PROGRESS AND PLANNING

WHAT IS PLANNING?

Planning is the most basic or primary

function of Management. Planning involves
determining the objectives and selecting a
course of action to achieve them. It implies
looking ahead and deciding in advance what
is to be done, when and where it is to be
done, how and by whom it is to be done. It
is today's design for tomorrow and an
outcome of steps to be taken in future.
 Functions of planning
s. no. FUNCTIONS
1 PLANNING
2 ORGANISING
3 DIRECTING
4 CO-ORDINATION
5 REPORTING
6 BUDGETING
 VARIOUS ACTIVITIES OF P&P
SECTION
• RECEIVING ROLL ON PLAN/EXTRACT/INDENT
• MAKE OR BUY DECISION
• WORKING OUT availability of man hours and machine
hours.
• ONLINE TARGET FEEDING
• MAKING/FOLLOW UP OF PROD. PROGRAMME
• BUDGETING
• MATERIAL REQUIREMENT PLANNING
• REPORTING……………………………
• DATA MANAGEMENT
• AUDITING
• MISC. REVIEW MEETINGS.
• AND WHAT NOT?
 Activities of Progress & Planning

•Receipt of Indents from DGOS, Navy and Air Force AND

Receipts of IFD's from Sister FY
•Progressing of Indents / IFD's for manufacture and Issue
•All correspondence with MoD, OFB, Army, Navy, and Air
Force for executing the Indents/IFD's and for future plans.

•In-House Planning activities. Issue of Directives to all

Sections / Offices about yearly / monthly Targets.
•Issue of Manufacturing warrants to Production Shops.
•Issue of Tool Warrants to Tool Room.
•Monitoring of Production on Day-to-Day basis.
 Activities of Progress & Planning

•Conducting weekly Production Review Meetings

•Coordinating with all the Shops / Offices for availability of
Material for Production, availability of Man Power etc.
•Giving directives to Stores (Issue) for issuing of Finished
stores.
•Liaison work with LAO.
•Monitoring and forwarding of the completed manufacturing
warrants to LAO.
•Obtaining Cash Compilation Order2 (CC02) from LAO and
forwarding the same to OFB .
 Activities of Progress and Planning
•Planning and obtaining Budget from OFB/for various
requirements.
•Monitoring and Controlling of Budget.
•Various measures taken for cost control. Arranging Shop Budget
and Central Budget Committee Meetings and monitoring the
progress thereof.
•Forwarding of various MIS to OFB
•Coordinating and arranging Internal Audit by CFA(Fys) and
resolving and settlement of various objections raised by them.
•Coordinating and arranging Test Audit by Director of Audit
(CGDA) and resolving and settlement of various objections raised
by them.
•Preparation and settlement of Loss Statements.
•Organizing Unit Level Management Committee (ULMC)
meetings and Local Productivity Council (LPC) meetings.
INDENTS, EXTRACTS, &
WARRANTS

FLOW OF AUTHORITIES
 INDENTS
Ordnance Factory Board receives
indents from the three services viz;
Army, Air Force and Navy. Indents are
placed by DGOS for Army, by Air
Headquarters for Air Force and Director
of Armaments Services for Navy.
 EXTRACT
Extract is an order issued by the DGOF for the manufacture of
stores of performance of service in factories.
Extract are 5 diff. classes.
1.For Army, Navy, Air force
As per their requirements for manufacture of stores.
2.Payment work order from State gov., Railways, MES.
3.Services rendered by one ordnance factory to other ordnance
factory (IFD)
4.For service internal to factories other than capital service,
this is known as supplementary work order draft (SWOD).
5.For capital services (manufacture of machines for stock).
 EXTRACTS

1)Obtaining Extract from OFB

2)Sending copies of extract to Technical section,

MCO,LAO and P&D

3)Technical section will endorse SWO Pt II and returns

to P&P
INFORMATION CONTAINED IN
THE EXTRACT
The Extract will contain the following information:
 Name of the Factory
 Class of Extract
 Extract No.
 Date of commencement and completion of supply
 Nomenclature of stores
 Number or quantity on order
 Distribution
Vouchers Flow in IFD Extracts

Receipt Voucher
Priced copy of Issue

“S”/ “P” Series Issue

Consignee LAO Consignee Factory
Voucher

Voucher
Consignor LAO Consignor Factory
 WHAT IS STORE IN TRANSIT?
Priced copy of Issue Receipt Voucher from
Voucher from Consignor Fys.
LAO

Outstanding
Assets

SIT
Outstanding
Liabilities
 Work order
• Work orders are the documents generated for identifying
the Indentor and the item of expenditure. Work orders
consist of 9 digit code numbers.

• It is the numerical code number assigned to each kind of

expenditure incurred or works undertaken in factory.

• Supplementary Work Order Draft- An order issued by the

General manager on an authorized Gazetted Officer for
the execution of a petty causal work or for internal factory
services which do not required the sanction of DGOF.
 WORK ORDER NUMBER
SWO(Syllabus of work order) PT-I

• This is related to indirect expenditure

• This is common to all factories(01&02 Series)
• 01 is for FOH and 02 is for VOH
WO No-00/00000/00
• First Two digits- WO Sl No
• Next Five digits - Main WO No
• Last two digits - Sub No
 SWO PT II NO
• This is different for each fys
• In this first two digit – Indenter
90- for Army
85- for Air Force
86- for Navy
70- for IFD
82- for DGBR
• Next five digits- Description of items
Next two digits- Sub No( Section for which expenditure
is incurred)
 Warrant
• Warrant is an authority given to shops concerned for
undertaking the production of items stated in the
warrants.
• Manufacturing warrants- The General manager’s
authority to the shops to undertake work order on the
factory.
• Material warrants- A document indicating, on the basis
of the standard estimates, the quantity of the material
required for the job on the authority of which
manufacturing shops demand the material required
 Further Categorization of
warrants
• Production warrant
• Tool warrant: for tooling required to manufacture
components and assemblies of a particular items of
production.
• Quarterly warrants: are prepared by different sections
and office for drawl of stationery, sundry items.
• Warrants for manufacture of sundry items or
maintenance components of machines.
 Further Categorization of
warrants
• Warrants for manufacture of sundry items
Requisitions for manufacture of sundry items such as
cupboards, wooden platforms, items required for
maintenance of machines etc. are forwarded to R & E
Section for preparation of estimates. R & E section
forwards the requisition along with the estimate
prepared by it to Warrant Office for issue of warrants.
Warrants are prepared and recorded in Warrant
Register before issuing it to Shops.
 WARRANT
W- WORK ORDER NO.
A- AUTHORITY OF HEAD OF DEPARTMENT.
R- RATE WISE OPERATION
R- RATE PER UNIT
A- AUTHORITY (ESTIMATE AND EXTRACT NO.)
N- NOMENCLATURE OF JOB
T- TOTAL TIME ALLOTED ON WT.
Warrant No
• This consists of 11 digits
• This is given by P&P section
• 0000000/0/000
• First 7 Digits - Main Wt No
• Next digit - Type
• Last 3 digits - Sub No(for sub warrant system)
• Type-0 for Main Warrant Number
• 1 for Extra Labour employed as per NRR
• 2 for Extra Material drawn as per NRM
• 3 for Replacement Warrant for excess rejection
• 4 for Additional number of the existing warrant
Warrant No
• This consists of 11 digits
• This is given by P&P section
 Duration of warrants
• Normal duration of warrants for work other than capital
works is a period of six months only, further extension,
where necessary, can be done.

• For a warrant planned for completion in six months but

whose completion is delayed on account of replacement
of rejection or by change of design, approval of the OFB
should be obtained for extension of it’s life.
 Issue of Warrants
Except System
• Wt. no of assembly and components differ
• 40 series for components wt.
• Components are made and kept in Central
Godown and are drawn on Assembly Warrants
through Red demand notes.
• Need of I- note for components and assemblies
• In except system wt. is short closed and fresh wt.
is issued to cover rejection.
 Sub warrant System

•Wt. no for assembly and components are same

•No need of I-note for components I-note required for
assemblies
•Not deposited in CG as per job route card components
will go to assembly section
•Replacement order is permitted for covering rejection.
Rejection order will be raised by user section
•RO (rejection order) to be sent to LAO. Cost card will be
amended and rejection to be returned to stores.
Contd

SWOD- Supplementary Work Order Draft

•This is for petty casual work, repairs, for preparing parts
like gear
Open Warrants- For general shop use , maintenance,
•Open warrants are released on quarterly basis
 Procedure for issue of warrants
• Warrants are issued by warrant office to shops based on
requisition received from concerned planning group.
Distribution of warrants issued is as under:

• Material warrant and manufacturing warrant to initial

section drawing the material from store section.
• One copy of manufacturing warrant to planning office
• One copy of manufacturing warrant to each section
concerned.
• One copy of each material warrant and manufacturing
warrant to Accounts office.
• One copy of material warrant retained in warrant office.
 COMPLETION AND CLOSING OF
WARRANT
• Duly completed warrants will be returned to Warrant
Office for closing and onward transmission to Accounts.
Warrants received from each section will be scrutinised
and kept in Warrant Office. When all the sections
involved in a warrant have returned their warrant duly
completed, warrant will be closed. Warrants are closed
once in a month and forwarded to Accounts. A monthly
report of outstanding warrants is prepared and
forwarded to OFB duly vetted by Accounts.
 WORK IN PROGRESS
• Expenditure incurred in manufacture of an item or a batch of
item with reference to the Order /Indent / Extract is booked to
Cost Cards maintained in the Costing Section of the LAO. Till the
time, the manufacture is complete and passed in Inspection, the
expenditure so booked is known as Unfinished Semi or Work in
Progress (WIP). Semis are of two types viz.

• (a)Unfinished Semi: Represents value of Stores of the processed

material.

• (b) Finished Semi: Represents products passed in Inspection but

yet to be issued.
 COST OF PRODUCTION (COP)
• In the case of items which are in the process of
manufacture as on 31st March of any year, evaluation of
the work in progress is made and the cost of production is
worked out as:-

(a)Opening WIP + Expenditure during the year – Closing

WIP – Abnormal Rejection (if any) – Departmental
Material utilized Indirect Work Orders = Cost of
Production.

(b) Cost of Production, divided by the number of units

manufactured gives the rate per unit.
 Items kept out of Production
Accounts(KOP)
There are certain items of expenses like profit or loss on sale of
stores, arrear of pay and allowances depreciation, care and
custody of stores surplus to requirement which do not relate to
the normal production activities.
Hence these are not treated as leviable overhead and the
expenditure is shown as deduction from the total expenses.
While there are instructions for keeping items out of
production, other expenses like heavy arrear payments,
abnormal losses etc. may have to be excluded from overhead.
Such cases can be kept out of production only after approval by
OFB and Principal Controller of Accounts (Fys).
 Non-Recurring Rates (NRR & NRM)
•All types of rates are provided in the standard estimates.
•But in exceptional cases after a job is taken up or put in
operation some addition to labour rates and/or material
(over and above the provisions in the standard estimates)
may be sanctioned through non-recurring rates forms for
the purpose of covering some sundry job of a non-recurring
nature required to bring the material to the correct size or
shape or to rectify defective components by performing
jobs of a non­-recurring nature.
•The use of such non-recurring rates should be restricted to
the absolute minimum and can be resorted to only for
special reasons to be recorded in writing for the scrutiny of
the Accounts Officer in audit.
CIVIL
TRADE

34
 Civil Trade Guidelines
Civil trade activities of Ord. Fys. are guided by M of D’s
instruction letter No. 1/4, 1/55/ D (Prod) dated 28.10.57
with minor amendments from time to time
This gives guidelines on the following topics
1. Utilisation of spare capacity - Capacities created in
the ordnance factories are intended to meet the
requirement of the services both in war and peace. Civil
trade is to be undertaken only after meeting the current
services demand in full.
2. Pricing mechanism
3.Provision for replacement and rectification after issues.
4.Manufacture is undertaken against 80, 82, 83, 84, 88,
92, 93, 94 and 96 series of work orders.
35
 Pricing Policy
 Full cost + Profit as the market can bear
 GMs are authorised to quote upto DM+DL+Tool Cost
+20% TOH to make it competitive in the market
 OFB is empowered to quote up to prime cost
(Direct material + direct labour +Tool Cost) to make it
competitive in the market based on the approval of
operative division member
 OFB is further empowered to quote up to direct
material +Tool Cost + 50% direct labour. This needs
the approval of Member/CT, Member/Finance and
Chairman.

36
 SOME MAJOR REPORTS DEALT
BY THE P&P SECTION
REPORT: P&P-1
•FREQUENCY : WEEKLY AS WELL AS MONTHLY
•MODE OF TRANSMISSION : ARS+MAIL+MIS
•SUBJECT OF THE REPORTS : VOP, FLASH VALUE & CCO2
FIGURES
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION
REPORT: P&P-2
•FREQUENCY : QUARTERLY
•MODE OF TRANSMISSION : ARS+MAIL
•SUBJECT OF THE REPORTS : OUTSTANDING WARRANTS
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

REPORT: P&P-12
•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : MAIL
•SUBJECT OF THE REPORTS : EXTRACT POSITON
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: P&P-16

•FREQUENCY : WEEKLY, MONTHLY

•MODE OF TRANSMISSION : ARS+MAIL
•SUBJECT OF THE REPORTS : WEEKLY PRODUCTION &
ISSUE
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: FIN-1
•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS+MAIL
•SUBJECT OF THE REPORTS : MONTHLY REPORT ON VOI AS
WELL AS CYP, PYP, COMPARISON
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: FIN-2
•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS
•SUBJECT OF THE REPORTS : MONTHLY REPORT ON INPUT
OUTPUT HOURS , PRODUCTIVITY OT & PW PROFIT
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: P&P-20
•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS
•SUBJECT OF THE REPORTS : PIECE WORK PROFIT
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: BUD-2

•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS+MAIL
•SUBJECT OF THE REPORTS : MONTHLY PROGRESS OF
EXPENDITURE.
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: CT-1

•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS
•SUBJECT OF THE REPORTS : PERFORMANCE REPORT ON
CIVIL TRADE
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: CT-2

•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS
•SUBJECT OF THE REPORTS : CIVIL TRADE REPORT ON OUT-
STANDING DUES
 SOME MAJOR REPORTS DEALT BY THE P&P
SECTION

•REPORT: CT-4

•FREQUENCY : MONTHLY
•MODE OF TRANSMISSION : ARS
•SUBJECT OF THE REPORTS : REPORT ON CUSTOMER
COMPLAINTS
THANK YOU