Presentation on theme: "1 Service Procurement at Soda Ash Plant. 2 Team & Profile Team : Zuber Panja (Officer-Commercial) Facilitator : Shri A. S. Bhalerao DGM (Commercial) R.V."— Presentation transcript:
2 Team & Profile Team : Zuber Panja (Officer-Commercial) Facilitator : Shri A. S. Bhalerao DGM (Commercial) R.V. Vyas (AGM – Commercial) Shri Pankajkumar Sr. GM (Commercial) Major Roles & Responsibilities : ► Service Procurement with desired scope & quality from right source @ optimum cost followed by close & efficient follow up till release of payment. ► Defining / Redefining Scope of Services procured of recurring nature in due co ordination with service providers and User/s. ► Periodic Review &/Or Renewals of SOR Activities as & when required. ► Study & feasible Consolidation of the scope/activities of the services and hence costs in due co ordination with Users. ► Vendor Management through periodic Feedback from Users upon Quality, Loyalty, Over all Costs & Market Re Search.
3 Executions of Service Procurement ►Recurring Services : Through Ordering by User Dept using pre defined SOR Codes & respective rates. (approx.65% of total service procurement) ► Non Recurring Services : Through Commercial Department by raising Service PR with due approvals as per Approval Matrix. (Approx. 35% of total Service procurement)
4 Process Flow Service Requirement Schedule of rate (SOR) YesNo Identification of vendor PR raised by User and approved as per matrix Work Order creation by USERIdentification of vendor Work order release as per approval matrix Floating Enquiry, Getting quotation, Negotiation and Finalization. Work Order creation by Commercial Work done by vendor Work order release as per approval matrix Service entry sheet creation by user and approval as per matrix Work done by vendor User sends Documents to finance for payment Service entry sheet creation by user and approval as per matrix User sends Documents to finance for payment
5 Approval Matrix Approval Matrix – Plant (PR Release) Amount in Rs.DesignationLevel 0-1,00,000Department's HOD and Store Head >1,00,000COO Approval Matrix – WO Release (Non SOR) Amount in Rs.DesignationLevel 0-2,00,000Asst. Manager to Deputy Manager4 - 5 2,00,000-5,00,000Manager to AGM6 - 8 5,00,000-10,00,000GM to Sr. GM9 - 10 10,00,000-7,50,00,000VP11 >7,50,00,000Not defined Approval Matrix – WO Release (SOR) Amount in Rs.DesignationLevel 0-10,000 Single Order, Maximum 20,000 in a month Area manager 10,001-25,000 Single OrderGM/Sr. GM9 - 10 >25,001Sr. VP/COO11 - 12
6 Aspects of SOR V/s Non SOR Executions NosExecution through SOR CodesExecutions through Service PRs 1 Recurring Services comprised of fixed activity / series of activities Non Recurring Services with scopes as per actual requirement 2 Scope & hence rates are fixed, pre defined with validity for stipulated period of time mutually agreed upon Scope to be defined, evaluated & mutually agreed upon by User & Service Provider with validity restricted till the execution of particular transaction 3Direct Ordering by User Department Execution through standard procurement process i.e. Service PR, Quotes, Negotiation, Finalization, Ordering, Execution, Certification for the work done, payments 4Executed More by Local Contractors Executed more by OEM / Authorised Dealer OR Service Provider 5 Reviews & Renewals are based upon, validity period for the rates stipulated, significant impact if any of increment in cost component/s contributing the most to total cost and relationship with the vendor Reviews are only in case of change if any in scope (qualitative &/or quantitative) of the work and as per association with the vendor.
7 Budget – Service Procurement Work Description Annual Budgetory Proposal (FY 2013-14) Rs in Lacs R&MOperationTotal Total (Rs in lacs) 13909082298
9 Statistics of Activity Codes (As on 15.06.2014) WorksNo of Activity Codes Codes Deactivated ( † ) Codes available for Use No of Codes used ( ♦ ) Civil735371364304 Electrical Repair12582351023698 EQUIP HIRING62382437 F&E/Piping/Cutting/Wldng26779188189 GODOWN SERVICES252233 House Keeping9363 Instru Repair2211576494 Insulation380 23 Manpower Supply61441727 Mechanical Repair28122259167 PH Bagging3553027 Process-OM&R3763137 PROFFESIONAL CHARGES126893749 RM Covering4402 RMH-OM&R4221 Scaffolding12578 Structural Paint140 Travel Charges2928118 Utility Repairs136607666 Utility-O&M157814 Vehicle Hiring5235 Vehicle Repairs10910188 Total3483146020231794 † Includes Codes Deactivated post study conducted towards blocking of Unused / Less Used Codes ♦ Includes Codes Used prior to blocking of Codes and Codes Unblocked on request/s from E/U
10 SOR Revision Process ► Receipt of the Request for Revision from E/U OR Contractor ► Co Ordination with User Department towards justification &/Or confirmation for revision requested & details of actual operating parameters (if not available) to revise SOR ► To explore & ensure No adverse Impact of the revision on SORs and hence operation of allied / similar activities within GHCL. ► Analysis of the Costs accounted for existing rates along with consumption during accounting period/s ► Accounting & calculation of the Net Impact/s if any due to change/s in rate / values of operating parameters contributing Most to SOR and hence revised SORs. ► Evaluation of the revisions arrived at against SORs prevailing in similar neighbouring Industries. ► Approval to the revision from DGM /Sr GM / Sr V.P. / COO according to the functional / operational concern and value involved. ► Update record/s with revised rates / values and intimation to respective User Department
11 Challenges, Advantages & Potential Challenges : ♦ Limited Technical expertise, Infrastructure & hence quality available with local contractors and labors for jobs executed through SORs. ♦ Limited substitutes available to attend Jobs of existing OEMs and hence higher cost with less flexible Terms by OEMs ♦ Uncertain requirement & quantum of the work resulting in higher variances in final costs. ♦ Contractors with set ups highly influenced by local Political environment often resulting in Non professional dealings. ♦ Limitations for Negotiation & Applicability of Rates of same activity for R&M and Projects – especially while dealing with Local Contractors and External Agencies on single project / Maintenance Work
12 Challenges, Advantages & Potential Advantages : ♦ Already established operations / systems giving advantage of familiarity enough for agencies working since long. ♦ Benefits of the expertise of technical team associated since long with GHCL to identify /define requirement & suggest right sources - especially for SOR Activities to ensure quality ♦ EASY ACCESS of the contractors and their teams for all SOR Requirement (approx.65% of total) for any urgency / priority. ♦ Flexibility while dealings with local contractors due to longer association & hence good relationships.
13 Challenges, Advantages & Potential Potential : ♦ Potential for Better Quality & output from agencies by stringent process of certifications & feedback for Quality, Responsiveness etc. in addition to just quantity verification. ♦ Opportunities enough to attract, develop competent & professional options of OEMs with advantage of sizeable business volume & hence potential to reduce OR control costs of services by OEMs wherever feasible. ♦ Scope enough to work in collaboration with technical team & utilize their profound expertise and experience for Better Techno commercial innovations & solutions.