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Data Processing and Analysis Guide

The document outlines the key cost components of a process: power, labour, depreciation, and overheads. It provides details on how each cost is calculated: 1) Power cost includes in-house generation costs from fuel consumption data and external procurement costs from electricity bills. 2) Labour cost is the total cost for casual and regular employees, calculated based on working hours per year and accounting for leaves and holidays. 3) Depreciation cost is divided among cost centers based on asset-resource linkages and calculated using depreciation rates on normal available machine hours per year.

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6 views3 pages

Data Processing and Analysis Guide

The document outlines the key cost components of a process: power, labour, depreciation, and overheads. It provides details on how each cost is calculated: 1) Power cost includes in-house generation costs from fuel consumption data and external procurement costs from electricity bills. 2) Labour cost is the total cost for casual and regular employees, calculated based on working hours per year and accounting for leaves and holidays. 3) Depreciation cost is divided among cost centers based on asset-resource linkages and calculated using depreciation rates on normal available machine hours per year.

Uploaded by

aroraankur12
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Process Cost

Cost Components: 1) 2) 3) 4) Power Labour Depreciation Overheads

Power: Power cost is divided in two components a) In house Generation b) Procured from External organization

In house generation details are gathered from the Form A which is collected for cost audit purpose. The cost is taken from the power and fuel GL account and the total electricity generation data is gathered from the respective plant. Per unit cost is calculated based on the (total cost of Fuel consumed / No of units generated). External procurement is captured from the Power GL account. Where in the quantity field the no. of units consumed is updated at the item level. The monthly electricity bill is entered in the system with the respective no of units consumed.

Labour Cost: Total labour cost is calculated from the set of GL codes. The no of labour hours is the combination of the two: a) Casual Labour b) KNPL Employees The monthly data from plant is gathered from the plant. The plant provides the data of the no of casual employees for the month. The working is done on the basis of 7hrs a day (1 hr for the Lunch and tea break). Total 52 weekly off and 10 holidays are allowed to the casual labours. So in total per casual labour yearly hours worked will be (365 -10-52) days*7hrs = 2121 hrs. Monthly hrs = 2121 / 12 = 176.25 For KNPL employees the monthly employee list is gathered from the HR and the working is done on the basis of: 10 Sick leaves, 7 Casual leaves, 30 Privilege leaves. It is assumed that the employee consumes the non-accumulative leaves available (CL and SL). And for the PL on an average 50% is considered. In addition to allow leaves, 10 Public holidays and 52 weekly offs (Sundays) are considered. Final calculation comes to: (365days - 10SL - 7CL 15 PL 52 W/Off 10 Pub. Holidays) = 271 days *7 Hrs =1897 hrs a year Monthly Hrs = 1897 / 12 = 158.08

Depreciation: The new cost center structure in the plants is created in such a way that the pool of similar resources becomes a cost center. And the asset equipment resource link is established. Based on this linkage the asset master s cost center is changed to the actual cost center for the resource. All the costs booked in the resource cost center will be then divided by the no of machine hrs (for Resource). The depreciation rates are at the actual basis. The hours working will be based on the no of normal available hours. The calculation for the normal machine hours will be: (365 days 10 Holidays 52 Sunday) *2 or 3 shifts *7 Hours. A normal of 2 days will be provided for the breakdown and repairs activity as per the previous experience.

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