Post on 20-Jan-2015
description
379th PROJECT MANAGEMENT COMMITTEE MEETING
Held on: May 14, 2005
At: 1100 hrs
Venue: Conference Room
Attendance: Except GM Spinning, all members present, MD in chair.
AGENDA POINTS
SPINNINGKTMLSpinning Performance ReportMonth : May 2005
Period ----> Unit of RemarksMeasurment Desired
Desired Actual % Qty %
UtilizationInstalled Capacity - Spindle No 79,520 79,520
Shifts worked No 21 21 36 36 Utilization % 99.00 98.72 99.00 97.90
Working EfficiencyAverage Count No 52.55 51.67 Average OPS 2.82 2.78 2.86 2.78
Working Efficiency % 94.09 92.59 94.07 91.63
Raw Material IssuePak Ctn Kgs / % 59,231 38.30 106,484 38.38 Impt Ctn Kgs / % 69,656 45.04 126,379 45.55
PSF Kgs / % 25,763 16.66 44,584 16.07 Kgs / % 154,650 100.00 277,447 100.00
Yarn Production Kgs / % 130,946 84.67 224,520 80.92 Hard Waste Kgs / % 906 0.69 1,501 0.66 Yarn - B. Grade Kgs / % 634 0.48 1,089 0.48
May 01 to May 12Actual
Particulars
May 06 to May 12
Period: 06.05.2005 to 12.05.2005
Maintenance Spinning: Following intimated:Except one Orion – M all Auto Winder spindles are serviceable. M/s ACMA TEX dispatched Switcher Box which would be received by Monday.
Motor Tripping in Section IV; discussed. 30 KW Motor to replace 22 KW motor being used for 18000 RPM on 22 Count frames.
IT-OUTSOURCING
How to reduce searching cost Select a trust worthy
vendor. Vendor should be very
cooperative. Interviewing the vendor’s
previous & current clients.
IT-OUTSOURCING
How to reduce contracting cost Vague ideas from the contract
should be eliminated.
Contract should be flexible.
IT-OUTSOURCING
Necessary clauses in IT outsourcing contract
Evolution clauses apply both to the price and the technological flexibility as bench mark clauses.
Reversibility clauses are about either material reversibility or human reversibility.One gives the company the options to buy premises from the vendor and the other allows the company to hire employees from the vendors.
Hidden Cost #2Transitioning to the Vendor Elusive cost Transition time is(1 year) 70% was no longer than 10 months
IT-OUTSOURCING
IT-OUTSOURCING
Determining Transition CostTransition cost are elusive A company incurs as long as the vendor
has not completely taken over the internal IT department.
The time that internal employee spent helping the vendor transition
cost.
Cost that stem from disruption and from vendor's inability to react as quickly and appropriately as the internal department the beginning of the contract are transition costs.
Reducing transition Cost The first step in decreasing transition cost's
to be aware of it. Companies would be well advised to avoid
outsourcing activities that a idiosyncratic an to keep IT employees in house the company should know what it wants from the out source activity.Having experience with IT outsourcing
IT-OUTSOURCING
IT-OUTSOURCING
Cost#3 Managing the effort
This the largest category of the hidden cost
It covers three areas: Monitoring that IT vendors con fulfill there contractual obligations
IT-OUTSOURCING
Bargaining with IT vendors. Negotiating any needed contract changes.
Determining the cost of managing Vendor
Unlike out sourcing fees vendor management costs for IT outsourcing are not readily apparent.
Management costs purely internal companies don’t take management cost into account until they become visible so it create problem.
IT-OUTSOURCING
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
Less than$10 million
$10 millionto 100million
Greaterthan $100
million
IT-OUTSOURCING
IT-OUTSOURCING
Reducing the cost of managing vendor IT outsourcing experiences reduce the cost of managing the relationship the more the company the more a company deals with the IT vendor the faster it can judge the vendors performance.
Trust should be cultivated in the vendor relationship this will narrow the gaps between the both parties.
IT-OUTSOURCING
The fourth hidden cost comes from switching vendors or reintegrating IT activities internally:
Determine the cost of transition after outsourcing.
This involves finding the vendor, drafting a new contract and transitioning resources.
IT-OUTSOURCING
Reintegrated cost involves building a new internal activity from scratch.
Reducing the cost of transitioning after outsourcing
Awareness of outsourcing transition cost.
IT-OUTSOURCING
Presence of reversibility clauses in the contract.
Sufficient level of IT expertise inside the company.
Original idea to Outsource
Vendor search and contracting cost
Beginning of the IT outsourcing relationship
Initial transition cost
Cost of managing the IT-outsourcing effort
Change of IT vendor or reintegration of IT
Post IT out sourcing transition cost
Time
IT-OUTSOURCING
Steps to reduce the hidden costs The activities should not be critical or surrounded by uncertainty.
Companies should spend time in researching vendors.
The contracts should have clauses that specify technology evolution and reversibility
The relationship with the vendors should be the best in order to get desired performance.