Cost Saving Presentation

Total Standing Cost Overview Q1-FY 2011-12

Q1-Av monthly Target Standing Cost vs Actual -Total Cost

160.00 140.00 120.00
Rs. Lacs

100.00 80.00 60.00

40.00
20.00 -

Av cost for Target Seting Target (After 20% saving) Actual cost Q1 (Av. Month) Av. Month (Jul'11-Aug'11)

Total cost 134.67

COT Cost 61.95

PSW Cost 34.14

External Godown 17.32

Other Cost 21.26

107.74 133.55 139.40

49.56 56.76 60.64

27.32 40.78 48.62

13.85 21.01 17.06

17.01 15.00 13.08

1.
2. 3. 4.

46% of Total target Standing Cost and 44% of actual standing cost comes through COT- Anticipated 20 % saving on the same did not materialise. 25% on target & 35% on actual standing cost is on account of PSW. The saving on which was not achieved. 13% on target & 12% on actual standing cost is on account of External Godown The saving could not be achieved as extra godown space had to be taken for Noodle storage. 16 % on Target & 9% on actual standing Cost contributed by other elements of Cost- achieve the target saving in Jul11 & Aug11

OPAQUE SOAP

Summary statement of Target Vs Actual Cost - Opaque Soap

Target Month Standing Cost Rs./Lacs Apr-11 May-11 Jun-11 Jul-11 54.88 54.88 54.88 54.88 Variable Cost Rs. /Tonne 3,386.00 3,386.00 3,386.00 3,386.00 Rs./Lacs 79.82 71.36 75.98 73.42 Actual Standing Cost Variable Cost Rs. /Tonne 3,260.00 4,069.82 3,219.98 3,635.54 Rs./Lacs (24.94) (16.48) (21.10) (18.54) Variance Standing Cost Variable Cost Rs. /Tonne 126.00 (683.82) 166.02 (249.54)

Aug-11

54.88

3,386.00

74.81

3,863.60

(19.93)

(477.60)

Analysis of Increased in variable- Opaque Soap

Analysis of Increase in Variable Cost- Opaque Soap
Variable Cost July11 increased by 249/Tonne1. Imported Material ( Break Down / Maint.) of Rs. 2.47 Lacs contributed 2. Per MT Power & fuel consumption increased Variable Cost Aug11 increased by 477/Tonne1. 21% Volume Decrease in Aug11 Vs June11 Leads to 9% Dec. in Spare consumption 2. Per MT Power & fuel consumption increased 3. 21% Volume Decrease in Aug11 Vs June11 Leads to 1% Inc. in consumables Consumed 4. 21% Volume Decrease in Aug11 Vs June11 Leads to 3% Dec. in Labour Cost 5. No decrease in quality Cost even though 21% decrease in Volume. Contribution By Heads

Rs. 130/Tonne Rs. 92/Tonne

Contribution By Heads Rs. 114/Tonne Rs. 173/Tonne Rs. 37/Tonne Rs. 127/Tonne Rs. 24/Tonne

*Since we do not having any component level target Cost, hence for comparison of current Cost vs target Cost, the component wise Cost incurred in June2011 is taken as base (As only in june11 the target Cost has been achieved)

Q1-Av monthly Target Standing Cost vs Actual Standing Cost -Opaque Soap
80.00 70.00 60.00
Rs. Lacs

50.00 40.00 30.00 20.00 10.00 -

Av cost for Target Seting Target (After 20% saving) Actual cost Q1 (Av. Month) Av. Month (Jul'11-Aug'11)

Total cost 68.60

COT Cost 31.56

PSW Cost 17.21

External Godown 13.76

Other Cost 6.08

54.88 75.73 74.12

25.25 32.18 32.24

13.77 19.81 23.27

11.01 17.82 14.54

4.86 5.92 4.07

1. 2. 3. 4.

46% of Total target Standing Cost and 44% of actual standing cost comes through COT- Anticipated 20 % saving on the same did not materialise. 25% on target & 31% on actual standing cost is on account of PSW. The saving on which was not achieved. 20% on target & 20% on actual standing cost is on account of External Godown The saving could not be achieved as extra godown space had to be taken for Noodle storage. 9% of target & 5% of actual standing cost contributed by other elements of cost-achieved target saving in Jul11 & Aug11

SHAMPOO

Summary statement of Target Vs Actual Cost - Shampoo Target Month Standing Cost Variable Cost Actual Standing Cost Variable Cost Variance Standing Cost Variable Cost

Rs./Lacs
Apr-11 May-11 Jun-11 Jul-11 Aug-11 37.63 37.63 37.63 37.63 37.63

Rs. /KL
6,000.00 6,000.00 6,000.00 6,000.00 6,000.00

Rs./Lacs
33.21 29.64 32.59 36.34 38.93

Rs. /KL
5,739.52 9,143.15 8,236.36 8,808.75 9,190.95

Rs./Lacs
4.42 7.99 5.04 1.29 (1.30)

Rs. /KL
260.48 (3,143.15) (2,236.36) (2,808.75) (3,190.95)

Analysis of Increased in variable- Shampoo

Variable Cost July11 increased by 2809/KL over target. 1. 2. 3. 4. 5. Contribution By Heads Rs.2024/KL Rs.160/KL Rs. 367/KL Rs. 166/KL Rs. 151/KL

Per KL Power & fuel consumption increased Sleeving activities done in July2011 Repair of Epoxy flooring in shampoo Floor Consumables consumption incr. by 6% for 32% volume Decr. vs Apr11 Repair of Tube Reflector in shampoo

Variable Cost Aug11 increased by 3191/KL over Target 1. 2. 3. 4.

Contribution By Heads Rs.2375/KL Rs. 426/KL Rs. 181/KL Rs.184/KL

Per KL Power & fuel consumption increased Spare consumption Decr only 9% for 29% volume Decr vs Apr11 Consumables consumption incr by 16% for 29% volume. Decr vs Apr11 Sleeving activities done in Aug2011

*Since we do not having any component level target Cost, hence for comparison of current Cost vs target Cost, the component wise Cost incurred in Apr2011 is taken as base (As only in Apr11 the target Cost has been achieved)

Q1-Av monthly Target Standing Cost vs Actual Standing Cost -Shampoo

50.00 45.00 40.00 35.00
Rs. Lacs

30.00
25.00 20.00 15.00 10.00 5.00 -

Av cost for Target Seting Target (After 20% saving) Actual cost Q1 (Av. Month) Av. Month (Jul'11-Aug'11)

Total cost 47.03

COT Cost 21.64

PSW Cost 13.48

External Godown 3.07

Other Cost 8.85

37.63 31.81 37.64

17.31 13.52 16.37

10.79 10.28 12.55

2.46 1.99 1.79

7.08 6.03 6.93

1. 2. 3. 4.

46% of Total target Standing Cost and 44% of actual standing cost comes through COT- Anticipated 20 % saving on the same did not materialise. 29% on target & 33% on actual standing cost cost is on account of PSW. The saving on which was not achieved.-However decreased in PSW is due to transfer of Manpower from Shampoo to Cream. 7% on target & 5% on actual standing cost is on account of External Godown The saving could not be achieved as extra godown space had to be taken for Noodle storage. 19% of target & 18% of actual standing cost contributed by other elements of cost-achieved target saving in Jul11 & Aug11.

CREAM & LOTION

Summary statement of Target Vs Actual Cost - Cream Target Month Standing Cost Rs./Lacs Variable Cost Rs. /Tonne Rs./Lacs Actual Standing Cost Variable Cost Rs. /Tonne Rs./Lacs Variance Standing Cost Variable Cost Rs. /Tonne

Apr-11
May-11 Jun-11 Jul-11 Aug-11

5.50
5.50 5.50 5.50 5.50

6,000.00
6,000.00 6,000.00 6,000.00 6,000.00

17.42
14.97 16.39 16.75 14.31

10,400.00
14,719.11 17,191.40 14,560.24 46,683.22

(11.92)
(9.47) (10.89) (11.25) (8.81)

(4,400.00)
(8,719.11) (11,191.40) (8,560.24) (40,683.22)

Q1-Av monthly Target Standing Cost vs Actual Standing Cost -Cream

18.00 16.00 14.00 12.00
Rs. Lacs

10.00
8.00 6.00 4.00 2.00 -

Av cost for Target Seting Target (After 20% saving) Actual cost Q1 (Av. Month) Av. Month (Jul'11-Aug'11)

Total cost 6.88 5.50 16.26 15.53

COT Cost 3.16 2.53 6.91 6.76

PSW Cost 1.21 0.97 6.97 7.71

External Godown 0.20 0.16 0.65 0.26

Other Cost 2.30 1.84 1.73 0.80

1.

2.
3.

4.

46% of Total Standing Cost and 44% of actual standing cost is on account of COT- Anticipated 20 % saving on the same but could not achieved. 18% on target & 50% on actual standing cost cost is on account of PSW. The saving on which was not achieved.However abnormal increase than target in PSW is due to transfer of Manpower from Shampoo to Cream. 3% on target & 2% on actual standing cost contributed by External Godown- Could not be achieved as the external godown space for additional noodle storage is increased, the reduction of godown being started from May2011. 34% of target & 5% of actual standing cost contributed by other elements of cost-achieved target saving in Jul11 & Aug11.

Q1-Av monthly Target Standing Cost vs Actual Standing Cost -Shampoo & Cream
60.00 50.00
Rs. Lacs

40.00 30.00 20.00

10.00
-

Av cost for Target Seting Target (After 20% saving) Actual cost Q1 (Av. Month) Av. Month (Jul'11-Aug'11)

Total cost 53.91

COT Cost 24.80

PSW Cost 14.69

External Godown 3.27

Other Cost 11.15

43.13 48.07 53.17

19.84 20.43 23.13

11.75 17.24 20.26

2.61 2.64 2.05

8.92 7.76 7.73

1. 2. 3. 4.

46% of Total target Standing Cost and 44% of actual standing cost comes through COT- Anticipated 20 % saving on the same did not materialise. 27% on target & 38% on actual standing cost cost is on account of PSW. The saving on which was not achieved. 6% on target & 4% on actual standing cost is on account of External Godown The saving could not be achieved as extra godown space had to be taken for Noodle storage. 21% of target & 15% of actual standing cost contributed by other elements of cost-achieved target saving in Jul11 & Aug11.

Summary statement of Target Vs Actual Cost - Cast Soap

Target Month Standing Cost Rs./Lacs Variable Cost Rs. /Tonne Rs./Lacs Actual Standing Cost Variable Cost Rs. /Tonne Rs./Lacs Variance Standing Cost Variable Cost Rs. /Tonne

Apr-11
May-11 Jun-11 Jul-11 Aug-11

6.38
6.38 6.38 6.37 6.37

15,000.00
15,000.00 15,000.00 15,000.00 15,000.00

5.76
6.85 7.02 8.33 7.98

22,440.00
27,668.97 29,661.70 23,856.88 28,490.23

0.61
(0.48) (0.65) (1.96) (1.61)

(7,440.00)
(12,668.97) (14,661.70) (8,856.88) (13,490.23)

-Variable Cost Rs. 15000/ Tone is taken on adhoc basis.

Q1-Av monthly Target Standing Cost vs Actual Standing Cost - Cast Soap
9.00 8.00

7.00
Rs. Lacs

6.00 5.00 4.00 3.00 2.00 1.00 -

Av cost for Target Seting Target (After 20% saving) Actual cost Q1 (Av. Month) Av. Month (Jul'11-Aug'11)

Total cost 7.97

COT Cost 3.67

PSW Cost 1.89

External Godown 0.29

Other Cost 2.13

6.38 6.54 8.16

2.93 2.78 3.55

1.51 3.02 4.05

0.23 0.50 0.43

1.70 0.24 0.12

1. 2. 3. 4.

46% of Total target Standing Cost and 44% of actual standing cost comes through COT- Anticipated 20 % saving on the same did not materialise. 24% on target & 50% on actual standing cost cost is on account of PSW. The saving on which was not achieved. 4% on target & 5% on actual standing cost is on account of External Godown The saving could not be achieved as extra godown space had to be taken for Noodle storage. 27% on target & 2% of actual standing cost is contributed by other elements of cost- Achieved target saving in July11 & Aug11.

Saving Plans Ahead

A Sl. No.

Fixed incremental Cost Saving Activity Action Plan Saving Factors

Lacs

Lacs Target Saving (JulAug11) Owner

Monthly Saving saving FY 11-12

Two shift Running of Cast Soap Explore reduction of atleast 30 contract workers per Day from Maximum of 60 contract labour per Cast Soap upto 70 MT volume. shift for two shifts instead of 50 Labours for three shift Online Banding of cartonated Soap in Line 5 Reduction Contract labour cost in shmpoo Reduction Contract labour cost in cream

Reduction in Labour Cost

1.92

5.03 L (48 Labour 21.10 May'2011 Ritesh Dubey per day saved from Aug11) Abhijeet Wagh & MV karthick

Diverter system with conveyers to be installed for online banding of cartonated soap. Project cost(Approx) 5 Lac
All jobs presently done contractor labours to be done by our own employees All jobs presently done contractor labours to be done by our own employees

Reduction in Labour Cost 25 contracto labour per day 10 contracto labour per day Reduction in Labour Cost

1.34

3.06 Oct'2011

1.80

14.4

Aug11

1.76 L Vivek (done from Chaudhary Jul11) 0 Vivek Chaudhary Abhijeet Wagh/ MV Karthick/Rathi

0.72

5.04

Sep11

Pipeline & valve modification to add Automation of all liquid addition glycerine/lauryl alcohol in Auto, in Mixer integration of same in PLC

0.38

2.28

Octl2011

Movement of 6 contract labour All jobs presently done contractor per shift job to own labours to be done by our own employees employees
Sub Total

18 contracto labour per day

1.29 7.45

9.07 54.89

Six Manpower Shifted to Abhijeet Sep11 Shampoo Wagh

6.79

B 1

Standing Cost Saving Single Shift operation of External Godown Consolidation / Negotiation of External Godowns & Effective space Reduction of External Godown Saving in handling Charges External Godown Rental saving 2.25 Sub Total 3.9 20.25 33.45 Jul'2011 7.38 8.56 Dipak Beri Shyamal/ Dipak Beri

1.65

13.2

Aug11

1.18

Releasing of Godown space

Variable Cost Saving Saving FY 1112 Saving (JulAug11)

Sl. No. Activity

Swapping of color Noodle line refiner 1 with Line 6 plodder.

Savings Monthly Present condition After modification in KWH Saving Presently L6 plodder is running with 67Kw load ( Pre 30 kw & final After swapping of plodder & refiner 0.50 37 Kw) & Color noodle refiner net saving will be 33.5 Kw for 70% 11300 load is 33.5 Kw ( Pre 15 & final 15 efficiency & 18 hrs running power kw) saving will be 452 Kwh /day In soap & shampoo 2 UPS are there with redundant UPS system of same rating. Redundant UPS always remained ON & No load power is 3.3 KWH ( total power consumed =2 *3.3*24*30 (4752KWH) In present condition, loads on both the UPS are 30% loaded at full load condition. With this load condition we will connect loads on one UPS , due to this we can save 4752 KWH/month

Target dates

Owne r Dwive di/Kar thick

2.52

Nov11

4752

0.21

1.69

Aug11

0.21

Rathi

Interconnection of Soap & Shampoo 2 UPS.

Replacement of High Bay Lights of Soap These 154 fitting replaced by 150 Packing hall with We are having 154 Fitting of 250 Watts Induction type of fitting with energy efficient watts having per day consumption the same lux level with 3 lights. 577 Kwh /day ( for 15 hrs running) consumption of 346 Kwh/day In some remote areas like RM packaging store, 7 Meter height, Timer based On-Off RM store, cast soap mixer floor Real timer will be put in these areas for lightings in light remained on in day time. total to prevent power in day time, total 4 remote areas. load= 341 KW for 12 hr. running saving 10230 Kwh/ month 2 x 28W fittings converted with 1x 28W with high efficiency reflectors load reduced by 10.5 Kwh, for 24 X7 running for 25 days= 6283 Kwh / month Total

5775

0.26

2.57

June11

Trial of Induction lights is Rathi going on, will be done in oct11

8525

0.38

4.56

Apr11

0.72

Rathi

2 x 28W fittings converted with 1x 28W with high 5 efficiency reflectors

In soap area 2 X 28 watts fitting are 374 nos with LUX level of 200, total load 21 Kwh

6283

0.28

3.36

Apr11

0.56

Rathi

40331

1.63

14.70

1.49

Activity Sl. No. Cost reduction in engineering spares Saving Factor Developments of alternate local source for imported spares Contract repair Job through inhouse repairs instead of Spares purchase

Monthly saving

Annual saving

Rs./Lacs
4.O 2.52

Rs./Lacs
32.00 20.16

Target Month Aug11 Aug-11

Saving (JulAug11) 0 0

Owner MVK MVK

5 day week operation for Soaps Labeling to be done by Co. Employees

Reduction of Contract workmen Reduction in power cost

1.82 2.7 0.13

12.74 18.90 1.51 37.18 15.95

138.44
241.48

sep-11 Sep-11 Apr-11 May-11 May-11

0 0 0.26 6.76 3.01

10.01
26.85

Abhijeet Wagh
Abhijeet Wagh Vivek Chaudhary

Shampoo will run only in G shift Reduction of Contract Manpower cost

C
A+B+C

Reduction of energy Cost

3.38 1.45
16
28.98

Vivek Chaudhary
Vivek Chaudhary

Total
Grand Total

Thanking You