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WMS &
COSTING
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B.VIJAYNATH
Sr.AFA/Fin
MAINTENANCE WORKSHOPS
•Undertakes repairs and maintenance
of various kinds of Rolling Stock
•Manufacture components/duplicates
and spares
•Building activities of rolling Stock
such as Coach / Wagon Building
SET UP OF WORKSHOPS
Administrative wingControls, directs and supervises
Specialized activities in SHOPS
Smithy, Painting, Carriage, Wheel,
Millwright……
Q3. What is the classification of Artisan staff in the
workshops?
A3. The classification of the artisan staff is as under
a. Highly skilled
b. Skilled
c. Semi skilled
d. Unskilled.
(W.121)
Q4. What are the maximum number of hours a worker can
work in a workshop in a day?
A4. Not more than 9 hours a day. (W.205)
Q5. Who maintains the initial records of attendance on a
workshop?
A5. Time office is responsible for the maintenance of initial
records of Attendance of artisans in Workshops which are
eventually the records for payment. (W. 210)
Q6. What is a Job Card?
A6. A Job Card may be defined as a record that shows the time
worked by a workman on individual operations. (W.506)
Q7. What is Route card. ?
A7 . A Route card is an authority for the shops to undertake
manufacture of components / assembly for which work order is
issued. This is an exact replica of Process Sheet with adequate
space provided for the inspection staff to record the results of
inspection or checking on completion of each operation.(W. 916)
Q8. What is the maximum period of late attendance in a
workshop?
A8. The permissible time of late attendance is up to half an
hour in the morning session for which proportionate wages
are deducted. (W.213)
Q1. What is the objective of Production Control
Organization (PCO)?
A1. The objective of the PCO is to ensure continuous
production in the Workshops besides 100 % capacity
utilization in the shops. (W.111)
Q2. Who excersises Budgetary control over Workshop
Expenditure?
A2. The responsibility for Budgetary Control in the
workshops rests with CWE, together with the
Associate Finance. (W.104)
Q9. What is Proforma on cost?
A9. The Proforma on cost is commonly known as Indirect
charges and intended to include as General Administrative
overheads which would so be included in commercial costing.
(W.702)
Q10. The cost of operation of General plant and machinery
is chargeable to which on cost?
A10. The cost of operation of General plant and machinery is
chargeable to General on cost (Labour and Stores) (W.707)
Q11. How on cost charges are absorbed in the cost of
production?
A11. The on cost charges are absorbed through “Standing work
orders” issued separately.
Q12. What is a Time sheet?
A12. Time sheet is a record that shows the time for which wages
are earned by each workman during a wage period for various
works on which he has been engaged. (W.503)
Q13. What is work order?
A13. Work order is defined as an Authority to commence Work
and incur expenditure for any job under taken in a workshop.
Q14. What is a standing work order?
A14. A standing work order is a work order which conforms to
Revenue Accounts classification and continues to remain
unchanged year to year. (W.807)
Q13. What is work order?
A13. Work order is defined as an Authority to commence Work
and incur expenditure for any job under taken in a workshop.
Q14. What is a standing work order?
A14. A standing work order is a work order which conforms to
Revenue Accounts classification and continues to remain
unchanged year to year. (W.807)
Q15. What is job order?
A15. A job order is a work order issued for the purpose of
manufacture operations in a workshop and is used in job costing.
(W 809)
Q16. What is the nature of WMS account?
A16. WMS account is a Capital Suspense Account under Plan
Head 7200 under Demand number 16.
Q17. What is workshop General Register?
A17. The compilation of expenditure booked under various work
orders in a summarized form is known as Workshop General
Register (WGR) and is prepared monthly. (W. 1201)
Q18. What is an Outturn statement?
A18. An Outturn statement is a statement that shows the
expenditure incurred on completed works and incomplete works
for which adjustments have to be made during the month.
Closing balances in the Out turn statement agree with the
outstanding balance under WMS accounts. (W. 1204)
Q19. How the acquisition of Rolling stock is done in
Railways?
A19. The acquisition of Rolling stock is done through the Annual
Rolling Stock Programme.
Q20. What is the codal life an Electric Locomotive?
A20.
35 years.
Q21. What is the number of hours of work per week in
workshops?
A21. No adult worker shall be required or allowed to work in
a factory for more than 48 hours in any week.
Q22. What are the normal hours of work in workshops?
A22. The normal working hours of Labour in Railway
Workshops are 8 ½ hours of week days and 5 ½ hours on
Saturday.
Q23. What is departmentalization of Workshops?
A23. Departmentalization of workshops is the division of
workshops into shops to undertake activity. Shops are
divided into two categories. They are
1) Process shops (Manufacturing shops)
2) Job shops (Repair shops)
Q24. What is the tool for analysis of workshop
expenditure?
A24. The analysis of workshop expenditure is carried out
with the aid of system of WORK ORDERS
Q25. What is the importance of Load Chart?
A25. The LOAD CHART is very important in
regulating the work in Workshops because the
issue of Work Orders should be carefully
regulated by the Production staff with the help of
these Load Charts. So that no job order, other
than that for new construction involving large
outlay, is left outstanding in the shops for more
than three months and no shop is loaded with
work in excess of two months' maximum out-turn
of the shop.
Q26. What is a Process sheet?
A26. Process sheet is an important factory forms
because it records full particulars of the item to be
manufactured, material specifications, allowed times of
operations involved, complete route of production etc.
It is the basic record from which other important factory
forms emanate.
Q27. Why WMS is operated in Railways?
A27. Railways are a commercial concern. Costs
incurred in their workshops affect maintenance cost of
the running the Railway. Any extravagance in
workshops is likely to tell upon the operating costs
resulting in erosion of profits. It is therefore
necessary to have proper cost control over expenses
incurred in workshops. For this purpose a suspense
head of WMS is needed under which all expenses
incurred in a workshop are accumulated and
analyzed so as to pinpoint sources of waste and
inefficiency.
Late attendance in workshops
The workmen coming late after 3 minutes
but up to half an hour in the first period
will be treated as late by half an hour in
that period and should lose wages only for
half an hour. Those coming late by over
half an hour should not be allowed to enter
the workshop during the first period and
should lose half a day's pay. Workmen
coming late after expiry of the concession
of 3 minutes in the second period will not
be admitted into the shop and shall be
treated as absent in that period.
NEED FOR MAINTAINING
WMS
Railways being commercial concern
costs incurred in Workshops affect
maintenance costs of running of
Railways. Any extravaganza will tell
upon operating costs and erosion of
profits.Necessary to have cost control
over expenses. WMS pinpoints sources
of wastage and efficiency.
NEED FOR MAINTAINING
WMS
The jobs and the allied activities
undertaken in workshops are
multifarious. It is essential to arrive
at the unit cost of repair
activity/manufacture for the
purpose of allocation and budget
framing.
RESUME ON WORKSHOP MANUFACTURING
SUSPENSE ACCOUNT
WMS is a capital suspense head of account
under PH 7200 and forms part of inventories in
the Railway Balance Sheet. Hence, unusual
balances and balances beyond the specified
limits attract Dividend Liability and is a point of
concern for the Zonal Railway. To ensure
control over Expenditure of the Workshop
Manufacturing Operation (for the outturn of
services and manufacturing goods) the
Suspense Head maintained in WAO's will enable
the Management to understand the outflow of
cash element wise i.e. Direct Labour, Direct
Material, Direct Expenditure vis-à-vis with
outturn of the workshops.
Review of WMS Account identifies.
•Capacity utilization of the workshop.
•Deployment of skilled Labour and their
utilization in Manufacturing operations / Service
operations (POH etc.)
•Close watch of material drawals to Shop Floor
and their consumption pattern.
•Identification of Quantum of On Cost as a
percentage to Direct Labour and control the
overhead expenditure.
Element-wise details of WMS Account: Debits
Shop Labour: The cost of wages incurred in a
workshop as a 'Direct Cost' to operations i.e.
Artisans of various shops is booked to WMS
Account on accrual basis. This is done
through operation of 'Labour Suspense.' It is
checked to see that the bookings under the
Labour Suspense is cleared continuously to
WMS Account to represent the actual cost of
production.
Depot Stores: Actual consumption of stores
done through form S-1313 by the Executive is
passed through SMS JV and is checked to see
that the debits booked to WMS are correct by
ensuring correctness of rates and quantities
(Abnormal shop drawals).
Direct Purchase: Purchases made through
Non-Stock Indents are accounted under this
element of item. Same are checked to see that
the Funds are available under PU - 04 and the
repeated purchases made through NS Indents
are proposed for stocking to attain the
advantages of Bulk Purchases.
Miscellaneous Adjustments: Items under this
head are checked to see that Inter-Shop
transfer of materials should be as minimum
as possible, since abnormal transfer
transactions indicates lopsided planning by
Production Engineer.
Credits:
Capital, DRF, DF, OLWR: The adjustments
made through Capital Works are checked
to see that unless the asset is created and
the order is finalized, the expenditure
should not be booked to 'Capital Head'.
Capital work orders are reviewed and
abnormal delays in progress of works are
identified and reported.The outstanding
Capital Work Orders towards closure of
Final Accounts should be 'NIL', unless
there are any throw forward works (RSP
works).
Capital Stores Suspense:
•Manufacture Stores: The rates under
manufacture stores are checked to see that
they are certified by the Cost Accountant and
are revised periodically.
•Returned Stores: While affording credit
under Returned Stores points to be checked
are (I) Scrap items for their rates (Borings,
Turnings, Non-Ferrous Items). (ii)
Reclaimable items are identified and
classified as "Stores in Stock".
3. Revenue Operations:
Demand No. 6: The bookings to Demand No.6
(Repairs to Carriage & Wagons), are taken from
the total expenditure appearing against the
individual Standing Work Orders, separately
under the heads labour and Stores. The labour
component of the expenditure in the WGR is
based on the total labour hours against each
work order multiplied with the Average hourly
Rates of respective categories of Artisan Staff,
while that of the stores portion is taken from
the drawals of stores indicated in the Issue
Notes, Work Order wise. The expenditure
booked through the Standing Work Orders are
reviewed to see that the same are closed every
month and co-related with the physical out
turn.
Demand N0.7: All the works
relating to workshop Machinery
and Tools, Service Motor Cars,
Cranes and other unclassified
equipment in the workshop are
carried out against different work
orders. As is done in respect of
Demand No.6 above, the bookings
of Labour and Stores are extracted
from WGR, Work Order wise as well
as activity wise and finally cleared
to Demand No.7 with
Corresponding credit to WMS
Account.
Miscellaneous Manufacturing
Revenue:
Generally, a transaction
pertaining to sparing to material,
Wheel Sets, Cost of execution of
Divisional Work Orders are
accounted for under the subject
head.
The following points need scrutiny
•That the rates at which the debits are passed
on to other units are as per the latest books
rates and sparing of material does not in any
way resulting shortages in the shops.
•The rates charges for wheel sets are as per the
latest PL number.
•With respect of Divisional Work Orders, it
must be ensured that the expenditure
incurred on Labour and Stores Elements are
charged to the consignees in full together
with the overheads.
As a matter of general
Norm/Parameter, it must be
ensued that in respect of Repair
Shops the Closing Balance is not in
excess of 3% of Gross Credits,
while for manufacturing shops by
closing Balance unto 6% of Gross
Credits is permissible.
Monthly Review of
Balances under WMS
• All items are current,
under taken upon issue of
proper Work Order under
sanction of CA
• Balances should consists of
Labour/Material/On-cost
only related to unfinished
jobs/ jobs completed
awaiting adjustments
•No credit items
•Deposit has been made
where job done for outsiders
•No inefficient balances,
promptly carry out
periodical adjustments
w.r.t., over/under charges
THANK YOU
Structure of
Railway Workshop Accounts
B.VIJAYNATH
WAO/LGD
Freight traffic on Indian Railways
Revenue earning freight traffic of IR
during the first quarter of 2007-08
(April to June) amounted to 185.25
million tonnes, up 5.35% over the 200607 first quarter level of 175.84 million
tonnes. The earnings from goods traffic
this year amounted to Rs 11025.44
crores up 9.95 % over last year’s first
quarter earnings of Rs 10028.11 crores
Freight revenue earning of Indian Railways
800.0
MT
728.4
700.0
666.5
602.8
600.0
557.3
518.7
500.0
400.0
456.4
390.0
358.7
338.0 350.1
409.0
473.5
492.5
429.4 420.9
365.0
300.0
April to June
200.0
133.2
141.3
160.0
175.8
185.3
100.0
0.0
91-92 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06 06-07 03-04 04-05 05-06 06-07 07-08
Indian Railways Purpose
Statement

Our Purpose is to play a Central role in
India’s Overall Economic Growth by
providing Customer focused Cost
effective Transportation solutions. We
will do this through and integrated
transport system which includes the
railways and other modes of
transportation.
Purpose statement
Our transportation business will cater
to Three target customer segments
 Freight
 Passenger
 Sub-urban Passenger

PLAY ON VOLUMES

Challenges ahead
Bringing down unit cost of freight at current prices by 50% over 5
years.
•Universalisation of 22.9 t axle load
•Increasing axle load for iron ore to 25 from 22.9
•Improving loaded empty ratio to 75% over 3-4 years
•Transformation of IR from bulk to multimodal transporter.
•Technology udgradation and modernization
•Construction of DFC
EXECUTIVE
V/S
ACCOUNTS/AUDIT
Sample cases
1. IP Phones
2. 130 Personal Computers
3. Replacement of Xerox with
Digital copier
4. Way leave arrangements for Water
supply
5. Failed cases of open tenders
MAINTENANCE WORKSHOPS
•Undertakes repairs and maintenance
of various kinds of Rolling Stock
•Manufacture components/duplicates
and spares
•Building activities of rolling Stock
such as Coach / Wagon Building
SET UP OF WORKSHOPS
Administrative wingControls, directs and supervises
Specialized activities in SHOPS
Smithy, Painting, Carriage, Wheel,
Millwright……
Indian Railways is a
Government Concern
It is run on
Commercial basis
Accounts to be maintained
on Commercial basis as
well as Government basis
Commercial concern Accounts
• How Capital is being utilized
• Debtors and Creditors
• Gaining or losing
• Sources of gains / losses
• Solvent or insolvent
In Railways called as Capital and Revenue Accounts.
Government Accounts.
Receipts
Expenditure
In Railways called as Finance Accounts
Government Accounts.
Part I: Consolidated Fund of India
Part II : Contingency Fund of India
Part III: Public Accounts of India
Link between Government
and Commercial Accounts
Maintenance of Suspense Heads
• Demands Payable
• Traffic Account
• Labour
• Demands Recoverable
COMPILATION OF ACCOUNTS
1. To collect and bring to account all the receipts and
disbursements of the Railway/department/division.
2. To transfer to other accounts circles the items
pertaining to them which originate in his circle and
vice versa.
3. To make up a detailed account for the month/year.
4. To prepare relevant financial reports for
management information and action.
Maintenance of General and
Subsidiary Account records.
THANK YOU