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What is the total fixed cost calculated for a year as mentioned?
What is the total fixed cost calculated for a year as mentioned?
How is the variable cost per kilometer calculated?
How is the variable cost per kilometer calculated?
What is the annual variable cost represented in the provided data?
What is the annual variable cost represented in the provided data?
Which factor contributes to the capital recovery factor in the calculations?
Which factor contributes to the capital recovery factor in the calculations?
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How much does the total cost of tamping equal when a CSM works for 2 km in a day?
How much does the total cost of tamping equal when a CSM works for 2 km in a day?
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What is the primary characteristic of fast moving items?
What is the primary characteristic of fast moving items?
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How often should the stock position of fast moving items be reviewed at the zonal depot level?
How often should the stock position of fast moving items be reviewed at the zonal depot level?
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What should be done with dead storage items that are not needed?
What should be done with dead storage items that are not needed?
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What action should be taken if items are damaged due to storage or handling?
What action should be taken if items are damaged due to storage or handling?
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Who is responsible for maintaining a record of stock positions of materials at the zonal depot?
Who is responsible for maintaining a record of stock positions of materials at the zonal depot?
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What is recommended if items are not likely to be required in the near future?
What is recommended if items are not likely to be required in the near future?
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What is the purpose of reviewing estimated annual requirements regularly?
What is the purpose of reviewing estimated annual requirements regularly?
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What should happen to fast moving spares every month at the zonal depot level?
What should happen to fast moving spares every month at the zonal depot level?
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What should the officer in-charge of the zonal depot do before authorizing a replacement item?
What should the officer in-charge of the zonal depot do before authorizing a replacement item?
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To estimate the annual requirement for stock recoupment, which period's consumption is referenced?
To estimate the annual requirement for stock recoupment, which period's consumption is referenced?
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What should be considered if there is no available consumption data for the last three years?
What should be considered if there is no available consumption data for the last three years?
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In times of financial stringency, what is permissible regarding procurement?
In times of financial stringency, what is permissible regarding procurement?
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What document is required for proprietary items during procurement?
What document is required for proprietary items during procurement?
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Which officers have the power to procure spares, consumables, and small tools?
Which officers have the power to procure spares, consumables, and small tools?
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What must accompany indents when required?
What must accompany indents when required?
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What type of changes must be considered to avoid product obsolescence?
What type of changes must be considered to avoid product obsolescence?
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What is essential during procurement action to ensure readiness of stock?
What is essential during procurement action to ensure readiness of stock?
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The officers' procurement powers are similar to officers in which department?
The officers' procurement powers are similar to officers in which department?
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What is the role of the Tender Committee as described?
What is the role of the Tender Committee as described?
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Which statement is true regarding the use of Imprest by track machine officials?
Which statement is true regarding the use of Imprest by track machine officials?
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When is a rate contract entered for procurement?
When is a rate contract entered for procurement?
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What is required to accompany indents for procurement from OEM?
What is required to accompany indents for procurement from OEM?
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How should procurement from Original Item/Component Manufacturers be approached?
How should procurement from Original Item/Component Manufacturers be approached?
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Who is designated as Direct Demanding Officers for items available in DGS & D rate contracts?
Who is designated as Direct Demanding Officers for items available in DGS & D rate contracts?
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What does the term 'DGS & D rate contract' refer to?
What does the term 'DGS & D rate contract' refer to?
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Which group includes components that are specifically made from mild steel?
Which group includes components that are specifically made from mild steel?
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What is implied about Original Item/Component Manufacturers when procuring components?
What is implied about Original Item/Component Manufacturers when procuring components?
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What is the purpose of maintaining a list of approved suppliers?
What is the purpose of maintaining a list of approved suppliers?
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What is the minimum duration for which a rate contract can be established?
What is the minimum duration for which a rate contract can be established?
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What is required before local sources for items to be indigenized can be identified?
What is required before local sources for items to be indigenized can be identified?
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How often should the performance review of approved suppliers be conducted?
How often should the performance review of approved suppliers be conducted?
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Which of the following is not classified under the mentioned spares group?
Which of the following is not classified under the mentioned spares group?
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What action is taken if there are issues with the quality of supply during the development of new indigenous items?
What action is taken if there are issues with the quality of supply during the development of new indigenous items?
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What is the significance of having indigenous spares procured from approved suppliers?
What is the significance of having indigenous spares procured from approved suppliers?
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What is included in the performance review reports of approved suppliers?
What is included in the performance review reports of approved suppliers?
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Which of these groups requires specification for hydraulic components?
Which of these groups requires specification for hydraulic components?
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What type of components includes items such as 'O' rings and seals?
What type of components includes items such as 'O' rings and seals?
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What factors should be considered when determining the estimated annual requirement for stock recoupment?
What factors should be considered when determining the estimated annual requirement for stock recoupment?
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Which document is required for procuring proprietary items?
Which document is required for procuring proprietary items?
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In times of financial stringency, what type of procurement is permissible?
In times of financial stringency, what type of procurement is permissible?
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What should be done if there is a design change since the last review of an item?
What should be done if there is a design change since the last review of an item?
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Which individual level has the authority to procure spares and consumables in the Engineering Department?
Which individual level has the authority to procure spares and consumables in the Engineering Department?
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Before authorizing a replacement item, what must the officer in-charge verify?
Before authorizing a replacement item, what must the officer in-charge verify?
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What must accompany indents when detailed specifications are required?
What must accompany indents when detailed specifications are required?
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What is necessary to prevent product obsolescence when stock is reviewed?
What is necessary to prevent product obsolescence when stock is reviewed?
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How is the total variable cost calculated based on the provided data?
How is the total variable cost calculated based on the provided data?
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What is the relationship between fixed cost per day and variable cost in the given example?
What is the relationship between fixed cost per day and variable cost in the given example?
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Which of the following calculations accurately represents the capital recovery as indicated in the example?
Which of the following calculations accurately represents the capital recovery as indicated in the example?
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What is the variable cost per kilometer based on the calculations presented?
What is the variable cost per kilometer based on the calculations presented?
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How is the total cost of work for a day computed in the example?
How is the total cost of work for a day computed in the example?
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What criteria must be included in the report prepared by the executive in charge of the track machine during the condemnation process?
What criteria must be included in the report prepared by the executive in charge of the track machine during the condemnation process?
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Who is responsible for examining the condemnation report of the track machine?
Who is responsible for examining the condemnation report of the track machine?
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Which of the following actions is NOT taken when a firm does not come forward for an AMC?
Which of the following actions is NOT taken when a firm does not come forward for an AMC?
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What is the role of financial justification in the condemnation of a track machine?
What is the role of financial justification in the condemnation of a track machine?
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What type of maintenance contracts may be called for when an OEM is unable to perform satisfactorily?
What type of maintenance contracts may be called for when an OEM is unable to perform satisfactorily?
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Which of the following services are typically performed under planned repairs rather than annual maintenance contracts?
Which of the following services are typically performed under planned repairs rather than annual maintenance contracts?
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What is the main purpose of the committee that examines the track machine report?
What is the main purpose of the committee that examines the track machine report?
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What must be assessed in terms of the machine's operational effectiveness during the condemnation process?
What must be assessed in terms of the machine's operational effectiveness during the condemnation process?
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Which of the following is an example of a work that falls under contracts other than AMCs?
Which of the following is an example of a work that falls under contracts other than AMCs?
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What information regarding the machine's condition is vital for the financial justification during condemnation?
What information regarding the machine's condition is vital for the financial justification during condemnation?
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What role does the Tender Committee primarily fulfill?
What role does the Tender Committee primarily fulfill?
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What is the purpose of a Proprietary Article Certificate (PAC) in procurement?
What is the purpose of a Proprietary Article Certificate (PAC) in procurement?
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How should procurement be approached for high-quality components from Original Item/Component Manufacturers?
How should procurement be approached for high-quality components from Original Item/Component Manufacturers?
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When is a rate contract most appropriately entered according to procurement guidelines?
When is a rate contract most appropriately entered according to procurement guidelines?
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Which statement accurately reflects the limitations of the Direct Demanding Officers in the procurement process?
Which statement accurately reflects the limitations of the Direct Demanding Officers in the procurement process?
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Which group of components includes items like hydraulic filters and hoses?
Which group of components includes items like hydraulic filters and hoses?
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What action is taken if local sources for indigenized items are identified?
What action is taken if local sources for indigenized items are identified?
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Which of the following must accompany an indent for procurement from an OEM or their authorized representatives?
Which of the following must accompany an indent for procurement from an OEM or their authorized representatives?
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What ensures the compatibility of items when procuring from Original Item/Component Manufacturers of high repute?
What ensures the compatibility of items when procuring from Original Item/Component Manufacturers of high repute?
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Which of the following best describes the periodic performance review of suppliers?
Which of the following best describes the periodic performance review of suppliers?
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What is the purpose of maintaining a list of approved suppliers for various groups?
What is the purpose of maintaining a list of approved suppliers for various groups?
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What is typically included in a rate contract established for procurement?
What is typically included in a rate contract established for procurement?
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In case of issues with quality during the development of new indigenous items, what is the next step?
In case of issues with quality during the development of new indigenous items, what is the next step?
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Which factor allows for the extension of procurement through Direct Demanding Officers?
Which factor allows for the extension of procurement through Direct Demanding Officers?
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What is a significant reason for establishing a rate contract with a supplier?
What is a significant reason for establishing a rate contract with a supplier?
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Which of the following groups includes components such as 'O' rings and seals?
Which of the following groups includes components such as 'O' rings and seals?
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What should be done with the performance reports of approved suppliers?
What should be done with the performance reports of approved suppliers?
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How should items to be indigenized be handled once local sources have been identified?
How should items to be indigenized be handled once local sources have been identified?
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What characterizes the classification of spares required by Zonal Railways?
What characterizes the classification of spares required by Zonal Railways?
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What should be the approach if approved suppliers face consistent quality issues?
What should be the approach if approved suppliers face consistent quality issues?
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Study Notes
Estimated Annual Requirements
- AEN, XEN and ZD personnel are responsible for reviewing stock position, consumption trends and estimating the annual requirements of spares and consumables for track machines.
Fast Moving Items
- Fast moving items are those spares or consumables that are issued frequently.
- A fast moving item is consumed more than once in a week at the Zonal Depot over a 6 month period.
- The officer-in-charge at the Zonal Depot will maintain a record of fast-moving items to prioritize stock.
- Zonal depot officials will review fast moving items monthly.
Inactive Items
- Dead storage items: Items not required in the foreseeable future due to obsolescence or changes in design should be circulated to other railways or disposed of by a survey committee according to store code provisions.
- Items damaged or obsolete are surveyed and disposed of as per store code provisions.
- Items not required in the near future: Should be offered to other railways or CPOH workshops.
Control over Consumption
- The officer in charge of the zonal depot should identify and list out specific items not required in periodic maintenance schedules to reduce unnecessary consumption.
- The machine in-charge (SSE/JE/TM) must seek approval from the SSE/TM/ZMDI or SSE/TM/SDI for specific items.
Recoupment of Stock
- The action for recoupment of an item should be initiated keeping in view a lead period that will allow for one year’s requirement in stock.
- The estimated annual requirement is calculated based on past three years’ consumption.
- The procurement process must ensure no obsolescence due to design changes since the last review.
Procurement of Consumables, Components, and Spares
- Engineering Department officers have procurement powers for spares, consumables and small tools.
- The Engineering Department follows the Stores Department procurement rules and procedures.
- A Tender Committee may be constituted with Engineering Officers as convener and members from Finance and Stores.
- Imprest can be utilized to procure spares, consumables and small tools for specific requirements of track machines.
Sourcing of Components & Spares and Procurement Procedure
- OEM or their Authorized Representative: A rate contract may be entered into for simplification and expedience when the number of items from a single source is large.
- Original Item/Component Manufacturers of High Repute in the Industry: Procurement may be done via limited tenders or PAC agreements depending on the number of sources.
- DGS & D Rate Contract: Track Machines Organization officers in Senior Scale and higher can place orders for items available in the DGS&D Rate Contract.
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Indigenous Sources:
- Zonal Railways classify spares into groups by commonality of manufacturing or supply source.
- The list of approved suppliers is periodically updated.
- Performance reviews of suppliers will be made available on the website.
Example 10.1 Unit Cost of Tamping Done by CSM –
- Unit cost is calculated based on fixed cost per day (F) and variable cost per km (V).
- Annual Cost of Working: Fixed cost, variable cost and annual cost of working are calculated based on capital cost, interest rates, life of machine and expenditure on IOH, POH and staff.
- Unit Cost Calculation: This considers fixed cost per day and variable cost per km.
- Unit Cost: Unit cost is then computed based on progress of work in km and the number of days the machine is available for work.
Control Over Consumption
- The zonal depot officer identifies items for replacement beyond those required in routine maintenance schedules.
- Machine-in-charge personnel seek approval, depending on who oversees repairs, from the SSE/TM/ZMDI or SSE/TM/SDI.
- The depot officer inspects the item before authorizing replacement.
Recoupment of Stock
- Recoupment action is initiated with a lead period ensuring one year's supply.
- Annual requirement is calculated using the past three years' consumption data.
- Manufacturer's recommendations or data from other railways are used when three-year data is unavailable.
- Design changes or modifications since the last review are assessed to prevent obsolescence.
- Procurement prioritizes items based on realistic technical needs during financial constraints.
- Indents for proprietary items are accompanied by a proprietary article certificate signed by competent authority.
- Indents are supplemented by detailed specifications, drawings, and a list of firms approved by a competent authority.
Purchase Power
- Engineering department officers at headquarters and in zonal and satellite depots have the authority to procure spares, consumables, and small tools.
- These powers are comparable to those granted to Stores Department officers in corresponding positions.
Purchase Rules
- Procurement by the Engineering Department adheres to the rules and procedures established by the Stores Department.
Tender Committee
- Tender committees, when necessary, are composed of Engineering officers as convener and other members from Finance and Stores, following zonal railway power delegation guidelines.
Imprest
- Imprest funds available with machine officials can be used to purchase spares, consumables, and small tools for specific machine needs.
Sourcing and Procurement Procedure
- Zonal railways determine the source of procurement from options like OEM or authorized representatives, reputable manufacturers, DGS & D Rate Contract, and indigenous sources.
- OEM or authorized representatives require a proprietary article certificate signed by competent authority in indents.
- Rate contracts can be established when a significant number of items are sourced from a single provider, simplifying and expediting procurement.
- Rate contracts are modeled after the DGS & D rate contract with a list of items and their unit prices, permitting procurement over 2-3 years with an annual financial ceiling.
- Reputable component manufacturers are considered, including those supplying OEMs.
- Procurement from these manufacturers utilizes limited tenders if multiple sources exist or a PAC if there is only one source, emphasizing compatibility.
- Sr. Scale and above officers are designated as Direct Demanding Officers for DGS & D Rate Contract items.
- Zonal railways classify spares into groups based on manufacturing processes or supply sources.
- These groups include mild steel, alloy steel, grey iron castings, engine filters, hydraulic filters, hydraulic hoses, pneumatic hoses, seals, conveyor belts, hydraulic components, printed circuit boards, bearings, tamping tools, and other consumables.
- Indigenous items with local sources are identified, and specifications and drawings are issued by RDSO.
- Railways maintain an approved supplier list, and indigenous spares are typically procured from this list, which is made available on the website.
- Performance reviews of approved suppliers are conducted periodically, with updated lists and performance reports shared online.
- In cases of new indigenous items under development or trial, or quality issues, procurement reverts to proven sources or OEMs.
- AMCs are invited from the open market based on expertise, and open tenders can be issued if OEMs are unwilling or underperform.
- Contracts for special repairs are made if AMCs are not secured, and financial powers are defined in SOPs.
Contracts Beyond AMCs
- Planned repairs like engine overhauling, tamping bank overhauling, tool reconditioning, machine painting, wiring, and modifications are handled as works contracts under applicable revenue heads.
Condemnation of Track Machine
- Track machines are condemned after reaching the end of their useful life, with a detailed report submitted by the executive in charge to the zonal railway headquarters.
- The report includes:
- Introduction
- Brief history
- Major defects
- Estimated rehabilitation cost
- Current output and work quality
- Items proposed for use as spares
- Financial justification for replacement, reconditioning, or abandonment based on Finance Code Vol. I
- Recommendations
- A committee of three SAG officers examine the report and recommend action, potentially inspecting the machine.
Example Unit Cost
- The example illustrates calculating the unit cost of tamping done by a CSM.
- Annual cost of working is determined using the initial cost, life of machine, interest rate, IOH and POH costs, and variable and fixed costs.
- The unit cost is calculated based on fixed cost per day and variable cost per km.
- The total cost of a day's tamping is calculated by adding the fixed cost and variable cost multiplied by the number of kms tamped.
- The unit cost per km is determined by dividing the total cost by the number of kms tamped.
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Description
This quiz covers the estimation of annual requirements, fast-moving items, and management of inactive items in railway stock. Participants will explore concepts like stock position analysis and prioritization of consumables. Test your knowledge on effective inventory strategies for track machines.
