Power Sector Western Region

1. Power Sector Western Region Materials’ Management at Sites Knowledge sharing August 31, 2010 Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

2. MM - a Glance The role of MM is primarily Service - oriented Internal Customers ( Erection Agencies & BHEL colleagues) Ought to work hand in hand for Timely Project completion Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

3. Materials’ Management… Requirements MM dept. suffers the inherent constraints… … Customer has little appreciation of Auditors (Finance – BHEL employees) • Government Auditors (CAG) • Quality Auditors (External Certification, presently by BVC) • Quality Auditors (Internal, wrt ISO:9002, 2008 – BHEL employees) • Vigilance Audits (BHEL employees from PSWR and/or Corp. Vig.) Obviously, Materials’ Management functions have to be performed with utmost Promptness & meticulously. Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

4. MM and MH – the Relevance Each activity of MM runs along 02 (TWO) parallel streams : • Execution of Physical activities, e.g. Material Receipt (Unloading, Detailed verification, Stacking), Issue & Return of surplus of materials and Final Material Reconciliation • Generation of the corresponding Documentation, i.e. Maintaining of DBR, Stock-books, Preservation of corresponding records ( DB folders, RIRs, MDRs, Insurance claims, Issue Vouchers, Chargeability Statements, Local Purchase documents) Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

5. MM and MH - in WR Today Stop, take a look at • How we are doing in MM & MH, currently • Crisis Management : driven by the circumstances & the demands of the internal/ external customers • Procedures’ knowledge : many of us (including EE, CE) have not had even a casual reading of DP:SOX • Half-hearted involvement: with feelings of despair, vulnerability, stuck, unrewarding prospects • Accountability aspect : lack a sense of ownership, also viewed inexperienced manpower in MM functions Have Positive Attitude and Conviction Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

6. MM at Sites – its Role • How it should be done ( Follow instructions as per the DP:SOX – latest version) MM Dept. has a host of supports – Tap these resources, CM, other HODs, staff MM Agency, local, Hqrs Purchase, Ngp Security agencies – BHEL, Customer, local Police Resolution lies in Raising the level of the issues Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

7. Gearing up for MM at Sites • Get to know these • MM & MH Agency for execution of the MM activities (refer Contract Agreement) • Enabling Works agency & Scope of work – Ensure MM requirements are accounted in Plans • Your Customer – their Reporting requirements • Erection Agencies of BHEL • Local Transporter Office / Godown & Railways officials • Insurance Company officials & Insurance Surveyors • Customer’s Security Officers – seek superimposition • Local Police Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

8. Preparations for MM • Organise yourselves and these • Study critically the DP:SOX: 04, ~05, ~06, ~10 and the SP, DP formats for any revisions and immediately implement • Study the Contract Agreement and sift all operational clauses • Enumerate the sifted clauses & Conduct Reviews with agencies, • Assess the required qty. & procure Materials Storage Racks, Tarpaulins, other infrastructural facilities • Organise yourself – set priorities and liquidate the tasks • Co-ordinate with FEX, Nagpur closely and extend cooperation as per WI: SOX:03: Upkeep of BHEL assets • Reporting regularly Know Thoroughly the Procedures & Organisational Structure Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

9. Responding the call of MM • Empowering yourself & your MMS Team MM & MH being a labour intensive function, your chief competency at test is the capacity to LEAD yourself and the entire TEAM This has to be gained, practiced and honed with our constant perseverance. Leading men, controlling their activities and efficient deliverance of the MM Objectives as per the DP:SOX: 04, 05, will require enormous effort to stay focused amidst testing turbulences during the Materials’ Management Following work ethics shall deliver us from the mammoth responsibility of managing the function of MM :- • Stay Focused    List-out & update constantly To-Do List • Manage the Supervisors    Allocate clearly roles, activities & monitor constantly Make the Roles’ Matrix •  Be Open-minded Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

10. Right Attitude for MM Role • Empowering yourself & your MMS Team • Imbibe sound work ethics/ value system among the Team members and continually encourage to stand for these principles: Do’s & Don’ts for MM persons to be complied strictly A. Build Leadership skills rather than merely a task oriented manager by:- • Build credibility by living according to cherished values • Empower subordinates – hear their viewpoint & account while taking decisions • Set clear tasks/ roles, motivate staff to meet them with a clear scenario of how it will be accomplished • Maintain resolve during crisis and take proactive steps to meet challenges – insulate your team from brow-beatings • Treat everybody with courtesy and respect Be Transparent, Fair and Firm Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

11. Right Attitude for MM Role • Empowering yourself & your MMS Team B. Instill Discipline among the staff with Stringent Rules:- Note:- Followings may also be used on the hired manpower from MM agency for a more stable & smooth operations of MM/ MH • Maintain absolute INTEGRITY, means uprightness, honesty and purity and it also includes complete devotion to duty with faithfulness and probity Don’ts • Do nothing which is unbecoming of a public servant • Avoid act/s of ‘misconduct’ where “Misconduct” refers to negligence, insolvency, moral disobedience committed by an employee during employment, Be Fair and Firm Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

12. Better Don’t than Sorry a few examples of ‘Misconduct’… • Taking or giving bribe, or having observed and not reporting • Possession of pecuniary resources or property disproportionate to the known sources of income • Acting in a manner prejudicial to the interests of BHEL • Absence without leave or overstay of leave. Absence from the person appointed place of work without permission or sufficient cause • Performing any act deviant of discipline or of good behaviour. • Making false allegations against another colleague  Be Fair and Firm Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

13. Better Don’t than Sorry • Habitual late or irregular attendance, neglect of work or negligence in performing duty • Drunkenness or riotous or indecent behaviour • Willful disobedience of any instruction for work • Theft, fraud, dishonesty in connection with MM or of property of another person within the project premises • Not to recommend anyone to any BHEL agency for employment within the project premises   Be Vigilant   Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

14. Getting Started … MM Planning & Organising the Materials’ Management Plan the activities and organise as below: • Draw the Material Storage Layout (e.g. A), nomenclature it with alphanumeric Locations (each location not to exceed 1000 Sq. M area, e.g. 20Mx50M or 25Mx40M) for the whole Plot allotted. This can be modified as and when the additional storage space is released by the Customer - this is vital for locating materials • Get this painted on a Display Board (at least 6’x8’ size, 4.5’ above the ground) and erected at the main gate of the Stores. Also, get the Locations Boards/ Signs (min. 1’x1.5’, 6’ above the ground) fabricated, painted and erected in respective Locations Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

15. Getting Started … MM   Be Vigilant   Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

16. Getting Started … MM • Assign each Security Post a Code e.g. SP-1, SP-2 … • Assign each Security Gate, Barrier a Code e.g. SG-1, SG-2 … • Provide a Chained Padlock to each Security Gate/ Barrier, 6 or 7 lever Godrej Padlock to each Closed (Semi) Sheds, Containers • Maintain a Control Register of Issues, Return/ Deposit of each Key with Key S. No., Shed/ Gate Location, (to be controlled by MMS nominated Supervisor; all keys must come back by the close of day) • Nomenclature each Storage Shed, Inside Bays, Material Storage Racks Sub-locations as below: Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

17. Getting Started … MM   Be Vigilant   Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

18. Going Strong … MM Infrastructure: Closed Storage Sheds Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

19. Getting Started … MM Inside View of a Closed Shed : P Type Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

20. Going Strong … MM Infrastructure: (Semi) Closed Storage Sheds Q Type Storage P Type Storage RT Type Storage R Type Storage RT Type Storage Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

21. Going Strong … MM Access Roads in Storage Yard Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

22. Going Strong … MM Stacking of Material Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

23. Going Strong … MM Stacking of Material Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

24. Going Strong … MM Stacking of Material: MS Packing Materials/ Scrap Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

25. Going Strong … MM Stacking of Material Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

26. Going Strong … MM Stacking of Material Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

27. Preservation of Materials For Preservation manuals for all products, contact TSX, PSWR, Baroda. • In brief, Type of Storage are categorized in five types:- • P- Type … Fully Closed sheds have steel racks duly numbered spaced properly for man/ trolley /forklift movement • Q- Type … Semi closed sheds: material to be stacked with adequate spaces for each MH & men’s /equipment movement • R- Type … Open yard store: • Leveled, raised ground having feeder/ access roads • Division of area using Alpha-numeric codes, sign-boards • R- Type … Open yard store: • Wooden sleepers/ concrete blocks Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

28. Preservation of Materials Identified scrap yard: Fe, Al, Wooden scrap etc. Avoid sagging of stored materials • Stack in a way so that ID marks are visible & easy slinging is ensured • Restrictions: Do not stacks more than- • Coils-01 No., WW Panels-05, Duct walls -07, • Cols. -03, APH models -01 • RT- Type … Open storage with Tarpaulin/ canopy cover for materials having machined surface, weather sensitiveness • PT- Type … Closed shed with dry & clean atmosphere e.g. Precision components like process instruments /fittings; electronic control panels , C&I items Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

29. Preservation of Materials In brief, Types of Preservations are categorized in Seven Classes:- • CLASS - ‘A’ : Maintain Preservation Record. For materials to be stored indoors having machined surface use suitable out of these preservatives :-Bonita RPF, (Wax-based), TRPF, TRPF P320, M.P. Grease, Candopeel Strippable coating (Peelable film foring type TRPF), Ruskil Application: Clean using xylene so that surface is not scratched & ensure that no oxidation take place after application of preservatives • CLASS - ‘B’ : Maintain Preservation Record. For materials to be stored outdoors having machined surface use suitable out of these preservatives: SAME AS CLASS ‘A’ • CLASS - ‘C’ : For Weldment / Edge preparations : Use Deoxy Aluminate / Silver Steak Three Mangoes Aluminium Paint or Zinc Chromate Primer after thoroughly cleaning the surfaces Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

30. Preservation of Materials CLASS - ‘D’ : Bearings : RP 102. Rust Guard P214 or MP Grease every three months, check & apply preservative, if reqd. • CLASS - ‘E’ : For materials requiring P, Q, RT type of storage: Apply Zinc Chromate Primer (Alkyd Base) –IS-104 for Tubular Coils- RH/ SH/ ECO. But Red Oxide Zinc Chromate Primer IS-2074 for Headers, WW Panels Hanger Rods, Buck Stays, MH Door, Furnace openings, Fixing components, Structural Materials, Ducts/ Hoppers, Dampers, Pipes etc. and other un-machined surfaces of components stored in closed sheds. Use MP Grease for threaded portion (for AFFECTED areas only). Minwool to be stored on raised platform with canopy cover. APH modules : Rust preventive fluid to be sprayed.Collecting Electrodes : to be stored at 3-5° and not more than three, one over the other Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

31. Preservation of Materials CLASS - ‘F’ : For Internal Surfaces of tubes VCI pellets for panels & coils/ Silicagel (SS elements). Remove end caps put VCI pellets and re-cap. • CLASS - ‘G’: Transformer Control Panels- Blue coloured activated crystals of Silica gel packed in muslin cloth are put inside Transformer Control Panels which turn dark brown when rendered ineffective. Regenerate by heating or Replace it Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

32. Material Handling at Warehouse Materials’ Handling activities at Stores entail a varied experience to all facets of handling materials, viz. • Proper usage of Hydra, Cranes, w.r.t. Load Charts, manual handlings with care desired • Capacities (an empirical information) of Steel Wire Ropes, their eyelets • Adequate Skilled manpower in required numbers so as to meet necessary pace of work progress and desired quality • Ensuring maintaining essential inventory of spares, fuel, consumables for the quickest possible restoration • Arranging Preservatives, Tarpaulins etc. well ahead of need • Ensure appropriate mobilisation by the MM agency e.g. Cranes, Hydra, manpower- their scope & under MMS including setup for vegetation removal for prompt action Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

33. Material Handling at Warehouse Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

34. Material Handling at Warehouse Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

35. Material Handling at Warehouse Some examples, PREVENT such mishaps by frequent discussions… Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

36. Insurance Claims There are Primary Three Types of Insurance Policies for Sites:- • Marine cum Erection All Risk Cover Policy for Main Supplies of the project • Open Marine Policy – taken for any Transit Risk Cover to BHEL WR assets, and in case MCE Policy not finalized, Main Supplies of the concerned project Caution – The materials are deemed insured provided, PROMPT Dispatch Insurance Declaration is made to the underwriters and Insurance Co. allots Endorsement. • Special Contingency Policy – For all declared BHEL assets against CPM Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

37. Insurance Claims Most Important Two actions Site MM/ Insurance Coordinator to initiate that, in essence will protect the interests of BHEL • As soon as the Damage/ Theft/ Loss is detected/learnt, get tentative estimate of loss, telephonically call the Insurer & demand for the Surveyor’s visit followed by written Intimation of Loss; get the survey conducted. • Send Notice to the Transporter/ Railways, in case of Transit Loss For further guidance/ decisions on crucial developments, Claims’ realization follow ups etc. to take place under guidance of Comml/ WR etc. • Since, Comml. is payer of Insurance premium, it has to play actively insistent role for settlement of claims, instead finding faults with sites’ not complying certain requirements • Likewise, PMX having ready rapport with Mus, has to obtain the quotations timely • Detailed procedure is already available vide DP: SOX: 05. Follow step by step. • In case of any doubt, Sites may also revert back to us (MM). Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

38. Local Purchase Procedure • To be procured against approved Material/ Service Indents (PW-009/02) • In the following manner:- • Identify the Vendors dealing the products • Float Purchase Enquiry • Open Tenders/ Quotations jointly (Pur Com.) • Prepare Comparative Statement • Seek clarifications, if any, esp. terms of payment: most parties agree to supply on credit with slight persuasion Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

39. Local Purchase Procedure • Put up Note for approval • Place P.O. • Get the delivery of material follow the Receipt, Storage Instructions mentioned above • Issue to or the Order of the Indentor • Settle the supplier’s Bills promptly. This helps in confidence building in the market and ready cooperation from them Monitor each pending Purchase Indent which may be at various stage as mentioned above Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

40. Troubleshoot During currency of our Site operations, many issues, testing times will be encountered. Here are a few situations and their one of the solutions. Each situation may require its own recourse most suitable to the circumstances and existing mindset. Remember, for the long term gains & our more effective and admirable presence, a gradual approach may be the best. Do not rush/ gag the people around you. Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

41. Troubleshoot • Monthly Plan & Review with Contractor & Quarterly Evaluation of Contractor Performance: Site I/c is not established, does not cooperate…Take up with Contractor as well BHEL Hqrs. By FAX and follow up. Create records. If Contractor is not responsive, draw one-sided Review and send as per distribution • Preservatives’ sourcing…Being taken up with the Mus/ Vendors to supply with products • Slow, poor quality Enabling Works…Make Joint records in F-14 & F-16 and send to Hqrs. Create records. If Contractor is not responsive, draw one-sided Review and send as per distribution • Type of storage space e.g. CS, SCS, OY dev., access roads, barbed wire fencing, gates/ barriers, poodle formation, drainage, illum., vegetations growth, shutters malfunctioning, floor cracking etc. as envisaged not ready, huge qty. of incoming material …Defer detailed verification and stacking & its payment; Highlight the problem with commercial consequences as a result of consequential losses to BHEL, to the ENB agency and Hqrs. Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

42. Troubleshoot • MM Agency not mobilizing w/c sleepers, crane, huge qty. of material arrived… Build the records & do not release any payment towards stacking • Retrieval of Materials/ Untraceable materials …These aspects have to be controlled : theft, unaccounted issued, wrongly loaded, improper/ no detailed verification, incomplete/ erratic posting, inadequate security checks at exit point, improper supervision by Issue / Receipt Supervisors, difficult stacking, vegetation, poor illum, • Ensuring re-storation of stacked materials after storm, materials issue… To be taken up religiously, for smooth functioning at Stores • Frequent complaints from MUs Comml. for early release of vehicles… Be vigilant on the integrity aspect of the unloading staff, condition of hydra, strength of manpower • Many Transport Cos. Don’t respond to our Enquiries for transportation… Confidence building by assurance and followed up by prompt settlement of their freight bills Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

43. Troubleshoot • Audit para, observations… Keep the postings, filing of DBs, vouchers etc. upto date; Be firm in the requirements of issue vouchers e.g. contract cl. may be mentioned in CRIVs. • Insurance Claims are not realized most of the time… Capture the hints during the discussions on the claim. Immediately raise the level by posting the fact to the CM/ Hqrs.-Comml. Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

44. Computerisation of MM Package There is a crying need for an independent, capable integrated Computerised package for MM including Erection Billing upto Material Reconciliation. Known Earlier used/ existing elsewhere packages: • Foxbase based by Sh. KK Bhatia at Gandhinagar • Visual Foxpro by Corp IT at KKT • Existing SOMS – in use by Fin., PUR & HR • MS.xls worksheets with report gen. capabilities • e-Stores package (NR Sites) All of these are not proven to cater satisfactorily the requirement for some reason or the other. • SOMS (standalone) has a silver lining Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

45. Security arrangements at Sites • Security agency is finalized for all Sites by HR/BHEL Headquarters • At site level some standing regulations/ guidelines are evolved and operated A separate DP:WI and detailed W.O. for Security Arrangements may be call of the hour to prevent the loss of materials Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

46. Security arrangements at Sites Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

47. Security Guards & Agency to ensure… Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

48. Security Guards & Agency to ensure… Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region

49. Dharam Chand Exploring Heights ..................... Setting Standards .................... Marching Towards Excellence Power Sector Western Region