XAVIER GNANARAJ D

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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,

Average Labour Hourly Rates-520,

Evaluation of Labour Hours-521,

Labour Sub-Ledger-522-523,

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

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

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 WMS is a suspense account under capital S 7200. it incorporates on the debit side the various inputs such as labour, materials, direct and indirect miscellaneous expenses incurred in a workshop. On the credit side, the out turn statement allocated to the various heads of accounts namely, capital, DRF, DF, OLWR, Capital Stores Suspense , Ordinary revenue, Deposit works etc is indicated.

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

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

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-à-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 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

[1] Indian Railway Mechanical Code Para 723 W, 312 W

[2] ibid Para 539 W

[3] ibid Para 313 W

[4] ibid Para 720 W

[5] ibid Para 720 W

XAVIER GNANARAJ D

Saturday, August 10, 2024

Wednesday, October 25, 2023

POH MANAGEMENT

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