S Si ip pa at t S SI IP PA AT TS SU UP PE ER RT TH HE ER RM MA AL LP PO OW WE ER RP PR RO OJ JE EC CT T

EXCEPTION REPORT ON VARIATION BETWEEN ABB AND COST SHEET

MAINTENANCE PLANNING

Page - 1 - of 4

ERP_ABB_EXP

S Si ip pa at t S SI IP PA AT TS SU UP PE ER RT TH HE ER RM MA AL LP PO OW WE ER RP PR RO OJ JE EC CT T
Repair and Maint Consumption includes Material and Services required maintaining and ensuring availability of the Plant / Station. In ERP, ABB (Activity Based Budgeting) has been implemented so that R&M cost can be directly booked against maint order. However, it has been noticed that there is variation in cost booking in ABB and Actual Cost Sheet. In the given table we have shown this variation of major NTPC Stations (Coal Based) for the FY 2012-13.
STATION KAHALGAON TALCHER THERMAL VINDHYACHAL SIPAT KORBA FARAKKA RAMAGUNDAM RIHAND SINGRAULI SIMHADRI GRAND TOTAL ABB BOOKING 93.34 140.69 147.72 58.95 90.82 99.02 167.24 122.5 116.56 70.07 1106.91 COST SHEET BOOKING 170.9 208.99 203.37 104.02 131.54 137.64 201.34 154.64 131.45 80.61 1524.50 VARIATION 77.56 68.3 55.65 45.07 40.72 38.62 34.1 32.14 14.89 10.54 417.59

ALL FIG ARE IN RS CRORE

To understand this gap between ABB and Cost Sheet, as case study has been done based on data (FY:2012-13) of NTPC Sipat Station.

Material Analysis In the given table material consumption and booking of various materials during FY: 2012-13 at Sipat is given.
MAT TYPE DESC Chemical,Gas & Explosives Oil, Lubricant & Cons. Others Stores Other Then Spares Permament way materials Steel Scrap - Valuated Secondary Fuel -HSD/LDO/FO Component & Spares MAT TYPE ZCGE ZO&L ZOTH ZOTS ZPWM ZSCR ZSFL ZSPR BOOKING AT CC 47.07 269.21 205.45 281.49 103.43 1.34 25.01 427.99 0.35 3611.39 ORDER BOOKING 10.10 157.81 76.22 50.60 0.03 TOTAL 57.17 427.01 281.67 332.09 103.46 1.34 25.36 4039.39

MAINTENANCE PLANNING

Page - 2 - of 4

ERP_ABB_EXP

S Si ip pa at t S SI IP PA AT TS SU UP PE ER RT TH HE ER RM MA AL LP PO OW WE ER RP PR RO OJ JE EC CT T
Const Stores - Steel Loose Tools GRAND TOTAL ABB BOOKING COST SHEET DATA 1887.57 ZSTL ZTLS 477.04 49.55 1887.57 12.38 0.73 3919.61 3884.09 3919.7 5807.27 489.41 50.29 5807.19

ALL FIG ARE IN RS LACS

From the above data it is evident that direct booking at CC are being done mainly where bulk withdrawal (Like Steel, Chemicals, Lub, Cable etc) is required. As

maintenance prospective there is certain practical difficulty in booking such items against order. Even though these items can be stock transferred from Main Store to Local Store (Movt Type-311) but SIV has to be prepared for regularizing the consumption against order which is practically very difficult. Also to issue material from Dept Store, infrastructure requirement like Lifting and measuring facility along with store keeper will be required.

Services Analysis During FY: 2012-13, Out of Rs. 104 Crores, Rs. 46.04 Crores has been booked against services. The distribution patterns of booked services under various head are given here below:

HEAD BUILDING AND OTHER ASSET BREAKDOWN MAINT COST CENTRE MAJOR OVERHAUL EQUIPMENT OVERHAUL PREV MAINT Grand Total

SER COST (Lacs) 205.81 312.19 2426.40 470.22 249.84 939.46 4603.92

REMARKS

Against Order

Against Order Against Order Against Order

MAINTENANCE PLANNING

Page - 3 - of 4

ERP_ABB_EXP

S Si ip pa at t S SI IP PA AT TS SU UP PE ER RT TH HE ER RM MA AL LP PO OW WE ER RP PR RO OJ JE EC CT T
From the above data it can be observed that out of Rs. 46 Cr, Rs. 26 Cr. Has been booked directly against Cost Centre which is not reflected in the ABB. These services included House-Keeping Activity, Material Handling, Operation Assistance, Watch & Ward etc. Following table shows the booking pattern of the above services (UPTO 5Lacs) at Sipat during FY: 2012-13,
CATEGORY MGR HOUSE KEEPING OPR ASSISTANCE MAT HAND TOWNSHIP MISC O&M CIVIL STOCKYARD MANAGEMENT WATCH & WARD UPL R&M ENV SAMPLING TOTAL 2214.53 TOTAL (Lacs) 645.58 613.55 335.28 161.04 108.97 95.31 70.83 49.29 44.00 35.61 34.34 12.12 8.61

From the above table it can be observed that direct cost booking of services has taken for such type of activity which are very generic in nature and where Maint Order / Permit is not required for performing the actual job.

Conclusion We understand that ABB is totally dependent on PM Module of SAP and presently collecting data from PM Module and Maint Order being as its main source. To minimize / eliminate the Gap between ABB and Actual Cost Sheet, it is necessary to explore possibility of ABB picking Data directly from Cost Centre and not from Maint Order as Cost Centre can act as linking bridge between ABB and Cost Booking.

MAINTENANCE PLANNING

Page - 4 - of 4

ERP_ABB_EXP