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Hello my dear Indian railway family, I am
very happy to share with you a few of my knowledge on the one of the most
intricate working the Indian Railway Management that is the maintenance cost of
Rolling Stock and its impact on the finances of the Indian Railways. This area where most people Fail to grasp the
central idea of POH Management.
I would like to acknowledge and thank all my seniors
who are instrumental in making me understand this aspect of PoH activities in
railway workshops. I remember Mr. M Rajendran
IRAS, retired as AGM in Cochin Metro Rail, Mr. S Umapathi Sr SO Mr. S Gunasekaran
IRAS FA&CAO. Unfortunately, none of them is alive today. Mr M Rajendran was my Senior Account Officer
in the New Joint Office, Mr. S Umapathi was my colleague Section Officer and Mr.
S Gunasekaran was Deputy FA&CAO/Workshop. I am also thankful to Mr. M Jayachandran IRAS FA&CAO/WST/PER. The freedom
given to us the subordinate level staff helped to improve the Workshop
Co-Ordination Section which handles the PoH accounting.
I am also indebted to Mr. Regimon George currently
AFA NPS/HQ/MAS and Mr R J Anandan AFA/T Rtd who are instrumental in computerizing
the various phases of the POH accounting.
Rolling stock
holding as on 31.03.2022
|
|
Type |
No |
|
|
Locomotives |
13215 |
|
|
Passenger
coaching vehicles |
74744 |
|
|
Wagons |
318896 |
|
|
Railway
stations |
7308 |
|
|
Passengers |
3159 million |
|
|
Revenue
earning freight |
1415.84 MT |
Costs
Primary costs
/ basic cost/ variable costs
Demand No 08
Operating Expenses Rolling Stock and Equipment
Demand No 09
Operating Expenses Traffic / Commercial
Demand No10
Operating Expenses - Fuel
Secondary/fixed/semi
variable costs
Repair and
Maintenance Demands
Demand No 04
Repair and Maintenance of Permanent Way and Wors
Demand No 05
Repair and Maintenance of Locomotives
Demand No 06
Repair and Maintenance of Carraige and Wagons
Demand No 07
Repair and Maintenance of Plant and Equipment
Overheads
Demand No 03
General Superintendence and Service
Demand No 11
Staff welfare
Demand No 12
Miscellaneous Working Expenditure
Demand No 13 P F
and Retirement Benefits
Central Charges
Demand No 01
Railway Board
Demand No 02
Miscellaneous Expenditure
Railway Rolling
Stock are classified according to their uses namely,
1.
Locomotives – Electric, Diesel
Electric and Steam
2.
Passenger Coaching Vehicles
(PCV)
3.
Other Coaching Vehicles (OCV)
4.
Wagons Including tube wagons
5.
Diesel Electric Multiple Units
- DEMU
6.
Mainline Electric Multiple
Units – MEMU
7.
Motor cars
8.
Trailer cars
9.
Cranes and ARME equipment
Hence, obviously
the POH expenditure falls under semi variable/ fixed/secondary costs.
Irrespective of the number of trains operated, these expenditures are to be
incurred. Generally, the expenditure under Demand No 06 is third or fourth
largest expenditure in every zonal railway. The POH expenditure on an average
is 16% to 17% of the respective demand.
There are 42
mechanical railway repair shops located in various parts of the country. The
annual targets for each of these shops is fixed by the Railway Board New Delhi.
Accordingly, the budget is prepared by the respective Mechanical Dept in
consultation with the Workshop Accounts Offices. Interestingly, coaches and
wagons belonging to Ministry of Defence are undergoing POH in railway
workshops. There is a separate Directorate called MilRail.
REPAIR ACTIVITIES DONE AT WORKSHOP
1) POH
- Periodic Overhaul (18 months
for ICF coaches/ LHB coaches 54 months for wagons)
2) POH/C
- Periodic Overhaul High
Corrosion (condition basis >3000 man-hours)
3) IOH
- Intermediate Overhaul (nine
months only for coaches)
4) ROH
- Routine Overhaul (for wagons
unloadable)
5) SR
- Special Repairs
6) NPOH
- Non-Periodic Overhaul
7) OR
- Other Repairs
PCV is the coaching
stock used exclusively for carrying passengers. Coaching stock used for any
other purpose other than to carry passenger is classified under OCV. OCV
includes parcel vans saloons, inspection carriages, military cars, restaurant
cars, tourist cars etc.
Wagons are open
/ closed railway trucks used to transport goods. The term wagon applies exclusively to freight
stock. Southern Railways have different type of wagons to transport different
type of commodities like coal, petroleum products, cement, fertilizers, iron
and steel, food grains etc. Various types of wagons of different features cater
to the varying requirements of goods transported. Some of them are tank wagons,
open wagons, covered wagons etc.
Maintenance of
coaches and wagons is required to keep these assets in good working condition
as these assets have to cater to safety, reliability, performance, economic
needs and amenity. Hence break down and preventive maintenance is essential to
such stock. Break down attention is necessary when such assets fail due to
accidents or extensive use. While preventive maintenance is required to
eliminate break down Coaches or Wagons on the run cannot be attended to in case
of failures as they may be fully loaded.
Time and revenue
loss elimination is the important factor requiring preventive maintenance.
Preventive maintenance could be on open line or in work shops or of the concept
of integrated maintenance. Open line maintenance includes primary and secondary
maintenance like cleaning, testing, attention to passenger amenity etc. and
platform attention like brake van equipment and fire extinguishers. Workshops
maintenance includes various periodic overhauling POH activities. A single
authority (Chief Workshop Manager-CWM) integrates the maintenance of coaching
stock both mechanical and electrical maintenance.
Cycle time of
the POH:
A great deal of
efforts is taken by the respective workshops to reduce the cycle time of the
coaches and wagons. The longer the cycle time and greater the loss for the railways
and vice versa. In CW/PER the cycle time for coaches is 9 days and 12 days for
wagons.
POH OF COACHES
(Normal Repairs) includes the following activities
1) Verification of deficiencies
2) Pre-inspection and lifting
3) Stripping
4) Body repair modifications and
alterations
5) Painting
6) Fitting of water tank, plumbing and
leakage testing
7) Repair of interior panel
8) Fitments of shutters
9) Fitment of doors
10) Fitment of berths and seats
11) Vacuum/ Air brake testing and final
works
12) Final inspection and Despatch
13) Fitments of Axle pulley, tension rod
and testing of coach wiring
14) Testing of branch wiring and fitment of
electrical equipments
PCO Progress
Section and Inspection Section is the controlling office of the entire shop
activities. It is a comprehensive set of services and solutions designed to
estimate and analyze costs and then optimize accordingly.
Time office Manages
the attendance in the workshops. It is responsible for the time booking
reconciliation and investigate any discrepancy. Reconciliation of Gate
Attendance and
Time
Office. —The 'Time Office' is responsible
for maintaining the initial record of Attendance which are also eventually the
records of payment. The time-keeping and time-booking functions have been integrated
and the organisation decentralised shop-wise so that the attendance of the
employee as well as his employment on various jobs are recorded on the shop
floor by the clerks of time office. The Time Offices under the control of a
senior subordinate designated 'The Head Time-Keeper' are placed under the
administrative control of the local Workshop Accounts Officer who is
responsible for correct payment as well as correct accountal of wages from the
very moment these transactions are initiated. All differences between the
initial records of payment and of allocation (viz- the Gate Attendance Cards,
Time sheets /job cards) are brought to the notice of Workshop Accounts Officer
and set right. Head Time Keeper ensures that necessary information is filled in
Muster roll cum Labour Pay Sheets and these are transmitted promptly to the Pay
Bill Section of the Dy. CME/Works Managers' Office for completion and
submission to the Workshop Accounts Office for internal check and arranging
payment.
Time records
Records of
Allocation-501,
Chargemen's Time
Book-502,
Time
Sheet-503-504,
Reconciliation
of Time Worked-505,
Job Card-506,
Job Card for
Squad Work-507,
Squad Summary
Card-508.
Idle Time
Card-509.
Overtime and
Night Shift Working-510,
Monthly Time Sheet
of Indirect Labour-511,
Monthly
Statement of L.A.P., L.H.A.P., Paid Holidays etc..-512.
Proceeding Time
Card-513,
Incentive Bonus
Allocation Statement-514,
Suspended
Job-515.
Resumption of
Suspended Job-516,
Entrusting Job-in-Progress to another Operator--517,
Reconciliation
of Time Worked (use of Tally Sheets)-518,
Register of
Monthly Reconciliation-519,
Average Labour
Hourly Rates-520,
Evaluation of
Labour Hours-521,
Labour
Sub-Ledger-522-523,
Register of
Shops Labour Charges-524,
Labour Schedule-
525-526,
Policy
Computerisation-527.
Master Data-
528,
Gate Attendance
List-529,
Printing of Pay
Rolls-530,
Inclusion of
Incentive Bonus in the Pay Rolls-531,
Mechanisation of
Incentive Bonus Bills- 532,
Major
Outputs-533,
Mechanisation of
Labour Classification-534.
Figure Constituents of Workshop Manufacturing Suspense
UNIT COST OF POH
COMPRISES OF: - [1]
Direct Labour Cost, Direct Material Cost and
On Cost.
Cost
Classification: According to Indian Railway Mechanical Code the expenditure of a Production Unit
(repair shops) is classified as under:-
(a) Direct Labor comprising of
(i) Cost of labor booked directly to Work
Order / Batch Order based on the average hourly rate; and
(ii) Actual incentive bonus paid Work Order
/ Batch Order wise.
(b) Direct Stores; and
(c) Overheads
Labour:
The workshop employees are divided in to two large
groups. Direct labour and indirect
labour. Again, the direct labour is divided into unskilled, semi-skilled,
skilled and Junior Engineers Grade II, I [2]
Materials:
The materials directly required for the production and
consumables are stocked in Stores Depot attached to the Workshops.[3]
The receipt, custody and issue of materials are done by the Stores Department
based on the Issue Voucher generated by the Production Control. The raw
materials are drawn through Material Requisition by Crediting Stores Suspense
and Debiting WMS. All finished components held in Stores Depot under Stores
Suspense are drawn by the Shops on Workshop Issue Slips for assembly or final
fitment on the coach. The consumable stores for repair and maintenance etc. are
drawn on Requisition-cum-Issue Note (form S1523).
On-Costs
The On-Costs are further divided into: -
1. Labour-On
Cost, 2. Stores-On Cost and 3. General-On Cost
Shop On Cost:[4]
Shop on Cost includes all on cost incurred within an accounting unit, such as a
shop or a department or a section. The following are examples of such On Cost
are illustrative not exhaustive
Wages, overtime etc. of workshop apprentices attached
to particular shops, JEs, unskilled labour except when employed as direct
labour tally men, store men, and of shop clerks
Note: Expenditure on clerks who are working on the
shop floor but are responsible for Time-Keeping and Time Booking functions
under control of the Accounts department, will continue to be charged to final
heads of account under the Revenue Abstracts concerned.
Stationery and forms used in shops.
Defective and spoilt work, in the case of experimental
work.
Power chargers, whether electric pneumatic, gas or
hydraulic which can be directly allocated to shops.
Consumable stores for shop use, such as i. Oil for lubrication of machinery and
shafting oil and waste for cleaning machines. ii. Sponges, emery and glass
cloths, soap, pumice, acid, glue and chamois leather.
Charges for coal and coke in the smithies.
Lighting charges in shops.
Fine creditable to works.
Suspension allowances.
Working expenses of crane and shunting engines,
lorries, auto trucks, traversers etc. which can be charged to shop on cost.
Small tools for shop use
General On Cost[5]:
General On Cost denotes
all On Costs other than Pro Forma On Cost/Administrative On Cost that is
incurred in common with more than one shop or department within a workshop. The
following General on Costs are illustrative not exhaustive
Leave, sick, hurt and holiday pay paid to workshop
employees whose wages are not charged to shops, such as the yard
establishments.
Wages, overtime etc. of staff, such as the workshop
apprentices, tool keepers, not attached shops.
Freight charges that cannot be directly allocated to
jobs.
Electrical power, which it is not possible to allocate
to shops.
Hydraulic and pneumatic power and gas that cannot be
allocated to shops.
Wages paid in lieu of notice to workshop staff not
charged to shops.
Replacement of articles stolen or lost.
Expenditure on apprentices ‘school and hostel (Net).
Working expenses of crane and shunting engines,
lorries, auto trucks, traversers etc., provided for the use of the workshop
when not chargeable to Shop on cost.
Working expenses of central works pumping plant.
Experimental work, when not more appropriately charged
directly to the job itself.
Water charges that cannot be allocated to shops.
Wages, overtime etc. of general labour in yards and
shunters.
Sanitary arrangements in workshops.
Messengers ‘wages, uniforms etc. when not allocable to
shops.
Consumable stores for general use not allocable to
shops.
Maintenance of mess rooms.
Yard lighting.
702. Pro
Forma On cost.—The term "Pro
Forma" Oncost, commonly known as "Indirect charges," is intended
to include all oncost which is not included in the cost of work done in railway
workshops but which would be so included in commercial costing. This consists
either of expenses charged off directly to final heads of working expenses (e.g.,
General Superintendence, Depreciation) or of charges not included in the
working expenses of the railway.
703. "Pro
Forma" Oncost thus includes the following items charged to final heads of
working expenses. The items of Pro Forma Oncost are shown in fuller details in
Paragraph 731:
(1) Share of the expenses of the Rolling Stock management in Zonal
headquarters office and Establishment in offices of Mechanical Department of
the Workshops.
(2) General superintendence of all service departments such as
Financial personnel and material management & c. including officers and
Office establishment of security department and medical services.
(3) Government contribution to Provident Fund in respect of
non-pensionable staff.
(4) Gratuity and special contribution to Provident Fund in respect
of non-pensionable staff.
(5) Pensionary liabilities in respect of pensionable staff.
(6) Payment under the workmen's Compensation Act.
(7) Depreciation of plant and buildings.
(8) Repairs of machinery and plant other than those charged to the
cost of manufacture and repairs to building yards.
(9) Educational facilities to workshop staff.
(10) Cost of materials used and labour expended on the maintenance
of electric lighting throughout the workshop, all fittings, lamps, switches,
& c. and the cost of cables or wiring from main distribution boards.
Proforma for
CW and LW Perambur @ on Direct Labour on private or deposit works
|
Details |
CW/PER |
LW/PER |
|
Supervision |
33 |
31 |
|
PF &
Gratuity |
27 |
25 |
|
Repairs
& Maintenance |
6 |
3 |
|
Interest
on Capital |
0 |
.0 |
|
Depreciation
on Plant & Machinery |
2 |
3 |
801. Shop Costs.—The
'Shop' is the ultimate unit of workshop organisation (where it is not further
divided into 'sections'). It is, therefore, the unit also for purposes of the
initial accounts, The work carried out in each shop (or section of each shop)
has to be accounted for initially before the accounts of the 'workshop' can be
compiled. Even if the work on the same job has to be carried out in more than
one shop, the expenditure thereon will stand analysed, shop by shop, for the
reason that the initial accounts of each shop are maintained separately.
Notwithstanding this, it is convenient to bring the 'shops' into the system of
Work Order numbering by allotting to them (and the sections of shops, if need
be) distinguishing numbers, and coupling such shop numbers where found
necessary, with the numbers for the Standing Work Orders.
802. Prime Cost.
The expenditure in a workshop stands analysed not only by shops (and divisions,
such as the Yard, the Laboratory, etc.) but also by 'wages' and 'materials', as
the initial records of these are maintained separately in the manner laid down
in Chapters V and VI.
803. Workshop Costing. —The extent to which expenditure incurred in a workshop
(i.e. cost of jobs) should be further analysed depends very largely on the
information that is required by the authorities controlling such expenditure.
There is no higher limit for such analysis, except that if the cost of the
analysis itself which will have to be determined by practical considerations
and the actual needs of each railway administration. There is however, is lower
limit owing to the need for—
(1)
recording expenditure under the detailed and sub-detailed heads of accounts
classification, whether Capital or Revenue,
(2)
identifying expenditure that has to be separately recorded for the reason, say,
that it has to be billed for and recovered, whether recovery has to be made
from another department or division of the railway or from outsiders
804. The
Work Order System. —-The analysis of
workshop expenditure is carried out with the aid of a system of "Work
Orders" representing the units of such analysis. It will be readily seen
that there should exist a separate unit for each sub-detailed head of the
financial accounts, expenditure chargeable to which is incurred in the
workshops. Separate units should also be provided whenever it is necessary to
ascertain the amount that has to be accepted, adjusted or billed for. For
instance, when work is carried out in the workshops for a running shed either
the total expenditure of the shed may be collected under one Work Order or the
expenditure incurred for each item of work from the shed may have to be
ascertained separately, according as the shed requires the information or the
total charge only or of the cost of the individual jobs.
805. Any
system of Work Orders in use in a workshop should, therefore, provide for—
(1) The minimum analysis required by the detailed classification
of Capital and Revenue expenditure.
(2) The further analysis required or necessitated say
(i) By the orders of the Railway Board as issued from time to
time.
(ii) By the need for the inter-departmental adjustment having to
be made or as for certaining the amounts to be recovered from outside parties
on specific works.
(iii) By the need for ascertaining the cost of individual
operations and jobs so that waste may be adequately and efficiently controlled.
806. The essential features of any good work
order system are, therefore, the following: —
(1) Conformity with the accounts classification, so that the
correct allocation of the expenditure incurred in a workshop in the required
detail is assured.
(2) Elasticity, which, would allow of the increased analysis that
may be required in certain cases for ascertaining and controlling the
expenditure on individual operations and jobs (job-costing).
807. Revenue
Standing Work Orders. —The Work Orders
which have to conform to the revenue accounts classification can be numbered in
accordance with a code that should preferably he identical for all railways,
and can remain unchanged from, year to year. The system of numbering Standing
Revenue Work Orders, that has been laid down in paragraphs 836 et seq. is
recommended for adoption by all railways. In the case of other work orders, the
general plan indicated in those paragraphs should be followed.
808. In
order to extend the above system to meet the needs of any further analysis of
expenditure than that provided by the accounts classification, all that is
required is to affix a number indicative of the particular job or work or
operation which has to be separately accounted for, to the number representing
the Standing Work Order. For instance, the Standing Work Order for the
periodical overhaul of Locomotive engine under-frames being C. 231/1 the Work
Order for repairing Locomotive H. 345 would be No. C231/1/H. 345.
809. Job Orders. —The work orders, the currency of which is determined by
the accomplishment of the special purpose for which they have been brought into
existence, may be distinguished from Standing Work Orders. As so distinguished,
they are called "Job Orders". Such Job orders are often really
sub-divisions of a Standing Work Order. For instance, the periodical overhauls
of locomotive H. 345 though essentially a job order, appears under the Standing
Work Order for the repairs and maintenance of locomotives (paragraph 808).
Similarly all work done for the Stores Department is carried out under a
Standing Work Order. But for each lot of any part that has to be manufactured,
a separate "job order" is issued which is closed on the termination
of that job. Any system job order numbering may be used in a workshop provided
it is not inconsistent with the Standard system of Standing Work Orders
prescribed in paragraphs 836 et seq.
810. Job
Costing.—The detailed job costing of
individual items of manufacture or repair, which is only a part of any system
of workshop accounting is termed "job costing". The detailed
procedure that should be employed for job costing is laid down in Chapter
IX.
811. Other
standing work orders.—The following are
certain classes of Standing Work Orders other than those meant for recording
expenditure chargeable directly to Revenue:—
(1) Oncost work orders.
(2) Manufacturing work orders.
(3) Grouping work orders.
(4.) Inter-departmental work orders.
812. Standing
work orders for oncost.—The expenditure
incurred in workshops is either "Prime Cost" i.e., expenditure on
labour and stores that can be directly charged to a work or "oncost",
i.e. expenditure that cannot be so charged. All oncost expenditure incurred in
workshops requires to be carefully analysed, not only for purposes of effective
control of such expenditure, but also for purposes of its correct distribution.
As the distribution is carried out on the basis of a percentage estimated after
the preparation of an annual oncost budget (Chapter VII) there is need for
comparison in detail of the actual oncost expenditure with the figures as
estimated in the budget. This necessitates the maintenance of a group of
Standing Work Orders for oncost.
813. Standing
work orders for manufacture.—Standing Work
Orders are required in the Process Shops, like the Foundry and the Saw-mill,
for the purpose of ascertaining the cost of semi-manufactured material, e.g.
Molten Metal, Scantlings & where a system of costing of individual jobs is
not followed in a Process Shop, a larger number of Standing Manufacture Work
Orders is necessary in order to allocate the expenditure in the shop as between
different classes of out-turn.
814. Grouping
Work Orders.—When the estimated cost of a
work is small (within the limit of Rs. 500 generally) and it is considered that
such cost could be estimated fairly accurately and there is no need for ascertaining
the exact cost of the work in question, the device is often adopted of carrying
out all such petty jobs under one or more Standing Work orders, called Grouping
Work Orders (paragraph 863). The total actual expenditure incurred on all such
works taken together is collected under these few work orders, and all
differences between such actual and the totals of the amounts estimated is
adjusted as indicated in paragraph 847.
815. Inter-Departmental
or Inter-Divisional Work Orders,—These
constitute another class of Standing Work Orders, all work from one department
or division or district estimated to cost more than Rs. 500/-each being
indicated by a distinctive number (Paragraph 865).
816. Standard
System of Work Order Numbering.— The
system of shop and work order numbering, described in paragraphs 836 et seq. is
intended to be a standard and is recommended for uniform adoption in all
railway workshops, only such minor alterations being allowed as may be found
necessary for purely local reasons.
The system
as laid down, provides for the minimum analysis of the expenditure incurred in
workshops and any reduction in the extent of the analysis requires the sanction
of the Railway Board.
817. Printed
Lists of Work Order Numbers.—A printed
list of work order numbers in Form W. 817 should be issued for every workshop
and all supervising staff that have to deal with such numbers should be
supplied with personal copies, correction slips being supplied to them as and
when issued. Form W-817
1201. Workshop General Register.—The Labour and Stores Sub-ledgers having been totalled as
indicated in paragraph 522 and 630, the totals, of (a) Labour charges and (b)
Stores and Miscellaneous charges, for the month relating to each work-order
should be transferred to Workshop General Register (W. 1201) and posted under
the relevant work-orders, shop by shop, care being taken to see that no item is
left out in posting.
Under mechanised system Labour charges and the Stores and Miscellaneous charges
for the month relating to each work-order as produced, by the machine
tabulations as also direct Man-hours should be transferred to Workshop General
Register (W. 1201) and posted under relevant work-orders, shop by shop, care
being taken that no item is left out in posting. On completion of posting in
respect of work-orders, the totals for the month as also to the end of the
month are struck for each work-order under element of cost and direct
man-hours.
Workshop Manufacturing Suspense:
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.
1204. Out-turn
Statement. —The total (debits) for the
month, in respect of each work order under labour Stores and Oncost charges and
the grand total should be struck in the Workshop General Register and an
Outturn Statement (W. 1204) should then be prepared showing al! the work
orders, whether in hand, or completed in the workshops, the outlay on which is
awaiting adjustment; and the expenditure that has been incurred on each of
them. This statement is necessary for the purpose of charging the total
expenditure incurred in the workshops to the account heads concerned.
OUT TURN Form 1204 W
Part I (Para 1207 W)
Works – DRF
DF
OLWR
Capital Stores
Home Line Rev A/C
Work Of
Divisions,
Work Of Foreign Rly
Other Govt
Part II ( Para 1210 W)
Manufactured Items
Stores Dept
Homeline –
Dept/Divisions
Foreign Rly
Grouping
Of
Work Orders
Out Turn Statement Part I
Shows the total outlay separately Against
each work order Adjustable during the
Month.
Includes open line, capital and DRF works
capital stores suspense Manufacture items, open line works Revenue works, works
done for Other divisions, other railways And deposit works.
The amounts appearing in Part I are those
which are adjustable In the same month’s
accounts
Out Turn Statement
Part II
Shows the outlay on works-in-
Progress and completed works
Awaiting acceptance by the
Parties ordering such works
Includes the classes of expenditure for which bills
have to be prepared and got accepted by the parties concerned, before carrying
out the adjustment. In all these cases, the amounts remain outstanding in part
II until such time the bills are accepted. On receipt of the acceptance, the
amounts are sown in part I and necessary debits are raised against the
concerned accounts officer
Figure Diagram of Collection
Of Workshop Expenditure
Diagram of Distribution of
Workshop Expenditure in to Govt Accounting
Figure collection of charges to Work orders &
finally to Allocation Heads(Revenue) 
Flowchart of collection of
workshop expenditure and derivative statements
The above flow chart explains how the three elements of
URC i.e., labour, stores and on cost are collected and compiled to form the WGR
and the various statements derived from WGR.
The labour charged is collected in the labour sub ledger (para w) and incentive added to formulate the
labour charges of the WGR. Similarly, the stores drawn from the stock are
reflected in the stores sub ledger (para 608 W, Form W 608) added to formulate
the stores sub ledger. Further, the on cost charges like Stores on cost, labour-on-cost,
shop-on-cost, general-on-cost are drawn through on cost work orders to
formulate the on cost charges. Also, the stores purchased from the market are
indicated in the direct purchase of stores. These are the entries in the debit
side of the WGR.
The difference between the debits and credits indicate the work in
progress and job completed but the out turn is transferred to the appropriate
head of account, is treated as closing balance of the WM suspense account. The
WMS is operated under demand No 16 along with the works expenditure chargeable
to Capital, DF,SRF.
In order to arrive at the net requirement of funds for WMS account
out turn chargeable to Capital, DF,SRF, OLWR and Stores Suspense total credits
of WMS under these heads is deducted from the total debits and credits of the
WMS budget estimate.
Two Kinds of WO
Job work orders the job orders are the work orders the currency of
which is determined by the accomplishment of the special purposes for which
they have been brought in to existence.
Such job orders are really sub – divisions of standing work orders.
Standing work orders.
825. Work Order.—No works other than
those chargeable to Abstracts C, D and E and covered by the provision of the
Authorization Rolls may be carried out in a workshop without an official order
(W. 825) from competent authority for the work being undertaken in the
workshops. The work order numbers allotted to different classes of work do not
constitute such a sanction
811. Other standing work orders.—The following are certain classes
of Standing Work Orders other than those meant for recording
812. Standing work orders for on cost—The expenditure incurred in
workshops is either "Prime Cost" i.e., expenditure on labour and
stores that can be directly charged to a work or "on cost", i.e.
expenditure that cannot be so charged. All on cost expenditure incurred in
workshops requires to be carefully analyzed, not only for purposes of effective
control of such expenditure, but also for purposes of its correct distribution.
As the distribution is carried out on the basis of a percentage estimated after
the preparation of an annual on cost budget (Chapter VII) there is need for
comparison in detail of the actual on cost expenditure with the figures as
estimated in the budget. This necessitates the maintenance of a group of
Standing Work Orders for on cost.
814. Grouping Work Orders.—When the estimated cost of a work is
small (within the limit of Rs. 500 generally) and it is considered that such
cost could be estimated fairly accurately and there is no need for ascertaining
the exact cost of the work in question, the device is often adopted of carrying
out all such petty jabs under one or more Standing Work orders, called Grouping
Work Orders (paragraph 863), The total actual expenditure incurred on all such
works taken together is collected under these few work orders, and all
differences between such actual and the totals of the amounts estimated is
adjusted as indicated in paragraph 847.
815. Inter-Departmental or Inter-Divisional Work Orders.— These
constitute another class of Standing Work Orders, all work from one department
or division or district estimated to cost more than Rs. 500/-cach being
indicated by a distinctive number (Paragraph 865).
COSTING SYSTEM IN WORKSHOPS
The object of costing is
Ø
to compare the man-hours and
the costs of similar articles manufactured form time to time in the workshop
and finding out the reason for variation in labour hours and cost:
Ø
to compare the cost of articles
manufactured in one workshop with those manufactured in other workshops or with
the market price of similar articles: and
Ø
to determine issue-prices of components
manufactured in workshops for issue to stores for stocking purpose to meet the
demands of workshops at the time of repair of Rolling Stock.
Ø
Cost – direct labor cost
Ø
Direct material cost
Ø
On cost- labor oncost, stores
on cost, shop oncost, gen oncost, proforma on cost
Route Card: It is an authority for the
shop to manufacture of components /assembly, for which it is issued. It is
adrema printed and issued by Production Control to the shop through Progress
Office and thereafter it travels with the job till its completion when it is
sent to Accounts Office for completing the cost sheet.
Job Card / Squad Summary Card: For each
operation included in the Route Card, Job Cards / Squad Summary Cards are
issued adrema printed (by Progress Office) on which time taken is recorded with
the help of Time Clocks and direct labour hours spent on the job determined.
Direct labour cost is arrived at by multiplying the time taken with average
hourly rate of the category. Both direct labour hours and indirect labour cost
is posted in the cost sheets. In addition, the incentive bonus earned by
workers is also posted form the job card. Material Requisition: It is an
authority for the shop foreman to draw materials as specified there in
accordance with the route card and is issued adrema printed by the production
control to the shop through the progress office. It is valued by the stores
accounts office on the basis of book rate and forwarded to the workshop
accounts office where it is made use of for posting direct material cost in the
cost sheet.
Material Tag: It is adrema printed by
Production Control and issued to shops through progress office. It remains with
the material till the components/ assembly is returned to stores when it is
valued at the pre determined rate by stores accounts office and sent to
workshop accounts office in support of advice of credit. In the workshop
accounts office it is posted in the cost sheet to determine the extent to which
the price list rate needs revision.
Advice Note Of Returned Stores: It is
used for return of scarp or surplus materials to stores and getting credit
there from for posting in the cost sheet.
Foundry Out Turn Statement: It is used
for ascertaining and posting in the cost sheet, the cost of ferrous and
non-ferrous castings.
Cost Sheet: It is a document issued by the Production
Control in respect of job for which cost is to be determined. It covers the
whole field of record of productive activity and is used to determine cost per
unit.
Work Manager’s Cost Card: It is posted
from cost sheet and is used for comparison of cost from time to time and from
workshop to workshop etc.
501. Records of Allocation.—The initial document
of allocation for the purpose of Time-booking are:
|
(i) |
Time Books |
Form
W. 502 |
|
(ii)
|
Time Sheets |
Form
W. 504 |
|
(iii) |
Job Cards |
Form
W. 506 |
|
(iv) |
Squad Summary Cards |
Form
W. 508 |
|
(v) |
Idle time-card |
Form
W. 509 |
|
(vi) |
Monthly Time sheet of Indirect labour . |
Form
W. 511 |
|
(vii) |
Monthly statement of LAP, LHAP, Paid
holidays etc. |
Form
W. 512 |
|
(viii)
|
Proceeding Time-card |
Form
W. 513 |
To prove agreement between the two initial records of payment and
allocation viz. the Gate Attendance Card and the Time sheets, reconciliation
will be effected in each of the Time sheets, both daily and
again at the end of the month.
The sum total of time for each day as well as for the
whole month as per postings in the Time sheet in respect of a
workman must tally with his daily attendance and the 'total
time worked' respectively as calculated in his Gate Attendance Card
All differences must be investigated from day to
day as and when these appear and set right before the Time sheets are
passed on to the Accounts Office, for valuation. In token of having
conducted this reconciliation, the time clerk should initial below
each date in the Time sheets daily.
RECONCILIATION OF TIME RECORDS
Job
Cards – Incentive > WGR < Tally Sheets Non-Incentive
WGR > Reconciliation < GA cards
Reconciliation of stores
Stores as in WGR > reconciliation <
Stores as in statement No 23
OUT TURN STATEMENT
The compilation of workshop
out turn statement is necessary for charging the total expenditure incurred in
the workshops, to final accounts heads concerned. In order to have systematic
accounting of the expenditure incurred on the various activities in the
workshop, the out turn statement is compiled.
Unless the total expenditure incurred towards labour, stores and on
cost charges booked to the various work orders,
during a month , is summarized, it is not practicable to arrive at the
total cost under each final head of accounts. Besides certain items of
expenditure are directly transferable to the final heads of accounts and in
other cases the acceptance by the parties is required before transferring the
debit.
The total expenditure for the month, in respect of each work order
under labour, stores and on cost charges is extracted in the in the workshop
general register. The out turn statement is compiled from the workshop general
register for the transaction of the month. The opening balance is carried
forward from the closing balance of the previous month.
OUT TURN Form 1204 W
PART I (Para 1207 W)
WORKS – DRF
DF
OLWR
CAPITAL STORES
HOME LINE REV A/C
WORK OF
DIVISIONS,
WORK OF FOREIGN RLY
OTHER GOVT
PART II ( Para 1210 W)
MANUFACTURED ITEMS
STORES DEPT
HOMELINE –
DEPT/DNs
FOREIGN RLY
GROUPING
OF WORK ORDERS
Out turn statement Part I
Shows the total outlay separately Against each work order Adjustable
during the
Month.
Includes open line, capital and DRF works capital stores suspense
Manufacture items, open line works Revenue works, works done for Other
divisions, other railways And deposit works.
The amounts appearing in Part I are those which are adjustable in
the same month’s accounts
Out turn statement Part II
Shows the outlay on works-in-
Progress and completed works
Awaiting acceptance by the
Parties ordering such works
Includes the classes of expenditure for which bills have to be
prepared and got accepted by the parties concerned, before carrying out the
adjustment. In all these cases, the amounts remain outstanding in part II until
such time the bills are accepted. On receipt of the acceptance, the amounts are
sown in part I and necessary debits are raised against the concerned accounts
officer
WMS
OPENING BALANCE
DEBIT SIDE
•
LABOUR
•
STORES
•
CASH
•
DP
•
MISC
CREDIT SIDE
•
DRF, DF
•
CAPITAL
•
REVENUE
•
HOME RLY SHEDS
•
FOREIGN RLY
CLOSING BALANCE
BASIC INPUTS
Labour Cost + Material Stores + On Cost = WMS
OUT PUT
WMS > Manufacture > Capital > Revenue
(Repair)
GA cards + Job cards + issue notes + on cost
work order = WGR > Adjustments > Revenue > Stores Suspense >
Capital
Object of WMS
Govt Accounts > Consolidated Fund of India +
Public Account of India + (Contingency Fund of India)
Commercial Accounts > Revenue + Capital
The WMS account is reviewed to see the progress of out turn
vis-Ã -vis the inputs. The budgetary controls are exercised to see that the
closing balance is to the barest minimum representing only the work in
progress.
q
whether materials and stores
have been drawn disproportionate to the requirement of the job on hand
q
Whether the progress of manufacture of stores
parts / components rational and there are no undue delays or abandonment of the
jobs half way resulting in inefficient debits to WMS accounts.
q
Whether timely adjustments of debits to the
various final heads of account have been carried out monthly as per the
procedures.
whether there is
abnormal delay in closing the Work Order for specific jobs
q
Whether the responding accounts officers have
accepted the workshop debits in time.
q
Whether timely revision of on
cost charges have been conducted to ensure that the costs are absorbed by the
jobs.
in respect of
parts/components manufactured for Stores Depot, the documentation is completed
and there is no delay in giving credits to WMS accounts
The monthly reviews should indicate whether the closing balance as
budgeted would be achieved. In order to control the suspense account the review
should ensure:
Ø
that there are no inefficient
and large accumulations of debits under manufacture suspense work orders
Ø
that there are no drawl of
costly metals and materials over and above the requirement
Ø
that the direct purchases are kept to the
minimum requirement and
Ø
That the under and over charges
manufacture and on cost are adjusted to the corresponding revenue heads by
conducting timely review.
Reasons for inefficient balances in WMS
- Excess drawl of stores from stock (more than required)
- Erroneous feeding or input details in which like WO particulars
- POH of condemned rolling stock of other railways for which
debits have been rejected by other railways
- Undue delay in despatch of RSP vehicles for which POH done
resulting in delay of raising bills
- Executing other railway works without proper sanction and
maintenance of records resulting in non-acceptance of debits
- Executing the work in excess of allotment
- TDs received in advance from other railways & other
divisions but material not received
- Non clearance of foreign railway debits
- Non accountal of various expenses in the on cost work order
- Debiting WMS of all expenses without checking whether it is WMS
or revenue
- Debits taken directly to revenue heads instead of WMS
- Non reconciliation of hourly labour rate and total labour cost
WMS labour details
- Keeping the under/over charges of on cost within reasonable
limits
- Material drawn not tallied with
- Indefinite program of work
- Non clearance of td debits from workshops
Variation in POH cost
The cost of POH varies from shop to shop in a
zonal railway as well as inter railway due to number of reasons like
geographical area, labour mix, product mix, average age of artisans, AHR, on
costs etc.
|
PCV POH COST VARIATION in 000’s of Rupees |
||||||
|
SHOP |
2017-18 |
2018-19 |
2019-20 |
2020-21 |
2021-22 |
2022-23 |
|
CR MATUNGA |
1301 |
1562 |
1943 |
1776 |
2127 |
2066 |
|
ER LILLUAH |
2418 |
1637 |
1654 |
2124 |
1961 |
2409 |
|
NR JAGADHRI |
1861 |
1357 |
1524 |
1689 |
1611 |
1567 |
|
SR CW/PER |
1434 |
1080 |
1211 |
1676 |
1575 |
1394 |
INTEGRATION OF
WORKSHOP ACCOUNTS WITH STORES ACCOUNTS:
INTEGRATION AT
THREE LEVELS
1.
WORKSHOP ACCOUNTS & STORES
ACCOUNTS
2.
WORKSHOP ACCOUNTS & GENERAL
BUDGET
3.
STORES ACCOUNTS & GENERAL
BUDGET
- WORKSHOP ACCOUNTS & STORES
ACCOUNTS:
The WMS top
sheet shows the debits and credits thus
Debit side credit
side
•
LABOUR DRF,
DF
•
STORES CAPITAL
•
DP REVENUE
•
MISC HOME
RLY SHEDS
•
FOREIGN RLY
Stores budget credit
side
Issues
to workshop (WMS)
The debit in the
WMS budget to tally with the credit in the stores budget
Credits from WMS
to Stores budet debit
Debit side credit
side
•
LABOUR DRF,
DF
•
STORES CAPITAL
•
DP REVENUE
•
MISC HOME
RLY SHEDS
•
FOREIGN RLY
Manufactured stores
Stores budget
Debit
side
Manufactured
stores
The debits in
the stores budget to tally with the credits in the WMS budget
Returned stores
Debit side credit
side
•
LABOUR DRF,
DF
•
STORES CAPITAL
•
DP REVENUE
•
MISC HOME
RLY SHEDS
•
FOREIGN RLY
Manufactured stores
Returned
stores
Stores budget
Debit
side
Returned stores
The debits in
the stores budget to tally with the credits in the WMS budget
- WORKSHOP ACCOUNTS & GENERAL
ACCOUNTS:
Debit side credit
side
•
LABOUR DRF, DF
•
STORES CAPITAL
•
DP REVENUE
•
MISC HOME
RLY SHEDS
•
FOREIGN RLY
Manufactured stores
Returned
stores
DIVISIONAL
budget
Debit side
Repairs
activities
The Repairs
activities debits in the divisional budget to tally with the division wise work
done statement in the WMS(WGR)
The bills are
raised as divisional bills from W/PER to respective divisions for acceptance.
On acceptance, WMS will be credited. In the transactions pertaining to
divisions, the credit is afforded to WMS as soon as the work is completed, the
these works are carried out in the workshop only after the acceptance by the
divisions
The divisions
will seek funds under demand no 5 ( repairs and maintenance of locomotives) and
demand no 6 (repairs and maintenance of carriage & wagons)
- STORES ACCOUNTS & GENERAL
ACCOUNTS:
GENERAL BUDGET:
DEBIT SIDE CREDIT
SIDE
Issues
To Workshops – WMS
To works – Demand No 16
To Revenue other than fuel
To
Revenue Fuel
STORES BUDGET
Debit side credit
side
Receipts issues
WMS BUDGET
stores
Ø
LOCOMOTIVE WORKSHOP/PERAMBUR
Ø
CARRIAGE & WAGON WORKSHOP/PERAMBUR
Ø
ELECTRICAL WORKSHOP/PERAMBUR
Ø
ENGINEERING WORKSHOP/ARAKONAM
Ø
FLASH BUTT WELDING WORKSHOP/ARAKONAM
Ø
PRINTING PRESS/ROYAPURAM
Ø
CENTRAL WORKSHOPS/PONMALAI
Ø
SIGNAL&TELECOMMUICATION WORKSHOP/PODANUR
v POH OF AC LOCOS
v POH OF DIESEL LOCOS
v POH OF DEMU, EMU,MEMU
v POH OF SHUNTING ENGINES
v RECABLING OF AC LOCOS
v POH OF PCV COACHES
v POH-CUM-CORROSION OF PCV COACHES
v POH OF OCV COACHES
v POH-CUM-CORROSION OF OCV COACHES
v POH OF WAGONS
v POH-CUM-CORROSION OF WAGONS
v POH OF TANK WAGONS
I 06-231 :
PCV/POH
v II 06-232 :
PCV/POH - CUM CORROSION
v III 06-233 :
OCV/POH
v IV 06-234 : OCV/POH CUM CORROSION
v
v ALLOCATIONS OF POH COST OF
WAGON STOCK MECHANICAL
v I 06-331
: WAGON / POH
v II 06-332 :
WAGON / POH - CUM CORROSION
v III 06-360 :
NPOH
v IV 06-360
: ROH
|
RAILWAY |
CODE |
NAME OF WORKSHOP |
|
|
|
|
|
CENTRAL WEST RAILWAY |
JASW |
JHANSI |
|
CENTRAL RAILWAY |
KWV |
KURUDWADI |
|
CENTRAL RAILWAY |
MTNS |
MATUNGA |
|
CENTRAL RAILWAY |
PR |
PAREL |
|
EASTERN RAILWAY |
JMP |
JAMALPUR |
|
EASTERN RAILWAY |
KPA |
KANCHANAPARA |
|
EASTERN RAILWAY |
LLH |
LILLUAH |
|
NORTH EASTERN RAILWAY |
|
SANASTRIPUR |
|
NORTH EASTERN RAILWAY |
GKP |
GORAKPUR |
|
NORTH EASTERN RAILWAY |
IZNS |
IZATNAGAR |
|
NORTH FRONTIER RAILWAY |
|
BORA |
|
NORTH FRONTIER RAILWAY |
DBRT |
DIBRUGARH |
|
NORTH FRONTIER RAILWAY |
MZQ |
MALIGAON |
|
NORTH FRONTIER RAILWAY |
NBQ |
NEW BONGOIGAON |
|
NORTH FRONTIER RAILWAY |
PNO |
PANDU |
|
NORTHERN RAILWAY |
ALH |
ALAMBAGH |
|
NORTHERN RAILWAY |
BKN |
BIKANER |
|
NORTHERN RAILWAY |
JUDW |
JAGADHRI |
|
NORTHERN RAILWAY |
JUMX |
JODHPUR |
|
SOUTH CENTRAL RAILWAY |
LGD |
LALLAGUDA |
|
SOUTH CENTRAL RAILWAY |
RYPS |
RAYANAPADU |
|
SOUTH WESTERN RAILWAY |
UBL |
HUBLI |
|
SOUTH EASTERN RAILWAY |
ADAW |
ADRA |
|
SOUTH EASTERN RAILWAY |
KGP |
KHARAGPUR |
|
SOUTH EASTERN RAILWAY |
RWS |
RAIPUR |
|
WESTERN RAILWAY |
AIIW |
AJMEER |
|
WESTERN RAILWAY |
BHUJ |
BHUJ |
|
WESTERN RAILWAY |
BVP |
BHAVNAGAR PARA |
|
WESTERN RAILWAY |
DHD |
DAHOD |
|
WESTERN RAILWAY |
JND |
JUNAGHAD |
|
WESTERN RAILWAY |
KOTA |
KOTA |
|
WESTERN RAILWAY |
PRTN |
PRATHAPNAGAR |
