentive allowed if the section targetted outturn is completed.  No link with the Outturn of entire PU/Workshop		Incentive allowed is link with the Targetted Outturn of entire PU/Workshop
8	Inspection	No Incentive is payable unless the jobs passed by the Inspection staff		Physical parameters as reported by the users are quantified to measure Quality & determine the Incentive
9	Overtime Allowance	Allowed		Not allowed
10	Equalising factors for Different types of Rolling stock	No		Yes.  1.eGSCN for POH of Coaches. 2. ICF wheel set for turning of wheels.  3. VU - Vehicle Unit for POH of Wagons
11	Idle Time allowed	For more than one reason i.e., Non availability of tools/materials, Machine Breakdown, power cut, waiting for work etc.		For power outage for more than one hour only.  Not allowed for other reasons
12	Maximum Incentive	50 % of time taken by an Individual		the Maximum % of additional Outturn i.e., 50% .  Example: If the capacity of workshop is POH of 100 coaches, the maximum incentive is applicable for additional 50 coaches over and above 100 coaches only.

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Work Order - Workshop Accounts

 

Work Order - Workshop Accounts

• Source: Chapter 7 of Rolling Stock Code 

•  Object: To capture the related expenditure of a particular job  

• No of Digits: 8 

 

• At any given point in time: The Work Order should depict the clear picture of expenditure booked and outturn achieved. 

 

• Clearly identify the activity and allocation to ensure correct work order booking 

 

• Syncing with the Accounts classification and elasticity  

Accounts Office role

• Copies of all Work Orders - Should be available to the Accounts Office for verification 

 

• Checks the serial numbering and sanction of work, funds available and other relevant rules and orders. 

Before issuing Work Order - Checks 

1. Works for Govt Depts - Ensure the acceptance of estimated cost or not 

2. Works for other Depts - Ensure the Sanction of PHOD of the Executive Dept or not

3. Works for Railway employees - Ensure the estimated cost has been deposited or not   

4. Works for Outsiders - Estimated cost has been deposited in advance or not 

Advice of Completion: 

• No delay in booking of charges under Work Orders and issuing of Completion advice 

• It is one of the important duties of the Accounts Office  - Procedure for Chasing the delays and irregularities 

Monthly statement of completed Work Orders 

• On completion of Work Order, the same should be returned by the Shop to the issuing Office with the date of completion marked thereon. 

• Generated by the Accounts office as part of MIS. 

• Accounts Office shall nominate the Supervisor who would be responsible for ensuring that all expenditure relating to such completed work order has been correctly booked and accounted.   

Work Order Register  

• All Work Orders - carefully registered and serially numbered. 

• Separate Registers - for different Depts and for different Divisions 

• Consists of A. Date of Commencement  B. Date of Completion  C. Description  D. Quantity  E. Head of  Allocation  F. Consignee details 

• Mainted on Computer 

• Accessible as a “Read only” file to all concerned. 

Types of Work Orders: 

1. Revenue Standing Work Orders 

2. Other Standing Work Orders

 

1. On Cost Work Orders 

2. Raw Material Stock Work Orders 

3. Manufacturing / Division Work Orders 

4. Part, Group, and Repair Work Orders  

Revenue Standing Work Orders: 

 

• Deals with the Revenue Expenditure 

. 

• Work Order Master: To be revised every 5 years - with the concurrence of associate finance 

• Same shall indicate the basis for allocating different type of work order numbers.  

 

• The correlation between the Work Order and Revenue Allocation should be based on the name of the work primarily instead of Work Order number. 

• Work Order - 8 Digits as follows: 

1	2	3	4	5	6	7	8
Division	Dept.	Year (Last digit)	Work Shop	Shop Code		Serial Number

Notes: 

1. 1st Digit -  Division Code should be allotted as per local conditions in the Zonal Railway

2. 2nd Digit - Department Code is as follows 

0 for Construction

1 for Traffic & Commercial 

2 for Electrical

3 for Mechanical 

4 for Medical 

5 for General, Personnel, Accounts & Hqrs 

6 for Security 

7 for S&T

8 for Stores 

9 for Civil Engineering 

3. 3rd Digit - Last Digit of the Year 

4. 4th Digit - Workshop Code 

5. 5th & 6th Digits -  Shop Code (in Workshop)

6. 7th & 8th Digits - Serial Number -shall begin as ‘001’ on 1st of April every year. 

On Cost Work Orders: 

• Indirect expenditure, which cannot be directly booked to any particular work orders  

• On Labour and On Materials. 

• The distribution - On the basis of percentage estimated after the preparation of Annual On Cost Budget. 

• The actual expenditure should be compared with the percentage estimated in the budget. 

 

• Work Order - 8 Digits as follows: 

1	2	3	4	5	6	7	8
50		Year (Last digit)	Work Shop	Shop Code		Serial Number

• Work Order Number - first two digits - Difference - Revenue Standing Work Order (Division  & Dept) and On Cost Work Order (50) 

Raw Material Stock Work Orders: 

• On drawal of Raw materials from Stores Depots & Purchased from Open Market - Booked to Raw materials Stock Work Orders instead of booking to Repair or Manufacturing Work Orders. 

• The Same Work Order - cleared by debiting the consumption to the relevant Revenue/Capital/Manufacturing work order with corresponding credit to the Raw Material Work order.  

• A separate work order should be opened for booking raw material drawn by work shop every day. 

 

• Entries are as follows: 

Drawal from Stores Depot 

Debit - Raw Material Stock Work orders - WMS Plan Head 7200

Credit - Stores Suspense Plan Head 7100 

On Consumption of the same Raw Material at Workshop 

Debit - Relevant Revenue/Capital/Manufacturing Work Orders 

Credit - Raw Material Stock Work Orders - WMS Plan Head 7200

Net of above two transactions:

 

Debit - Relevant Revenue/Capital/Manufacturing Work Orders -WMS A/c - Plan Head 7200

Credit - Stores Suspense Plan Head 7100

• The balance under this work order (Raw Material Stock) represents the shop floor stock lying in the sub stores and will be part of WMS balance- Plan Head 7200. 

 

• Work Order - 8 Digits as follows: 

1	2	3	4	5	6	7	8
39		Year (Last digit)	Work Shop	Serial Number

 

Manufacturing work orders or Division work orders 

• Work Order - 8 Digits as follows: 

1	2	3	4	5	6	7	8
6	Dept.	Workshop	Shop	Division	Serial Number

Notes: 

• 2nd Digit - Department Code is as follows 

0 for Construction

1 for Traffic & Commercial 

2 for Electrical

3 for Mechanical 

4 for Medical 

5 for General, Personnel, Accounts & Hqrs 

6 for Security 

7 for S&T

8 for Stores 

9 for Civil Engineering 

Part, Group and Repair Work Orders: 

• Grouping - Manufacture of similar items required by various consignees of Home Railway, Other Railways & Stores Dept - shall be grouped together and shall be undertaken. 

 

• Bills raised on the consignees as per the estimated rate arrived at for each Financial year. 

  

• Work Order - 8 Digits as follows: 

1	2	3	4	5	6	7	8
1 or 2	Year (Last Digit)	0 or 1	Workshop	Serial Number

Notes:  

1. 1st Digit    - 1 for First half of the year (April to September). 2 for Second half of the year (October to March) 

2. 3rd Digit - 0 for Fresh Order.  1 for Repeat Order