A STUDY ON SUPPLY CHAIN MANAGEMENT RELATED TO REDUCE THE ORDER LEAD TIME

TATA PROJECTS LIMITED

(In Partial Fulfilment of the degree MBA International Business from Pondicherry University, Pondicherry)

Submitted To Mr. K R RAMAMOORTHY (HEAD-SCM) Submitted By ANKIT KUMAR SINGH

(MBA-IB)

PONDICHERRY CENTRAL UNIVERSITY

Department of International Business

Pondicherry 605014

PROJECT REPORT ON ORDER LEAD TIME.

RESEARCH TOPIC:- ANALYSIS TO REDUCE ORDER LEAD TIME.

ACKNOWLEDGEMENT
It would be all-envisaging to offer salutations at the feet of the Lord, who kindly imbued the energy and enthusiasm through ramifying paths of thick and thin of my efforts. I express my sincere thanks to Dr. M RAMADAS, Dean, School Of Management , Head of Department, Dr.Mohan.K.Pillai and Dr. Bhusan D sudhakar (Reader, Project Guide), Department of International Business, School Of Management who helped me a lot to establish control over this project. I have immense pleasure in expressing my heart-felt deep sense of gratitude, indebtedness and sincere thanks to Mr. K R RAMAMOORTHY HeadSCM for having given me an

opportunity to associate myself with the organization and their benevolent and noble ideas, eminent guidance with sustained interest, constant encouragement and contemplative efforts bestowed throughout the period of investigation which had vivified this project. I have immense pleasure in acknowledging the timely guidance rendered by Mr.FARAZ AHMED and I thank all the staff of TATA PROJECTS LIMITED, for their encouragement and co-operation rendered through out the study and helping me in doing the research.. I wish to acknowledge my thanks to my parents , friends and other well wishers who helped me to complete this work successfully.

ANKIT KUMAR SINGH DEPT. OF INTERNATIONAL BUSINESS PONDICHERRY UNIVERSITY

INDEX

CHAPTER NUMBER PAGE NO

TITLE

1 2

EXECUTIVE SUMMERY INTRODUCTION

1.1 1.2 1.3 management 1.4

3

Industry profile

Company profile Supply chain

Need of the study

STATEMENT OF PROBLEM STATEMENT OF OBJECTIVE 2.1 Statement Of Objectives

RESEARCH METHODOLOGY

3.1 Research Design 3.2 Sample Size 3.3 Sampling Method 3.4 Period of Study 3.5 Source of Data 3.6 Statistical Tools

CHAPTER NO. PAGE NO

TITLE.

6:7:8:9:10:-

DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY RECOMENDATION & SUGGESTION LIMITATION OF THE STUDY BIBILOGRAPHY

EXECUTIVE SUMMARY
TATA PROJECTS LIMITED is an EPC (Engineering, procurement and construction) company, and out of its three activity (Engineering, Procurement and Construction,). Procurement is being handled by its support service department, which is SCM (supply chain management).SCM plays a crucial role in any business organisation. This department is backbone of the company. In todays competitive world time is equivalent to money, and in the process of procurement the key feature is to reduce the order lead time. This report covers the ways and means to reduce the order lead time which in turn will lead to increase the profitability and efficiency of the company.

INTRODUCTION

INDUSTRY PROFILE
What is EPC industry? EPC stands Construction. for Engineering Procurement and

It is a common form of contracting arrangement within the construction industry. Under an EPC contract, the contractor will design the installation, procure the necessary materials and construct it, either through own labor or by subcontracting part of the work. The contractor carries the project risk for schedule as well as budget in return for a fixed price, called lump sum or LSTK depending on the agreed scope of work. When scope is restricted to engineering and procurement only, this is referred to as an EP or E and P (E+P) contract. This is often done in situations where the construction risk is too great for the contractor or when the Owner has a preference for doing the construction himself. In an EPC contract, the EPC contractor (EPCC) agrees to deliver the keys of a commissioned plant to the owner for an agreed amount, just as a builder hands over the keys of a flat to the purchaser. The EPC way of executing a project is gaining importance worldwide.

But it is also a way that needs good understanding, by the EPCC, for a profitable contract execution. An owner decides for an EPC contract for several vital reasons. Some are: Scope and the specifications of the plant Quality Project duration, and Cost The cost, that is the price to be paid to the EPCC, will be negotiated and finalized and paid in mutually agreed installments.

ACTIVITY OF EPC COMPANY

1 Owner and contractor liabilities 2 Global arena 3 Cost variation 4 Monitoring by owner and EPCC 5 Regarding owners 1:- Owner and contractor liabilities Once an EPC contract is done, the EPC contractor becomes liable for completing the project according to the conditions mentioned in the tender. The EPC contractor, in turn, may hire several sub-contractors or sub-vendors to complete different portions of the project. The payment in such contracts commensurate with the work done though an up-front advance is normally preferable by a contractor. The essence of such contracts is that the owner, due to inexperience in EPC, doles out the whole contract of building up the project to a contractor. Hence, the major risk faced by an owner in such a contract is that of delay by the contractor. On the contrary, an EPC

contractor now takes all the risk and attempts to complete the task as and when required. In case of multiple EPC contracts, where an owner divides the complete project into smaller projects, several EPC contractors may come into play. In such cases, coordination among the contractors becomes a major issue. The owner or the project consultant in such cases has to continuously monitor and maintain the progress of the work and iron out differences or coordination issues, if any.

2:-Global arena An EPC contract is a complex phenomenon. It involves various agencies and characteristics. So the EPC contract, especially in global context, needs thorough understanding. The EPCC must know about the various factors that will affect the working, the results and success or failure of the contract, in global arena. The EPCC must have data and expertise in all the required fields. A thorough knowledge of many aspects is required. Some important areas are: Local (where the plant will be located) market conditions for the materials supply and labour availability and performance Local code, statutory etc., requirements Availability of local supervisory personnel Availability services of local and global engineering

Local and global contractors, their experience and performance 3:- Cost variation An important factor that can affect the EPCC's performance is cost variation. An EPC contract normally has no price escalation clause, so, any variation in prices from the contract stage is on the account of the contractor.

The cost variation to the EPC Contractor can occur on various accounts, main being: 4:-Monitoring by owner and EPCC Change in scope of work Change in scope of work either addition or omission will result in change in cost variation. Regarding materials prices oscillation or exchange rate oscillation: in most cases the contract contains a clause that eliminates this issue and bears this risk on the contractor's shoulders. The following points will be helpful to the owner for monitoring the project: Define guarantees well Define scope and quality very carefully Define milestones meticulously Have the LD/penalty clauses well-defined The handling of an EPC contract is a complicated and complex phenomenon for the EPCC management. Some important points to know are:

Have payment terms very specific Have similar terms and conditions regarding quality, guarantee etc., as demanded by owner's with various vendors Do not keep terms open-ended Coordinate vigilantly to reduce chances of errors at site 5:- Regarding owners The owner must clearly define the project as any changes after the EPC contract has been signed will be costly. In order to ensure quality, the owner must also select a reputed and experienced EPC contractor. The owner should also utilize a third-party or in-house

consultant to verify the design of major structure and inspect the main plant machines.

RANK OF TOP CONSTRUCTION COMPANY IN INDIA

Here is the list of top construction companies in India on the basis of their tie-ups with their international counterparts, technological advancements, generating money from the market to trigger their expansion plans and for establishing an entire township in the wastelands and making it the hottest commercial destination.

1:- LARSON & TURBO 2:-D L F 3:-TATA PROJECTS 4:- GAMMON INDIA 5:-HINDUSTAN CONSTRUCTION COMPANY 6:-SOBHA DEVELOPERS LIMITED 7:-SHAPOORJI PALLONJI&CO 8:-UNITECH:

9:- NAGARJUNA CONSTRUCTION COMPANY 10:-PUNJ LIOYD

tata projects limited

Vision To be Indias premier Engineering, Procurement and Construction Company and Be ahead of expectations of all it stake holder. Mission To make our clients successful, while creating stakeholder value with uncompromising quality and safety standards. To create a culture that excites our people in pursuit of excellence through innovation differentiation and continued learning. To uphold TATAs groups cherished value of contributing to society to improve the quality of life. Value Good corporate citizenship Humility &willingness to learn Concern for all stakeholders Business with ethics Passion for excellence Team work

Quality policy TATA projects limited in its quests to be a leading EPC contracting company is committed for continual improvement of its process to enhance customer satisfaction.

AN OVERVIEW OF TATA PROJECTS LIMITED

In the Tata Group, the main purpose is to improve the quality of life of the communities where it is doing its business . the company do this through leadership in sectors of national economic significance, to which the Group brings a unique set of capabilities. The heritage of returning to society what this company earn evokes trust among consumers, employees, shareholders and the community. The Tata Group comprises 96 operating companies in seven business sectors Engineering, Materials, Services, Energy, Consumer Products, Chemicals and Information Systems & Communications. The Group is today India's largest conglomerate with revenues close to 71 Billion USD. Tata Projects Ltd (TPL), established in 1979, is an Engineering, Procurement and Construction (EPC) contracting company in the Engineering Sector of the Group. It is one amongst the earliest and few Indian construction companies which have acquired the triple certifications of ISO 9001,14001 & OHSAS18001. Known for its high quality and excellent service, TPL has been continuously rated in the Top Ten Most Admired Companies for the last three years in 2007,

2008, 2009 and again in 2010 through a readership survey conducted by the well known Construction World Publications Group. The company has also been ranked in the Top Ten Fastest Growing Companies in 2008 (Ninth) and 2009 (Fifth). Recently JPL has been awarded the prestigious 'Excellence in Product Innovation' Award for the year 2008-09 by the Federation of Andhra Pradesh Chambers of Commerce and Industry. Echoing the Group's passion for Corporate Sustainability, Tata Projects Limited, has been actively participating in providing vocation training as an employability initiative, provision of safe drinking water and primary education in rural India. Towards furthering Corporate Social Responsibility (CSR) TPL is promoting enhancement of employability of underprivileged youth through training and development of skills and has also manufactured and supplied over three hundred de-fluoridation plants in the first phase, for use in affected villages in rural India under a cooperation agreement with several NGOs and the Red Cross Society of India. Tata Projects Limited, has been growing at CAGR of 55% over the last 5 years and its turnover increased from Rs. 1371 crore in 07-08 to Rs.2780 crore in 09-10. It currently has over 2000 employees spread across the country in three Regional Offices, 67 Project Sites and 16 Regional Inspection Offices and three Registered Offices abroad. With large scale global investments taking place through both public and private enterprises in the infrastructure sector, particularly in the areas of its core operations, the Company has set itself ambitious targets for growth both in the domestic as well as overseas market.

"At Tata Projects Limited, ....what matters are ethical practices ....what is delivered is quality and above all,.... what is cherished is client satisfaction....doing business the Tata Way. The company operates through seven SBUs These are:1:2:3:4:5:6:7:Power Generation Transmission and Distribution Water & Waste Water Oil, Gas and Hydrocarbons Metals & Minerals Railways Quality services

Each SBU focuses on the business identified in key market segments in their respective sectors and takes up EPC contracting for projects based on its core competence.

To support the above SBUs there are following 13 SSDs

1:-Corporate affairs 2:- Engineering

3:-Finance and account 4:-Civil 5:-Information Technology services 6:-supply chain management 7:-Human resource management 8:-Administration 9:-Environment, Health and Safety 10:-Erection services 11:-Facility Engineering 12:-Field Quality Service 13:-Contracts

 ORGANISATION STRUCTURE OF TATA PROJECT LIMITED

SUPPLY CHAIN MANAGEMENT

BACKGROUND During the last two decades a trend towards integration and collaboration rather than arms length agreements between suppliers and customers has been recognised by researchers as well as business practitioners. Companies participating in the same supply chain identify tradeoffs with their adjacent customers and suppliers and have started to realise the importance of integration in the chain in order to focus on what is offered to the end customer in terms of cost and service. Excellence within the own company is not good enough anymore; there is also a need for external excellence in the whole supply chain. This management philosophy is called supply chain management, SCM, and has received enormous attention in research journals as well as in industry and consultancy firms. The core message of SCM is that companies in a supply chain should create a collaborative atmosphere where mutual trust, the sharing of risks and rewards and extensive information sharing, should prevent sub optimisations in the supply chain. It is suggested that collaboration will lead to more integrated supply chains where independent companies act together as one single entity and work towards jointly agreed goals. One of the most important functions embraced by the SCM philosophy, and perhaps the field where SCM has got the most attention, is logistics. Logisticians are by nature occupied with cross-functional and inter organisational matters and the SCM philosophy

therefore fit well together with the fundamentals of modern logistics thinking.

THE STRUCTURE OF SUPPLY CHAIN MANAGEMENT

Supply chain management can be defined as the process of planning, implementing and monitoring everybody operation of a supply chain.

ROLE OF SCM IN TATA PROJECT LIMITED:

SCM is the backbone of any company so this department is providing same role in TATA projects

also. As this company is following business to business commerce, so in this commerce it provides good business relationship and efficient supply of materials for the purpose of fulfilling the requirement of each Strategic business unit. It creates good vendor and transporter relationship for the purpose of achieving company goal in efficient way.

ACTIVITY OF SCM IN TATA PROJECTS

1:-Recognise Need 2:-Information Gathering 3:-Vendor/Contractor Identification/Sourcing 4:-Background 5:-Negotiation 6:-contract fulfilment 7:-Pre-shipment formality/shipment planning 8:-Shipment 9:-Receiving/Issuing/Consumption 10:-Reconciliation

NEED OF THE STUDY

My Study is based on premise of reducing the order lead time which effects directly on cost and performance of project. Order lead time, which is solely the function of SCM exceeds continuously than its limit envisaged by the company. On further zooming the view it came in to the picture that main problem is lying a phase of issuing the PCR approval & Preparation of TER. What is PCR? PCR (Purchase Committee Recommendation)- the main purpose to prepare this report is to get the overall information regarding the vendors offer and final price given by the company. With the help of this report a company can get all information from the initial offer to final offer. These are the following step in PCR.
1. SCOPE OF WORK 2. PRE-BID OFFER(S) STATUS AND AGREEMENTS IF ANY: 3. ENQUIRY AND ORIGINAL BID RECEIPT DETAILS: 4. TECHNICAL EVALUATION AND RECOMMENDATION: 5. COMMERCIAL EVALUATION AND NEGOTIATIONS: 6. DETAILS OF INITIAL AND FINAL BIDS: 7. PRICE JUSTIFICATION & COST ANALYSIS IF ANY: 8. IMPORTANT TERMS AND CONDITIONS 10. CONTROL/CAPITAL BUDGET:9.0 PROPOSED VENDOR'S PAST EXPERIENCE & CREDENTIALS: 11. PROPOSAL: 12. ENCLOSURE TO THE PCR: 13. ADDITIONAL DETAILS (PCR APPROVAL)

Out of its all process the main problem is lying in TER & PCR approval.

Problem regarding PCR approval:As per the service level agreement PCR approval time is 2 days, but in Tata Projects it is taking 9 days.(cycle time from PCR initiation data to PCR approval date) What is TER? TER (Technical Evaluation Report)-is a report in which, technical evaluation of materials/items is done by the concerned technical teams, before finalization of order.

In TPL, the items procured by SCM have been divided in following 2 categories: 1. Items without TER 2-Items with TER Company has set the days for the issuance of TER for both the items and its 18 days for first category and 55 days for second category,but in real scenario in some cases it is taking more than 100 days. On further analysis of data it came into the view that PCRs are getting delay in four SBUs PG,RAILWAYS ,T&D W&WW and TERs are getting delayed mainly in case of items procured for SBU-PG. and that too because of a particular project i.e. Krishnapatnam project.

So, let's have brief idea about the each SBUs

Sbu power generation

Life is all about power... the power to lead better lives. Power Generation is one of the core strengths of Tata Projects Limited. The company has powered its way to the top in the construction of premier power generation projects that are comprehensively fulfilling India's power needs. SBU Power Generation has a consistent track record in the installation of steam and turbine generators up to 500 MW with an exceptional record of time, safety and quality. Total capacity of steam generation installed in the last decade amounts to about 6600 MW of steam energy output. The SBU has emerged as an efficient and trustworthy partner for the implementation of larger magnitude projects and is teaming with leading global companies in its efforts to execute mega projects in power generation, both in India and abroad. Tata Projects has to its credit, erected India's first indigenous 500 MW steam generator for Tata Power's Trombay power plant near Mumbai. It was also involved in erecting country's first 500 MW steam turbine for National Thermal Power Corporation (NTPC) at Rihand. The company created a national record at Talcher & Rihand by erecting steam drums in record time, erecting maximum tonnage and maximum number of weld joints. For the first time in India, Tata Projects introduced the 'Hydraulic strand jacking method1 for lifting of the 500

MW steam drum at NTPC, Vindhyachal which has become an industry practice thereafter. The SBU has installed Electro Static Precipitators (ESP) for 500 MW steam Generator at NTPC Talcher, that are of the highest capacity in the country today. The SBU has gained laurels for completing a number of projects keeping project costs and time in mind, starting with Tata Power's 37.5 MW Captive Power plant (CPP) to the most recent one being 1x80 MW CPP for Hindustan Zinc Limited, Chanderia.

Recently, the Company made headlines by securing India's largest Balance of Plant contract in Power Sector from the Andhra Pradesh Power Development Company Limited for their 2 x 800 M W super critical coal fired Thermal Power

Plant at Nellatur village near Krishnapatnam in Nellore district in Andhra Pradesh. The contract value is Rs. 2,775 crore ($ 617 million) approximately.

. For the first time in India, Tata Projects introduced the 'Hydraulic strand jacking method1 for lifting of the 500 MW steam drum at NTPC, Vindhyachal which has become an industry practice thereafter. The SBU has installed Electro Static Precipitators (ESP) for 500 MW steam Generator at NTPC Talcher, that are of the highest capacity in the country today.

R e c e n t o r d e r s:-

2 x 800 MW super critical coal fired thermal power plant for Andhra Pradesh Power Development Company Ltd (APPDCL), Krishnapatnam 2 x 500 MW coal fired thermal power plant for Mahagenco, Bhusawal Fifth repeat order from Vedanta Group- 2x80MW CPP Project for Sterlite Industries (India) Ltd., Tuticorin Key focus segments Captive Power Plants Balance of Plant (BOP) for thermal plant utilities up to 800 MW unit capacity Total EPC contracts on turnkey basis up to 500 MW unit size Gas based Power Plants

TRANSMISSION & DISTRIBUTION

Tata Projects Limited helps many Transmission and Distribution companies transmit power and distribute benefits. Rich expertise in executing complex energy transmission and distribution projects in tough terrains, coupled with its adherence to the highest quality and safety standards, makes it the ideal partner to solve tomorrow's energy challenges.
Rapid industrial growth resulted in the need to keep pace with generating capacity and to expand and strengthen the existing transmission & distribution systems. The SBU has about three decades of turnkey experience in both domestic and overseas projects and has so far successfully commissioned more than 10,000 km of Transmission lines up to 800 kV and 91 Sub-stations up to 400 kV. The SBU has considerable expertise of working in very tough hilly terrains and snowy areas. The SBU has an in-house capability for designing Transmission Line Towers & Switchyard Structures and uses the latest version of l-TOWERS software for the same. For execution of survey workjotal Stations and Digital Theodolites and for Tower spotting, software like PLS CADD are used. The SBU has recently developed a drum scheduling software with which wastage of conductors is considerably reduced. The SBU uses an innovative Central Pillar Mechanism (Patent pending), which is an in-house development for erection of Towers. This mechanism has improved the safe working systems in addition to improving productivity, reduction in time and paved the way for faster execution. In addition, the SBU uses motorized spacer cycles, working platforms and hydraulic compressors in stringing; self loading mixers for concreting has brought drastic improvements in the construction methodology.

The SBU has also set a trend in industry by introducing 'Vertical fall arresters' and 'safety nets' in addition to various other Personal Protective Equipment. The SBU is also executing an overseas project consisting of design, supply and construction of five 132 kV/66 kV/11 kV primary electrical high voltage GIS substations based at Pearl Island, Qatar. The contract value is approximately Rs. 340 crore($ 76 million). For the first time in India TPL is executing 800 kV HVDC line, this includes supply and erection for Saharsa Gopalganj section of Bishwanath Chariyali Agra Transmission Line. The contract value is approx Rs. 187 crore ($40 million) (202 km).

Central Pillar Mechanism

400kVS/CUri-lltoWagoora

GIS Sub-Station, Qatar

Recent orders in GIS Substations Design and construction of 5 Primary High voltage GIS Sub-stations for Pearl Island, Qatar

Key focus segments HV Transmission lines upto 800 kV GIS Sub-stations kV Sub-stations RTECENT ORDER 800 kV HVDC Transmission Line from Saharsa to Gopalganj (202 km) for Powergrid (First of its kind in India) 800 kV HVDC Transmission Line from Barabisa to Islampur (283 km) 765 kV Single Circuit Transmission Line from Sasan to Silwar (125 km) 765 kV Single Circuit Transmission Line from Sasaram to Handia (178 km) 765 kV Single Circuit Transmission Line from Handia to Fatehpur (178 km) 400 kV (Quad) Double Circuit Transmission Line from Maithon to Gaya (235 km) 400 kV Double Circuit Transmission Line from Chamera to Jallandhar (112 km) 400

400 kV (Triple Conductor) Double Circuit Transmission Line from Mundra to Lakhpat (201km) 400 kV Single Circuit Transmission Line and substation package Uri-2 (114 km)

WATER & WASTE WATER

Water is nectar of life!- One of the critical concerns ever faced by mankind and its diminishing availability is worsening with time. In order to address these concerns, Tata Projects Limited has been harnessing advanced technologies and has made significant contribution as a total single point solution provider in the field of : Turnkey projects in Industrial Water & Effluent Treatment Plants and Sea water Desalination plants forming utility package in industry segment as well as in infrastructure projects. Mobile Sea Water Desalination Plants-This dual purpose unit is used for both seawater/brackish water purification containing fluoride, nitrates, pathogenic bacteria and convert the same into potable drinking water as per WHO standards. An ideal solution for disaster relief and defence forces. Currently standard plants of capacities upto 4000 litres per hour a re offered.

Defluoridation Plants - An ultimate solution for approx. 65 million fluoride affected people in India alone. Currently standard plants of capacities upto 5000 litres per hour a re offered.

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7680 Cu M/day Desalination plant

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Common Effluent Treatment Plant, Aoilpuram, Tamil Nadu

Glass Coated Steel Tank, Kudankulam Desalination Plant, NPCIL

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Recent orders EPC of Water System Facilities for Steel Melting Shop No.2 for RINL, at Vizag Steel Plant Piping and associated work for Plant Makeup water. Drinking water for RINL at Vizag Steel Plant EPC of Recirculation water system package for Thin Slab caster & Rolling Mill for Tata Steel at Jamshedpur EPC of water system for by-product plant of Coke Oven Battery-4 Phase II facilities for RINL at Vizag Steel Plant Up-gradation of side stream pressure sand filters at chilled water plant-1 (PH-13) for RINL at Vizag Steel Plant EPC of water system facilities for structural mill for RINL at Vizag Steel Plant EPC of water system facilities for Air Separation Unit-V for RINL at Vizag Steel Plant Key focus segments Sea Water Desalination Plants Industrial Water & Effluent Treatment Plants Manufacture of Water Purification Units

RAILWAYS
A journey on rails shows old beliefs in new light, opens up new vistas and creates new opportunities. With its extensive expertise in construction and electrification of railway lines, Tata Projects Limited helps Indian Railways make journeys safe and happy for travellers.

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SBU-Railways is exclusively focusing on executing EPC projects for Railways on turnkey basis. The SBU is also approved by various Zonal Railways for undertaking Consultancy services including survey, construction management and preparing detailed feasibility reports for sidings (public & private) & merry go round systems for power plants, cement plants etc. The SBU has an experience of executing over 1200 tkm of electrification and over 150 km of track linking work with associated bridges, earthwork and other civil works. The SBU is now geared up for leap-frogging in undertaking mega projects for Metro Electrification and Dedicated Freight Corridor. Recent orders OHE of Kondapuram to Guntakal section of South Central Railway for RVNL (350 tkm) OHE in connection with Doubling and Electrification of Chengalpattu to Olakur section for Southern Railway (85 tkm) OHE in connection with Doubling and Electrification of Olakur to Villupuram section for Southern Railway (78 tkm) OHE of Madurai-Tuticorin-Vanchimaniyanchi-Nagercoil section for CORE Allahabad (337 tkm) Modification to the existing OHE at Tambaram-Arakkonam & Korukkupet section for Southern Railway of Chennai Division (25 tkm) Supply and erection of Railway Siding for 1050 MW Thermal Power Plant for GMR Kamalanga Energy Ltd at Dhenkanal, Orissa Key focus segments Railway Electrification works, including traction and switching sub-stations Construction of New Railway Lines Metro Electrification

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Setting up of production units for manufacture of Rolling Stock, Maintenance Depots/Workshops, Concrete Sleepers and Track components on turnkey basis.

STATEMENT OF PROBLEM

PROBLEM RELATED TO PCRIn current scenario Tata projects are taking 9 days for PCR approval(average of all SBUs) against the maximum allowable of 2 days(average as per SLA) in procurement cycle(from PCR initiation to PCR approval date) which in turn enhance the overall procurement cycle time. PROBLEM RELATED TO TERDue to the transformation of specific data from one area to another area the project execution is getting delayed.

Brief description about Krishnapatnam project:

KRISHNAPATNAM PROJECT

This project is 2X800 MW supercritical coal-fired thermal power plants. This supercritical power plant uses advanced technology to operate at a higher efficiency than a subcritical plant. There by producing greater power output per unit of fuel. This

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improvement is achieved by the increase energy conversion efficiency of steam turbine cycle. A 4% thermal efficiency is achieved by raising the steam temperature from 580 c to 760 c and the pressure from 33MPa to 42MPa.there is a corresponding decrease in fuel consumption and carbon emissions, while the installation cost is only 2% higher than that of a subcritical plant. Since these plants operate at a high main Steam temperature and pressure, the wall thickness and the materials of the high pressure turbine section are different. These plants are comparatively more environment-friendly and release fewer pollutants into the environment. As company prepares for drastic cuts in carbon emissions to counter the threat of global warming, supercritical power plants become the first choice for countries. Because of their reputation for higher efficiency and lower emissions, many countries are passing legislation that mandates all new power plants to use supercritical technology.

This project has more TER problem than others project, only because this project is new for the country and also for the company. So engineers cannot predict the exact equipment which is need in this project, so due to the change in specification the delay in TER problem comes in the focus.

STATEMENT OF OBJECTIVE:1:-To reduce the PCR approval process delay which in turn

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reduce procurement cycle time to achieve customer satisfaction.

2:-To reduce the TER time frame.

Unit of measurement 1:-Cycle time from PCR initiation date to PCR approval date (days) 2:-TER process time from initial offer date to final offer date (days) RESEARCH METHODOLOGY:INTRODUCTION

Research methodology is a systematic way that solves the research problem. It may be understood as a science of studying how research is done scientifically. It is we study the various steps that are generally adopted by a researcher in studying the research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods or techniques but also methodology. Researcher need to know how to develop the tests, how to calculate the mean, how to apply research techniques which are relevant and which not the knowledge of research methodology provides tools to take things objectively.

RESEARCH DESIGN

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Research design is a plan of action that guides the entire research. There are four types of research design:

a) b) c) d)

Exploratory research design Descriptive research design Diagnostic research study Experimental research design

In current study Descriptive Research has been adopted. Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs, as it exists at present. In other terms, the term Ex-post facto research is used for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; the researcher can only report what has happened or what is happening. It also includes attempts by researchers to discover causes even when researchers cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods.

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SAMPLE SIZE:plan

sampling

PG 13 T&D 20 W&WW 15 Railways

PCRs of march,10 to april 11 will be used as samples < Rs 5 lacs-17 >5 lacs to 99 lacs25 >1 Cr.-23

My sample size is related to two items, where TER problem is more. Large Diameter Butterfly Valves Compressed Air System

SAMPLING METHOD

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Stratified method of sampling is adopted in this study. Survey method has been followed for gathering information from the official file.

PERIOD OF STUDY:-The period of study is from JUNE 2011

to JULY 2011

SOURCES OF DATA
Primary and secondary data were utilized for the purpose of the study by the researcher. The researcher decided to obtain primary sources through Face to face interview. Observation and survey research has been used to obtain information. Secondary data is made use of which is collected from websites, fact sheets, magazines, journals, newspapers, etc.

STATISTICAL TOOLS
The Statistical tool used by the researcher for data analysis in this study is:

Percentage Analysis: Percentage refers to a special kind of ratio in making comparison between two or more data and to describe

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relations between the data. Percentage can also be used to compare the relative terms, the distribution of two or more series of data. The formula used here is given below.

. Percentage (%) =

No. of days taken by each unit x 100 Total no. of days

DATA ANALYSIS AND INTERPRETATION

The data, after collection, has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons analysis. Technically speaking, processing implies editing, coding, classification and tabulation of collected data, so that they are amenable to analysis. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exist among data groups-thus, in the process of analysis, relationships or differences supporting or conflicting with original or new hypothesis should be subjected to statistical tests of significance to determine

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with that validity data can be said to indicate any conclusions.

Interpretation related to pcr approvel time.

Average overall pcr approval lead time

Actual lead time trend for pcr approval (sbuS WISE)

Actual average pcr approval lead time for 3 band values

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Pcr lead time for band 1(pcr value<5 lacs)

Pcr lead time for band ii(pcr value >5 lacs to 99 lacs)

Pcr lead time for band iii (pcr value >1 cr.)

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TIME TAKEN IN MOVEMENT OF TER IN BUTTERFLY VALVES

S.N. 1

Time Taken by Vendor

Time taken (in Days) 165

% of Time taken 61%

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2 3

SCM SBU Total

50 54 269

19% 20% 100%

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.TIME TAKEN IN MOVEMENT OF TER IN COMPRESSED AIR SYSTEM

S.N. 1 2 3

Time Taken by Vendor SCM SBU Total

Time taken (in Days) 82 27 105 214

% of Time taken 38% 13% 49% 100%

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FINDINGS OF THE STUDY

From the analysis above following points results can be drawn: Most of time is being taken by the either Vendor or SBU which can be understood because of the nature of Krishnapatmnam project as it is Indias first Supercritical coalfired power plant, and this is new for the country as well as company. This supercritical power plant uses advanced technology to operate at a higher efficiency than a subcritical plant and at the same time involvement of so many parties are there such as Client, BTG Contractor, BOP Contractor, Clients consultant, Contractors consultant, and X numbers of vendors. So it is obvious to have TER problem in this project more than others projects.

RECOMENDATION AND SUGGESTION

1:-detailed planning and scheduling:1):- Time period for the technical discussion shall be fixed in

days i.e. after the receipt of offer technical discussion should be completed within 15 or 20 days.
2.):- Methodology- To fix the price and major scope of work on

priority and those works whose price implication is not there can be finalised parallely.

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3.):- Findings and experience of Krishnapatnam projects should

be drafted in proper manner so that it can be useful in any such future project

LIMITATION OF THE STUDY

Following are the limitations of my study:

Regarding the information used- Information that is used in this report

is totally internal. No sites have been visited because it was thought it to be unnecessary, as all the relevant data was available in the head office itself.

Regarding the research design. As the research design is not

experimental, it is totally explorative, and so in this research design process design was only observed and analyzed

Regarding the research methodology,-As the sample size considered is

very small, so it is difficult to draw a general conclusion. .

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BIBLIOGRAPHY
BOOKS REFFERED
1:- PANEERSALVAM R .production and operation management.

2:-Millennium edition, Himalaya publishing house, 2009.

3:-Kothari

C.R,

Research

Methodology,

Vishwaprakasan

publishing, 3rd Edition 2008. 4:-Gupta S.P. Statistical Methods, Sultan publishing, 9th Edition 2009. 5:-Vital P.R,Quantitative Techniques 2nd Edition 2002.

MAGAZINES
1:-

EPC world, Published by Sixth Sense media and

Communication
2:3:-

B2B purchase, Published by I-Tech Media private limited. Infrastructure today, Publish by ASAPP Media private

limited.
4:-

Power Watch, Publish by Next generation publishing

limited (NGPL)
5:-

Construction Week, Publish by, ITP Private limited.

SEARCH ENGINES

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1:- www.tataprojects.com 2:- www.ask.com 3:- www.answer.com 4:- www.google.com 5:- www.businessmapindia.com