pakistan railways code for the mechanical … · 2016-09-24 · reference in a code to the...

(CHAPTERS I TO XVI)

20 October, 2011

PAKISTAN RAILWAYS

Riaz Ahmad & Company Chartered Accountants

PAKISTAN RAILWAYS CODE FOR THE MECHANICALDEPARTMENT (WORKSHOPS)

PAKISTAN RAILWAYS CODE FOR THE MECHANICAL DEPARTMENT (WORKSHOPS)

PREFACE

1. Corrections issued prior to 15th August 1947 and all corrections issued in Pakistan upto June 1955 were incorporated in the provisional issue. Other corrections and modifications made there in were only confined to incorporation of obvious changes resulting from the partitioning of the Indo-Pakistan Sub-continent on 15th August 1947. Now, an elaborate exercise has been carried out to revise “Pakistan Railways Code for the Mechanical Department (Workshops)” for upgraded Financial and Management Information System, under supervision and control of Mr. Mubarik Khan, Project Director, Project Management Unit (PMU), Ministry of Railways and expert review of Mr. Asad Saeed, General Manager Railways (Retired).

2. This code contains the rules and instructions for the guidance of officers and staff of Pakistan Railways regarding recruitment, pay and promotion, leave and other service conditions, attendance in workshops, payment of wages, payment by results, time records and allocation of labour, materials, overheads, work orders, job costing, estimates, completion reports, foundry accounts, saw-mill accounts, rolling stock program, budget, work in process account.

3. The rules and orders embodied in this Code are to be followed with due care and caution and are applicable to Pakistan Railways.

4. In case, Chief Mechanical Engineer Loco, Chief Mechanical Engineer (Carriage & Wagon) or any other concerned Principal Officers desire to make any amendment in the procedure laid down in this Code, they should address to Member Finance through concerned General Manager for such authorization in each case.

5. Contributions made by Messrs Saeed Akhtar, General Manager Operations, Muhammad Ali, Deputy Director, (PMU) and efforts made by Riaz Ahmad & Company, Chartered Accountants, Consultants, in accomplishing this task are highly appreciated and placed on record.

Islamabad,

00-00-2012

Arif Azim

Secretary

Ministry of Railways

Government of Pakistan


INTRODUCTORY NOTES

1. Index Letters for Codes The following index letters are used for distinguishing the several Pakistan Railways Codes from each other.

S for the Stores Department. W Mechanical Department (Workshops). A Accounts Department. T Traffic Department (Commercial). E Engineering Department. G General Code.

2. Paragraph Numbers For convenience of indexing and of reference, the paragraphs have been numbered according to a 3/4 figure “code”, in which the last two figures give the number of the paragraph and the remaining figures the number of the chapter. Thus paragraph 101 of any code is paragraph 1 of chapter 1 of that code and paragraph 1421, paragraph 21 of chapter XIV. 3. References to Paragraphs Reference in a code to the paragraphs of any other code is made by putting the paragraph number first, followed by the index letter of the code concerned as the suffix. Thus 1235 W means paragraph 35 of Chapter XII of the Pakistan Railways Code for the Mechanical Department (Workshops) and 25 App. 3S means paragraph 25 of Appendix III to the Pakistan Railways Code for the Stores Department. 4. References to “Forms” The “forms” referred to in any of the Pakistan Railways Codes take the number of the paragraph of the code in which they are described, the index letter of the code in question being prefixed to the number of the paragraph in which the form is illustrated. Thus W.915 is the form that is described and illustrated in paragraph 15 of Chapter IX of the Pakistan Railways Code for the Mechanical Department (Workshops).


INDEX

1

DESCRIPTION CHAPTER NO.

ORGANIZATION I

RECRUITMENT, PAY AND PROMOTION II

LEAVE AND OTHER SERVICE CONDITIONS III

ATTENDANCE IN WORKSHOPS IV

PAYMENT OF WAGES V

PAYMENT BY RESULTS VI

TIME RECORDS AND ALLOCATION OF LABOUR VII

MATERIALS VIII

OVERHEADS IX

WORK ORDERS X

JOB COSTING XI

ESTIMATES AND COMPLETION REPORTS XII

FOUNDRY ACCOUNTS XIII

SAW-MILL ACCOUNTS XIV

ROLLING-STOCK PROGRAM AND BUDGET XV

WORK IN PROCESS ACCOUNT XVI


2

LIST OF APPENDIX

DESCRIPTION APPENDIX NO.

RULES FOR THE RECRUITMENT AND TRAINING OF APPRENTICE

SUB-ENGINEERS AND TRADE APPRENTICES IN THE MECHANICAL

WORKSHOPS OF PAKISTAN RAILWAYS

APPENDIX I

CHAPTER I

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER I

ORGANIZATION

3

CONTENTS

DESCRIPTION PAGE NO. PARA NO.

THE CHIEF MECHANICAL ENGINEER/LOCOMOTIVE

1.1 101 — 102

THE CHIEF MECHANICAL ENGINEER/CARRIAGE & WAGON

1.1 103

ORGANOGRAM OF MECHANICAL DEPARTMENT

1.2 103A

DEPUTY CHIEF MECHANICAL ENGINEERS

1.2 104

MECHANICAL WORKSHOPS

1.3 105

THE MAIN SCHEDULING OFFICE

1.3 106

THE PRODUCTION ENGINEER

1.3 — 1.4 107 — 109

THE MAIN PROGRESS OFFICE

1.4 110

WORKS MANAGER/LOCO SHOPS

1.4 110A

WORKS MANAGER/CARRIAGE & WAGON

1.5 110B

WORKS MANAGER/MANUFACTURING

1.5 110C

WORKS MANAGER/CONSTRUCTION SHOPS

1.5 110D

MECHANICAL ENGINEER TRAINING

1.5 110E

WORKS MANAGER/STEEL SHOPS

1.6 110F

STAFF OR EMPLOYMENT OFFICER 1.6 111


CHAPTER I

ORGANIZATION

4

CONTENTS


CHEMIST AND METALLURGIST

1.6 112

DIVISIONAL ACCOUNTS OFFICER/WORKSHOPS

1.6 113

WORKSHOPS COSTING OFFICER

1.6 113A

DIRECTORATE OF FIS / MIS / WORKSHOPS

1.6 113B

WORKSHOPS STORES OFFICER

1.7 114

ELECTRICAL ENGINEERS

1.7 115

SHOP FOREMEN

1.7 116

DEPARTMENTALIZATION OF WORKSHOPS 1.7 — 1.8 117 — 120


CHAPTER I

ORGANIZATION

1.1

101. The Chief Mechanical Engineer/Locomotive. One of the “Principal Officers” of Pakistan Railways Administration is the Chief Mechanical Engineer/Locomotive, the Head of the Mechanical Department. Amongst his more important duties is that of the maintenance of all the Locomotives and most of the other equipment of the railway in good repair, as on this depends to a very large extent the safety and reliability of railway transportation. To enable him to carry out this duty, he has under his control one or more workshops, in which locomotives, are periodically overhauled, examined and repaired before being placed back on the line.

102. There are various “running sheds”, conveniently situated on the line, where the different kinds of Locomotives, not undergoing repairs in workshops, are examined and kept in readiness for immediate use. These running sheds are necessarily parts of the organization of the Transportation Department, as distinguished from the Mechanical Department, and the nature and scope of the control of the Chief Mechanical Engineer/Locomotive of these running sheds varies within rather wide limits. But where the Chief Mechanical Engineer is responsible finally for the total expenditure on the repairs and maintenance of all locomotives, other equipment and rescue equipment, whether incurred in the workshops or in the running sheds, he controls the budget for both these big streams of revenue expenditure, whatever may be the actual organization, though this control is indirect in the case of Pakistan Railways having a Divisional Organization.

103. The Chief Mechanical Engineer/Carriage & Wagon. One of the “Principal Officers” of Pakistan Railways Administration is the Chief Mechanical Engineer/Carriage & Wagon. Amongst his more important duties is that of the maintenance of all types of carriages and wagons. To enable him to carry out this duty, he has under his control one or more workshops, in which, carriages and wagons are periodically overhauled, examined and repaired before being placed back on the line.

There are various “Carriage Depots”, “Sick Lines” and “Train Examining Stations”, conveniently situated on the line, where the different kinds of carriages and wagons, not undergoing repairs in workshops, are examined and kept in readiness for immediate use. These trains examining stations and sick lines are necessarily parts of the organization of the Transportation Department, as distinguished from the Mechanical Department, and the nature and scope of the control of the Chief Mechanical Engineer of these Sick Lines and station varies within rather wide limits. But where the Chief Mechanical Engineer/Carriage & Wagon is responsible finally for the total expenditure on the repairs and maintenance of carriages and wagons, whether incurred in the workshops or in the carriage and wagon depots and train examining stations, he controls the budget for these big streams of revenue expenditure, whatever may be the actual organization, though this control is indirect in the case of railways having a Divisional Organization.


CHAPTER I

ORGANIZATION

1.2

103. A. ORGANOGRAM OF MECHANICAL DEPARTMENT: 104. Deputy Chief Mechanical Engineers. The Chief Mechanical Engineers have one or more Deputies to assist them in their work at Pakistan Railways headquarters, which falls into four broad categories:

(i) Locomotive workshops and Running Sheds. (ii) Carriage & Wagon Workshops, Depots and train Examining Stations. (iii) Development work. (iv) Miscellaneous work and co-ordination.

Where the main workshops are sufficiently large and important, a Deputy Chief Mechanical Engineer is placed in direct charge of such shops. In certain cases an officer of the rank of a Divisional Superintendent is placed in charge. The smaller workshops are under a Works Manager.

Additional General Manager/Mechanical

Chief Mechanical Engineer/Loco Chief Mechanical Engineer/Carriage & Wagon

Moghalpura Workshops -Loco Shops -Central Laboratory -Training Centre

-Central Diesel Workshops/Rawalpindi

-Diesel Workshops/ Karachi

Operating Divisions -Locomotive Sheds

Operating Divisions-Carriage & Wagons Depots

Moghalpura Workshops-Carriage & Wagon Shop -Construction Shops -Steel Shops -Carriage & Wagon Workshops/ Hyderabad


CHAPTER I

ORGANIZATION

1.3

105. Mechanical Workshops. The main locomotive workshops of the Pakistan Railway may be either situated at the same station as the main carriage and wagon workshops or at different stations. In addition to the repairs and reconditioning of Locomotives & rolling-stock and of plant and machinery and the manufacture of the spare parts for the repair thereof, these workshops often carry out work of the nature shown below: (1) Construction of goods wagons. (2) Overhauling of:

(a) Locomotives. (b) Coaching Vehicles. (c) Goods Vehicles.

(3) Manufacture of articles/spares required for the repairs of locomotives & rolling stock and for the Stores Department for general use.

(4) Manufacture of articles of various kinds for. (a) Other Government Departments. (b) Foreign Railways. (c) Others.

106. The Main Scheduling Office. In the larger workshops, one or more Assistant Works Managers may be completely engaged in helping the Works Manager in the supervision of repairs to locomotives and rolling-stock and have under him a main Scheduling Office with the staff attached thereto. 107. The Production Engineer. The head of the workshops, whether he is called a Superintendent, Workshops, a Deputy Chief Mechanical Engineer or a Works Manager, is directly responsible to the Chief Mechanical Engineers for the efficient conduct of his workshops. They are ordinarily assisted by a Production Engineer who is responsible for the work of the following sections: (1) Planning (2) Rate Fixing and Evaluation. (3) Jigs and Tool Drawing Office. (4) Tool Room. (5) Progress (6) Inspection. (7) Record.


CHAPTER I

ORGANIZATION

1.4

108. The more important duties of the Production Engineer are as follows:

(1) To plan the best method of production and the most economical use of men, machine and material;

(2) To determine the standard time for each operation. (3) To design machines and tools to suit the needs of works passing through the

shops; and (4) To ensure the most economical method of production. (5) To issue PRTs (Piece Rate Tickets) for production of various parts.

109. The Production Engineer will be normally assisted by following two Assistant

Works Managers:

a) Assistant Works Manager/Production (Loco) (AWM/P, Loco) b) Assistant Works Manager/Production (C&W) (AWM/P, C&W)

The function of the Production Office is as under:

(1) Prepare and design drawings & specifications for new standard parts and for

the necessary jigs & tools; (2) Prescribe the nature and sequence of the operations to be performed; (3) Inspect all manufactured parts; (4) On the conclusion of any series of operations, compare the times actually

taken with those originally estimated by it, investigate all important differences and report as to the causes thereof and as to the remedies therefor.

(5) Regularly review PRTs keeping in view manufacturing methods/techniques, machines, tooling, jigs etc.

(6) Separate Production Offices headed by Chief Inspection of Production (CIP) exist in each workshop.

110. The Main Progress Office. The Production Engineer has generally the assistance of an officer who is in direct control of all the manufacturing operations in the workshops and has under him the Main Progress Office, as well as the Shop Progress Offices. The duties of the Main Progress Office are to “route” the work through the different shops on the plans laid down by the Production Engineer, co-ordinate the activities of the manufacturing shops as a whole and on receipt of requisitions from the Stores Officer, issue “orders” for the manufacture of parts. 110 A. Works Manager/Loco Shops. The Works Manager/Loco Shops is Incharge and paymaster of Locomotive Workshops. He is responsible for all repairs to the Locomotives and Rescue Cranes received in this workshop. He is responsible to ensure


CHAPTER I

ORGANIZATION

1.5

the observance of all the provisions of relevant acts such as Factories Act, Payment of Wages Act, Workman Compensation Act, hour of employment rules, and other labour laws. He deals with all the disciplinary cases of staff under his control. He is normally assisted by the following Assistant Works Managers who are responsible to him for different types of repairs, maintenance of Infra structure and administration of Workshops.

a. Assistant Works Manager/Repairs (AWM/R) b. Assistant Works Manager/General (AWM/G) c. Assistant Works Manager/Manufacture (AWM/M)

110 B. Works Manager/Carriage & Wagon. He is responsible for the outturn of Carriage Repair Shops and for the administration of the Shops. The Works Manager/Carriage Shop is Incharge and paymaster of the Carriage & Wagon Workshops. He is responsible for all the repairs to the passenger carriages and other coaching vehicles received in this workshop. He is responsible to ensure the observance of all the provision of relevant Acts such as Factories Act, Payment of Wages Act, Workman Compensation Act, hour of employment and other labour laws. He deals with all the disciplinary cases of staff under his control. He is assisted by the following Assistant Works Managers who are responsible to him for different types of repairs, maintenance of Plants & Machinery and administration of Workshops.

a. Assistant Works Manager/Coaching (AWM/C) b. Assistant Works Manager/General (AWM/G)

110 C. Works Manager/Manufacturing. He is responsible for the outturn of wagon repair shops and for the administration of the shops. He is responsible for the Production of duplicates/spares of Carriages & Freight Wagons of requisite quality in required quantity to follow up for timely supply/availability of raw material for production of spares needed for rolling stock, to ensure periodical and nominated repairs of goods stock according to the targets fixed by Headquarters Office, Lahore from time to time.

He is assisted by Assistant Works Manager/Wagon (AWM/W)

110 D. Works Manager/Construction Shops. This position is meant for executing special repairs or new construction of rolling stock. He is assisted by Assistant Works Manager/Construction.

110 E. Mechanical Engineer Training. He is responsible for training all supervisory and skilled/semi-skilled/unskilled staff and apprentices of the Mechanical Department. Responsible also for allotment of suitable trades to the apprentices in view of their aptitude and arranging refresher courses/lectures to supervisory staff of Loco and Carriage & Wagon Department of the Workshops and Operating Divisions.


CHAPTER I

ORGANIZATION

1.6

110 F. Works Manager Steel Shops. Overall incharge and paymaster of Steel Shops and responsible for Shop production. To ensure the observance of all the provision of relevant Acts such as Factories Act, Payment of Wages Act, Workman Compensation Act, hour of employment and other labour laws. He deals with all the disciplinary cases of staff under his control. Exercises financial control to keep the expenditure within the budget allotment.

He is assisted by Assistant Works Manager/Steel (AWM/Steel) 111. Staff or Employment Officer. There might also exist an Employment or Staff Officer or Labour Warden, one of whose main duties is to attend to all questions regarding staff and workshop labour. He is generally responsible to the respective Works Manager for all matters relating to establishment, such as recruitment, payment of wages and overtime, grant of leave and passes, complaints, disciplinary cases, discharges, payments of provident fund, gratuity & compensations, maintenance of service registers and other such records. 112. Chemist & Metallurgist. A Chemist & Metallurgist is usually attached to the major workshops with a technical laboratory equipped to carry out all the necessary chemical and metallurgical tests. Most of the analytical work required by the railway is carried out by him in addition to his normal duties in connection with the work in the shops to which he is attached. 113. Divisional Accounts Officer/Workshops. Divisional Accounts Officer/Workshops is incharge of all the accounting activities of the workshops. He is responsible for directly reporting to the Deputy Chief Accounts Officer. He is the financial adviser to the Head of the Workshops and is also responsible for rendering him all the assistance and co-operation that may be required by the latter. He is administratively under the control of the Financial Adviser & Chief Accounts Officer. 113A. Workshops Costing Officer. The costing section of workshop’s accounts department is supervised by Assistant Chief Cost Accounts Officer who reports to Deputy Chief Accounts Officer. His primary responsibility is accurate and timely codification of all transactions in line with proper heads of account as per subsidiary coding scheme for workshops costing. He is administratively under the control of the Financial Adviser & Chief Accounts Officer. 113B. Directorate of FIS / MIS / Workshops. The directorate of FIS / MIS of workshops is under the supervision of Deputy Director FIS / MIS who is responsible for smooth running and maintenance of the computerized cost accounting system including input and output reports. He is responsible for reporting to the Deputy Chief Accounts Officer.


CHAPTER I

ORGANIZATION

1.7

114. Workshops Stores Officer. At each workshop, there will be a Stores Officer or subordinate responsible for the custody, replenishment and distribution of workshop stores. He will be directly responsible to the Controller of Stores, but his main duties will be to render the stores service required by the workshops in the most efficient manner possible and to maintain all the necessary initial records for the correct and prompt accountal of all stores transactions. 115. Electrical Engineers. An Electrical Officer is attached to the workshops and his duties include the running of a power house if one exists, the supply and distribution of electrical energy and the efficient maintenance of all electrical plant and machinery in the workshops. 116. Shop Foremen. The workshops themselves are sub divided into “shops”, and “Sub-Shops/Sections”, which are under the supervision of Foremen, who have under them Assistant Foremen, Chargemen and Mistries to assist them in the work of supervision, as well as one or two clerks and/or store issuer(s). 117. Departmentalization of workshops. Shops are either Process Shops, i.e., manufacturing shops or finishing shops. Amongst the Process Shops are the foundries, saw-mills and rolling mills. The term may be extended to include the forges, smithies and bolt & nut shops/Sub-Shops. All the other shops are job shops. 118. It is important that the division of a “Workshop” into its constituent “shops” follows a definite plan that may be eventually standardized for all Pakistan Railways workshops on the lines indicated below. The underlying principle is that the division of a workshop into shops, brings about as complete a departmentalization as possible of the different kinds of work done and of expenditure incurred. Thus a “saw mill”, so called, is often better split up into two shops, i.e., the saw mill proper and a wood machine shop, even though both classes of work are carried out within one shop and supervised by one foreman as a single charge. Each shop i.e. cost centre should be allotted a shop number/cost centre number by which it can be distinguished. Certain “shops” may be sub-divided usefully into “sections” or sub-shops and this should be done wherever possible. 119. The departmentalization of workshops should be carried out generally on the lines indicated below.


CHAPTER I

ORGANIZATION

1.8

Job Shops– Job Shops–(contd.) Machine Pattern. Schedule Office Steel Coach Repair Boiler. Power House Classified Repair Test & Meter Engine Block Spring. Turbo Carriage & Wagon Electric Expresser Loco Electric Erecting. Time Office Electric Fitting. Train Lighting Diesel Project Welding. Heat Treatment. Tool Inspection–Repair or Manufacture. Wagon Repairs. Laboratory. Paint. Machine–Light. Transport Machine–Heavy. Works & Store Section Millwright. Fire Brigade Chief Inspector of Repairs (Diesel) Yard. Rewinding Process Shops– Fire Station Foundries–Brass. Air-Condition & Refrigerator Foundries–Iron. Labour Bureau Foundries–Steel. Electric Furnace Rolling Mill. Fabrication Saw Mill.

120. The “Shop” or “Section” of a shop is the unit not only for purposes of technical control, but also for those of financial and cost control. The number of jobs in progress at any one point of time in any such compact unit is comparatively small and the margin of error in booking to each job the correct time and materials spent on it will be as low as may be achieved in practice. Any method of distributing on-cost attributable to such a unit amongst the jobs undertaken therein would give more reliable results than what would be the case if the distribution were made, either taking the workshop as a whole or as divided up into a few large units.

CHAPTER II

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER II

RECRUITMENT, PAY AND PROMOTION

5

CONTENTS


CLASSIFICATION OF STAFF IN WORKSHOPS

2.1 201

SANCTIONED STRENGTH OF STAFF

2.1 202 — 205

RECRUITMENT OF STAFF

2.2 206 — 207

SELECTION BOARD

2.2 208

EMPLOYEES’ REGISTER

2.2 209

ENGAGEMENT ORDER

2.3 210 — 211

TRADE APPRENTICES

2.3 212 — 213

EMPLOYMENT OF CHILDREN AND WOMEN IN PAKISTAN

RAILWAYS WORKSHOPS

2.4 214 — 215

RE-EMPLOYMENT OF WORKMEN

2.4 216 — 218

MEDICAL EXAMINATION OF WORKSHOP STAFF

2.4 219

PROMOTION OF STAFF

2.4 — 2.5 220 — 221

RATES OF PAY

2.5 222 — 223

ANNUAL INCREMENTS

2.5 — 2.6 224 — 227

SERVICE AGREEMENT 2.6 228 — 232


CHAPTER II


6

CONTENTS


SERVICE RECORDS

2.6 233 — 235

NOTICE OF TERMINATION OF SERVICE 2.7 236


CHAPTER II


2.1

201. Classification of Staff in Workshops. The staff employed in Pakistan Railways workshops other than the clerical staff, may be classified under the following broad categories:

(1) Unskilled labour, (2) Semi-skilled workmen, (3) Skilled workmen, and (4) Subordinate Supervising staff.

This chapter deals with staff included in categories (1) to (3). 202. Sanctioned Strength of Staff. The volume of work carried out in a Pakistan Railways workshop varies within wide limits. In order, therefore; to admit the strength of each shop being capable of contraction or expansion as the volume of work decreases or increases, the number of staff normally required for each shop should be fixed with reference to the minimum requirements of the shop and a temporary addition made to it, for a limited period only, as and when it becomes necessary to do so. 203. The maximum number of staff that may be employed in a shop, under normal conditions, should be fixed by the General Manager under each of the categories (1) to (3) detailed in paragraph 201. Any variation in the number so fixed will require the sanction of the General Manager. Note. if the existing number of staff is in excess of the normal strength so fixed, vacancies arising amongst such staff should not be filled up until the strength fixed for the workshop is reached. 204. The power to sanction the maximum number of staff that may be employed in a shop under normal conditions as also temporary additions to staff to cope with any additional increase in work may be delegated by the General Manager at his discretion, to the Chief Mechanical Engineer. The power to sanction temporary additions to staff may be re-delegated by the Chief Mechanical Engineer to the Works Manager or any lower authority, provided a limit is fixed in numbers and approximate cost of such temporary additions. The temporary additions to staff should be kept closely regulated in accordance with the requirements of the work load. 205. Within the limits prescribed by the General Manager or any lower authority empowered to do so, the detailed distribution of staff under each trade category will be made by the Works Manager. This will be the sanctioned strength of each shop. The Works Manager should communicate to Workshop Accounts Officer any variations made in the strength so fixed.


CHAPTER II


2.2

206. Recruitment of Staff. Foremen should not engage any men on their own authority. They should send their requisitions for extra staff or for staff to fill up the existing vacancies in the sanctioned strength of their shops, in form W.206, to the Works Manager or to such other authority as the Administration might fix.

FORM W. 206

REQUISITION FOR EXTRA STAFF FOR SHOP NO………WORKSHOPS…………..

Serial No.

Designation of staff required.

Number of men

required.

Sanctioned strength with

authority.

Staff on Roll.

Existing vacancies.

Reference to sanction for additional

posts, if any.

………………….. Foreman, Shop No………….

207. No appointment above the sanctioned strength may be made unless and until formal sanction of the competent authority has been obtained. 208. Selection Board. Workmen of all classes should preferably be recruited by a selection board consisting generally of a gazetted officer, a foreman nominated by the Works Manager and the Labour Warden or the staff or Employment Officer, where such an officer exists. The likely candidates should, where necessary, be required to undergo the prescribed trade tests under the supervision of a selected chargeman or foreman, and should not be appointed if they do not come out successful in such tests. 209. Employees’ Register. Each newly appointed workman should be allotted a Ticket Number from the Employees’ register (W.209) kept for the purpose. Each shop should preferably have a different series of ticket numbers, so that a workman is easily identified with the shop to which he is attached.

EMPLOYEES’ REGISTER FORM W. 209 Employee’s Register for…………………………Workshop…………...………………

Seri

al N

o.

Name of Employee

Father’s Name

Des

igna

tion Ticket number

allotted on first

appointment

Date of appointment

Date of

Birth

Initial rate of wages.

Signature of Head-

timekeeper Rem

arks

.


CHAPTER II


2.3

210. Engagement Order. The name, father’s name, ticket number, designation and rate of pay of each newly-appointed man should be shown in an engagement order (W.210). One copy thereof should be sent to the foreman of the shop for which the man is recruited and another to the Head Timekeeper. Similar information should be furnished to the Divisional Accounts Officer through lists of changes.

FORM W.210 ENGAGEMENT ORDER

The under noted persons are employed in the …………………..…..shops from the dates shown against each.

Seri

al N

o.

Name of Employee

Father’s Name

Ticket No.

Designation Rate of initial pay

Grade of appointment

Date from which

appointed Rem

arks

.

…………….. For Works Manager. ……………..Shops.

211. No man should be allowed to commence work, unless and until the Foreman has received a copy of the engagement order in the prescribed form. If a Foreman has any remarks to offer about a new recruit, he should do so in writing within a week of the engagement of the man. 212. Trade Apprentices. The persons selected for skilled categories, unless they are promoted from semi-skilled workmen, who have qualified themselves for the trade for which they are selected, or are already possessed of the necessary training for such trade, should be appointed as apprentices and trained in accordance with the rules contained in Appendix I to this code. 213. Apprentices should not be given any guarantee of appointment on completion of their course. Their number should however; be fixed with regard to anticipated requirements so that it may be possible to provide employment for a reasonable number at the end of their apprenticeship. On the satisfactory conclusion of their course, efforts should be made to provide a suitable opening for them in the appropriate branch of railway service.


CHAPTER II


2.4

214. Employment of Children and Women in Pakistan Railways Workshops. All Pakistan Railways Workshops and large running sheds which come within the definition of “Factory” laid down in the Factories Act, 1934, and which may have been declared by a Notification as such by the Provincial Government concerned are subject to the provisions of that Act. Under that Act no child can be employed in a Workshop, unless he is in possession of a certificate granted by a medical authority showing that he is not less than 14 years of age and that he is fit for the work on which he is to be employed. 215. No woman or no person who has not completed his fourteenth year (child) should be employed in any process or operation in contravention of the provisions of the Factories Act, 1934 or the rules made thereunder. 216. Re-employment of Workmen. It is the duty of a person who was previously employed in a Workshop to make the fact of his previous employment known to the appointing authority. Any person, who obtains re-employment by concealing his antecedents, is liable to dismissal. 217. No person, who was previously employed in a Workshop, should be re-employed in any shop without ascertaining the circumstances in which he left service, the rate of pay he was drawing and whether there is any reason debarring him from re-employment. 218. No workman who has been discharged (otherwise than on reduction of establishment) or has resigned on grounds not considered good and sufficient from the point of view of the Administration, should be re-employed in any Pakistan Railways workshop, except with the express permission of Works Manager. No workman who has been dismissed from service should be re-employed without the previous sanction of the General Manager. 219. Medical Examination of Workshop Staff. No candidate shall be employed in a Workshop unless he produces a medical certificate of physical fitness for such appointment, in accordance with the Rules for Medical Examination prescribed by the Ministry of Railways (Railway Board). 220. Promotion of Staff. Where practicable, trade tests should be held by the Works Manager, or such other officer as may be deputed by him for the purpose, on dates notified from time to time and the workmen offering themselves for the tests with a view to qualifying themselves for promotion to skilled grades or higher posts should be permitted to sit for such tests and the results of the tests recorded on their service cards. Where promotions to any grade are subject to the condition of their being literate, the workmen recommended for promotion should also be suitably examined as regards their literacy.


CHAPTER II


2.5

221. Class promotions of workmen should not merely be given in order of seniority but where all things are equal, such promotions should be made according to seniority. In making promotions, the service cards of the staff concerned and the cards showing their attendance and punishments inflicted on them should be taken into consideration. Promotions from unskilled to semi-skilled grades should be sanctioned by no authority lower than the Works Manager, and those from semi-skilled to skilled grades should be sanctioned by the Chief Mechanical Engineer concerned, or such other lower authority as may be empowered by him. 222. Rates of Pay. Subject to the limitations detailed in Appendix III to the Pakistan Railways General Code, the scales of pay applicable to the staff employed in workshops shall be such as may be prescribed by the General Manager or Chief Mechanical Engineer concerned if he is empowered by the General Manager in this behalf. The scales of pay of workmen should, as far as possible, be regulated according to the following principles:

(1) There should be separate scales of pay for unskilled, semi-skilled and skilled categories;

(2) The rates of pay for the various classes of staff included in each category should be fixed with due regard to the differences in the nature of their duties; and

(3) The rates of pay should be fixed with reference to the local conditions and the wages of corresponding employees in adjacent industrial concerns.

223. Except for piece-work, the wages should be rated by day or by the month of a fixed number of hours, the payment depending upon the actual number of hours worked. 224. Annual Increments. Unless withheld or postponed under the orders of competent authority, increments to the staff concerned should be granted annually on the due dates after approval by the Executive Officer concerned and in compliance with the instructions issued in connection with the Payment of Wages Act. 225. All orders withholding or postponing increments should be recorded, stating the period and the effect, if any, on future increments. The reasons for which the increments are withheld or postponed should also be recorded. These reasons should be communicated to the employee concerned. Where a Staff Officer or Labour Warden exists, the orders withholding or postponing increments should be notified to him by the authority giving the orders. When an increment is withheld or postponed, the fact should be recorded in the service card of the employee concerned.


CHAPTER II


2.6

226. No increment may be stopped or postponed on grounds expressed in general terms such as “drawing his market value”. Any doubt with regard to a workman’s skill must be cleared by the man being subjected to a trade-test. 227. In the case of piece-workers, continued failure to earn “profits” owing to their inability to achieve the standards of speed or skill prescribed by the Pakistan Railways and achieved by others will be sufficient reason for the stoppage and postponement of their annual increments. 228. Service Agreement. All classes of workshop staff should, on their appointment, be required to execute a service agreement. 229. The form in which the service agreement should be executed on appointment shall be such as may be prescribed by the General Manager. 230. A labourer in a workshop, who has completed three years’ continuous service, will be required to execute an agreement in the form prescribed for such staff. 231. An apprentice, receiving training in a workshop, should also be required to execute a service agreement in the form prescribed for subordinates, when he is confirmed in his appointment. 232. All agreements should be stamped, the cost of the stamps being borne by the employees concerned. 233. Service Records. Service records should be maintained for all classes of staff employed in the workshops, in the forms prescribed in Chapter XIX of the Pakistan Railways General Code. 234. Every step in a workman’s official life should be recorded in his service record and each entry relating to the commencement and termination of service and recommendations for gratuity should be attested by a gazetted officer; other entries may be attested by a senior subordinate authorized by the head of the department. The head of the office should see that all entries are duly made and attested and that the record contains no erasure or overwriting, all corrections being neatly made and properly attested. 235. Every period of suspension from employment and every other interruption of service should be noted, with full details of its duration, in an entry made across the page of the service record and duly attested. It is the duty of the attesting officer to see that such entries are promptly made.


CHAPTER II


2.7

236. Notice of Termination of Service. All workmen who have completed three years’ continuous service are entitled to a month’s notice on discharge or a month’s pay in lieu of notice. Conversely, they are liable to give the Pakistan Railways a month’s notice of resignation of their appointments. In respect of workmen who have not completed three years’ continuous service, the following periods of notice shall apply instead of the period of one month: If paid weekly………….…………….…………...Seven days. If paid fortnightly or monthly……………………Fourteen days. Provided that workmen whose services are terminated for misconduct or workmen who are engaged for specific jobs or by way of substitutes shall not be entitled to any notice or pay in lieu thereof.

CHAPTER III

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER III

LEAVE AND OTHER SERVICE CONDITIONS

7

CONTENTS


INTRODUCTORY 3.1 301

LEAVE ADMISSIBLE TO DAILY RATED STAFF 3.1 302

LEAVE WITH PAY 3.1 303

LEAVE WITHOUT PAY 3.2 304 — 306

APPLICATION FOR LEAVE 3.2 307

OVERSTAYAL OF LEAVE 3.2 308

HOLIDAYS WITH PAY 3.2 — 3.3 309 — 311

SPECIAL CASUAL LEAVE 3.3 312

HOSPITAL LEAVE 3.3 313 — 315

TRAVELLING ALLOWANCE 3.4 316 — 317

(318 Deleted)

HOUSING OF WORKSHOP STAFF 3.4 319 — 320

MEDICAL FACILITIES TO WORKSHOP STAFF 3.5 321 — 322

MEDICAL FEES 3.5 323 — 324

FREE DIET IN HOSPITAL 3.5 — 3.6 325 — 326

ANTI-RABIC TREATMENT 3.6 327

EDUCATIONAL ASSISTANCE 3.6 328

STAFF BENEFIT FUND 3.7 329

GENERAL PROVIDENT FUND 3.7 330

(331 — 335 Deleted)


CHAPTER III


8

CONTENTS


COMPENSATION FOR INJURIES OR DEATH 3.7 — 3.9 336 — 346

LABOUR ASSOCIATIONS 3.9 — 3.10 347 — 349

VENTILATION OF GRIEVANCES — STAFF OFFICER 3.11 350 — 351

LABOUR BUREAU 3.11 352 — 355


CHAPTER III


3.1

301. The detailed rules relating to conditions of service are contained in the Pakistan Railways Establishment Code. Certain important rules particularly applicable to workshop staff have, however, been embodied in this chapter.

Leave

302. The leave admissible to labourers and daily-rated staff employed on workshops is regulated by the Revised Leave Rules, 1980 (Appendix XIV of Pakistan Railways code for the Accounts Department) according to which all services rendered by a civil servant qualifies him to earn leave but shall not be earned during the period of leave. 303. Leave with pay. Leave which may be granted on full pay is earned as follows:

(1) A civil servant shall earn leave only on full pay which shall be calculated at the rate of four days for every calendar month of the period of duty rendered and credited to leave account as “Leave on full pay”, duty period of fifteen days or less in a calendar month being ignored and those of more than fifteen days being treated as a full calendar month for the purpose.

(2) If a civil servant proceeds on leave during a calendar month and returns

from it during another calendar month and the period of duty in either month is more than fifteen days, the leave to be credited for both the incomplete months shall be restricted to that admissible for one full calendar month only.

(3) There shall be no maximum limit on the accumulation of such leave.

(4) The maximum period of leave on full pay that may be granted at one time

shall be as follows:

(a) Without medical certificate 120 days (b) With medical certificate 180 days

plus (c) On medical certificate from

Leave account in entire service 365 days (5) (a) Leave on half pay. Leave on full pay may at the option of the civil

servants, be converted into leave on half pay, the debit to the leave account will be at the rate of one day of the former for every two days of the latter, fraction of one half counting as one full day’s leave on full pay.


CHAPTER III


3.2

(b) There shall be no limit on the grant of leave on half pay so long as it is available by conversion in leave account.

(6) Leave shall be applied for, expressed, and sanctioned, in terms of days.

304. Leave without pay. (i) Extraordinary leave without pay may be granted on any ground up to a maximum period of five years at a time, provided that the civil servant to whom such leave is granted has been in continuous service for a period of not less than ten years, and, in case a civil servant has not completed ten years of continuous service, extraordinary leave without pay for a maximum period of two years may be granted at the discretion of the head of his office. Provided that the maximum period of leave shall be reduced by the period of leave on full pay or half pay, if granted in continuation with the extraordinary leave. (ii) Extraordinary leave up to a maximum period prescribed under the sub-rule (i) may be granted, subject to the conditions stated therein, irrespective of the fact whether a civil servant is a permanent or a temporary employee. (iii) Extraordinary leave may be granted retrospectively in lieu of absence without leave.

305. The Works Manager may grant extraordinary leave to a workman in combination with or in continuation of any other leave that is admissible, and to commute, retrospectively, periods of absence without leave into extraordinary leave.

306. Extraordinary leave granted by itself or in combination with or in continuation of other leave will be subject to such limit as may be prescribed by the General Manager.

307. Application for Leave. All applications for leave should be submitted in an approved form through the Foreman or Assistant Foreman concerned.

308. Overstayal of Leave. Wilful absence from duty after the expiry of leave will be regarded as misbehavior and dealt with accordingly.

309. Holidays with Pay. In addition to the leave admissible under the preceding rules, the daily-rated staff employed in workshops may be granted holidays without deduction of pay provided the number of such holidays is not allowed to exceed that in force at present.

Note. (i) A paid holiday falling during a period of leave on full pay under paragraph 303 should be treated as leave on full pay and no extra pay should be given for the paid holiday.

(ii) If a paid holiday falls during a period of leave on half pay under paragraph 303 or on leave without pay under paragraph 304, full pay should be granted for such a holiday.

(iii) Payment in respect of a paid holiday falling within a period of leave without pay should be made to an employee after his return to duty even though a pay day may fall within course of such leave.


CHAPTER III


3.3

310. No pay will be allowed to daily-rated staff for Sundays or other days on which a workshop is closed, except when these happen to be paid holidays. 311. Paid holidays may be combined with other leave which may be admissible. 312. Special Casual Leave. Special casual leave may be granted to a workman, except for Sundays and gazetted holidays on which the shops are generally closed:

(1) to cover the period of his absence from duty due to the presence of an infectious or quarantinable disease in his house hold,

(2) to enable him to undergo anti-rabic treatment,

(3) to enable him to attend railway sports and to cover his absence on account

of court attendance connected with his official duties,

(4) to attend training camps or rallies of scouts or scouting duties, under instructions from scouting authorities, provided that this is done without detriment to their railway duties, and

(5) to enable him to undergo medical tests for purposes of blood transfusion.

313. Hospital leave. Hospital leave may be granted to a Workshop employee while under medical treatment for injuries sustained on duty, on leave salary equal to full pay or half pay as the authority granting it may consider necessary. 314. The grant of hospital leave upto a maximum of two years in each case is within the competence of General Manager of Pakistan Railways to sanction. The General Manager may delegate his power to a gazetted officer under him, subject to such conditions as he may deem fit to prescribe. 315. The amount of leave salary payable during hospital leave shall be reduced by the amount of compensation payable under Section 4(1) D of the Workmen’s Compensation Act, 1923. When a disablement, regarded at first as temporary, proves to be a permanent disablement and compensation becomes payable under clause B or C of Section 4(1) of the Act, the hospital leave-salary should be restored to the full amount admissible.


CHAPTER III


3.4

Allowances

316. Travelling Allowance. When a workman, whether monthly rated or daily rated, makes a journey by railway on duty, he will be entitled to a free pass under the pass rules applicable to him and, if he travels to or from a place distant more than 16 Kilometers from his headquarters and his absence from headquarters exceeds one night, also to a daily allowance for the night according to the scale prescribed by the Finance Division (Regulation Wing) as shown below, provided that an absence which does not exceed 24 hours will be reckoned as one day at whatever hour it begins or ends.

BPS Ordinary Rate Per Day. Rupees

Special Rate Per Day. Rupees

1 — 4 125 200 5 — 11 155 220

12 — 16 280 365 17 — 18 500 640 19 — 20 625 825 21 - 22 700 1,000

316A. Daily allowance will be admissible only for the actual night(s) at the out-station for which Daily Allowance is claimed. Where night stop is not involved and if absence from headquarters exceeds four hours half daily allowance will be allowed.

317. For a journey on transfer, a workman will be granted traveling allowances as for a journey on duty and, in addition, will be allowed free passes for his family and for the transportation of his personal effects at the prescribed scale. 318. Deleted.

Housing of Workshop Staff

319. No workshop employee will have any claim to be provided with quarters by the railway, whether free or on payment of rent. Railway quarters, when available, may be provided to such staff, in which case rent shall be charged for all quarters in accordance with paragraphs 1908 to 1927 of the Pakistan Railways Code for the Engineering Department.

320. An employee who is on strike or has been removed or dismissed from service must vacate the quarter allotted to him on the date on which he ceases work or is removed or dismissed, unless his continued occupancy is, for legitimate reasons and for a limited period, permitted by the Works Manager. Any employee who refuses to surrender the quarter shall be liable to eviction in accordance with the provisions of Section 138 of the Railways Act, 1890.


CHAPTER III


3.5

Medical Assistance

321. All Workshop staff and their families will be entitled to free medical attendance, when seeking it, at the railway hospital or dispensary, as out-door patients, and also, to the extent of the accommodation available, as indoor patients. 322. Such staff will be entitled to necessary medical attendance from medical officers appointed for the purpose for themselves, when necessary, at their residences. This concession will also be admissible to the families of those drawing less than Rupees 10,000 per mensem. 323. Medical Fees. Persons drawing Rupees 7,000 or more per mensem will be liable to pay fees to railway doctors for attendance on their families at their residences at the following scale. Staff Drawing Rupees 7,000 or more but less than Rupees 10,000 will pay according to scale B and those drawing Rupees 10,000 or more will pay according to scale A.

Scale A

Per visit

Rupees

Scale B

Per visit

Rupees

Divisional Medical Officers 300 250

Assistant Medical Officers 200 150

Nursing Staff 150 100

324. When a railway doctor is called upon to attend the wife of an employee in her confinement, the employee will be liable to pay fee at the following scale:

Divisional Medical Officer 10 per cent of the monthly pay of the employee

subject to a maximum limit of Rupees 1,000

Assistant Medical Officer 5 per cent of the monthly pay of the employee

subject to a maximum limit of Rupees 500

The above fees for accouchment include visits for 10 days after a confinement. 325. Free Diet in Hospital. For the period during which an employee is undergoing treatment at a railway hospital, free diet may be allowed to him at the discretion of the General Manager concerned provided that;


CHAPTER III


3.6

(1) the pay or leave salary of the employee does not exceed Rupees 10,000 per mensem, or

(2) if the employee is on leave without pay, his substantive pay does not

exceed Rupees 10,000 per mensem. 326. In deserving and necessitous cases, and where no other suitable treatment is available from public sources, the General Manger concerned may at his discretion allow free medical treatment with free diet to continue in a railway hospital upto a maximum period of one year, after an employee, who was injured in the course of his duty, is declared permanently unfit and discharged from service. 327. Anti-rabic Treatment. The concessions to which the workshop employees are entitled for anti-rabic treatment at an Institute of Public Health or at a Civil Hospital, generally consist of:

(1) free transit to employees whose substantive pay does not exceed Rupees 10,000 a month;

(2) free treatment at the institute if the substantive pay of the employee does not

exceed Rupees 10,000; otherwise on payment of a fee in accordance with the Regulations of the Provincial Government;

(3) one month’s special casual leave;

(4) advance of one month’s substantive pay;

(5) in the case of an employee drawing not more than Rupees 10,000 per

mensem, a maintenance allowance during treatment as well as during the journey to and from the Institute of Public Health or a Civil Hospital at the rate of daily allowance prescribed for his grade; and

(6) in deserving cases, travelling and daily allowances for an attendant at the

rate sanctioned for the patient.

Educational Assistance

328. When staff employed in workshops are compelled to send their children to a boarding school away from the station at which they are posted, owing to the absence of a school of the requisite standard at such station, they will be eligible for financial assistance from railway revenues for the education of their children.


CHAPTER III


3.7

The Staff Benefit Fund

329. The staff employed in Pakistan Railways workshops may be granted assistance from the Staff Benefit Fund, at the discretion of the managing committee of the Fund for the following purposes:

(1) education of the staff and their children, when they are not eligible for educational assistance from Pakistan Railways revenues under the preceding paragraph;

(2) recreation and amusement for the staff and their children;

(3) relief of distress amongst the members or ex-members of the staff or their

families not provided for under the regulations in force on the railway;

(4) schemes for sickness or maternity benefits to the families of the staff.

General Provident Fund

330. General Provident Fund. All eligible government servants in permanent pensionable and non-pensionable service and those temporary or officiating Government servants who have two years continuous temporary and/or officiating service shall join the Fund as compulsory subscribers. 331. Deleted. 332. Deleted. 333. Deleted 334. Deleted. 335. Deleted.

Compensation for Injuries or Death

336. When a workman is injured or dies as a result of an accident arising out of and in the course of his employment, he or his dependant will be entitled to compensation in accordance with the provisions of the Workmen’s Compensation Act, 1923.


CHAPTER III


3.8

337. Except as otherwise provided in the Workmen’s Compensation Act, 1923, a person who is employed in a clerical capacity, or who is not employed on manual labour, will not be eligible for the benefits admissible under the Act. 338. A notice register should be maintained in each workshop in the form prescribed under the Workmen’s Compensation Rule which should be readily accessible at all reasonable times to any injured workman employed in the shop and to any person acting bona fide on his behalf. 339. As soon as practicable after a workman has been injured, an entry should be made by him or any other person acting bona fide on his behalf in the notice register maintained at the shop. 340. The notice of the accident can also be served by delivering it at, or sending it by registered post addressed to, the residence or office of the Foreman or the Works Manager. 341. When a notice of the death of a workman is received, the Works Manager should furnish the Divisional Medical Officer (DMO) and Divisional Superintendent a statement in the form prescribed under the Workmen’s Compensation Rules showing the circumstances attending the death of the workman, and indicating whether, in his opinion he is or is not liable to deposit compensation on account of the death. If the Works Manager is of opinion that he is liable to deposit compensation, he should make the deposit within thirty days of the service of the notice. 342. The following documents should in this case be sent to the Accounts Officer, to enable him to verify the amount payable under the Act and to pass it for payment:

(1) Accident Report. (2) Finding Report. (3) Medical Report. (4) Police Report. (5) Statement of the allowances, etc., with a certificate on it that the period

taken for the purpose of calculating “assumed wages” is continuous. (6) Statement of leave taken during the last 12 months preceding the

accident. 343. Where in any particular instance the Workmen’s Compensation Act does not apply or where it is considered that the compensation payable under the Act is inadequate, a compensation gratuity may be awarded by a General Manager up to a maximum limit of Rupees 200,000.


CHAPTER III


3.9

(1) to a railway servant who is severely injured, or to the family of a railway servant who is killed or dies of injuries received, in the execution of his official duties, and

(2) to a railway servant who contracts a serious disease in the execution of his official duties or to the family of a railway servant who dies from the effects of such a disease.

344. In the case of persons to whom the Workmen’s Compensation Act 1923 applies, the compensation paid under paragraph 343 above shall not, inclusive of the compensation payable under the Act, exceed the maximum amount admissible under that paragraph. 345. An injured railway servant may be provided with an artificial limb at the cost of railway revenues provided the total amount of compensation payable in respect of such railway servant including the compensation payable under the Workmen’s Compensation Act 1923 and the cost of the artificial limb, does not exceed the maximum amount admissible under paragraph 343. 346. In respect of accidents which happen to railway servants in tracts to which the Workmen’s Compensation Act has not yet been made applicable, a General Manager may make ex gratia the payment of an amount not exceeding that which would have been statutorily payable under the Act if the accident had occurred in Pakistan.

Labour Associations

347. Recognition will not ordinarily be granted or continued to any association, representing, or purporting to represent, servants of the State, unless it complies with the following condition:

(1) it must consist of a distinct class of Government employees; (2) all Government employees of the same class must be eligible for

membership; (3) it must be registered under the Industrial Relations Ordinance, 2002; and (4) it must not maintain a political fund except with the general or special

sanction of Government and subject to such conditions as Government may impose.

348. The officer empowered to grant leave will, as far as possible, grant casual leave or, if this is not permissible, leave without pay to an employee who is a representative of a recognized association to attend duly constituted meetings of the association. The grant of such leave will be subject to the exigencies of service, of which the officer in question shall be the sole judge.


CHAPTER III


3.10

349. The following are the conditions precedent to the recognition of a Union by a railway administration.

(1) That the Union is registered under the Industrial Relations Ordinance, 2002.

(2) That the Union agree that all representations from them must be through the Central Executive Committee to the General Manager and representations from branches of the Union must also be made only through the Central Executive Committee. It will, however, be open to the Railway Administration by agreement to the Union to arrange for matters relating exclusively to one department to be referred direct to the head of the department and for matters of purely local interest to be referred by a branch of the Union to a Divisional Officer for discussion.

(3) That the Union agree that leave, passes, and privilege ticket orders admissible under the rules to an employee will be allowed to him for attending meetings or conducting the affairs of the Union, at the convenience of the Administration. Special passes and special leave will be allowed to members of any delegation called to interview the head of the Administration, the casual leave and passes in the latter case not counting against the annual casual leave and privilege passes admissible to the employee under the rules.

(4) That the rules of the Union, subject to such modifications as may be mutually agreed between the Administration and the Union, shall be as follows:

(i) The name of the Trade Union is ………….referred to as the Union. (ii) The headquarters of the Union are at……………….. (iii) The objects of the Union are as defined in or permissible under the

Industrial Relations Ordinance, 2002. (iv) The supreme government of the Union vests in the general body of

the members of the Union and is to be exercised in the manner hereinafter prescribed.

(v) The general body of the members of the Union shall comprise:

(a) The annual general meeting. (b) Any other general meeting convened and constituted in the

manner prescribed for the annual general meeting. Note.- Where it is not practicable to arrange for a general meeting to be convened for the discussion and disposal of any definite issue, the point may be referred to all the members of the Union for balloting in the manner hereinafter prescribed. Any question relating to the withdrawal of labour must invariably be submitted for balloting.


CHAPTER III


3.11

Ventilation of Grievances

350. Staff Officer. The grievances of the staff which are of a general nature and involve questions of principle are, as a rule, brought to the notice of the administration through the Staff or Welfare Committees. With a view, however, to afford the staff concerned the facility to represent their individual grievances without restraint or formality, a Staff Officer (also designated Labour Warden, Personnel Officer or Liaison Officer) is employed by Pakistan Railways administration. His duties will be inter alia,

i. to visit the Workshops every day and personally interview each workman who has any grievance to represent;

ii. to investigate such grievances; and iii. to obtain redress for the grievances, from competent authority.

Where no Staff Officer exists, his duties devolve on the Works Manager.

351. It will also be the duty of the Staff Officer to utilize his interviews with the staff to impress upon them the necessity of co-operating with the administration and of regular attendance both in their interests and those of the railway.

352. Labour Bureau. A labour bureau should be under the direction of the Personnel Officer.

353. The main function of the bureau will be to explain the point of view of the administration to the employees and represent the difficulties of the employees to the administration.

354. All workmen will have free access to the bureau to present their representations or to make inquiries in regard to their personal matters. It shall be the duty of the bureau to attend to all inquiries with as much promptitude as possible and to submit, after due investigation, all representations to the competent authority for its orders.

355. The bureau may, at the discretion of the administration, be also assigned other functions, e.g.

(i) to ensure that the rules framed by the administration for the recruitment of workmen employed in the shops are strictly adhered to;

(ii) to maintain records of service of all staff, including Foremen, and to attest

entries in service records and leave accounts of the staff;

(iii) to prepare compensation papers and to sanction such compensation as may be clearly admissible under the rules.


CHAPTER III


3.12

(iv) to sanction increments to the staff, as they fall due unless withheld or postponed under orders of competent authority;

(v) to have skilled and semi-skilled workmen testing according to prescribed

tests, and graded according to the results of the tests for their promotions;

(vi) to take necessary action on the leave applications of the staff;

(vii) to ensure compliance with the Payment of Wages Act and to ensure prompt payment of other dues of the staff which are not covered by the Act;

(viii) to investigate into all complaints and to bring to the notice of the higher

authorities all cases requiring executive actions;

(ix) to ensure compliance with the Factories Act, 1934 and Rules so far as employment of labour is concerned;

(x) to investigate into cases of loss of time, incapacity and sickness;

(xi) to inculcate a high standard of discipline, and esprit de corps both on and

off duty;

(xii) to encourage employees to keep out of debt;

(xiii) to provide suitable means of recreation outside working hours; and

(xiv) to deal with accident reports.

CHAPTER IV

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER IV

ATTENDANCE IN WORKSHOPS

CONTENTS


9

HOURS OF WORK 4.1 — 4.2 401 — 409

THE TIME OFFICE 4.2 410 — 414

OPENING AND CLOSING OF WORKSHOP GATE 4.2 — 4.3 415 — 416

LATE ATTENDANCE 4.3 417

WORK DURING MEAL HOUR AND ON SUNDAY 4.3 418

ATTENDANCE OF SUPERVISORY STAFF 4.3 419

WORKING HOURS OF SHOP CLERKS 4.3 420

WORKMEN’S ATTENDANCE–METAL TICKETS 4.3 — 4.4 421 — 425

TIME CLOCKS 4.4 426

WORKMEN’S ATTENDANCE–CLOCK CARDS 4.4 — 4.5 427 — 432

LEAVING SHOPS DURING WORKING HOURS 4.5 — 4.6 433 — 439

MATERIAL GATE PASSES 4.6 440 — 441

TIME OFFICE ABSENTEE LIST 4.7 — 4.8 442 — 446

SHOP ABSENTEE LISTS 4.8 447

CHECK OF ABSENTEE LISTS 4.8 448

REGISTER OF ABSENTEES 4.9 449

NIGHT SHIFTS 4.9 — 4.10 450 — 451


CHAPTER IV


CONTENTS


10

TICKETS LEFT ON SHOP BOARDS 4.10 452

OVERTIME REQUISITION 4.10 — 4.11 453 — 455

OVERTIME TICKET BOARDS AND BOXES 4.11 456 — 458

OVERTIME ALLOWANCE 4.11 — 4.12 459 — 460

(461 Deleted)

TIME SHEETS 4.12 — 4.13 461A — 463

(462 Deleted)

SUMMARY OF TIME SHEETS 4.14 464A — 464

(465 — 470 Deleted)


CHAPTER IV


4. 1

401. Hours of Work. The hours of work in Pakistan Railways Workshops, which come within the definition of "Factories" given in the Factories Act, 1934, or have been declared to be "Factories" under that Act, are regulated by the provisions of Sections 34 to 38 of that Act. For convenience of reference, some of the more important limitations provided in the said section of the Act are stated in paragraphs 402 to 408. 402. No adult worker shall be required or allowed to work in a factory for more than forty-eight hours in any week, provided that when he is engaged in work which for technical reasons must be continuous throughout the day he may work for fifty-four hours in any week. 403. No adult worker shall be required or allowed to work in factory on a Sunday unless he has had or will have a holiday for a whole day on one of the three days immediately before or after that Sunday. 404. Where any worker works on a Sunday and has had a holiday on one of the three days immediately before it, that Sunday shall, for the purpose of calculating his weekly hours of work be included in the preceding week. 405. No adult worker shall be allowed to work in a factory for more than nine hours in any day. 406. The periods of work of adult workers in a factory during each day shall be fixed either:

(a) so that no period shall exceed six hours, and so that no worker shall work for more than six hours before he has had an interval for rest of at least one hour; or

(b) so that no period shall exceed five hours and so that no worker shall work for more than five hours before he has had an interval for rest of at least half an hour, or for more than eight and a half hours before he has had at least two such intervals.

407. The periods of work of an adult worker in a factory shall be so arranged that inclusive of his intervals for rest they shall not spread over more than ten and a half hours in any day. 408. If it is considered absolutely necessary by a Works Manager to allow exemption to certain staff from the operation of the above conditions on occasions, the sanction of Government should be obtained through the General Manager before exemption is actually given effect to.


CHAPTER IV


4. 2

409. The normal working hours of labour in Pakistan Railways workshops are eight and a half hours on week-days and five and a half hours on Saturday making a total working week of 48 hours equivalent to an 8-hour day. Any departure from an 8-hour day involving payment of a day's wages for less than 8 hours’ work requires the specific sanction of the Ministry of Railways (Railway Board) but the actual working hours and their distribution between the days of the week may be altered in accordance with local requirements, subject to the limitations stated in paragraph 401. 410. The Time Office. The ‘Time Office’ is responsible for maintaining the initial records of attendance, which are also eventually the records of payment. It is generally under the control of a senior subordinate designated “The Head Timekeeper” and the most satisfactory arrangement is for him to work under the Administrative control of the local Works Manager/Assistant Works Manager, and be responsible to him for seeing that all differences between his records (the Gate Passes, Absentee Lists, etc.) and the initial records of Shops (Absentee Lists, time sheets, etc.) are brought to the notice of Workshop Accounts Officer and set right so that Payrolls are ready in time for check before payment on the prescribed dates. 411. Provision should be made for an independent reconciliation in the Accounts Office between the initial records of the Time Office and those of the Shops. 412. By the adoption of the procedure under which attendance is recorded not at the ‘gate’ but in the ‘shops’ with the help of automatic time-recorders, a great deal of the clerical labour involved in the daily reconciliation between the attendance at the gate and in the shops would be saved and the work of the Time Office would be more efficiently coordinated with the work of the Accounts Office, than would be the case otherwise. 413. The Head Timekeeper is responsible for seeing that all the rules and regulations issued by the Works Manager for the opening and closing of the gates are strictly complied with. He should have the assistance of the Railway Police staff for the purposes of enforcing these orders, if necessary. 414. The procedure indicated in paragraphs 415 to 460 should be taken as a guide in formulating the local rules to be allowed in Pakistan Railways workshops. 415. Opening and Closing of Workshop Gate.

(1) Half an hour before work commences in the morning, the workshop whistle should be sounded and the gates and ticket offices should be opened. Five minutes before starting time the whistle should be sounded


CHAPTER IV


4. 3

again for two short periods. One minute before starting time, the final whistle should sound and immediately it stops, the gates should be closed and no more tickets issued. After an interval of 20 minutes the gates should be opened again for 5 minutes only to admit late comers, see paragraph 417.

(2) The whistle should sound when work ceases at the meal hour, and again

a quarter of an hour before work recommences. Five minutes before starting time the whistle should be sounded again for two short periods. The final whistle should be sounded at starting time and immediately it stops, the gates and ticket offices should be closed. The whistle should be sounded at closing time also.

416. All workmen should ordinarily be outside the shop gates within 15 minutes after the whistle sounds for the meal hour recess, and should not be re-admitted until the next whistle sounds a quarter of an hour before work recommences after the recess. 417. Late Attendance. Workmen coming late by half an hour or less, 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 for the second period should not be admitted. 418. Work during meal hour and on Sunday. For technical reasons, a few of the staff, such as Furnacemen, Forgemen, Steam Hammermen, Cupolamen, and men in charge of boilers may, with the sanction of the Government under paragraph 408, be required to work during the meal interval. Similarly, Millwrights, Crane Drivers, Boiler Firemen and Boiler Makers may be required to work during the meal hour and on Sundays, when engaged on work of repairs to plant and equipment. The Head Timekeeper should maintain a register of the men so employed.

419. Attendance of Supervisory Staff. Foremen (including Assistant Foremen) and Chargemen should be in their respective shops at least five minutes before the final whistle sounds.

420. Working Hours of Shop Clerks. Shop clerks should work to workshop hours.

421. Workmen’s Attendance—Metal Tickets. Every workman will be allotted a numbered metal ticket. He should bear this number in his service card and in the time sheet (W.461A) and salary bill. 422. Tickets should not be issued earlier than 15 minutes previous to work commencing at each period and must be returned within 15 minutes after work closes.


CHAPTER IV


4. 4

423. Each workman should take his ticket at the Time Office as he enters the gate and return it when leaving. A man neglecting to do so when entering shops, or failing to return it at the time of leaving, should be marked absent and forfeit pay for the period absent. 424. A man may not hand in another man’s ticket. 425. Before commencing work, workmen should place their tickets on the shop ticket boards. It is one of the more important responsibilities of Foremen and Assistant Foremen to see that the men place their tickets on the shop boards before works starts for each period of the day, that the shop boards are locked up punctually after the time-whistle for each period, and that all late-comers are listed up and lose half-an-hour’s pay. They will be assisted in this work by the Time Clerks, one of whom will be allotted to each shop. 426. Time Clocks. If time clocks are provided for use by staff other than those who use metal tickets, the clock cards should be punched by such staff both when entering and when leaving the shops. 427. Workmen’s Attendance-Clock Cards. The procedure laid down in paragraphs 421 to 426 may be altered as described below, where it is found practicable to do so. 428. The workmen’s metal tickets, if already in use, should be used as identification discs enabling the workmen to enter the workshop precincts. 429. The attendance for each period of the day worked should generally be recorded in the shops in which the men work (and not at the gate) with the aid of automatic time-recording clocks where provided on attendance cards, the particulars of ticket number, workman’s name, pay, etc., on which have been printed by an addressing machine. A suitable colour scheme should be used for these cards to distinguish between cooly labour, piece workers, and day workers. 430. For purpose of reckoning time, only the stampings of the time-recording clock should be recognized. Erasures of entries from cards or overwriting thereon should not be permitted. 431. The time clerk attached to each shop should see that each workman clocks only one attendance card and that at any time the number of workmen actually at work in the shop agrees with the number of attendance cards punched and placed in the “IN” rack. This work should be closely scrutinized by a Chargemen or other responsible subordinate.


CHAPTER IV


4. 5

432. Racks containing the attendance cards should be locked up a few minutes after starting time and should not be opened, till a few minutes before closing time. 433. Leaving Shops during Working Hours. All staff, other than Foremen, requiring to leave the workshops during working hours for any reason whatsoever, should be in possession of a gate pass (W.433)/MOD-16 which should be given up at the gate.

FORM W. 433

GATE PASS No._______ TKP’S COPY (GREEN) COST CENTER No. _______________ NAME ______________________________________

EMPLOYEE NUMBERS

CHECK ONE REASON ACCOUNT W.O. OR PROJECT NUMBER

PRIVATE HOSPITAL OFFICIAL

APPROVED

TIME

DATE BY

P.R.9.5.2 MOD-16

Note: The Gate Passes should be prepared in duplicate and duplicate copy retained as block copy.

434. A workman wishing to leave the shop during working hours should also give up his ticket at the gate or punch his attendance card ‘out’ in the ‘shop’. 435. Gate passes for private purposes may be issued for not less than one hour, subject to the provision that re-entry into works is made not later than two hours before closing time in any one period. This condition does not apply to staff going out for prayers.

436. Gate passes should be given to men attending Pakistan Railways dispensaries as out-door patients. When, however, they are advised by a railway medical officer to go to other medical hospitals, such as a dental hospital, they should return to the workshops and apply for leave to do so.


CHAPTER IV


4. 6

437. If men leave the shops to go to the hospital for treatment and are detained for more than half an hour, they should be paid for the time, provided the medical officer in charge of the dispensary certifies that they were unavoidably detained; otherwise, their time should be cut.

438. If a man enters the shops merely for the purpose of taking leave, he should not be paid for the time taken to do so.

439. Gate passes issued to persons injured on duty should show the time at which they met with the accident and bear the remark “hurt on duty”.

440. Material Gate Passes. When material is required to be sent out of the shops, a gate pass (W.440)/ Genl. 16-B1358 (W) 440) should be issued, containing a complete list of the material passing out.

ANNEXURE-B FORM W. 440 Genl. 16-B1358 (W) 440

PAKISTAN RAILWAYS ANNEXURE B

Genl. 16-B1353 (W)1440

Material Gate Pass (Not returnable, returnable) Book No.______________________ Gate Pass No.________________Dated_________ ______________________Section/Shop_____________________Department/Branch. Pass the following men with material noted belonging to _____________ vide * issue Note/Work Order/Voucher No._______________________

NAME/T.No. NOMENCLATURE AND QUANTITY OF MATERIAL

Countersinged by_____________________ Signature _______________________ Designation _________________________ Designation _____________________ (Stamp) (Stamp)

Date and time returned __________ Initial of A.L.W.D/S.L.W.D ______ Material received/acknowledged by

Time left ___________ ____________ Signature _______________________ Initial of A.L.W.D./S.L.W.D._________ (Stamp)

Date and Time ______________ NOTE.- *Strike out what is not applicable P.R…………….

The Gate Passes should be prepared in duplicate and duplicate copy retained as block copy.

441. Material gate passes may be issued by Foremen or Chargemen in independent charge of shops. Such gate passes should be collected at the gate by the Railway Police. Railway Police should see that tools and material in excess of those authorized by the pass do not go out of shops. The collected material gate passes should be sent to the Workshop Accounts Office by the Railway Police.


CHAPTER IV


4. 7

442. Time Office Absentee List. When attendance is recorded at the gate and not in the shops, the Time Office should prepare daily a list (W.442) showing all absentees during the two working periods, stating whether the men are absent, on leave, absent without leave, or absent on medical certificate and submit the list to the Head Timekeeper.

FORM W. 442

ABSENTEE LIST OF SHOP No……………ON……………..20…….

Period absent. Ticket No. Name.

1st Period. 2nd Period.

Cause of

absence. Remarks.

CAUSES OF ABSENCE

A.–Absent without intimation. L.H.P.–Leave on Half Pay.

S.–Sick Leave. L.W.P.–Leave without Pay.

C.L.–Casual Leave. R.–Rest under the Factory Act.

L.F.P.–Leave on Full Pay. H.L.–Hospital Leave.

S.C.L.–Special Casual Leave.

443. A railway doctor's certificate should be produced in all cases of absence on account of sickness, but in cases of men living at inconvenient distances from a railway doctor, a certificate from a recognized medical practitioner may be accepted, provided, that in the case of subordinate staff, it is countersigned by a railway doctor.

444. Any workman absenting himself without leave or medical certificate will be liable to punishment. If the period of absence without leave or medical certificate extends over six consecutive days, the absentee should be struck off the rolls automatically and treated as absconded.

445. The following procedure should be followed in dealing with men absenting themselves:

(1) In the case of men absenting themselves for one day, the Head Timekeeper / Shop foreman may allow them to take their tickets / punch their cards and resume work. If, however, the Foremen concerned are not satisfied with the explanations given by the men for their absence without previous sanction of leave, they should recommend such men for suitable punishment to the Works Manager.


CHAPTER IV


4. 8

(2) In the case of men absenting themselves for two or three days, such men should report themselves to the Labour Warden or Employment Officer or other authority detailed for the purpose, who should examine each case and decide whether the men concerned are to be given their tickets. If in his opinion, the tickets should not be issued without disciplinary action being taken against the men concerned, he should report the matter to the Works Manager.

(3) In the case of men absenting themselves for over three days but not more than six days, the Assistant Works Manager concerned should examine each case and decide whether the workmen are to be allowed to resume work. When he considers that they should not be so allowed, he should refer the matter to the Works Manager for orders.

(4) In the case of men absenting themselves for over six days, the Works Manager should personally examine each case and decide whether the workmen concerned should be given their tickets.

446. Time Office Absentee Lists should be prepared in carbon duplicate by the time clerks in the Time Office for each shop twice a day, one for each period. The carbon copy should be submitted direct to the Head Timekeeper within an hour of the opening of the shops for each period, the original copy being used for posting the Time Sheets.

447. Shop Absentee Lists. Shop Absentee Lists (W. 447) should be prepared in carbon duplicate, by the shop clerks, twice a day in a form identical with that prescribed for Time Office Absentee Lists (see paragraph 442). The information for preparing these absentee lists should be obtained from the shop Ticket Boards, Time Book (W.701) and Leave Sanctions. One copy of the absentee List, after being scrutinized and signed by the Foreman or Chargeman concerned, should be submitted to the Head Timekeeper once in the forenoon and once again in the afternoon within two hours of the opening of the shops for each period.

448. Check of Absentee Lists. The Head Timekeeper should compare the Shop Absentee Lists received from the shops with the Time Office Absentee Lists, shop by shop, investigate all differences and irregularities and bring them to the notice of the Works Manager / Assistant Works Manager concerned. No alteration should be made in the Time Office Absentee List or in the Time sheets without the written orders of the Works Manager / Assistant Works Manager concerned, which should be given on the face of the Time Office Absentee Lists. The absentee lists should be filed carefully in support of the alterations, if found necessary, in the Time sheets.


CHAPTER IV


4. 9

449. Register of Absentees. When attendance is recorded on time-clocks in shops, as provided in paragraphs 427 to 432, the absentee lists should be prepared in the shops. These should be prepared within an hour of starting time both in the morning and in the afternoon, countersigned by the Chargemen in token of their check and acceptance and sent immediately to the Time Office. From these lists, the timekeepers should post a “Register of Absentees”, showing the nature of the absence and the references to sanctions regarding leave, etc., if any, and should prepare therefrom a monthly absentee list for each “shop” in Form W. 449, to be attached to the labour pay sheets. The “Register of Absentees” should be treated as an important initial record from which service records may be posted.

FORM W. 449

MONTHLY ABSENTEE LIST OF SHOP No……………….FOR THE MONTH OF 20…………..

Dates Ticket No. Name.

Father’s

Name. Designation.

1st to 31st.

Total No. of

days of

absence.

Remarks.

CAUSES OF ABSENCE

A.–Absent without intimation. L.H.P.–Leave on Half Pay.

L.F.P.–Leave on Full Pay. S.C.L.–Special Casual Leave.

S.–Sick Leave. H.L.–Hospital Leave.

L.W.P.–Leave without Pay. R.–Rest under the Factory Act.

C.L.–Casual Leave.

450. Night Shifts. (1) When it is found necessary to work night shifts, the Foremen should submit applications to the Works Manager in Form W. 453, for sanction to such working. These applications should be made out in triplicate, two copies being sent to the Works Manager who will, after sanction, return one copy to the shops and send the other copy to the Time Office. (2) When a workman works on a shift which extends over midnight, the ensuing day for him shall be deemed to be the period of twenty-four hours beginning when such shift ends, and the hours he has worked after midnight shall be counted towards the


CHAPTER IV


4. 10

previous day, unless, in the case of any railway workshop, the Government has agreed under Section 46 of the Factories Act that the ensuing day shall be deemed to be the period of twenty-four hours beginning when such shift begins and that the hours worked before midnight shall be counted towards the ensuing day. 451. Where the system of registering the attendance at the gate is in force, absentee lists for night shifts should be prepared in the same manner as for the day shifts, both by the shops and by the Time Office, and the same procedure as for day work should be adopted, mutatis mutandis, for ensuring that the attendance has been correctly marked both at the gate and in the shops. The total night shift should however be considered as if it constituted one period only. Where attendance is marked in the shops, the Railway Police at the gate may permit only such men to enter and leave the shop as have been marked for night shifts. 452. Tickets Left on Shop Boards. A daily return should be sent by shops to the Time Office showing the numbers of the tickets left behind on the boards at the close of the first and of the second periods each day, and the irregularity taken up with the staff concerned. 453. Overtime Requisition. Except in very exceptional and urgent cases, no overtime should be worked in shops without the prior sanction of the Works Manager, which should be obtained by the Foreman by the submission of an Overtime Requisition (FORM W.453)/(MOD-15) in duplicate, one copy being sent to the Time Office and the other to the Accounts Office. This will show the Ticket Nos. of the men required, the Chargeman under whom they would work, and the reason for overtime working.

FORM W.453

OVERTIME REQUISITION

COST CENTRE PREPARED BY DATE REQUIRED

NUMBER NAME

EMPLOYEES REQUIRED HOURS REQUIRED NUMBERS NAME DESIGNATION FROM TO TOTAL

A/C. W.O. OR

PROJECT NUMBER

NATURE OF WORK REASON FOR OVERTIME

REQUESTED BY ________________________ _______ COST CENTRE SUPERVISOR DATE

APPROVED ________________ __________ WORKS MANAGER DATE

ACCOUNTING CENTRE USE COPY _______________________ CHECKED BY

P.R - MOD-15.


CHAPTER IV


4. 11

454. Overtime worked in one week should not be counted against “short” time worked in another. 455. No overtime should ordinarily be worked in shops unless under the supervision of a Chargeman. 456. Overtime Ticket Boards and Boxes. Men working overtime should remove their tickets from their original ticket boards and hang them on Overtime Boards specially meant for this purpose. These boards should preferably be distinguished from the usual shop boards by being painted red. Chargemen and time clerks should check these overtime boards and make the necessary entries directly into the respective time sheets. 457. Men leaving work during overtime duty should hand in their tickets at the gate to the Railway Police who should note the time the men left work, and inform the Head Timekeeper. On leaving the workshops after working overtime, the workmen should deposit their tickets in a special overtime box to be kept in the Time Office. The tickets in the overtime box should be listed in proper order and this list should be compared by the Head Timekeeper with the daily return of overtime worked, submitted by the shops. All irregularities should be investigated by the Head Timekeeper and brought to the notice of the Works Manager/Assistant Works Manager concerned. 458. Where clock cards are being used, a special overtime card of a distinctive colour should be punched simultaneously with the punching “OUT” of the day card, in order to record the overtime worked. 459. Overtime Allowance. The following are amongst the more important provisions of Section 47 of the Factories Act, 1934, in regard to the grant of overtime allowance:

(1) Where a worker in any factory works for more than forty-eight hours in any week, or where a worker in a factory other than a seasonal factory works for more than nine hours in any day, he shall be entitled, in respect of the overtime worked, to pay at the rate of twice his ordinary rate of pay.

(2) Deleted.

460. Subject to the provisions of the preceding paragraph, the following rules should be observed in regard to the grant of overtime allowances to the extent these rules are not inconsistent with any existing rules or orders issued by the Ministry of Railways (Railway Board):


CHAPTER IV


4. 12

(1) Workman may be paid overtime for the actual number of hours worked beyond shop hours in the interest of service, at the rate of one-eighth of a day’s pay for every hour so worked.

(2) Daily-rated staff receives full pay of certain holidays in the year (see

paragraph 309). If required to work on those holidays they should be paid overtime for doing so.

(3) Workmen sent from shops to work at outstations temporarily should be given

daily allowance in accordance with paragraph 316.

(4) Workmen sent out from shops temporarily to work at their headquarters station should not be allowed overtime allowance unless they work beyond shop hours.

(5) Workmen sent out from shops with engines and vehicles on trial trips should

be paid for the actual number of hours worked beyond shop hours.

(6) A record of overtime worked must be kept. 461. Deleted. 461A. Time Sheets. Time sheet is the basic record of attendance of a workman for a wage period. A workman will be paid wages according to number of hours he works during a day or month. Time sheets (Form W. 461A) for workmen will be maintained in Time Office of workshops separately for each shop, for two purposes; one for the purpose of payment and other for the purpose of allocation of hours worked to the jobs upon which the workmen are employed. For the first purpose, their attendance will be marked daily from the ticket boards, the absentees on account of leave, sickness, etc. being ascertained from the ticket numbers left in the Time Office. Under no circumstances are erasures to be permitted. Corrections where necessary will be made neatly and initialed by the Head Time Keeper. For the second part, allocation will be recorded on the lower portion of the time sheets from the initial records of shops i.e. chargemen’s time book, Job tickets.


CHAPTER IV


4. 13

W-461-A TIME SHEET……PRESENT COST CENTRE NO.….…….PERIOD ENDING…..…..PAGE……..OF…....

1 2 4 6 7 8 9 10TOTAL

HRSD H

P/PB/F

1 2 4 6 7 8 9 10TOTAL

HRSD H

EMPLOYEENAMEDESIGNATION

NOOTHER COST CENTRE

NO NAMEPREPARED BY

APPROVED BY

" NO PAY " CASUAL

TIME TYPE

ATTENDANCE-PERIOD 1 PERIOD 2ATTENDANCE PAYABLE

HOLIDAYGATE PASS

DOUBLE RATE

SOURCE NUMBER

DOCUMENT NAME

ACCOUNT ORRECEIPT NO

TOTAL PAY TIME

11 AND UPTO 31

11 AND UPTO 31

REGULAR TIMEOVERTIME SINGLE RATE

LEAVE - REGULAR " HALF PAY

MOD-13. P.R.

TOTAL P.W. TIMETOTAL D.W. TIME

OTHER TIME

462. Deleted. 463. The actual number of hours worked each day should be shown in the Time Sheet. In calculating the hours of workmen who are monthly rated and not daily rated, a month should be considered as equivalent to 208 working hours, in all workshops where the day working hours in a week of six working days are 48 or 8 hours per day which, for 26 days, gives 208 hours. Where the number of working hours per week of six days is more or less than 48, the following formula should be used in ascertaining the equivalent of a month in terms of working hours “Divide the actual number of normal working hours in a week by six (the number of working days) and multiply by 26, the average number of working days other than Sundays”. If the number of normal working hours per week were, say, 45, the month should be considered to be equivalent to (45/6 x 26) or 195 working hours. The particulars of name, ticket number, designation, parent cost centre number, etc., should be copied on the Time Sheets sometime before the commencement of each month, from the Time Sheets of the previous month.


CHAPTER IV


4. 14

464A. Summary of Time Sheets. As soon as the time sheets of each shop are prepared a Summary of Time Sheets will be prepared by the Time Office, in Form W. 464A, and will be submitted to the IT Section (Directorate of FIS/MIS) for the preparation of Payrolls Bills and Labour Distribution Statements.

FORM W.464A

COST CENTRE NOACCOUNTING UNIT PERIOD CHARGABLE

PAKISTAN RAILWAYS

SUMMARY OF TIME SHEETS

SR.No C.C. No.EMPLOYEE

NO.CASUAL LEAVE

REGULAR HOURS

OVER TIME

HOURS

PIECE WORK HOURS

LEAVE NOT DUE

MATERNITY LEAVE

OPTIONAL LEAVE

SPECIAL LEAVE

LFP LHP LFP LHP LFP

ON MEDICAL CERTIFICATE

WITHOUT MEDICAL

CERTIFICATE

RECREATION LEAVE

LHP

DISABILITY LEAVE

LWP UDP

REGULARSUSPESNSION

PIECE WORK

WORK ORDER / PROJECT NO.

HOURS

ALLOCATION OF TIME

WORK ORDER / PROJECT

NO.

HOURS

OVERTIME

WORK ORDER / PROJECT

NO.

HOURS

464. The Head Timekeeper will be held responsible for the completion, in all respects, of the Time Sheets and their submission to the Workshop Accounts Officer within four days after the close of the month to which the bills relate.

465. Deleted.

466. Deleted.

467. Deleted.

468. Deleted.

469. Deleted.

470. Deleted.

CHAPTER V

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER V

PAYMENT OF WAGES

CONTENTS


11

PAYMENT OF WAGES ACT 5.1 501 — 502

DEFINITION OF WAGES 5.1 503

RESPONSIBILITY FOR AND METHOD OF PAYMENT 5.1 — 5.2 504 — 510

FINES AND DEDUCTIONS 5.2 — 5.5 511 — 522

(514 Deleted)

INSPECTIONS 5.5 523

COMPLAINTS OF DEDUCTIONS OR DELAYS 5.5 524

ACTION BY THE AUTHORITY APPOINTED BY THE

GOVERNMENT

5.5 525

APPEAL AGAINST THE AUTHORITY 5.6 526

PUNISHMENTS FOR BREACHES OF THE ACT 5.6 527 — 528

PAYMENT TO WORKSHOP LABOUR 5.6 529

PROGRAM OF PAYMENT 5.6 530

OBTAINING CASH 5.7 531 — 532

SELECTION OF PAYMENT STAFF 5.7 533

RECEIPT OF MONEY BY THE PAYMENT STAFF 5.8 534

BOXING OF WAGES 5.9 — 5.10 535 — 540

DISPOSAL OF AMOUNTS LEFT AFTER FILLING IN PAY

ENVELOPES

5.10 541

PAY SLIPS 5.10 542

PAY TICKETS 5.10 543 — 544


CHAPTER V

PAYMENT OF WAGES

CONTENTS


12

MANNER OF PAYMENT OF WAGES 5.11 545 — 549

SHORTAGES OR EXCESSES 5.11 550

SURPRISE CHECKS 5.11 551

UNPAID WAGES 5.12 552 — 554

PREPARATION OF UNPAID WAGES LISTS BY ACCOUNTS

OFFICE PAYMENT STAFF

5.12 555

CLEARANCE CERTIFICATE 5.13 556

DUTIES OF PAYMENT SUPERVISOR 5.13 557 — 559

PAYMENT REPORT 5.13 560

PAYMENT OF UNPAID AMOUNTS 5.13 561


CHAPTER V

PAYMENT OF WAGES

5.1

A. THE PAYMENT OF WAGES ACT 501. Wages should ordinarily be paid monthly irrespective of whether the staff are daily rated or monthly rated. In the case of workshop staff in BS-1 to BS-10 the payment of wages will be subject to the provisions of the Payment of Wages Act, 1936, and the rules made thereunder. No such staff can give up by contract or agreement his rights under the Act, as any such relinquishment of any right conferred by the Act is null and void in so far as it purports to deprive him of such right. 502. The substance of the Act and of the Rules made thereunder is given in the following paragraphs. The instructions given in these paragraphs, however, have no validity except in so far as they reproduce the exact wording, or represent correctly the meaning, of the Act and the Rules thereunder, and no doubtful cases should be decided except by a reference to the said Act and the Rules. A copy of the Abstract of the Act and of the Rules, in English and in the language of the majority of the staff employed in the workshop, should be displayed at or near the main entrance of the workshop or at such place or places as may be specified by the concerned Works Manager/Assistant Works Manager or Labour Warden. 503. Definition of Wages. “Wages” for the purpose of the “Payment of Wages Act” means all remuneration payable to an employed person on the fulfilment of his contract of employment. It includes bonus and any sum payable for want of a proper notice of discharge. It excludes:

(i) the value of house accommodation, supply of light, water, medical attendance or other amenity or of any service excluded by the Federal or Provincial Governments;

(ii) the employer’s contribution to a pension or General Provident Fund; (iii) travelling allowance or concession or other special expenses entailed by the

employment; and (iv) any gratuity payable on discharge.

504. Responsibility for and Method of Payment. The Works Manager is responsible for the payment under the Act of wages to persons employed under him, and any contractor employing persons is responsible for payment to the persons he employs. 505. Wage periods should be fixed for the payment of wages at intervals not exceeding one month. A notice in English and in the language of the majority of persons employed in the shop should be displayed in a conspicuous place at or near the main entrance of the shop or at the specified place or places showing, for not less than two months in advance, the days on which wages are to be paid.


CHAPTER V

PAYMENT OF WAGES

5.2

506. Wages should be paid on a working day within seven days of the end of the wage-period (or within ten days if 1,000 or more persons are employed). The total number of men employed under the Pakistan Railways Administration should be taken into account for purposes of complying with this provision. 507. The wages of a person discharged should be paid not later than the second working day after his discharge.

508. When it is not possible for the Accounts Officer to pre-audit the claims for payment within the stipulated time, the authority empowered to terminate the services of an employee shall have power to make payment of the employee’s wages and / or any amount payable in lieu of notice on the basis of the information at the authority’s disposal, the authority being permitted to obtain the necessary funds from the nearest station.

509. The authority who so settles accounts must exercise all possible care to avoid over or under payments.

510. Payments in kind are prohibited. 511. Fines and Deductions. No deductions should be made from wages except those authorised under the Act (See paragraph 512 to 522 below). 512. Fines can be imposed only for such acts and omissions as the employer may, with the previous approval of the Conciliation Officer and Supervisor of Railway Labour, specify by a notice displayed at or near the main entrance of the shop and after giving the employed person an opportunity for explanation. 513. The list of acts and omissions approved by the Conciliation Officer and Supervisor of Railway Labour includes the following items:

(1) Disregard or disobedience of orders. (2) Insubordination and breaches of discipline. (3) Late or irregular attendance. (4) Improper behavior such as drunkenness, quarrelling or sleeping on duty. (5) Incivility or causing inconvenience to the public. (6) Making false or misleading statements. (7) Inefficient, dilatory, careless, wasteful, dangerous or obstructive working. (8) Malingering. (9) Failures to observe rules and regulations not involving more severe

disciplinary action. (10) Causing loss of or damage to railway property where the full or partial loss

is not recovered under Section 7(2) (c) of the Payment of Wages Act, 1936.


CHAPTER V

PAYMENT OF WAGES

5.3

514. Deleted. 515. Deductions for absence from duty can be made only on account of the absence of the employed person at times when he should be working, and such deductions must not exceed an amount which is in the same proportion to his wages for the wage-period, as the time he was absent in that period is to the total time he should have been at work. 516. If ten or more employed persons, acting in concert, absent themselves without reasonable cause and without due notice, the deduction for absence can include wages for eight days in lieu of notice, but:

(1) no deduction for breaking a contract can be made from a person under the age of 18 years, or a woman,

(2) there must be a provision in writing which forms part of the contract of employment, requiring that a specific period of notice of intention to cease work not exceeding 15 days or the period of notice which the employer has to give to discharge a worker, must be given to the employer and that wages may be deducted in lieu of such notice,

(3) the above provision must be displayed at or near the main entrance of the shop, (4) no deduction of this nature can be made until a notice that this deduction is to

be made has been posted at or near the main entrance of the shop, and (5) no deduction may exceed the wages of the employed person for the period by

which the notice he gives of leaving employment, is less than the notice he should give under his contract.

For the purposes of this paragraph an employed person shall be deemed to be absent from the place where he is required to work, if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work. 517. Deductions can be made for damage to or loss of goods expressly entrusted to an employed person or for loss of money for which he is required to account, where such damage or loss is due to his neglect or default. Such deduction cannot exceed the amount of the damage or loss caused and can be made only after giving the employed person an opportunity for explanation. 518. Deductions can be made, equivalent to the value thereof, for house accommodation, amenities, or services (other than tools and raw material) supplied by the employer, provided these are accepted by the employed person as a part of the terms of his employment and have in the case of amenities and services been authorized by order of the Federal Government.


CHAPTER V

PAYMENT OF WAGES

5.4

519. The following have been authorized by the Federal Government to be regarded as amenities and services for which deductions from wages may be made:

(i) use of railway institutes; (ii) use of railway clubs; (iii) use of railway schools; (iv) services rendered by medical officers; (v) supply of electric current; (vi) supply of water; (vii) supply of conservancy agreements; (viii) supply of diet in railway hospitals; (ix) supply of articles made in railway workshops to the order of the employee;

and (x) replacement of electric and gas fittings and articles supplied in residential

houses and quarters. (xi) supply of coal, cinders, unserviceable sleepers and other timber, kerosene

and other oils, safety matches and cloth to employees by railway administration from their own stocks for the private use of their employees and at their written request;

(xii) supply, at the written request, of railway employees of: (a) stamps on service agreements; (b) uniforms when such supply is made in the form of additions to

normal free issues or to replace uniforms lost by the employee or uniforms which have become unserviceable before the expiry of their normal life;

(c) watches and their repair. (xiii) supply of revenue stamp for obtaining receipts under Section 30 of the

Stamp Act, 1899 (II of 1899) for payment of sums exceeding Rupees 20). (xiv) supply of diet in emergencies at the written requests of employees.

Deductions can also be made in respect of the following: (i) rent for cattle sheds provided for by Railway Administration; (ii) rest house charges; and (iii) cost of coffins or advances therefor.

520. (1) Deductions can be made for the recovery of advances or for adjustment of overpayment of wages.

(2) Advances of unearned wages can be made at the paymaster’s discretion during employment.


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PAYMENT OF WAGES

5.5

521. Deductions can be made for subscription to and for repayment of advances from General Provident Fund. 522. Deductions can be made for payments to the Postal Insurance Fund or to co-operative societies approved by the Federal Government. Deductions in respect of co-operative societies are ordinarily subject to the following conditions:

(1) That no deductions should be made from wages for co-operative societies without the written authority and consent of the employee concerned which may be given once generally and not on each occasion a deduction is made;

(2) That deductions under the heads of “repayment of loans with interest” and “recovery of the price of stores issued to members of a co-operative society on credit” should be limited in either case to 50 per cent of the wages of each employee and to 75 per cent for both these purposes together, i.e., when deductions are being made from one member for both purposes.

Note.–These exclude payments in regard to cost of shares and savings bank deposits. 523. Inspections. An Inspector can enter on any premises, and can exercise powers of inspection (including examination of documents and taking of evidence) as he may deem necessary for carrying out the purposes of the Act. 524. Complaints of deductions or delays.

(1) Where irregular deductions are made from wages, or delays in payment take place, an employed person can make an application in the prescribed form within six months to the authority appointed by the government for the purpose. An application delayed beyond this period may be rejected unless sufficient cause for the delay is shown.

(2) Any legal practitioner, official of a registered trade union, Inspector under the Act, or other person acting with the permission of the authority can make the complaint on behalf of an employed person.

(3) A single application may be presented by, or on behalf of, any number of persons belonging to the same factory, the payment of whose wages has been delayed.

525. Action by the authority appointed by the Government. The authority may award compensation to the employed person in addition to ordering the payment of delayed wages or the refund of illegal deductions. If a malicious or vexatious complaint is made, the authority may impose a penalty not exceeding Rupees 1000 on the applicant and order that it be paid to the employer.


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PAYMENT OF WAGES

5.6

526. Appeal against the authority. An appeal in the prescribed form against a direction made by the authority may be preferred within 30 days to the District court:

(1) by the paymaster, if the total amount directed to be paid exceeds Rupees 6,000;

(2) by an employed person, if the total amount of wages withheld from him or his co-workers, exceeds Rupees 10,000; and

(3) by a person directed to pay a penalty for a malicious or vexatious application.

527. Punishments for breaches of the Act. Anyone delaying the payment of wages beyond the due date or making any unauthorized deduction from wages is liable to a fine up to Rupees 5000, but only if prosecuted with the sanction of the Authority or the appellate Court. 528. The paymaster who,

(1). does not fix a wage-period, or (2). makes payment in kind, or (3). fails to display at or near the main entrance of the shops an Abstract of the

Act in English and in the language of the majority of the employed persons, or

(4). breaks certain rules made under the Act is liable to a fine not exceeding Rupees 2,000. A complaint to this effect can be made only by the Inspector or with his sanction.

B. PAYMENT TO WORKSHOP LABOUR

529. The procedure laid down in paragraphs 530 et seq should be adopted for the payment of the wages of workshop labour in all cases in which the procedure prescribed in the Pakistan Railways Code for the Accounts Department is not followed. The procedure of payment to Workshop Labour should also be followed, where the circumstances so permit, in paying the staff employed in Running Sheds and other concentrations of labour, particularly when the number of such staff exceeds 300. 530. Program of Payment. A program of payment should be drawn up by the Works Manager in consultation with the Workshop Accounts Officer and circulated. The dates of payments given therein should be adhered to as far as possible.


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PAYMENT OF WAGES

5.7

531. Obtaining Cash. As soon as the payroll of each shop is checked and passed for payment by the Workshop Accounts Officer, the amount required for each batch should be totalled up separately, and summarized in a memo, preferably in the form below. The distribution of the money according to different denominations of coins and notes required for each shop should be shown by the staff checking the payrolls.

FORM W. 531 MEMO

The Chief Cashier & Treasurer Pakistan Railways Lahore. Will you please arrange to send me Rs.______________________ as per details given below, for payment of wages to the ________________shop staff, on ___________ at _____________hours.

_______________________ for Financial Adviser and Chief Accounts Officer.

Batch No.

Notes Rupees 5000

Notes Rupees 1000

Notes Rupees

500

Notes Rupees

100

Notes Rupees

50

Notes Rupees

20

Notes Rupees

10

Coin Rupees

5

Coin of Rupees

2

Coin of Rupees

1 Total

I . . . II . . . and so on.

Total

532. This memo should be sent to the Divisional Pay Master (DPM) at the latest by the mid-day of the day preceding the date of payment. On the authority of this memo, the Divisional Pay Master (DPM) will send the money, as asked for, on the morning of the date of payment. The money should always be transported from the Cash Office to the place of payment under the protection of armed cash guard/Pakistan Railway Police. 533. Selection of Payment Staff. Except in those cases in which workshop labour is paid by Sectional Pay Masters (SPM) of the Cash Department in accordance with the normal procedure for payments to open line staff as laid down in the Pakistan Railways Code for the Accounts Department, the payment of workshop wages should be made


CHAPTER V

PAYMENT OF WAGES

5.8

with the help of “payment staff” selected for the purpose each month by the Workshop Accounts Officer, from amongst his staff. In selecting the men for payment, it should be seen that:

(1) the staff selected for payment are changed every month and they are not given the same batch every time;

(2) the selection of the men for payment is made after the check of the payrolls has been completed; and

(3) the staff checking the payrolls are not employed on payment work of the payrolls in the same month but that other staff are selected.

534. Receipt of money by the Payment Staff. The Divisional Pay Master (DPM) or his Sectional Pay Masters (SPMs) should hand over the money to the payment staff nominated by the Workshop Accounts Officer, as early as possible during the day. The signature of each payment staff should be obtained in a Cash Book (W.534) maintained for the purpose in the Workshop Accounts Office, in token of his having received the correct amount of money. A receipt for the total amount should be given to the Divisional Pay Master (DPM) / Sectional Pay Master (SPM) by the Payment Supervisor, who will be an Assistant Accounts Officer, specially nominated for each payment by the Workshop Accounts Officer.

FORM W. 534

CASH BOOK FOR PAYMENT TO THE DAILY-RATED STAFF………………… SHOPS…………..FOR THE MONTH OF………………..

Amount returned to the

DPM/SPM.

Bat

ch N

o.

Shop

No.

Am

ount

.

Sign

atur

e of

pay

men

t sta

ff.

Am

ount

pai

d.

Afte

r fil

ling

in p

ay

enve

lope

s.

Afte

r pa

ymen

t.

Am

ount

as

per

unpa

id w

ages

lis

t.

Unpaid wages list No.

and Date.

Exce

ss.

Shor

tage

.

Rem

arks

.

1 2 3 4 5 6 7 8 9 10 11 12


CHAPTER V

PAYMENT OF WAGES

5.9

535. Boxing of Wages. As soon as the payrolls are passed for payment by the Workshop Accounts Officer, the amount of wages should be entered on the pay envelopes. If boxes are used instead of envelopes, pay slips (W. 542) showing the amount to be paid should be prepared and placed together with the cash within the boxes]. These pay envelopes should be handed over, preferably, on the day preceding the date of payments, to the staff selected to make payment, so that they may compare them with the payrolls and satisfy themselves that the amounts shown are correct. Each envelope should then be initialled by the staff concerned. 536. The money should be placed in envelopes under the supervision of the Payment Supervisor. Each official will be assisted by a chargeman specially deputed for the purpose. The staff should keep the payroll in front of him and as he hands out the money (and the pay slips, where boxes are used instead of envelopes) for a ticket number, he should call out the ticket number and amount. The chargeman should check the amounts of money, put them in the envelopes and initial the latter in token of the money placed in the envelopes agreeing with the amount entered on them. The pay envelopes should be placed in a tray in the order of consecutive numbers. These trays should be placed in boxes or chests which could be double-locked, pending the carriage of the latter to the place of payment. The key of one lock should remain with payment staff and that of the other with the Chargeman detailed to assist. 537. If in any case, workmen have to be paid their wages, which have already been included in the payroll before the main payment day, care should be taken to stop payment of the amounts charged for them in the regular payroll. In order to avoid double payment in such cases the pay envelopes of the workmen concerned should not be made up.

538. On the satisfactory completion of the boxing, the payment staff and the chargemen should fill in the following certificates on the summary page of the payroll. “Certified that all amounts shown herein, except for the following Ticket numbers, have been correctly counted by me and handed over to the chargeman recounting and boxing.” Signature of payment staff ……………………………………………………………….. Section……………………………………………………………………………………... Date…………………………………………………………………………………………

“Certified that I have re-counted and boxed all the amounts shown herein, except for the following Ticket numbers, and am satisfied that this has been correctly done.” Signature of chargeman…………………………………………………………………... Shop………………………………………………………………………………………… Date…………………………………………………………………………………………


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PAYMENT OF WAGES

5.10

539. In the event of there being a discrepancy, the excess or shortage should be located and set right before the above certificates are filled in. 540. Once the certificate is signed, the chargeman becomes responsible for the accuracy of the amount in each envelope and if any complaints of money being found short are made and proved, he should be called upon to make good the shortage. Each chargeman should see that the balance left on hand with the payment staff is not in excess of the total wages of the men whose pay envelopes have not been made up. If there is an excess, and a shortage for a corresponding or smaller amount is complained of and proved at the time of payment, the amount of excess may be utilized towards meeting the shortage and no recovery made from the chargeman. 541. Disposal of amounts left after filling in pay envelopes. The amounts left with the payment staff, after filling in pay envelopes, should be handed over immediately to the Sectional Pay Master (SPM), who should be in attendance for the purpose of receiving such amounts. The latter should then post the appropriate column of the Cash Book (W.534) in the presence of the payment staff and initial the amount. If any alteration in this amount is to be carried out, it should be done under the initials of the Payment Supervisor. The Payment Supervisor should finally prepare a Miscellaneous Receipts Transmit Note (G.1403) for the total amount made over as above by all the payment staff to the Sectional Pay Master (SPM) and send it to the Divisional Pay Master (DPM) through his Sectional Pay Master (SPM), getting the signature of the latter on the office foil of the Miscellaneous Receipts Transmit Note, in token of the remittance having been made. 542. Pay Slips. When tin boxes are used instead of envelopes, “Pay Slips” (W.542) showing the gross wages, deductions and the net amount payable for the month for each workman should be prepared. This work is best carried out by typing out suitably perforated labour payrolls, the names and other particulars on which have been entered by using computers. The computer facilitates the check of totals and cross-totals and simultaneously provides the workmen with a complete statement of their accounts. The extra copy will provide the pay slips to be placed in the boxes. 543. Pay Tickets. On the date of payment, “Pay Tickets” (W.543) showing the ticket numbers, the month to which the wages relate, the gross wages, deductions and the net amount payable, should be prepared by the staff of Accounts Office in respect of all those men whose wages have been drawn in the payroll and who are in service. These tickets should then be listed out and made over to the Foremen of the shops concerned to be distributed to the workmen a few hours in advance of the actual payment. 544. Where the attendance is marked on time-cards, the time-cards themselves may be used in place of special pay tickets.


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PAYMENT OF WAGES

5.11

545. Manner of Payment of Wages. Payment should not be made within workshop hours. Payments should commence at the close of the second period of work and workmen should line up in the serial order of ticket numbers of their shops in their respective batches. The workmen should bring with them their metal tickets as well as the pay tickets. The chargeman or other subordinate, whose duty is to line up the men of each batch and maintain order as they come up for payment, should stand outside the pay window, collect the metal tickets and call out the ticket numbers. The chargeman paying out the wages should stand behind the window and be ready with the envelope bearing the number called out and hand it over in exchange for the pay ticket after seeing that the pay ticket bears the same number as the envelope. The collected pay tickets should be handed over to the payment staff, who will stand by the side of the chargeman and will watch that for every envelope given out the correct pay ticket is received in exchange. 546. Any workman who does not present himself in his turn must wait till all other men of his shop have been paid. Similarly, anyone presenting a pay ticket alone should be paid only after identification by some responsible person. 547. One or more foreman and accounts representatives, as may be found necessary, should be deputed to attend to complaints of money being found short in the envelopes or boxes. Complaints of shortages will be entertained only if the man complaining is in possession both of the pay envelope or box and of the cash it was supposed to contain and the complaint is made before he passes out of workshop gate. 548. All complaints should be brought to the notice of the chargeman paying out the money and the payment staff helping him to do so. Shortages in boxing will be made good by the chargeman responsible for it, unless there is an excess with the payment staff to cover such a shortage (see paragraph 540). 549. The foremen deputed to attend to workshop payments are responsible for seeing that bad coins are exchanged for workmen from the Sectional Pay Master (SPM), and the payment boxes (when used) are returned by the workmen after payment. 550. Shortages or Excesses. Small shortages or excesses with payment staff may be adjusted against the Work in Process Account (Workshop Manufacturing Suspense Account) under the orders of the Financial Adviser & Chief Accounts Officer, provided the latter considers them too small to merit detailed investigation and is unable to fix responsibility therefor. 551. Surprise Check. Surprise checks should be made by the Workshop Accounts Officer at the time of boxing and also when payment is being made.


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5.12

552. Unpaid Wages. On payment being completed, the payment staff and the chargeman making payment should check the unclaimed envelopes (or boxes) in their possession with the payroll and the chargeman should enter in ink against the numbers concerned the words “Not paid” under his dated initials. A certificate should then be given by the payment staff and chargeman on the summary page of the payroll as follows: “Certified that all workmen, with the exception of those noted below, have been duly paid by me in the presence of the payment staff.”

………………………. Chargeman.

“Certified that payment has been made in my presence to all the workmen except those shown below”.

………………………. Payment Staff.

553. The envelopes (or boxes) left undelivered should be emptied and their amount made over to the Sectional Pay Master (SPM) who should immediately enter the same in the Cash Book (W. 534) under the appropriate column in the presence of the payment staff and initial the amount. A Miscellaneous Receipt Transmit Note (G.1403) for the total amount returned by all the payment staff should be made out immediately and sent to the cashier. If the amount of unclaimed pay envelopes cannot, due to some special reasons, be returned to the Sectional Pay Master (SPM) on the day of payment, it should be sent to the Divisional Pay Master (DPM) on the following day accompanied by the Miscellaneous Receipt Transmit Note (G.1403). 554. Collected pay tickets should be compared with the payrolls on the following day, and mistakes, if any, investigated and set right under the instructions of the Payment Supervisor. 555. Preparation of Unpaid Wages Lists by Accounts Office Payment Staff. After the collected pay tickets have been checked as laid down in paragraph 554 above, each payment staff should prepare lists of the men of each shop not paid, i.e., unpaid wages lists (A.952), in triplicate, by carbon process, post columns 8, 10 and 11 of the Cash Book (W.534) in respect of his batch and record the accountal of the money received by him on the summary page of each payroll in the following form:

a. Amount paid on the main payment day................................................................................... b. Amount remaining unpaid, vide List No...........................dated.............................returned to the

Sectional Pay Master (SPM)............................................................................................................. c. Total amount of the payroll……………………………………………………..……………...


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PAYMENT OF WAGES

5.13

556. Clearance Certificate. Each payment staff should then record a clearance certificate, on a sheet of paper common for all payment staff, to the effect that everything was in order at the time of payment. Any fact that he may like to bring to the notice of the higher authorities should be mentioned in the certificate, which should be put up with the payment report by the Payment Supervisor (paragraph 560).

557. Duties of the Payment Supervisor. The payrolls with the unpaid wages lists, the Cash Book and the clearance certificate should be put up to the Payment Supervisor as soon as possible, ordinarily not later than the day following the date of payment. The Payment Supervisor should check the unpaid wages lists with the payrolls, scrutinize the various certificates recorded by the chargemen and the payment staff, check the Cash Book and total it up. He should sign each unpaid wages list in token of his having checked it. After these checks have been exercised, a summary of all the unpaid wages lists should be prepared preferably in Form (W.557) in triplicate by carbon process. One copy of the summary together with a copy of all the unpaid wages lists should be sent to the cash office, the other to the Labour Bureau/Works Manager, and the third retained as an office copy.

FORM W. 557. /P.15/A. 952/A. 1116/Revised SUMMARY OF UNPAID WAGES LISTS OF ………………….…..SHOPS

FOR THE MONTH OF…………………… Unpaid wages list number and date Shop No. Amount.

Total……

558. The summary (W.557)/P.15/A. 952/A. 1116/Revised should be prepared in the order of the serial numbers allotted to the unpaid wages lists.

559. The Payment Supervisor should then prepare a pay order (G. 1688) for the total amount of unpaid wages, debitable to “Unpaid Salaries and Wages” (G.8208) (Deposits unpaid wages). It should be signed by the Workshop Accounts Officer and dealt with in the usual way as other cash bills, a cheque being sent to the Cash Office for the amount of the pay order, within 4 or 5 days of the date of the main payment.

560. Payment Report. The Payment Supervisor should put up the results of payment (Payment Report) to the Workshop Accounts Officer showing the disposal of the cash received from the cash office, shortages or excesses, if any, complaints of short payments received, proposals for their disposal and adjustments, if any, required to be made in connection with the net excess or shortage.

561. Payment of Unpaid Amounts. The Divisional Pay Master (DPM) should arrange for the payment of the unpaid items within such period after the date of the main payment and at such time and place as may be prescribed by the Mechanical Department.

CHAPTER VI

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER VI

PAYMENT BY RESULTS

13

CONTENTS DESCRIPTION

PAGE NO. PARA NO.

OBJECT OF SYSTEM OF PAYMENT 6.1 601

TIMING OF OPERATIONS 6.1 602

TIME STANDARDS 6.1 603 — 604

OPERATION TIME SHEETS 6.1 — 6.2 605 — 606

PIECE-WORK RATES 6.2 607

REVIEW OF PIECE-WORK RATES 6.2 608 — 609

NO PIECE-WORK PROFITS TO SUPERVISORY STAFF 6.2 610

OUT-TURN 6.2 611

STRAIGHT PIECE-WORK 6.3

612 — 619

(616 Deleted)

BONUS SYSTEMS 6.3 — 6.4 620 — 621

FIXATION OF TIME RATES 6.4 622 — 623

IDLE TIME 6.4 624

SCRUTINY OF TIME TAKEN 6.5 625

REPAIR WORK 6.5 626

PIECE-WORK BILLS 6.5 627

GANG SHEETS 6.5 628

PIECE-WORK SCHEDULE 6.6 629


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PAYMENT BY RESULTS

6.1

601. Two recognised systems of payment by results, viz., the ‘Piece-work’ and the ‘Bonus’ systems, have been outlined in the following paragraphs. These systems are intended to afford an incentive to the honest and capable workman to improve his outturn. 602. Timing of Operations. The only positive check on the efficiency of labour is the systematic comparison of the time taken for a known job with that allowed for it after careful experimentation, the conditions of work, such as, speeds and feeds, quality of material, promptitude of supply services, being all sufficiently fixed and standardized so as to enable just comparisons being made. Time standards should be fixed for individual operations on or with the aid of particular machines and materials, and the time taken by individual workmen should be carefully recorded before it is decided whether the required standard of efficiency has been attained. 603. Time Standards. In order to ensure that all these conditions are fulfilled, the work to be carried out must be a specific or standard one that has to be repeated. The procedure adopted by the Planning Section or the Production Office for this purpose, should be generally as follows. On receipt of a drawing of a new standard part: (i) The number of parts to be manufactured should be decided. (ii) The drawing should be examined to see if there are any alterations required in

the design, in order to cheapen the cost of production. (iii) When parts are made from castings, it should be decided whether the moulds

are to be made on a moulding machine or by hand. (iv) The section and length of material, required for making one part, should be

recorded. (This applies to parts not made from castings). (v) The detail of various operations and types of machines on which the parts are to

be made, should be set out, estimated times being fixed for each operation. (vi) The jigs, fixtures or special tools required should be decided on. Particulars of

jigs and tools required should be passed on to the Jig and Tool Draughtsmen, who should prepare the necessary drawings. The layout of the operations involved and lists of material required should be passed on to the Progress Office.

604. The time estimated should, whenever possible, be checked by careful time studies involving the fixation of optimum speeds and feeds of machine tools wherever these are employed.

605. Operation Time Sheets. The time taken on operations should be recorded on operation time sheets of individual workmen. These time sheets should be methodically inspected by the Production Department. All cases of excessive times should be carefully investigated, special attention being given to the following points:


CHAPTER VI

PAYMENT BY RESULTS

6.2

(i) Slight alterations to design to facilitate machining. (ii) Excessive material on castings and forgings. (iii) Alterations to casting methods. (iv) Unsuitable or excessively hard material. (v) Improved tool layout or clamping method required. (vi) Tuition required by operator. (vii) Operator lazy or unsuitable.

606. Foremen should be encouraged to note, in the space for ‘Remarks’ on operation time sheets, any special reasons that may have caused excessive time to be taken on any operation. 607. Piece-work Rates. No method of payment by results can avoid the labour of the correct fixation of the time allowed for a work and the comparison with it of the time taken. It will be seen that it makes little or no difference if the time allowed and the time taken are expressed in terms of wages and the difference termed piece-work loss or profit. 608. Review of Piece-work Rates. Time rates, or allowances for specific operations or jobs, fixed at any time should be carefully reviewed frequently to see that they have not become out of date owing to changes in the design of the product, the methods of manufacture, the machines or tools used, the value of the service rendered or the quality of the material. 609. In addition to the careful fixation of rates, whether in terms of time or of money, and the periodical verification of such rates, other factors should also be carefully considered in introducing any system of payments by results. 610. No Piece-work Profits to Supervisory Staff. The piece-workers should not be in a position to manipulate the time taken by them, as would be the case if they could do both piece-work and day work or if in one and the same shop, there was a mix-up of both piece-work and daily wages men of the same or similar category. The participation of supervisory staff, e.g., Chargemen, Assistant Foremen and Foremen in piece-work benefits is also open to the objection that such staff could benefit by the time taken being incorrectly shown as less than what it really is. 611. Out-turn. The outturn of piece-workers should be carefully examined both in regard to quality and quantity. Such checks should preferably be entrusted to supervisory staff who are not under the influence of any of those participating in piece-work benefits.


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PAYMENT BY RESULTS

6.3

612. ‘Straight Piece-work’. The simplest method of making payments by results is that of fixing a rate per piece and paying workmen on the basis of the total number of pieces turned out. If the amount thus earned during a month is more than the month’s wages of the piece-worker, the difference is the profit he makes. If, however, the amount of wages was more, the difference is the loss. 613. If the work were carried out by a gang or group of men working together, the difference between the total earnings of the gang, calculated on the basis of the gang’s total outturn, and the gang’s total wages for the time taken is the gang’s profit (or loss). The profit (or loss) thus made should be distributed amongst the individuals of the gang in proportion to their time-wages during the period. 614. The time-wages of piece-workers are guaranteed. 615. Piece-work profits should be paid after deducting piece-work losses, the adjustment of losses against profits being confined to the same wage period. 616. Cancelled. 617. A special procedure should be laid down to ensure that the outturn of one wages period (and the work in progress) is not included in the outturn of a later wages period, as this will result in fictitious profit being earned. 618. When losses, however small, are made more or less consistently by the majority of piece-workers, the inducement offered by the system of piece-work has ceased to exist. Piece-work should be suspended and the causes contributing to this result should be carefully investigated. 619. When large profits (above 25 per cent) are made more or less consistently or by the majority of the piece-workers, the causes contributing to this result should be carefully analyzed and any defects discovered, rectified. If it is found that there has been a mistake in the fixation of the rate, this should be immediately set right. No retrospective adjustments should however be made.

620. Bonus System. A bonus system of payment by results differs from a piece-work system in that no rates in money values are fixed per piece, but a bonus is given for a job being completed in less than the time allowed therefor. In any form of bonus system, therefore, the factors of importance are:

(i) Time allowed. (ii) Time taken. (iii) Time saved (or lost).


CHAPTER VI

PAYMENT BY RESULTS

6.4

As the total time ’allowed’, ‘taken’ or ‘saved’ (lost) are all factors of the number of units of work (pieces) turned out, it is as important in a bonus system as in a straight piece-work system to exercise the most diligent check on the quantity outturned within each wages period. 621. The ‘Time Saved’ by each workman is converted into money values at the rate per hour or per day he is paid and the total value of ‘Time Saved’ or a part thereof is paid to him as his ‘profit’. The part may be either a fixed percentage (50 per cent is known as the Halsey Weir System) or on a sliding scale, e.g., the Rowan Bonus System. The maximum of profit that can be earned under the latter system is always less than 100% of the time-wages, as the profit is taken to be that proportion of the time-wages which the ‘time saved’ bears to the ‘time allowed’. Thus if the ‘time allowed’ were 50 hours and the ‘time taken’ 40 hours, the ‘time saved’ is 10 hours and the profit is 10/50 or one fifth of the man’s wages of the time taken, i.e., the wages of 8 hours. 622. Fixation of Time Rates. Whether the benefit accruing to the workman is the whole or part only of the time saved by him, the ‘time allowed’ for each job or operation should be fixed with the same care as for ordinary piece-work. It should be realized that the factors to be taken into account in fixing the ‘time allowed’ are identical in all cases. The estimated time for a job, calculated on the basis of ideal conditions of working and for the most efficient workmen (i.e., possible record time for the job), will require an allowance to be made in order to leave a margin of profit to the workman of average efficiency that would provide the incentive to improve his output and a further allowance to compensate for the deviation of actual from ideal condition of service such as delays in supply, poorer quality of material and so on. The maximum percentage that may thus be allowed should be limited to 33 1/3 per cent of the ‘record time’ (best possible time) mentioned above. 623. All the rules relating to straight piece-work will apply mutatis mutandis to any bonus system of piece-work, i.e., losses will be recovered from subsequent profits, recurring losses will be investigated and failure to earn profits will lead eventually to the discharge or demotion of the piece-worker. 624. Idle Time. The time taken up in delays and hold-ups due to breakdown of service or plant or any other causes for which the piece-worker cannot be held responsible should be recorded / charged to ‘Idle Time’ and not to the job and all time so recorded / charged should be carefully investigated, responsibility for the delay or breakdown located and such steps, as may be considered desirable, taken to prevent such waste. Railway Administration can fix the limits of idle time that can be ignored, i.e., booked to the job.


CHAPTER VI

PAYMENT BY RESULTS

6.5

625. Scrutiny of Time Taken. Where a proper organization does not exist for the carrying out of trial timings and the fixation of time rates for jobs and operations, no system of piece-work or of bonus payments may be brought into force. Some measure of control should, however, be exercised by striving to reduce the actual time taken for jobs and operations by prescribing a percentage reduction in the time thus taken with the object of the workmen improving their own past records. A point will be reached in course of time by this method of trial and error when it may no longer be possible to improve on the previous month’s record. 626. Repair Work. “Repair Work” differs from manufacture of standard articles in that it is extremely difficult, if not impossible, to fix time or money rates for individual jobs or operations. It is difficult to define any ‘average’ rate for repairs, except on the basis of the actual experience over a long period of time. Efficiency in repair work may be improved by the adoption of a system of trial and error as indicated in paragraph 625. Railway Administration should not introduce any system of piece-work or of bonus payments for repair work proper, without obtaining the approval of the Ministry of Railways (Railway Board). 627. Piece-work Bills. The procedure for the compilation of piece-work statements and for the preparation and check of piece-work bills (Gang Sheets and piece work schedules) may be prescribed by the Financial Advisor and Chief Accounts Officer to suit the system actually in force for the payment of wages by results. 628. Gang Sheets. Where piece work is allowed Gang Sheets in Form W. 628 / P.W.D.7.6.2.MOD.19. will be prepared by the Efficiency Section of the Workshop / Factory. Gang Sheet will be used to calculate time saved by group of workers performing specific task on each work order. Employee wise piece work profit is also calculated on these sheets on completion of jobs.


CHAPTER VI

PAYMENT BY RESULTS

6.6

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

YES

FORM W.628

IF % IS ADJUSTED ENTER TIME SAVED

PAYABLE

APPROVED BY

W.O. No. VERIFIRD BY TIME ALLOWANCE VERIFIED BY:

ACCOUNTING CENTER USE ONLY

NOT PAYABLE

QUANTITY COMPLETED

PREPARED BY

PERIOD ENDING

COMPLETED

NO

CHECK ONE

TIME ALLOWED

TIME TAKEN

TO DATETIME AND QUANTITY

TIME SAVED OR LOST

OPERATION DESCRIPTION QUANTITY ORDERED

MISTRY NUMBER

TOTAL

CURRENT PAY PERIOD

DATE AND TIME DISTRIBUTION

WORK ORDER NUMBER

PIECE RATE TICKET

NUMBER ALLOWANCE

%

ADJ %

PREVIOUS SHEET NO._______ GANG SHEET NO._________CHARGEMAN

NUMBER

EMPLOYEE NUMBER

C/FWD

M/C NO.COST CENTRE NUMBER

JOB TICKET NUMBER

DEDUCT COMPENSATING TIME

ALLOWED

NET TIME ALLOWED

TOTAL TIME SAVED

CHARGEMANINITIALS

PREVIOUS PERIOD

ACCOUNTING CENTER USE

TIME ALLOWED VERIFIED BY

P.W.D. 7.6.2. MOD 19

629. Piece Work Schedule. At month end, employee wise piece work schedule will be prepared in Form W.629/P.R-9-3-11/MOD-20, by the Efficiency Section of Workshop / Factory, from Gang Sheets. Piece work schedule will show employee wise / work order wise time saved and piece work profit. This schedule will be sent to Head Time Keeper at each month end who will fill appropriate columns in summary of Time Sheets from Piece Work Schedule i.e. employee wise and work order wise piece work profit.

FORM W.628


CHAPTER VI

PAYMENT BY RESULTS

6.7

(9) (10)(5) (6) (7) (8)(1) (2) (3) (4)PAYABLE NOTPAYABLE

PIECE-WORK

DAY WORK

PERIOD ENDING

JOB CARD GANG SHEET OR

EMPLOYEE NO.

W.O. NO OR EMPLOYEE PAY

RATEJOB STATUS

PIECE-WORK THIS DISTRIBUTION

TIME ALLOWED

TIME SAVED OR PIECE-WORK PROFIT

TIME LOST

TOTAL

PRESENT OTHER

COST CENTREP.R. PAGE_____ OF______PIECE WORK SCHEDULE

EMPLOYEE

NUMBER DESIGNATION PAY RATE

TOTALSTIME SAVED % NETTIME LOST %

NET TIME SAVEDNET TIME LOST

PREPARED BYDATE ______

APPROVED BYDATE _____ DATE _____

FORM W.629

PROFIT RS _________VALUED BY

PR-9-3-11/MOD 20

CHAPTER VII

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER VII

TIME RECORDS AND ALLOCATION OF LABOUR

14

CONTENTS


CHARGEMEN’S TIME BOOKS

7.1 701

JOB TICKETS

7.1 701A

TIME SHEETS 7.2 — 7.4 702 — 708

(706 — 707 Deleted)

JOB AND OPERATION CARDS

7.4 709 — 709A

LABOUR DISTRIBUTION STATEMENT

7.5 710

CHECK OF LABOUR DISTRIBUTION STATEMENT

7.5 710A

(711 Deleted)

SUMMARY OF LABOUR DISTRIBUTION STATEMENT

7.5 — 7.6 711A — 712A

(712 Deleted)

FINAL RECONCILIATION OF TIME SHEETS WITH PAY

BILLS

7.6 713

LABOUR SCHEDULE 7.7 714

(715 Deleted)


CHAPTER VII


7.1

A. PROCEDURE IN SHOP OFFICES 701. Chargemen’s Time Books. The labour force in a shop is distributed amongst a small number of Chargemen, Mistries or Charge-hands on whom rests the responsibility for allotting work to the men and seeing that they are fully engaged on their several duties. When Job or Operation Cards are not in use, each such Chargeman, Mistry or Charge-hand should keep a Time Book, in Form W. 701, which will function both as an attendance register of the men working under him and a record of the time spent by each man during the day on each job or work order. Shop Absentee Lists and Time Sheets (W. 461A) should be prepared from this initial record which should be kept carefully. In a shop in which the number of sub-work orders is large and men are frequently changed from work order to work order, the Time Books need give particulars only of the “Main” or control work order, provided the information necessary for the compilation of Time Sheets can be readily obtained from any subsidiary records kept for this purpose. The categories of staff whose time should be allocated to work orders for overheads are detailed in paragraphs 905 to 908.

FORM W. 701

TIME BOOK Of shop No……………….for the month of…………………….

Attendance and Record of Time worked on each day of the month

1st 2nd 3rd and so on up to

the end of the month

Serial

No.

Ticket

Nos of

workmen. Time in

hours

W.O.

No.

Time in

hours W.O. No.

Time in

hours W.O. No.

1 1545

2 and

so on. 1546

………………………….…………. Signature of Chargeman or Mistry

Shop/Cost Centre No.……………………

701A. Job Tickets. From Time Book the shop incharge shall prepare a separate Job Ticket for each job in the Form W-701A/P.W.R. 9.5.31/MOD/17 which shall show the token number of workman or where there are more than one workman deputed on a job/work order, the token numbers of those workmen and the work order number along


CHAPTER VII


7.2

with the date of start of work and its finish date. The copy of a job ticket shall be firstly sent to the time office at the time of start of job and finally at the finish date of job. The Head Time Keeper shall ensure that the allocation of workmen is appropriately made in the Time Sheet W-461A against the relevant work order upto the time and date of the “finish date job ticket”.

FORM W. 701A

P.W. D.W.

PREPARED BY.

JOB TICKET NO.______________

PREVIOUS JOBIDENTITY STATUS

JOB TICKET NO. W.O. NO.OUTTURN

COMPLETED SUSPENDEDALL PART.

START STOP TIME TAKEN

NEW JOBW.O. NO. W.O. DESCRIPTION

OPERATION NO. OPERATION DESCRIPTION QUANTITY

CHECK

EMPLOYEE NO. OTHER EMPLOYEE NO. MISTRY NO

PART NO. M/C NO. P.R.T. NO. TIME ALLOWED

ONE

CARD / SHEET NO. CH / MAN NO.DATE___________________

DATE TIME DATE TIME

P.W.R. 9.5.31/MOD/17

702. Time Sheets. Time sheet is the basic record of attendance of a workman for a wage period. A workman will be paid wages according to number of hours he works during a day or month. Time sheets (Form W. 461A) for workmen will be maintained in Time Office of workshops separately for each shop, for two purposes; one for the purpose of payment and other for the purpose of allocation of hours worked to the jobs upon which the workmen are employed. For the first purpose, their attendance will be marked daily from the ticket boards, the absentees on account of leave, sickness, etc. being ascertained from the ticket numbers left in the Time Office. Under no circumstances are erasures to be permitted. Corrections where necessary will be made neatly and initialed by the Head Time Keeper. For the second part, allocation will be recorded on the lower portion of the time sheets from the initial records of shops i.e. chargemen’s time book, Job tickets.


CHAPTER VII


7.3

W-461-A TIME SHEET……PRESENT COST CENTRE NO……..….PERIOD ENDING………..PAGE……...OF……..

1 2 4 6 7 8 9 10TOTAL

HRSD H

P/PB/F

1 2 4 6 7 8 9 10TOTAL

HRSD H

MOD-13. P.R.

TOTAL P.W. TIMETOTAL D.W. TIME

OTHER TIME

11 AND UPTO 31

11 AND UPTO 31

REGULAR TIMEOVERTIME SINGLE RATE

LEAVE - REGULAR " HALF PAY

HOLIDAYGATE PASS

DOUBLE RATE

SOURCE NUMBER

DOCUMENT NAME

ACCOUNT ORRECEIPT NO

TOTAL PAY TIME

" NO PAY " CASUAL

TIME TYPE

ATTENDANCE-PERIOD 1 PERIOD 2ATTENDANCE PAYABLE

OTHER COST CENTRENO NAME

PREPARED BY

APPROVED BY

EMPLOYEENAMEDESIGNATION

NO

703. Time Sheets should be prepared in Form W-461-A/Mod-13 in the shop office, the postings being made daily from Chargemen’s Time Books. 704. The actual number of hours worked each day should be shown in the Time Sheet. In calculating the hours of workmen who are monthly rated and not daily rated, a month should be considered as equivalent to 208 working hours, in all workshops where the day working hours in a week of six working days are 48 or 8 hours per day which, for 26 days, gives 208 hours. Where the number of working hours per week of six days is more or less than 48, the following formula should be used in ascertaining the equivalent of a month in terms of working hours “Divide the actual number of normal working hours in a week by six (the number of working days) and multiply by 26, the average number of working days other than Sundays”. If the number of normal working hours per week were, say, 45, the month should be considered to be equivalent to (45/6 x 26) or 195 working hours. 705. The particulars of name, ticket number, designation, parent cost centre number, etc., should be copied on the Time Sheets sometime before the commencement of each month, from the Time Sheets of the previous month.


CHAPTER VII


7.4

706. Deleted. 707. Deleted. 708. Delays by the shop offices in the submission of the Time Sheets duly completed as prescribed above should be promptly taken up with the shops concerned and proper remedial action taken, whenever this is found necessary. 709. Job and Operation Cards. The preparation of time sheets W-461A does not contemplate the preparation of a Job Card for each job on which a workman (or each gang of workmen doing the same job) is engaged, not to speak of an Operation Card for each operation carried out by each workman. Where Job or Operation Cards have been brought into use, the procedure outlined in paragraphs 1123 to 1130 is recommended for adoption for allocating the time and wages amongst the jobs. In all cases in which any particular operation or work is performed by a gang of workmen, it would be found advantageous to use a separate gang Card (W.709) for each job on which the gang is engaged.

FORM W. 709

GANG CARD Gang No………………………

Working No. …………….……

Machine No. …………………

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

..

Outturn ..

..

.. ..

Pieces on order

Ticket No.

Name Rates.

Time

Shop No./Cost Centre No. …………………………

Month ………………….. 20……..

Operation

Total time and amount .. ..

Date and time taken Total

Time Amount.

Foreman's initials.

Number completed

Number passed

Total passed

709A. Delays by the shop offices in the submission of the Job Tickets duly completed as prescribed above should be promptly taken up with the shops concerned and proper remedial action taken, whenever this is found necessary.


CHAPTER VII


7.5

B. PROCEDURE IN THE ACCOUNTS OFFICE

710. Labour Distribution Statement. The total hours of each workman against each work order shown in the Summary of Time Sheets Form W.464-A of each shop should be summarized in a Labour Distribution Statement (W.710) by the IT Section of the Workshop Accounts Office. This statement will show the distribution of pay and allowances of each workman separately into different work orders on the basis of time spent on each work order by a workman during a period. It will be the responsibility of the IT Section to prepare the Labour Distribution Statement at the end of each month on the basis of time sheets (W. 461A) and summary of time sheets (W. 464A) provided by the Head Time Keeper. The hours of workmen who are not working on any work order will be shown in the relevant column of Overhead cost i.e. indirect labour hours or idle time labour hours, and will not under any circumstances be shown under any work order.

FORM W. 710

PAKISTAN RAILWAYS LABOUR DISTRIBUTION STATEMENT

Shop/Cost Centre No: ..…………………… Shop: ……………………………………………………..

Shop/Cost Centre Name: ………………… Month/Period: ……………………………………………

Hours Amount Hours Amount Hours Amount

Rupees Rupees Rupees Rupees Rupees

Total

AmountOverhead Cost

xxxxxxxxxxxx Idle Time hoursEmployee

CodeDescription

NAM Code

AmountTotal

xxxxxxxxxxxxWork Orderxxxxxxxxxxxx Indirect

labour hoursHours

Labour Distribution Statement

710A. Check of Labour Distribution Statement. The Costing section of the Workshop Accounts Office will check and reconcile the labour hours mentioned on the labour distribution statement with the summary of time sheets alongwith the individual time sheets. The costing section will ensure that labour hours and amounts are appropriately recorded in the relevant work orders on the labour distribution statement.

711. Deleted.

711A. Summary of Labour Distribution Statement. The IT Section will also prepare a summary of labour distribution statements (W. 711-A) of all the shops / cost centres which will show the distribution of pay and allowances to different work orders shop / cost centre wise. The summary will be prepared at the end of each month.


CHAPTER VII


7.6

FORM W. 711-A PAKISTAN RAILWAYS

SUMMARY OF LABOUR DISTRIBUTION STATEMENTS

Hours Amount Hours Amount Hours Amount


Total

Idle Time

Shop: ………………………………………. Month/Period: …………

Cost Centre

NumberIndirect Labour Hours

OverheadsAmount

NAM Code

Work Ordersxxxxxxxxxxxx xxxxxxxxxxxx xxxxxxxxxxxx

712. Deleted. 712A. After the preparation of the Summary of Labour Distribution Statement the Senior Accounts Officer will get the voucher prepared, duly codified by the Assistant Chief Cost Accounts Officer, for onward data entry by Deputy Director FIS/MIS into the subsidiary ledger for costing for the relevant shop/cost centre, work order segregated into pay and allowances. Where the pay and allowances are charged to overheads these will be recorded as overhead costs in the relevant shop and cost centre in the overhead work order. 713. Final Reconciliation of Time Sheets with Pay bills. The Time Sheets and Pay-bills should be returned, after payment, to the Workshop Accounts Office by the 10th of the month following that to which they relate, where the payment is effected by the Pay Department. On receipt of the pay bills, the hours worked shown against each individual workman should be compared in the Accounts Office with those worked out in Form W. 461A* and all differences listed up in Form W.713. When these differences are due to “rounding off” the amounts allocated to each job may be ignored, the total of such differences being transferred to the “Shop Overheads” in subsidiary ledger for costing. In all other cases, they should be carefully investigated and set right by making the necessary corrections ordinarily before the accounts of the month are closed.


CHAPTER VII


7.7

FORM W. 713

RECONCILIATION STATEMENT OF TIME SHEETS Shop/Cost Centre No.…………..for the month of………………20………………….

1 2 3 4 5 6

Ticket

No.

Amount as

per Time

Sheet

Amount as

per Paybill Difference

Reasons for

difference Action taken

Rs. Rs. Rs.

…………………………….. Assistant Accountant Officer

*If a workman has worked in more than one shop during a month, the hours pertaining to that workman in the Time Sheets of several shops should be totalled up before effecting reconciliation. 714. Labour Schedule. After the correctness of the Subsidiary Ledgers has been proved in the manner indicated above (paragraph 713), a Summary of Labour Charges or Labour Schedule for the whole workshop should be made out in Form W.714 by the 15th of the following month.

FORM W. 714 LABOUR SCHEDULE

For the month of ……………………20………….

1 2

Shop / Cost Centre No. Amount

(Rupees)

715. Deleted.

CHAPTER VIII

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER VIII

MATERIALS

CONTENTS


15

ALLOCATION OF COST OF MATERIALS 8.1 801 — 802

SOURCES FROM WHICH MATERIALS ARE OBTAINED 8.1 803 — 803A

MATERIALS RECEIVED FROM STORES DEPOTS 8.1 804

MATERIAL TRANSFER NOTES (MTN) 8.1 — 8.2 805 — 806

PROVISIONAL ADJUSTMENT OF MATERIAL TRANSFER NOTES

8.2 807

RECORDING MATERIAL COST IN SUBSIDIARY LEDGERS 8.2 808

MATERIAL REQUISITION 8.3 808A — 808B

ADJUSTMENT OF COST OF STORES RECEIVED FROM DEPOTS 8.4 809

STORES PURCHASED DIRECT / RECEIVED FROM

CONTRACTORS ON ORDER PLACED BY HIGHER

AUTHORITIES

8.4 — 8.5 810 — 815

PAYMENT TO SUPPLIERS FOR DIRECT PURCHASES 8.5 816

STORES PURCHASED DIRECT THROUGH THE CHIEF

CONTROLLER OF PURCHASE

8.5 817

STORES PURCHASED FROM OTHER GOVERNMENT

DEPARTMENTS, ETC.

8.5 818

CREDITS WITH REFERENCE TO MANUFACTURED AND

RETURNED STORES

8.5 819

MATERIAL CONSUMPTION FOR OUTTURN OF PROCESS

SHOPS (COST CENTRES)

8.5 — 8.6 820 — 822

STORES CHARGES WRITE-BACK ORDERS 8.6 823 — 824


CHAPTER VIII

MATERIALS

CONTENTS


16

OTHER MISCELLANEOUS CHARGES 8.6 — 8.7 825 — 826

MATERIAL CONSUMPTION REPORTS SUMMARY 8.7 — 8.8 827 — 831

ALLOCATION OF COST OF REPAIRING MATERIALS 8.8 832

CLASSIFICATION OF ITEMS SENT TO WORKSHOPS FOR

REPAIRS

8.8 833

REPAIR OF STOCK ITEMS IN ECONOMIC BATCHES 8.9 834

SERVICEABLE STOCK ITEMS PRICED AS NEW 8.9 835 — 836

REPAIR OF NON-STOCK ITEMS 8.9 837 — 838

SPECIAL ITEMS SENT FOR REPAIRS 8.10 839

CARRIAGE AND WAGON WHEELS AND AXLES 8.10 840

FIXING OF AVERAGE REPAIR COST 8.11 841

ELECTRIC CELLS 8.11 842


CHAPTER VIII

MATERIALS

8.1

A. Allocation of the Cost of Materials 801. The procedure for the issue of stores by Stores Depots to workshops, and for the supply of or return of material to Stores Depots by workshops, has been laid down in Chapter XV of the Pakistan Railways Code for the Stores Department. 802. The procedure of allocating the cost of materials and other charges in the workshop books and that of dealing with materials, generally rolling-stock fittings and duplicates, sent to workshops for repairs and returned by workshops after repairs, are described in paragraphs 803 to 842. 803. Sources from which Materials are obtained. Materials for jobs undertaken in the workshops are obtained from the following sources: (1) Workshop Stores Main Depot, attached to workshops; (2) General Stores Depots; (3) Contractors on direct supply orders placed by the Divisional

Superintendent/Workshops, or Chief Controller of stores or higher authorities; (4) Other Divisions; (5) Railway/Factories, Workshops.

803A. The material obtained as per clause (1), (2) and (4) of paragraph 803 will be issued in the first instance to the workshop sub-stores which will subsequently issue material to the work orders on the basis of Material Requisition (MR) Form S-1302A. In this way the material cost will be charged to the respective work orders on its final consumption instead, when it is received from the Main Depot Stores. 804. Materials received from Stores Depots. The debits for materials transferred to workshop sub-stores from the Stores Main Depot attached to workshops, or from General and other out-station Stores Depots will be raised through Material Transfer Notes (Form S.1302) which will be prepared by the workshop sub-stores. It will be the responsibility of the workshop sub-stores incharge to forward one copy of the Material Transfer Note (MTN) to Workshop Accounts Office on receipt of materials. 805. Material Transfer Notes (MTN). Material Transfer Notes prepared by the Workshop Stores Depot in the form prescribed in paragraph 1302.S of the Pakistan Railways Code for the Stores Department would be received daily in the Workshop Accounts Office, after scrutiny by the Works Manager or other officer of the Mechanical Department. On receipt of the above Material Transfer Note (MTN), the Workshop Accounts Office is responsible for seeing that:


CHAPTER VIII

MATERIALS

8.2

(1) The serial numbers (i.e., Requisition Numbers) of the Material Transfer Note (MTN) for each sub-store are continuous, and that breaks in such continuity, if any, are satisfactorily explained;

(2) the Material Transfer Note (MTN) are received strictly according to

schedule, i.e., by the evening of the day following the date of issue;

(3) the Material Transfer Note (MTN) have been correctly prepared according to the instructions issued for this purpose; and

(4) Deleted.

806. The copies of the Material Transfer Notes (MTN) received from Shop Foremen should be sorted out and arranged in chronological order and will be forwarded to Senior Accounts Officer (SAO), who will get the journal voucher prepared, duly codified by the Assistant Chief Cost Accounts Officer for onward data entry by Deputy Director FIS/MIS into the general ledger system by debit to “Stores, spares and loose tools — workshop sub-stores” and credit to “Stores in Transit account”. 807. Provisional Adjustment of Material Transfer Notes. If any Material Transfer Note is not received from the shop in time, and the allocation on the copy of the Material Transfer Note accompanying the daily summary is incomplete, efforts should be made to ascertain the work order number to which the amount is chargeable. If the allocation cannot be ascertained before the month's accounts have been closed, the amount of each such issue note should provisionally be adjusted against a suspense work order entitled “wrong work order” which should be cleared as soon as possible by being finally adjusted against the correct work order or work orders on receipt of the shop copy of the issue note. A register showing the issue notes thus adjusted provisionally should be put up monthly to the Workshop Accounts Officer by the first week of every month, who would be responsible for seeing that the correct allocation is ascertained as expeditiously as possible and that the appropriate adjustments are made. 808. Recording Material Cost in Subsidiary Ledgers. (i) After the Material requisition (MR) referred to in paragraph 808A has been received in the Workshop Accounts Office, which should not take longer than 24 hours from the time of receipt of material, the Senior Accounts Officer will get the voucher prepared, duly codified by the Assistant Chief Cost Accounts Officer for onward data entry by Deputy Director FIS/MIS into the subsidiary ledger for costing, by charging to the relevant work order and where the material is issued as indirect material, i.e., material which is not directly related to any work order, will be charged as overheads.


CHAPTER VIII

MATERIALS

8.3

(ii) After all the accounting entries have been made in the subsidiary ledger for costing for a given period, the Senior Accounts Officer will generate a material consumption report in Form 808, which will chronologically show work order wise consumption of direct materials, net of returns, for each cost centre of a shop. This report will also show the material cost (net) issued as indirect material in each shop / cost centre.

FORM W. 808 MATERIAL CONSUMPTION REPORT

Shop ___________ Cost Centre____________

Source Document Direct

Material

Indirect Material Total

Date Type Number

Work Order

Number Rupees Rupees Rupees

1st . . . . 2nd . . . . 3rd . . . . 4th . . . . 5th . . . . and so on.

Total . . . .

808A. Material Requisition. Workshop sub-stores will issue material to cost centres / users on Material Requisition (MR) in the form prescribed in paragraph 1302A.S of the Pakistan Railways Code for the Stores Department, which will be prepared by shop foreman / chargeman in triplicate for requiring material for consumption in work orders. Before issuing materials to cost centres / users the workshop sub stores incharge will ensure that:

(1) Material Requisition is approved by competent authority. (2) Material Requisition is properly filled as per instructions. (3) Material demanded is available at sub store, if the balance of the item

demanded is adequate to issue, store keeper will correctly write the quantity issued in the quantity issued column.

808B. Three copies of Material Requisition will be issued by the cost centre / user. One copy will be retained by cost centre / user as its record and remaining two will be issued to Workshop sub-stores. Batches of Green Copy of Material Requisition will be sent to Workshop Accounts Office daily after getting acknowledgement of receipt of materials from user.


CHAPTER VIII

MATERIALS

8.4

809. Adjustment of Cost of Stores received from Depots. At the end of the month, the Workshop Accounts Officer will generate a report of Stores In Transit account and will identify the transactions with respect to the transfer of material to workshop sub-stores. After identification of entries the Accounts Officer will reconcile each entry appearing in the “Stores In Transit Account” with the entries appearing in the “Stores, spares and loose tools — workshop sub stores Account”. The differences will be promptly adjusted by obtaining missing Material Transfer Notes from the Workshop sub-stores incharge. Shop stores will issue material to various sections/consumer of the cost centre on Material Issue Ticket (MIT). 810. Stores purchased direct / received from contractors on order placed by higher authorities. As soon as the Stores are received against the orders placed either by the Chief Controller of Purchase or by an Officer of Divisional Superintendent, workshops, the Works Manager shall send copy of Material Receipt Note (MRN) (S.726) to the Workshop Accounts Officer.

811. On receipt of the Material Receipt Note referred to above, the Workshop Accounts Officer should price it at the rate quoted therein, after verifying the price with that given in the Purchase Order.

812. The amount of the Material Receipt Note should then be journalised by credit to “Sundry Creditors — Purchases” and debit to "Stores, Spares and Loose Tools (Workshop Sub-Stores).'' 813. The amount thus debited to the head “Workshop Sub-Stores” will be charged to work orders or overhead cost, as the case may be, upon issuance of such stores to various cost centres / users on Material Requisition (Paragraph 808A) on the basis of which these issues should be summarized by individual work orders in a Material Consumption Report to be prepared for each cost centre separately in Form W. 808.

814. At the close of the month, the Senior Accounts Officer will prepare a report of stores purchased direct during the month in Form W. 814.

FORM W. 814 …………………………………SHOP

SUMMARY OF STORES PURCHASED DIRECT DURING THE MONTH OF……………………..20………

Serial No.

Cost Centre No.

Date Material Receipt

Note No. Amount (Rupees)

Remarks

1 2 3 4 5 6

Grand Total


CHAPTER VIII

MATERIALS

8.5

815. The grand total of this summary should be agreed with the total credits to “Sundry Creditors-Purchases” during that month. 816. Payment to Suppliers for Direct Purchases. The Works Manager will send the supplier's bill to the Workshop Accounts Officer. On receipt of the bill from the Works Manager, the Workshop Accounts Officer should check it with his copy of the Purchase Order and pass the bill by debit to “Sundry Creditors-Purchases”. 817. Stores purchased direct through the Chief Controller of Purchase. The stores purchased through Chief Controller of Purchase (CCP) and delivered direct to workshop. Such material purchased by CCP will be booked and charged to individual work orders in the manner indicated in paragraphs 810 to 815. 818. Stores purchased from other government departments etc. Stores are seldom received from other government departments etc., and if there are any transactions on this account, they should, after verification and allocation by the Works Manager, be dealt with like bills for direct supplies and necessary adjustments made by credit to — “Sundry Creditors-Purchases” and debit to “stores, spares and loose tools (workshops sub-stores)”. 819. Credits with reference to Manufactured and Returned Stores. Detailed instructions for the accountal of “Returned Stores” and “Manufactured Stores” and for the preparation of forms of “Material Return Notes (S. 1539)” and “Material Production Notes (S. 1531)” in connection with such stores have been laid down in paragraphs 1530S to 1548S of the Pakistan Railways Code for the Stores Department. The credits received in connection with “Returned Stores” will be booked in Subsidiary ledger for costing and will be summarised in a Material Consumption Report to be maintained in Form W.808 for each cost centre. The credit received on the basis of Material Production Note (MPN) in connection with the “Manufactured Stores” will be booked in subsidiary ledger for costing by adjusting (crediting) relevant work orders. 820. Material Consumption for Outturn of Process Shops (cost centres). The debits to work orders from the Manufacturing accounts of Process Shops and Saw Mill accounts, the detailed instructions for which have been laid down in Chapters XIII and XIV respectively, should be summarised in subsidiary ledger for costing in the same form as used for the main stores subsidiary ledger (Form W. 808). 821. The Stores/Subsidiary ledger referred to above, should be closed by the 12th of the following month and the Grand total reconciled in the manner stated in the following paragraph.


CHAPTER VIII

MATERIALS

8.6

822. The total of the stores subsidiary ledger of referred to in paragraph 820 above, should be agreed with the total issues shown in the manufacture outturn statements of the various process shops and those shown in the Saw Mill and Wood Machine Shop outturn statements as issued to jobs, i.e., from the total issues accounted for in the Saw Mill and Wood Machine Shop outturn statements should be deducted the value of scantlings, etc., issued to Timber Store-keeper and the amount debitable to jobs arrived at.

823. Stores charges write-back orders. To regularise (adjust) any incorrect allocation of stores charges to work orders, write-back orders should be made out in Form. W.823 given below and debits to the correct work order and credit to work order from which the charges are written back will be booked in the subsidiary ledger for costing under the relevant work orders and should be summarized in a Material Consumption Report in Form W.808, to be prepared for each shop separately.

Rupees Rupees

Form W. 823/E 1422.

WRITE-BACK ORDER

No. ………………….Order for a write-back in the accounts

for ………………………………….

Particulars of the transactions

DebitsCreditsWork order

Amount Work order

Amount

Date

To be debited to ..

To be credited to ..

Forwarded to the Workshop Accounts Officer forinclusion in accounts for ………………………………

……………………………….for Works Manager

………….Shops………… Date ……………….

Initials of Officer.

No……………….

Particulars of the transactions.

Rupees

824. Before inclusion of the write-back orders in the stores/subsidiary ledger for costing, it should be seen that the work order numbers quoted therein are current, the reasons for the adjustments have been clearly given in sufficient detail, the arithmetical calculations are correct and that the write-back orders bear the signature of a gazetted officer.

825. Other miscellaneous charges. Besides the labour and stores charges which have been described in the preceding paragraphs certain miscellaneous charges are also booked to ”Work in Process”. These charges are generally comprised of the following items:


CHAPTER VIII

MATERIALS

8.7

(1) Provincial/Municipal Taxes such as Motor vehicle token Tax etc. (2) Cost of electric current. (3) Water charges. (4) Shunting charges. (5) Demurrage charges. (6) Carriage of Materials.

826. All bills in connection with the above items should first be got verified and allocated by the Works Manager or other Departmental Officer concerned and thereafter passed for payment., or adjusted in transfer, by debit to relevant work order and booked in Subsidiary Ledger for costing in Form W.808 for each cost centre separately. 827. Material Consumption Reports Summary. In addition to the Material Consumption Report for individual cost centres, a summary of all the Material Consumption reports for different shops (cost centres), should be prepared in Form W.827, showing the total amount under the various Material Consumption Reports referred to above.

FORM W. 827

MATERIAL CONSUMPTION REPORT — SUMMARY SHOP ___________________

Charges for Stores received from the

Workshop sub-stores. Miscellaneous Charges

Cost Centre No.

General Stores

Workshop Department

Total debits

Remarks

1 2 3 4 5 6 7 8 9 Rupees Rupees Rupees Rupees Rupees Rupees Rupees

CC No. 1 . . CC No. 2 . . CC No. 3 . . CC No. 4 . . CC No. 5 . . CC No. 6 . . CC No. 7 . .

and so on.

Grand Total

Compiled by . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Checked by . . . . . . . . . . . . . . . . . . . Assistant Accounts Officer


CHAPTER VIII

MATERIALS

8.8

828. The totals of the various columns shown in the Material Consumption Report Summary should be checked with reference to the following:

(1) Material Requisitions received from the Workshop Sub-stores incharge / Works Manager.

(2) Debits raised by divisions, etc. (3) Cash Book debits, i.e., payments made for municipal taxes, license fees and

direct purchases of stores. (4) Issues from Work in Process Account. (5) Write Back Orders.

829. This summary should then be submitted to the Assistant Accounts Officer for his signature, who should, before signing it, satisfy himself about the correctness of the entries included therein. 830. The charges booked in subsidiary ledgers for costing referred to in paragraphs 813 et seq. will be aggregated with the charges for material obtained from workshop subsidiary-stores by shops and by work orders should be transferred to the main Stores subsidiary ledgers (Paragraph 808) of the respective shops, after the correctness of the former has been verified as laid down in paragraphs 827 to 829. 831. The charges for stores booked on each work order will be accumulated by the Subsidiary Ledger for Costing for each cost centre of a workshop / factory. The main stores subsidiary ledger for costing will automatically update the Work In Process Account of workshop at the time the store charges are booked to the work orders.

B. ALLOCATION OF THE COST OF REPAIRING MATERIALS

832. Materials sent to railway workshops for repairs would be received either from Stores Depots or direct from the Running Sheds, or Train Examining Stations. 833. Classification of Items sent to Workshops for Repairs. Materials sent to workshops for repairs may be classified as follows:

(1) Non-ferrous duplicates–stock items. (2) Non-ferrous duplicates–non-stock items. (3) Ferrous duplicates–stock items. (4) Ferrous duplicates–non-stock items. (5) Special items.


CHAPTER VIII

MATERIALS

8.9

834. Repair of Stock Items in Economic Batches. Stock items of repairable materials are accumulated in the Stores Department to be sent to the workshops in economic batches, the size of such batches being determined in consultation with the workshop authorities. These materials should be issued to the workshops at the rates at which credits were afforded to out-stations, i.e., cost of the new article less accumulated depreciation and impairment loss, if any, vide paragraph 1615 of the Pakistan Railways Code for the Stores Department. 835. Serviceable Stock Items Priced as New. The workshops should return the materials to the Stores Department after repairs, accompanied by Form S.1531 and the stores should be debited with their full value at issue rates for new articles, all fully serviceable materials being treated as new after repairs. 836. The difference between the actual expenditure incurred on repairs and “the average cost of repairs” taken into account will stand at the debit of “Work in Process Account” and this should be cleared periodically, in accordance with the rules prescribed for such adjustments, by credit or debit to final heads of accounts, vide paragraph 1047. 837. Repair of Non-stock Items. Non-stock items, both ferrous and non-ferrous, which are considered as repairable by the out-stations should be sent direct to the workshops by the Shed Foremen and Train Examiners concerned, accompanied by repair requisitions (Form W.837) which should state clearly (a) the number and description of the articles, and (b) the nature of the repairs to be carried out. Such materials would be examined by the workshop staff and the decision of the Works Manager as to what items should be treated as repairable and what as scrap, will be final. Obsolete material that is not worth repairing should be treated as scrap. 838. Non-stock repairable material should be returned direct to the stations concerned after repairs under cover of Form W.838 and the actual expenditure incurred in repairing them should be intimated to the outstations, in the absence of an arrangement authorized by the General Manager under which the expenditure on all such repairs is intimated to the Divisional Superintendent direct and not to the Sheds or Train Examining Stations.


CHAPTER VIII

MATERIALS

8.10

FORM W. 838 No………………Date………………………….. To the ………………………

Please receive the under mentioned articles supplied in compliance with your requisition No….….……, date……………….…..and booked under Railway Credit Note

No…………, date…………….and in wagon No…………………

Quantity supplied

Amount

Description of articles Note. Class and Part

Number must be stated.

Work Order No.

No. Kgs.

Rate

Rupees

Initials of …………………..……..Received the above* and dispatched to Consignee

Weighment Checker ………………………..……….Signature and Designation . ……………………………

Workshop Foreman, Bill Checker ………………………. ………………………Shop *Strike out if inapplicable. 839. Special Items sent for Repairs. Special items such as wheels and axles, Diesel engine blocks, traction motors, turbo supercharger, fuel injection pump & nozzles, fuel pump motors, air compressor, steam engine link motion, side rods and connecting rods, and train lighting cells etc. should be sent for repairs direct to the workshops under cover of repair requisitions on Material Return Notes (S.1539) and not to the Stores Depot. The actual expenditure incurred in repairing such items should be intimated by the workshops to the party concerned in the manner laid down in paragraph 838W. 840. Carriage and Wagon Wheels and Axles. When the carriage and wagon wheel park is in the direct custody of the Mechanical Department, carriage and wagon wheels and axles should be sent for reconditioning direct to the workshops, under cover of Material Return Notes (S.1539). The workshops should make over an equivalent number of reconditioned wheels to the Stores Department and forward the Material Return Note, duly endorsed to this effect, to the Stores Department. No credits will be afforded to out-stations for the wheels and axles sent into shops. On the other hand, the


CHAPTER VIII

MATERIALS

8.11

workshops should be credited by the Stores Department, through the Material Return Note, at the actual repair cost for the reconditioned wheels and axles made over to the Stores Depots. The Stores Depots should issue the reconditioned wheels and axles to out-stations at the actual repair cost only, necessary Material Transfer Notes being prepared for the purpose. Note.– When the wheel park is in the custody of the Stores Department, the normal procedure, as laid down in paragraphs 834 to 836 for dealing with the repairable stock items, will be followed. 841. Fixing of Average Repair Cost. The average cost of repairs, which may be estimated if not known, should be fixed provisionally for a period not exceeding six months and should be reviewed every half-year for each item or group of items as may be considered convenient. 842. Electric Cells. Defective cells should be removed from rolling-stock at the maintenance stations. Material supply trains should exchange good cells for defective cells returned at these maintenance stations free of charge. Such exchanges should be entered in a special register provided for the purpose. All defective cells collected by the imprest train should be made over to the DEE/W, who should repair or condemn them as circumstances require, the debit being borne finally by the Electrical Department under the appropriate revenue head of account.

CHAPTER IX

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER IX

OVERHEADS

CONTENTS


17

OVERHEADS 9.1 901

ADMINISTRATIVE OVERHEADS 9.1 — 9.2 902 — 904

GENERAL OVERHEADS 9.2 — 9.3 905 — 905A

SHOP OVERHEADS 9.3 — 9.4 906 — 906A

ACCOUNTING FOR OVERHEAD COSTS 9.5 906B

STANDING WORK ORDERS FOR RECORDING OVERHEADS 9.5 907

ALLOCATION OF GENERAL OVERHEADS TO WORK ORDERS 9.5 907A

ALLOCATION OF ADMINISTRATIVE OVERHEADS TO WORK

ORDERS

9.7 907B

WORK ORDER FOR SHOP OVERHEADS 9.8 908

ALLOCATION OF SHOP OVERHEADS TO WORK ORDERS 9.9 908A

CENTRAL POWER AND SERVICE COSTS 9.11 909

ESTIMATES OF OVERHEADS 9.11 — 9.12 910 — 912

ANNUAL SHOP OVERHEADS ESTIMATES 9.12 913

ANNUAL GENERAL OVERHEADS ESTIMATES 9.14 914

OVERHEAD BUDGET SUMMARY 9.15 915

OVERCHARGES OR UNDERCHARGES IN OVERHEAD

DISTRIBUTION

9.16 916

ANNUAL ADMINISTRATIVE OVERHEADS ESTIMATES 9.17 917

SUPERVISION 9.17 918

PROVIDENT FUND CONTRIBUTION AND GRATUITY

PAYABLE TO WORKS STAFF

9.17 919 — 920


CHAPTER IX

OVERHEADS

CONTENTS


18

REPAIRS 9.17 921

INTEREST 9.17 922

DEPRECIATION 9.18 923

(924 Deleted)

DISTRIBUTION OF ADMINISTRATIVE OVERHEADS 9.18 925

INCLUSION OF ADMINISTRATIVE OVERHEADS IN THE COST

OF WORK

9.18 926 — 930

(929 Deleted)

DETAILED ITEMS OF ADMINISTRATIVE OVERHEADS 9.19 931

DETAILED ITEMS OF GENERAL OVERHEADS 9.22 932

DETAILED ITEMS OF SHOP OVERHEADS 9.24 933


CHAPTER IX

OVERHEADS

9.1

901. Overheads. (i) In addition to the direct expenditure on labour and materials that is incurred on jobs and is accounted for as described in the two previous chapters, certain expenditure is incurred which cannot be charged direct to the cost of articles manufactured or work done. Charges of this nature are termed “Overheads” which, in the case of railway workshops, is best analyzed as:

(1) Administrative Overheads; (2) Production Overheads.

(ii) Production Overheads are further analysed as:-

(1) General Overheads; (2) Shop Overheads.

(iii) These overhead charges should be distributed amongst the various work orders in proportion to their labour charges and / or direct material cost, where applicable.

902. Administrative Overheads. The term, Administrative overheads commonly known as “Indirect charges”, is intended to include all overheads which are not included in the cost of work done in railway workshops but which would be so included in commercial costing. This consists either of working expenses of administrative departments of workshops / factories (e.g., General Administration, Depreciation) or of charges not included in the working expenses of workshops / factories. 903. “Administrative” Overheads generally include the following items.

(1) Share of the expenses of the Administrative Departments such as Accounts,

Stores, etc. (2) “General Administration”, superior and subordinate supervision and office

establishment of all service departments including Railway Police. (3) Provident Fund contribution payable by Govt, if any. (4) Payments under Workmen’s Compensation Act. (5) Gratuities. (6) Depreciation of buildings, motor vehicles and office equipment. (7) Repairs to office buildings, motor vehicles and office equipment other than

those charged to the cost of manufacture and repairs to building yards. (8) New Minor Works (9) Educational grants to workshop staff.


CHAPTER IX

OVERHEADS

9.2

(10) Cost of materials used and labour expended on the maintenance of electric lighting throughout the workshop, all fittings, lamps, switches, etc. and the cost of cables or wiring from main distribution boards.

(11) Communication costs (12) Utilities expenses other than of shops, etc. (13) Stationery (14) Printing and publication (15) Travelling and conveyance allowance (16) Law charges (17) Advertising and publicity charges (18) Pension cost — actuarial valuation (19) Interest on general provident fund of administrative staff only. (20) Reimbursement of medical charges of administrative staff only. (21) Scholarships, bonuses and other awards (22) Health and welfare expenses (23) Newspapers, periodicals and books

The detail of these items are shown in Paragraph 931: 904. The item of expense not so charged to working expenses, is interest on the capital cost of buildings, plant and machinery and on all other fixed assets. 905. General Overheads. General Overheads denote all overheads, other than Administrative overheads, which are incurred in common with more than one shop or department within a workshop. Such overheads are not directly related to one production cost centre and to the work orders operated therein. These are incurred in service cost centres of a workshop and will include:

(1) Leave, sick, hurt and holiday pay paid to workshop employees whose wages are not charged to shops, such as the yard establishment.

(2) Wages, overtime, etc., of staff, such as the workshop apprentices, tool-keepers, not attached to shops.

(3) Freight charges that cannot be directly allocated to jobs. (4) Electrical power, which it is not possible to allocate to shops. (5) Hydraulic and pneumatic power and gas that cannot be allocated to shops. (6) Wages paid in lieu of notice to workshop staff not charged to shops. (7) Replacement of articles stolen or lost. (8) Expenditure on apprentices' school and hostel (Net). (9) Cost of Railway Police staff for workshops.


CHAPTER IX

OVERHEADS

9.3

(10) Working expenses of crane and shunting engines, lorries, auto-trucks, traverses, etc., provided for the use of the workshop when not chargeable to Shop overheads.

(11) Working expenses of central works pumping plants. (12) Experimental work, when not more appropriately charged directly to the

job itself. (13) Water charges that cannot be allocated to shops. (14) Wages, overtime, etc., of general labour in yards and shunters. (15) Sanitary arrangements in workshops. (16) Messengers' wages, uniforms, etc., when not allocable to shops/cost

centres. (17) Consumable stores for general use not allocable to shops/cost centres. (18) Maintenance of mess rooms/canteens. (19) Yard lighting.

905A. The General Overheads will be classified as Variable and Fixed. Variable General Overheads will include:

• Freight charges • Repairs to workshop plant and machinery • Other expenses

Fixed General Overheads will include:

• Workshop supervision cost (employee related expenses) e.g. salaries of works manager, etc.

• Interest on general provident fund • Depreciation of workshop buildings • Communication cost • Utilities • Printing and stationery • Repairs and maintenance to shop buildings

The grouping of expense account heads referred in para 905 into abovementioned classifications are shown in Paras 932A and 932 B respectively.

906. Shop Overheads. These include all overheads incurred within a production shop/cost centre. Following are the examples of such overheads:


CHAPTER IX

OVERHEADS

9.4

(1) Wages, overtime, etc., of workshop apprentices attached to particular shops of chargemen, chargehands, mistries, coolies, tallymen, storemen, belters, and oilers whether (on monthly or daily rates of pay) and of shop clerks on daily rates of pay. Also, wages of journeymen when employed on supervisory duties.

(2) Leave pay, idle time, sick, hurt and holiday pay, compensatory allowances and arrear pay, and pay allowed to men on volunteer duty or taking part in sports.

(3) Shop scraps (credit), i.e., scrap which cannot be allocated to jobs. (4) Stationery and forms used in shops. (5) Defective and spoilt work, in the case of experimental works. (6) Power charges, whether electric, pneumatic, gas or hydraulic which can be

directly allocated to shops. (7) Wages of operators of automatic machines, not otherwise allocated. (8) Wages, overtime, etc., of men employed on mechanical transport in the shop. (9) Wages, overtime, etc., of all general labour in shops including those employed

on transport (10) Hammer driving in shops. (11) Small differences between Payrolls and time sheets (paragraph 713). (12) Consumable stores for shop use, such as:

i. Oil for lubrication of machinery and shafting oil and waste for cleaning machines.

ii. Sponges, emery and glass cloths, soap, soda, pumice, acid, glue and chamois leather.

(13) Charges for coal and coke in the smithies. (14) Lighting charges in shops. (15) Fine creditable to works. (16) Suspension allowances. (17) Wages, etc., of shop messengers. (18) Working expenses of crane and shunting engines, lorries, auto-trucks,

traversers, etc., which can be charged to shop overheads. (19) Small tools for Shop use.

906A. Shop overheads will be classified as variable and fixed depending upon their variability with the production.

Variable Shop Overheads will include:

• Indirect material • Indirect labour (including idle direct labour cost) • Fuel and power • Repairs and maintenance of cost centre plant and machinery • Printing and stationery • Other expenses


CHAPTER IX

OVERHEADS

9.5

Fixed Shop Overheads includes:

• Supervision costs of shop (employee related expenses) e.g. foreman, etc. • Depreciation of shop plant and machinery • Repair and maintenance — cost centre building

The grouping of expense account heads referred in Para 906 into abovementioned classification is shown in Paras 933(A) and 933(B) respectively. 906B. Accounting for Overhead Costs. In order to charge the overhead costs to the work orders, the overheads will be recorded in the subsidiary ledger for costing in two steps. Firstly these costs will be recorded at the time of incurrence as unallocated costs in the relevant shop/cost centre. Subsequently the balance of unallocated costs in each cost centre shall be distributed to relevant work orders on the basis of overheads allocation statements. 907. Standing Work Orders for recording Overheads. The expenditure chargeable to Overheads (Shop, General and Administrative), that is actually incurred, will be booked under Overhead standing work orders Para 1059 which will accumulate the actual overheads at the time of their incurrence in the relevant cost centre and subsequently, after determination of allocation to different work orders, the balance appearing in such work orders will be cleared by crediting them and debiting the relevant production / repair, etc. work order. 907A. Allocation of General Overheads to work orders. (i) At each month end, general overheads (except for freight charges) will be allocated to work orders on the basis of direct labour cost of each work order in a cost centre. The allocation rate will be calculated as under:

Total monthly general overheads Total monthly direct labour cost of all work orders

X Monthly direct labour cost of work order

(ii) For allocating freight charges to work orders the total freight charges will be divided by the total monthly direct material cost of all work orders as follows:

Total monthly freight charges Total monthly direct material cost of all work orders

X Monthly direct material cost of work order

(iii) The Assistant Chief Cost Accounts Officer / modified cost accounting system will prepare / generate a general overhead allocation statement in the form W. 907A given below. This statement will be prepared for each service cost centre, in which general


CHAPTER IX

OVERHEADS

9.6

overheads are incurred, and show work order wise allocation of general overheads at the month end. For preparing this statement, the information with respect to direct labour cost of each work order will be obtained from the Summary of Labour Distribution Statements. The balance of unallocated overheads will be abstracted from subsidiary ledger of workshops for service cost centres:

FORM W. 907A

General Overheads Allocation Statement

Shop __________________ Cost centre _____________ For the month ended ____

Work Orders Description

Total for the period

1 2 3 Total


Direct Labour Cost - 2000 3000 5000 10000Direct material cost - 20000 35000 65000 120000

Variable general overheads Freight charges 15000 3000 4500 7500 15000Repairs to shop machinery and equipment 10000 2000 3000 5000 10000Other expenses 5000 1000 1500 2500 5000Sub total 30000 6000 9000 15000 30000

Fixed general overheads Shop supervision cost (Employee related expenses) 30000 6000 9000 15000 30000Interest on general provident fund 15500 3000 4500 8000 15500Depreciation of shop buildings 4500 1000 1500 2000 4500Communication cost 20000 4000 6000 10000 20000Utilities 20000 4000 6000 10000 20000Printing and stationery 10000 2000 3000 5000 10000Repairs and maintenance to shop buildings 10000 2000 3000 5000 10000Sub total 110000 22000 33000 55000 110000

Total 140000 28000 42000 70000 140000


CHAPTER IX

OVERHEADS

9.7

907B. Allocation of Administrative Overheads to Work Orders. (i) Administrative Overheads relating to Workshops Division Moghalpura, Lahore will be first allocated to all the shops such as Loco shop, Carriage and Wagon Shop, Electric shop, etc. in the ratio of total direct labour cost and total overheads-actual of each workshop. After allocation to shops the administrative overheads will be allocated to work orders on the basis of total direct labour cost of each work order in a cost centre. The allocation rate will be calculated as under:

Total monthly administrative overheads of each shop Total monthly direct labour cost of all work orders in shop


(ii) The Assistant Chief Cost Accounts Officer / modified cost accounting system will prepare / generate an administrative overhead allocation statement in Form W. 907B which will be prepared for each cost centre and show work order wise allocation of administrative overheads. For preparing this statement, the information with respect to direct labour cost of each work order will be obtained from the Summary of Labour Distribution Statements. The balance of unallocated administrative overheads will be abstracted from subsidiary ledger of workshops for service cost centres in which administrative expenses are booked:


CHAPTER IX

OVERHEADS

9.8

FORM W. 907B

Administrative Overheads Allocation Statement Shop __________________ Cost centre_____________ For the month ended ____


Total for the period

1 2 3 Total


Direct Labour Cost - 20 30 50 100

Administrative overheads Supervision cost (Employee related expenses) 15000 3000 4500 7500 15000Interest on general provident fund 10000 2000 3000 5000 10000Depreciation of office buildings 5000 1000 1500 2500 5000Communication cost 15000 3000 4500 7500 15000Utilities 20000 4000 6000 10000 20000Printing and stationery 4500 1000 1500 2000 4500Repairs and maintenance to shop buildings 30000 6000 9000 15000 30000Traveling and transportation 15500 3000 4500 8000 15500Law charges 4500 1000 1500 2000 4500Advertising and publicity 20000 4000 6000 10000 20000Pension cost — actuarial valuation 20000 4000 6000 10000 20000Reimbursement of medical charges 10000 2000 3000 5000 10000Scholarships, bonuses and other awards 10000 2000 3000 5000 10000Depreciation of motor vehicles 5000 1000 1500 2500 5000Depreciation of office equipment 3000 600 900 1500 3000Repairs and maintenance to office buildings and structures 8000 1600 2400 4000 8000Repairs and maintenance to motor vehicle 2000 400 600 1000 2000Repairs and maintenance to office equipment 1000 200 300 500 1000Newspapers, periodicals and books 1000 200 300 500 1000 Total 204500 40900 61400 102200 204500

908. Work Order for Shop Overheads. The expenditure on labour and material of the nature of overheads actually incurred in individual shops should be collected under a work order in the same manner as described in para 907W.


CHAPTER IX

OVERHEADS

9.9

908A. Allocation of Shop Overheads to Work Orders. (i) At each month end, shop overheads will be allocated to work orders on the basis of direct labour cost of each work order in a cost centre except for indirect material cost. The allocation rate will be calculated as under:

Total monthly shop overheads Total monthly direct labour cost


(ii) For allocating indirect material to work orders, allocation rate will be calculated as under:

Total monthly indirect material cost Total monthly direct material cost

X Monthly direct material cost of work order

(iii) The Assistant Chief Cost Accounts Officer will prepare / generate an allocation statement for all shop overhead expenses in the form W.908A given below. This statement will be prepared for each cost centre and show work order wise allocation of shop overheads at the month end. For preparing this statement, the information with respect to direct labour cost / direct material cost of each work order will be obtained from the Summary of Labour Distribution Statements and Material Consumption Report (Form W.808). The balance of unallocated overheads will be abstracted from subsidiary ledger of workshops for production cost centres:


CHAPTER IX

OVERHEADS

9.10

FORM W. 908A

Shop Overheads Allocation Statement Shop __________________ Cost Centre ____________ For the month ended ____


Total for the

period 1 2 3 Total

Rupees Rupees Rupees Rupees Rupees Allocation base Direct Labour Cost - 2000 3000 5000 10000Direct Material Cost - 20000 35000 65000 120000 Variable shop overheads Indirect material 10000 1600 3000 5400 10000Indirect labour

Basic Pay 15500 3000 4500 8000 15500Regular allowances 2500 500 800 1200 2500Other allowances 2000 400 600 1000 2000

Fuel and power 15000 3000 4500 7500 15000Repairs and maintenance to plant and machinery

10000 2000 3000 5000 10000

Printing and stationery 5000 1000 1500 2500 5000Other expenses 5000 1000 1500 2500 5000Sub total 65000 12500 19400 33100 65000Fixed shop overheads Supervision cost (Employee related expenses)

Basic Pay 15500 3000 4500 8000 15500Regular allowances 2500 500 800 1200 2500Other allowances 2000 400 600 1000 2000

Depreciation of shop plant and machinery 50000 10000 15000 25000 50000Repair and maintenance - shop buildings 30000 6000 9000 15000 30000Other expenses 10000 2000 3000 5000 10000Sub total 110000 21900 32900 55200 110000

Total 175000 34400 52300 88300 175000


CHAPTER IX

OVERHEADS

9.11

909. Central Power and Service Costs. Where, for any exceptional reasons, the monthly electrical charges for current consumed are not distributed amongst the cost centres on the basis of actual meter readings for each cost centre, the distribution may be made according to any formula (or percentage basis) that may be prescribed for this purpose by the Works Manager, after taking into account all relevant factors such as the power ordinarily consumed by the machines in each cost centre and by the general purposes plant (the operation of which is an item of general overhead) and the time the machines normally work during the month. The formulae should be tested from time to time by actual measurements of energy supplied and suitable alterations made. The above procedure should be followed mutatis mutandis in the case of all other central sources of supply, such as water, air, hydraulic power, gas, and steam. None of these items should be treated as constituting in its entirety, an item of general overhead. 910. Estimates of Overheads. (i) The workshops will use standard costing principles for making estimates of work orders. The standard costs will be determined by the costing section of the workshop accounts office on half yearly basis, considering the inflation and changes in the key costs and quantitative components e.g. material, labour, overheads, etc. (ii) The annual wages of each cost centre can always be closely estimated. The wages which will be charged to overheads in each cost centre during the year (i.e., under “indirect labour”) can be similarly estimated with a fair degree of accuracy. The amount of the annual direct wages, i.e., wages charged to work orders other than indirect wages, is the difference between the above two amounts, and the amount of such wages for each cost centre estimated as indicated above will, under normal circumstances, be fairly accurate. 911. The total General and Shop overheads likely to be incurred in a year on account of (a) labour, and (b) materials may be estimated fairly closely with the guidance of the actuals of the previous six months, modified by known changes in conditions and other relevant factors. The labour overheads and the materials overheads may then be expressed as percentages of the total “direct labour and direct material respectively” in round figures. The general overheads would be expressed by two percentages, one for labour and one for materials, applicable to all cost centres, and similarly the shop overheads by two percentages which will be distinctive for each shop. The addition of the shop percentages for “labour” and “materials” to the general overheads percentages under these two heads yields the percentage rates at which the total overheads for “labour” and for “materials” are to be used for estimation in each shop for the coming year.


CHAPTER IX

OVERHEADS

9.12

912. The above overheads estimates should be prepared annually, as illustrated in the succeeding paragraphs, not later than the 15th January and 15th July, on the basis of the “actuals” for the six months previous (January to June and July to December), and the rates of the total overheads for “labour” and for “materials” applicable to each cost centre ascertained. These rates should be applied from the 16th January and 16th July and will not ordinarily be changed within six months. The percentage of overheads for “materials” should be levied on the basis of direct material charges of each job. 913. Annual Shop Overheads Estimate. This should be prepared on the basis of last six month’s data “cost centre ” by ”cost centre” in Form No. W.913 as follows:

FORM W. 913

ANNUAL SHOP OVERHEAD BUDGET ESTIMATE Cost Centre No. _____ of Carriage and Wagon Workshops

at…………………………………….. for 20………….

SHOP OVERHEAD

Actuals booked during the months July 20XX to December 20XX Serial

No. Particulars July

20XX

August 20XX and

so on. Total

Estimated Overhead charges for

the year 20XX.

1 2 3 4 to 8 9 10

1.

Wages and overtime of charge-men, mistries, coolies, tallymen, storesmen, shop clerks on daily rates of pay, messengers and other such labour which cannot be allocated to any particular job or jobs (Labour).

2. Leave pay, idle time, holiday pay, etc. (Labour).

3. Defective and spoilt work in the case of experimental works (Labour and material).

4. Power and lighting including coal and coke (Material).

5. Loose tools and hand machine tools (Material).

6. Shop scrap i.e., scrap which cannot be allocated to jobs (Material) credit.

7. Consumable stores such as oil, waste, etc., (Material).

8. Furniture and sundries (Material).

Rupees Rupees Rupees Rupees


CHAPTER IX

OVERHEADS

9.13

9. Other items of Shop Overheads (Labour and Material).

10. A–Total of items of Labour above (Say).

800 2,000 10,000 9,000

B–Total of items of material above (Say).

3,000 2,900 20,000 21,450

11. Total Labour in this Cost Centre from January 20XX to June 20XX (Say).

12,000 14,000 1,25,000 1,35,000

12. Total direct Labour in this Cost Centre from January 20XX to June 20XX, i.e., item 11 minus 10-A minus general oncost labour booked in this shop.

10,000 10,000 1,10,000 1,20,000

13. Percentages of total overhead on total direct labour for each month.

(a) Labour percentages of 10-A on 12.

(b) Material percentages of 10-B on 12.

8%

30%

20%

29%

9%

18%

8%

18%

In case of estimating the cost of indirect labour, the rate will be based on direct labour cost as follows:

Total shop overheads (excluding indirect material) Shop overhead rate (other than indirect material) =

Total direct labour cost

In case of estimating the cost of indirect material, the rate will be based on direct material cost as follows:

Total shop overheads (indirect material only) Shop overhead rate (for indirect material only) =

Total direct material cost

The above rate will be calculated for each cost centre of workshop separately. In this way the estimated shop overhead cost will be calculated for each cost centre separately.

The rates obtained above will be used to estimate the shop overhead for a work order as follows:

Estimated Shop overhead cost (other than indirect material)

= Shop overhead rate (other than indirect material)

x Estimated labour cost of work order

Estimated Shop overhead cost (for indirect material only)

= Shop overhead rate (for indirect material only)

x Estimated material cost of work order

Cost estimated above relates to each cost centre of a workshop.


CHAPTER IX

OVERHEADS

9.14

914. Annual General Overheads Estimates. This estimate should be prepared, in the same way as the annual shop overhead estimate, care being taken to see that no item is omitted.

FORM W. 914

ANNUAL GENERAL OVERHEAD BUDGET ESTIMATE For 20XX

For Shops at . . . . . . . . . . . . . . GENERAL OVERHEADS

Work order No.

Actuals booked during the months July 20XX to December 20XX Serial

No. Particulars July 20XX

August 20XX and

so on. Total

Estimated Overhead charges for

the year 20------.

1 2 3 4 5 to 9 10 11

1.

Cost of operating general plant and equipment (Labour and material).

2. Yard lighting (Material).

3. Yard staff wages, including

wages of coolies (Labour).

4. Leave, sick, hurt, holiday

and notice pay of men whose wages are not charged to Shops (Labour).

5. Wages, overtime, etc., of

apprentices not working in Shops and the net expenditure on their School, Hostel, etc., (Labour and Material).

6. Freight bills which cannot

be conveniently allocated to specific work orders (Material).

7. Cost of Watch and Ward

staff (Labour).

8. Cost of consumable stores

not allocable to shop overheads (Material).

9. Other items of General

overheads (Labour and Material).


10. A. Total of items of Labour

above (Say). 5,000 5,000 55,000 60,000

B. Total of items of material above (Say).

8,000 8,000 1,10,000 1,20,00


CHAPTER IX

OVERHEADS

9.15

11. Total direct labour in the

workshop. 32,000 40,000 4,40,000 4,20,000

12. Percentages of total

overhead on total direct labour.

(c) Labour percentages of 10-A on 11.

(d) Material percentages of 10-B on 11.

16%

25%

13%

20%

13%

25%

14%

29%

In case of estimating the cost of indirect labour the rate will be based on direct labour cost as follows:

Total general overheads (excluding indirect material) General overhead rate (other than indirect material) =

Total direct labour cost In case of estimating the cost of indirect material the rate will be based on direct material cost as follows:

Total general overheads (indirect material only) General overhead rate (for indirect material only) =

Total direct material cost The rates obtained above will be used to estimate the general overhead for a work order as follows: Estimated General overhead cost

(other than indirect material) =

General overhead rate (other than indirect material)

x Estimated labour

cost of work order

Estimated General overhead cost (for indirect material only)

=General overhead rate (for

indirect material only) x

Estimated material cost of work order

Cost estimated above relates to each shop i.e. loco shop, carriage and wagon shop, etc. of Moghalpura workshops. 915. Overhead Budget Summary. The “Shop Overhead” and “General Overhead” Estimates should be summarized together in “Workshop Overhead” Estimate in Form No. W.915.


CHAPTER IX

OVERHEADS

9.16

FORM W. 915 WORKSHOP OVERHEADS BUDGET ESTIMATES for 20xx. . . . . . . . . . Workshops at . . . . . . . . . .

Overhead charges for each Cost Centre for 20XX Cost Centre No. 1 Cost Centre No.

2 Cost Centre No. 3

and so on. Total

Particulars

Labour Material Labour Material Labour Material Labour Material 1 2 3 4 5 6

7

and so on

Shop overheads (Labour and Material). Share of General overheads (Labour and Material).

Rupees

Rupees

Rupees

Rupees

Rupees

Rupees

Rupees

Rupees

Total (Say) 12,000 22,000 8,000 24,000 6,000 21,000 1,40,000 2,10,000

Total estimated direct labour (say).

1,20,000 . . 98,000 . . 50,000 . . 4,20,000 . .

Percentage of total Workshop overhead to direct labour for each shop.

10% 18% 8% 24% 12% 42% 33% 50%

916. Overcharges or Undercharges in Overhead Distribution. The actual expenditure on indirect labour and indirect materials incurred on overheads work order should be debited to them individually. These figures will provide the data necessary for controlling the expenditure on each of the items, as they could be compared individually with the actuals of the corresponding months of the previous calendar year taken into account in framing the overhead budget. Such a comparison will locate the mistakes made in estimating the overhead figures and facilitate the more correct fixation of overhead rates for the next period. The difference between the total overhead charged to work orders (on actual basis), by credit to overhead work orders, and the estimated charges booked at time of completion, will appear as a balance (over or under applied) under Work In Process Account. The difference, incase of work orders chargeable other than to repair and maintenance account, will be adjusted at the time of completion of such work orders by giving debit or credit to the concerned department/party. In the case of repair and maintenance work orders the difference will be adjusted by giving debit or credit to the repair and maintenance account.


CHAPTER IX

OVERHEADS

9.17

917. Annual Administrative Overheads Estimates. An annual budget estimate of Administrative Overheads should be prepared for each workshop and submitted to the General Manager through concerned Financial Adviser and Chief Accounts Officer (FA& CAO). This should be based on last six months figures from July to December of the previous calendar year, i.e., on the basis of “actuals” of last six months annual estimate should be made and should be modified by known changes in conditions and other relevant factors. This will show the annual estimated charges attributable to:

1. Supervision, 2. Provident Fund Contribution, if any and Gratuity payable to Works Staff. 3. Repairs and Maintenance. 4. Interest 5. Depreciation.

918. Supervision. The pay, leave salary, allowances, passages, provident fund contribution, gratuity, etc., of all personnel of the Mechanical Department directly concerned with each workshop (i.e., including only a share of the Chief Mechanical Engineer and his Headquarters staff but including whole of the Divisional Superintendent, workshops, and all establishment under him), and of the Accounts, Stores, Cash and Pay, Railway Police, Medical, etc., Departments, whose duties are concerned directly with the workshop, should be included under this head. The amount of rents, rates and taxes in respect of workshop buildings, offices, etc., should also be included under this head. 919. Provident Fund Contribution and Gratuity payable to Works Staff. The amount payable as provident fund contribution and gratuity to all workshop staff, both supervisory and labour, should be estimated as closely as possible. 920. The amount of general provident fund contribution payable should be taken as equivalent to the total amount of the deduction in the shape of general provident fund, subscriptions and interest. 921. Repairs. The amount of expenditure on repairs and maintenance of workshop buildings, plant and machinery should be carefully estimated. Similarly, expenditure anticipated for providing new minor works should be estimated. 922. Interest. The interest, if any, on capital outlay on land, buildings, plant and machinery should be calculated at 5% (or at a rate fixed for the purpose by the Ministry of Railways) the capital outlay being worked out or estimated as accurately as possible.


CHAPTER IX

OVERHEADS

9.18

923. Depreciation. The depreciation on buildings (including floors), plant and machinery should be calculated at the rates mentioned in Para 706.G of Pakistan Railways General Code. 924. Deleted. 925. Distribution of Administrative Overheads. The percentages of the total Administrative Overheads under the four heads (paragraph 917) to the total labour of the whole workshop, should then be worked out as indicated in paragraph 930. These percentages will vary from workshop to workshop and from year to year, owing principally to alterations in the total capital outlay, the variations in the quantum of the total labour in the shops and any changes in the rates of interest charges to be applied. 926. Inclusion of Administrative Overheads in the cost of work. The percentages of Administrative Overheads, as worked out above for each workshop, will be brought into use whenever it is found necessary to include one or all of these items of overheads in the cost of the work, e.g., when work is undertaken for private parties, other Departments of Government or on capital account (paragraph 1225). 927. When work is done on capital account, the cost of the work should include all items of Administrative Overheads other than supervision. 928. When work is done for other Departments of Government, or for the public, all items of Administrative overheads are chargeable, but the General Manager may, in exceptional circumstances, waive in full or in part the levy of such overheads, in consultation with the Financial Adviser & Chief Accounts Officer, for reasons that should be recorded. 929. Cancelled. 930. The estimated administrative overhead percentage will be determined as follows:

Total administrative overheads Administrative overhead rate =

Total direct labour cost

The above rate will be calculated for entire workshop.

The rates obtained above will be used to estimate the administrative overheads for a work order as follows:

Estimated administrative overhead cost

= Administrative overhead rate

x Estimated labour

cost of work order

Cost estimated above relates to the entire Moghalpura workshops.


CHAPTER IX

OVERHEADS

9.19

931. Detailed items of Administrative Overheads. The detailed items of administrative overheads are as under:

A) Supervision cost (Employee related expenses)

(1) Administration–Headquarters, Mechanical Department. A proportion (to be fixed by Railway Administration) of the total of the following charges incurred in the Mechanical Department at Headquarters Office should be included in the Administrative Overhead estimate under the above heading:

(a) Salaries payable to

(i) Administrative and Executive Officers of Mechanical Department, Superintendent, Drawing Office Mechanical.

(ii) Office staff, viz., Office superintendent, Stenographers and Typists, Superintendents, Chief Clerk or Head Clerk, Clerks and Menials.

(iii) Drawing Office. Head or Chief Mechanical Draftsmen/Assistant Mechanical Department and Assistant Draftsmen, Tracers, Clerks and Menials.

(b) Travelling and other Compensatory allowances of officers and staff. (c) Other office expenses. (d) Deleted (e) Leave allowances. (f) Advertising charges. (g) Payment on account of Medical treatment of Officers outside Railway

hospitals. (h) Educational Grants. (i) Provident Fund Contribution, if any. (j) Pensions commutation/Gratuities and Special Contribution, if any. (k) Law charges.

(2) Deleted. [Included in General Overheads paragraph 932(B)]

(3) Administration–Other Departments:

(i) Accounts Department. This head should include all charges, incurred in the Stores and Workshop Accounts Offices attached to workshops, in respect of Gazetted Officers, Assistant Accounts Officer, Head Clerks, Clerks, Lower staff, Inspectors of Stores Accounts and Stock Verifiers.

(ii) Stores Department. This head should include all charges, incurred in the

Stores Department attached to workshops, in respect of District Controller of Stores, Assistant Controller of Stores, their Subordinate Supervising staff


CHAPTER IX

OVERHEADS

9.20

consisting of Inspectors, Superintendents, Depot Store-keepers, Assistant Store-keepers, their Establishments consisting of Office Superintendent, Head Clerks, Apprentices, Clerks, Computer Operators, Steno-typists, Ward-keepers, Yard Foreman, Checking Inspectors, Checking Clerks, Store-van and Delivery Clerks, Store Delivery Record Suppliers, Menials and Labour Staff for verification.

(iii) Cash and pay Department. This head should include all charges, incurred

in the branch of the Cash and Pay Department serving the workshop, in respect of Divisional Pay Master, Sectional Pay Master and Lower staff.

(iv) Medical Department. This head should include all charges, incurred in the

Medical Department serving the workshop, in respect of Medical and Nursing staff, viz:

(a). Divisional or Assistant Medical Officer, and (b). Subordinate staff–Assistant Surgeons, Sub-Assistant Surgeons,

Laboratory Assistants, Dispensers, Compounders, Dressers, Nurses, etc. (v) Electrical Department. This head should include all charges, incurred in

the branch of the Electrical Department serving the workshop (when not included in the cost of the services rendered by that department), in respect of Administrative and Executive Officers viz., Divisional and Assistant Electrical Engineers, Subordinate Supervising staff, viz., Inspectors, Power Station Superintendents, Foremen and Assistant Foremen, Office Establishment, viz., Draftsmen, Head Clerks, Computer Operator, Steno-typists, Clerks, Tracers, Ferro-printers, Time Checkers and Menials.

(vi) Railway Police Department. This head should include all charges incurred

on the Railway Police Establishment attached to the workshops, other than that charged to General Overhead.

(4) Educational Grants. The contribution towards the education of the children of staff mentioned in sub-paragraph 931A (3) is shown under this heading.

(5) Rents, Rates and Taxes. The amount of rents, rates and taxes actually charged in respect of Workshop buildings, Offices, etc., or a share of the total amount paid as rates and taxes to be fixed by the Railway Administration as correctly chargeable to the Workshop, is shown under this head.


CHAPTER IX

OVERHEADS

9.21

(6) Provident Fund Contribution if any. The total contribution credited to the Provident Fund Accounts of staff should be shown under this heading. (7) Gratuities. 1/24th of the salaries of the different classes of staff mentioned in sub-paragraphs 931A (3) should be included under this head to cover gratuities and special contribution to provident fund, if any.

B–Provident Fund Contribution, Gratuities and other charges of Works Staff.

(1) and (2) Provident Fund Contribution, if any and Gratuity payable to works staff should be calculated in the same way as indicated in sub-paragraphs (6) and (7) under paragraph 931A above.

(2) Law Charges. All expenses incurred in connection with legal proceedings concerning works staff.

(3) Compensation. The compensation paid to Workshop Labour Staff under the Workmen’s Compensation Act should be included under this heading.

C–Repairs and Maintenance

(1). Service Buildings

(a) Repairs to Buildings should include repairs to and maintenance of:

(i) Deleted. (Included in shop overheads para 933A.) (ii) Deleted. (Included in shop overheads para 933A.) (iii) Deleted. (Included in shop overheads para 933A.) (iv) Offices, Outbuildings, yards, Enclosure walls, Roads, etc.,

belonging to workshops, (v) All Stores buildings and Store yards attached to workshops. (vi) Office buildings of Divisional Superintendent, Divisional

Accounts office, Police office, Hospitals, Schools, Hostels and Residential buildings of office staff.

(b) Deleted. (Included in shop overheads para 933A.)

(2). New Minor Works–Buildings. Expenditure on new minor works in connection with any of the items enumerated under paragraph 931C (1) (a).

(3). Deleted. (Included in shop overheads para 933B.)


CHAPTER IX

OVERHEADS

9.22

D–Interest and Depreciation

(1). Interest on Buildings. Five per cent for interest on the Capital cost of Buildings referred to in paragraph 931C (1) above.

(2). Depreciation on Buildings. Depreciation at two per cent on the Capital cost of

all Buildings referred to in paragraph 931C (1) (a) above. (3). Deleted. (Included in shop overheads para 933B.) 932. Detailed items of General Overheads. (A) The detailed items of variable general overheads are as under:

1. Freight charges that cannot be directly allocated to jobs.

2. Repairs to Workshop plant and machinery

It includes:

i) Repairs to shunting engines, track trolleys, sentinel wagons, lorries, etc. ii) Repairs to central works pumping plant, pneumatic, hydraulic and gas

plant. iii) Repairs to yard wagons and auto-trucks. iv) Cleaning, turntables, other than those inside shops. v) Sanitary arrangements in workshops. vi) Maintenance of mess rooms/canteens. vii) Yard lighting.

3. Other expenses

Replacement of articles stolen or lost in the shops / cost centres. (B) The detailed items of fixed general overheads are as under:

1. Supervision cost (Employee related expenses) a). Administration–Workshops, Mechanical Department. The total of the

following charges incurred in the branches of the Mechanical Department attached to the workshops should be included under this head:


CHAPTER IX

OVERHEADS

9.23

Salaries, Overseas pay, Travelling and other Compensatory allowances, Contingent Office expenses, passages, Leave allowances, Advertising charges and Payment on account of Medical treatment outside Railway hospitals, Law charges, etc., relating to:

(i) Administrative and Executive Officers, viz., Deputy Chief Mechanical Engineer (if any), Works Managers, Assistant Works Managers, Chemist and Metallurgist, Assistant Chemist and Metallurgist.

(ii) Deleted. (Included in shop overheads para 933B.W) (iii) Production Staff, viz., Progress Superintendent, Planning Superintendent,

Assistant Progress Superintendent, Assistant Planning Superintendent, Scheduling Supervisor, Jig and Tool designer.

(iv) Deleted. (v) Production Office Staff, viz., Outturn Raters, Assistant Outturn Raters,

Assistant Scheduling Supervisor, Jig and Tool Draftsman, Outturn Verifiers, Clerks and Steno-typists.

(vi) Time-keeper and his staff, viz., Time Office Clerks, Leading Time Checkers and Menials.

(vii) Drawing Office staff, viz., Head Draftsman, Draftsmen, Computer Operator Estimator, Tracers, Ferro-typists, Clerks and menials.

(viii) Deleted. (ix) Leave, sick, hurt and holiday pay paid to workshop employees whose

wages are not charged to shops, such as the yard establishments. (x) Wages, overtime, etc., of staff, such as the workshop apprentices, tool-

keepers, not attached to shops. (xi) Wages paid in lieu of notice to workshop staff not charged to shops. (xii) Wages, overtime, etc., of general labour in yards and shunters. (xiii) Messengers' wages, uniforms, etc., when not allocable to shops.

Note. Deleted.

2. Depreciation on workshop buildings

(i). Depreciation calculated on straight line method on workshop buildings

consisting of sheds, works manager office building, roads, structures, tracks, reception office, etc.

3. Repairs and maintenance to buildings (i). Offices, outbuildings, yards, enclosure walls, roads and residential buildings of

staff, belonging to workshops. (ii). All store buildings and store yards attached to workshops.


CHAPTER IX

OVERHEADS

9.24

4. Utilities expense

(i). Electrical power, which is not possible to allocate to shops. (ii). Hydraulic and pneumatic power and gas that cannot be allocated to shops. (iii). Water charges that cannot be allocated to shops.

933. Detailed items of Shop Overheads. (A) The detailed items of variable shop-overheads are as under:

1. Indirect material

(i). Consumable stores for shop use, such as: I. Oil for lubrication of machinery and shafting oil. II. Sponges, emery and glass cloths, soap, soda, acid, glue, and chamois

leather. (ii). Small tools for shop use. (iii). Consumable stores for general use

2. Indirect labour Indirect labour cost includes the following:

(i) Leave pay, idle time of direct labour, sick, hurt and holiday pay, compensatory allowances, and arrears pay.

(ii) Wages, overtime, etc., workshop apprentices attached to particular shops

of chargemen, mistries, coolies, storemen, belters, and oilers whether (on monthly or daily rates of pay) and of shop clerks on daily rates of pay. Also, wages of journeymen, when employed on supervisory duties.

(iii) Wages, overtime, etc., of men employed on mechanical transport in the

shop.

(iv) Wages, overtime, etc., of all general labour in shops including those employed on transport.

(v) Suspension allowances.

(vi) Labour cost, in the case of experimental works.

(vii) Small differences between pay rolls and time sheets.


CHAPTER IX

OVERHEADS

9.25

3. Fuel and power

(i) Power charges, whether electric, pneumatic, gas or hydraulic, which can be directly allocated to shops.

(ii) Charges for Natural (Sui) gas coal and coke in the smithies.

(iii) Lighting charges in shops.

4. Repair and maintenance to shop plant and machinery

a) Cost of material used and labour expended in repairing:

i. Power driven machine tools engaged in productive works.

ii. Hydraulic machinery including piping valves, etc.

iii. Steam hammers, stamps and forging machines and die blocks.

iv. Pneumatic machinery, compressors, tools and piping.

b) Maintenance of:

i. Cranes, traverses, and turntables in shops / cost centres.

ii. Hoists of all types, jib wall cranes, pulley and chain blocks, etc.

iii. Furnaces, smiths’ forges and anvils, weigh-bridges, scales, etc.

iv. Fitters benches and vices, trestles end planks, case-hardening boxes, etc.

v. Floor plates scrap and refuse bins.

c) Repairs and maintenance costs of electric motors (whether direct driving on machines or group driving of shafting), the cost of all wiring from main distribution board in shops/cost centres to motors and all fixtures necessary for the maintenance of the system of distribution including lighting.

d) The cost of materials used and labour expended on the maintenance of all line shafting from the electric motor coupling to counter shaft for machine, hangers, brackets, lubricators, bolts and pulleys.


CHAPTER IX

OVERHEADS

9.26

5. Printing and stationery

This will include the cost of stationery and forms used in the shops/cost centres for the reporting of production and service related matters data.

6. Other expenses

(i) Replacement of articles stolen or lost in the shops / cost centres. (ii) Material cost, in defective and spoilt work in the case of experimental

works. (iii) Shop/cost centre scraps i.e. scrap which cannot be allocated to work

orders. (iv) The cost of uniforms and protective clothing for workers.

(B) The detailed items of fixed shop-overheads are as under:

1. Supervision cost (Employee related expenses)

Salaries payable to:

(i). Subordinate supervising staff, viz., boiler inspectors, general works, supervisor, i.e. foremen including specialists, assistant foremen and inspectors.

(ii). Production staff, viz., progress superintendent, planning superintendent, assistant progress superintendent, assistant planning superintendent, scheduling supervisors, jig and tool designer.

2. Depreciation of shop plant and machinery

Depreciation on all permanently fixed machine of a shop / cost centre such as:

(i). Lathes of various types (sliding, surfacing and screw cutting, boring and surfacing, capstan and turret, etc.).

(ii). Boring and facing machines (horizontal and vertical).

(iii). Planning machines (side, horizontal and vertical).

(iv). Shaping machines.

(v). Slotting machines.


CHAPTER IX

OVERHEADS

9.27

(vi). Screwing machines.

(vii). Drilling machines (redial and pillar types).

(viii). Milling machines (horizontal, vertical and universal types).

(ix). Grinding machines (cylindrical, surface and tool cutters).

(x). Presses (Mechanical & hydraulic power).

(xi). Saws (circular and band).

(xii). Punching, shearing, cropping and bending machines for plates or bars.

(xiii). Electric and oxyacetylene welding plant, Mig and Tig welding plants.

(xiv). Electric and pneumatic drills, hammer, riveting machines and grinders.

3. Repair and maintenance to shop / cost centre buildings

It includes repairs to:

(i). All shop / cost centre buildings including those maintained for the generation of power - electric, pneumatic, hydraulic and gas.

(ii). Foundations in such buildings for heavy tools or machinery.

(iii). Columns, chimneys, pits and other structures forming an integral part of

such buildings.

(iv). Sanitary arrangement in workshops.

(v). Maintenance of watches, clocks, time pieces, time records, stop watches, and electrically operated clocks relating to the workshop.

(vi). New Minor Works — Machinery, etc.

CHAPTER X

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER X

WORK ORDERS

CONTENTS


19

SHOP / COST CENTRE COSTS 10.1 1001

PRIME COST 10.1 1002

WORKSHOP COSTING 10.1 1003

WORK ORDER SYSTEM 10.1 — 10.2 1004 — 1006

REVENUE WORK ORDERS 10.2 1007 — 1008 (1009 Deleted)

JOB COSTING 10.3 1010

OTHER WORK ORDERS 10.3 1011

STANDING WORK ORDERS FOR RECORDING

OVERHEAD COSTS

10.3 1012

WORK ORDERS FOR CAPITAL PROJECTS /

REPLACEMENT PROJECTS

10.3 1012A

WORK ORDERS FOR MANUFACTURE OF STORES

ITEMS

10.3 1013

GROUPING WORK ORDER 10.4 1014

INTER-DEPARTMENTAL OR INTER-DIVISIONAL

WORK ORDERS

10.4 1015

STANDARD SYSTEM OF WORK ORDER NUMBERING 10.4 1016

PRINTED LISTS OF WORK ORDER NUMBERS 10.4 1017 (1018 — 1024 Deleted)

OFFICIAL ORDER FOR CARRYING OUT WORK ON

WORK ORDER

10.5 1025

WORK ORDER REGISTER 10.6 1026


CHAPTER X

WORK ORDERS

CONTENTS


20

LOAD CHART 10.6 1027

METHOD OF POSTING THE LOAD CHART AND

ALLOTMENT OF JOBS TO MACHINES

10.7 — 10.8 1028 — 1031

POINTS TO BE SEEN BEFORE ISSUING A WORK

ORDER

10.8 1032 — 1033

ADVICE OF COMPLETION 10.8 1034

MONTHLY STATEMENT OF WORK ORDERS

COMPLETED

10.9 1035

SHOP / COST CENTRE NUMBERS 10.9 1036

CLASSIFICATION AND NUMBERING OF WORK

ORDERS

10.9 1037

WORK ORDERS FOR LOCOMOTIVE REPAIRS 10.10 1038

WORK ORDER FOR PERIODICAL OVERHAULS 10.11 1039 (1040 Deleted)

WORK ORDER FOR SPECIAL OVERHAULS /

NOMINATED REPAIRS

10.11 1041 (1042 Deleted)

WORK ORDER FOR OTHER REPAIRS 10.11 1043

WORK ORDER FOR TRIALS AND EXPERIMENTS 10.11 1044

WORK ORDER FOR OVERCHARGES AND

UNDERCHARGES “OVERHEADS”

10.11 1045

WORK ORDER FOR OVERCHARGES AND

UNDERCHARGES “MANUFACTURE AND REPAIRS”

10.12 1046 — 1047


CHAPTER X

WORK ORDERS

CONTENTS


21

REPAIRS TO AND MAINTENANCE OF PLANT,

MACHINERY AND TOOLS

10.12 1048

REPAIRS TO, MAINTENANCE AND WORKING COST

OF SERVICE MOTOR-CARS (RAIL, ROAD AND

TROLLIES)

10.13 1049

REPAIRS TO FURNITURE AND OFFICE EQUIPMENT 10.13 1050

NEW MINOR WORKS 10.14 1051

JOB ORDERS 10.14 1052

WORK ORDERS FOR WORK DONE FOR OTHER

GOVERNMENT DEPARTMENTS AND PUBLIC BODIES

10.14 1053

STORES MANUFACTURING WORK ORDERS 10.15 1054 — 1055

P. ORDERS 10.15 1056

G. ORDERS 10.15 1057

R. ORDERS 10.16 1058

OVERHEADS WORK ORDERS 10.16 1059 (1060 — 1061 Deleted)

WORK ORDERS FOR PROCESS SHOPS 10.16 — 10.17 1062 — 1063

“GROUPING” WORK ORDERS 10.16 1064

(1065 Deleted)

INTER-DEPARTMENTAL WORK ORDERS 10.17 1066

CAPITAL AND REPLACEMENT WORKS ORDERS 10.17 1067

CARRIAGE AND WAGON WORKSHOPS WORK

ORDERS

10.18 1068 — 1070


CHAPTER X

WORK ORDERS

CONTENTS


22

REPAIR TO AND MAINTENANCE OF PLANT AND

MACHINERY

10.19 1071

NEW MINOR WORKS 10.20 — 10.21 1072 (1073 Deleted)

CAPITAL AND REPLACEMENT WORK ORDERS 10.21 1074


CHAPTER X

WORK ORDERS

10.1

A. GENERAL

1001. Shop/Cost Centre Costs. The “Shop/Cost Centre” is the ultimate unit of workshop organization (where it is not further divided into “sections”). It is, therefore, the unit also for purposes of the initial accounts. The work carried out in each cost centre (or section of each shop) has to be accounted for initially before the accounts of the “workshop” can be compiled. Even if the work on the same job has to be carried out in more than one cost centre, the expenditure thereon will stand analysed, cost centre by cost centre, for the reason that the initial accounts of each cost centre are maintained separately. 1002. Prime Cost. The expenditure in a workshop stands analysed not only by cost centres (and divisions, such as the Yard, the Laboratory, etc.) but also by “wages” and “materials”, as the initial records of these are maintained separately in the manner laid down in Chapters VII and VIII respectively. 1003. Workshop Costing. The extent to which expenditure incurred in a workshop (i.e., cost of jobs) should be further analysed depends very largely on the information that is required by the authorities controlling such expenditure. There is no higher limit for such analysis, except that of the cost of the analysis itself which will have to be determined by practical considerations and the actual needs of railway administration. There is, however, a lower limit owing to the need for:

(1) recording expenditure under the detailed heads of accounts classification, whether Capital or Revenue for different types of Work Orders and chart of accounts through subsidiary coding scheme. (2) identifying expenditure that has to be separately recorded for the reason, say, that it has to be billed for and recovered, whether recovery has to be made from another department or division of Pakistan Railways or from outsiders.

1004. The Work Order System. The analysis of workshop expenditure is carried out with the aid of a system of “Work Orders” representing the units of such analysis. It will be readily seen that there should exist a separate unit for each head of the financial accounts, expenditure chargeable to which is incurred in the workshops. Separate units should also be provided whenever it is necessary to ascertain the amount that has to be accepted, adjusted or billed for. For instance, when work is carried out in the workshops for a running shed, either the total expenditure for the shed may be collected under one Work Order or the expenditure incurred for each item of work from the shed may have to be ascertained separately, according as the shed requires the information of the total charge only or of the cost of the individual jobs.


CHAPTER X

WORK ORDERS

10.2

1005. Any system of Work Orders in use in a workshop should, therefore, provide for:

(1) the minimum analysis required by the chart of accounts including Subsidiary Coding Scheme,

(2) the further analysis required or necessitated, say,

(i) by the orders of the Ministry of Railways (Railway Board) as issued from time to time,

(ii) by the need for the inter-departmental adjustments having to be made or for ascertaining the amounts to be recovered form outside parties on specific works,

(iii) by the need for ascertaining the cost of individual operations and jobs so that waste may be avoided and expenditure may be adequately and efficiently controlled.

1006. The essential features of any good Work Order system are therefore the following:

(1) Conformity with the accounts classification, so that the correct allocation of the expenditure incurred in a workshop in the required detail is assured.

(2) Elasticity, which would allow of the increased analysis that may be required in

certain cases for ascertaining and controlling the expenditure on individual operations and jobs (job costing).

1007. Revenue Work Orders. The Work Orders which are used for repair and maintenance of rolling stock and other equipment can be numbered in accordance with a code that should preferably be identical for all workshops / factories, and can remain unchanged from year to year. The system of numbering Revenue Work Orders, that has been laid down in paragraphs 1038 et seq, is recommended for adoption by all workshops / factories. In the case of other work orders, the general plan indicated in those paragraphs should be followed. 1008. In order to extend the above system to meet the needs of any further analysis of expenditure than that provided by the Chart of Accounts including subsidiary coding schemes, all that is required is to affix a number indicative of the particular job or work or operation, which has to be separately accounted for, to the number representing the Work Order. For instance, the Work Order for the periodical overhaul of locomotive engines underframes 91008007456701 which is described in detail in Para. 1038. 1009. Deleted.


CHAPTER X

WORK ORDERS

10.3

1010. Job Costing. Workshops of Pakistan Railways perform repair / manufacturing activities on job order basis i.e. normally every work is unique in its nature and requires calculation of unit cost separately and hence a separate work order will be used for each job. However, standing work orders will be operated only in the process shops of the workshops such as foundry, smithy, saw mill shop, etc. The detailed job costing of individual items of manufacture or repair, which is only a part of any system of workshop accounting, is termed “job costing”. The detailed procedure that should be employed for job costing is laid down in Chapter XI.

1011. Other Work Orders. The following are certain classes of Work Orders other than those meant for recording expenditure chargeable directly to Revenue (para. 1007).

(1) Overhead work orders. (2) Manufacturing work orders. (3) Grouping work orders. (4) Inter-department work orders.

1012. Standing Work Orders for recording Overhead Costs. The expenditure incurred in workshops is either “Prime Cost”, i.e., expenditure on labour and stores that can be directly charged to a work or “Overheads” i.e., expenditure that cannot be so charged. All overheads expenditure incurred in workshops requires to be carefully analyzed, not only for purposes of effective control of such expenditure, but also for purposes of its correct distribution. As the distribution is carried out on the basis of allocation principles after the preparation of overhead allocation statements (Chapter IX), there is need for comparison in detail of the actual overhead expenditure with the figures as estimated in the budget. This necessitates the maintenance of a group of Work Order for recording / accumulating overheads.

1012A. Work Orders for Capital Projects/Replacement Projects. Tangible Fixed assets are acquired by Pakistan Railways in one of the two ways: either they are acquired as a single unit ready for service (such as machinery or locomotive or carriages, etc.) or they are constructed over a period of time and available for use only upon completion of the construction period (such as locomotives, track, factories, buildings and bridges, etc,.) Capital projects/Replacement work orders will be operated for recording the expenditure incurred in the construction of such new/replacement assets. The respective work order numbers of each class of these work orders are described in detail in Para 1067. 1013. Work Orders for Manufacture of Stores items. Workshops manufacture various items, for stores department, which are manufactured in advance and kept in stock for later use in repair and maintenance or other productions of workshops. A separate work order will be used for each lot or part manufactured. Work Orders are also required in the Process Shops, like the Foundry and the Saw-mill, for the purpose of ascertaining


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10.4

the cost of semi-manufactured material, e.g., Molten Metal, Scantlings, etc. Where system of costing of individual jobs is not followed in a Process Shop, a larger number of Standing Manufacture Work Orders is necessary in order to allocate the expenditure in the shop as between different classes of outturn.

1014. Grouping Work Orders. When the estimated cost of a work is small (within the limit of Rupees 50,000 generally) and it is considered that such cost could be estimated fairly accurately and there is no need for ascertaining the exact cost of the work in question, the device is often adopted of carrying out all such petty jobs under one or more Standing Work Orders, called Grouping Work Orders (Paragraph 1064). The total actual expenditure incurred on all such works taken together is collected under these few work orders, and all differences between such actuals and the totals of the amounts estimated is adjusted, as indicated in paragraph 1047.

1015. Inter-Departmental or Inter-Divisional Work Orders. These constitute another class of Work Orders, all work from one department or division estimated to cost more than Rupees 50,000 each being indicated by a distinctive number (Para. 1066).

1016. Standard System of Work Order Numbering. The system of work order numbering, described in paragraphs 1038 et seq., is intended to be a standard and is recommended for uniform adoption in all Pakistan Railways workshops / factories, only such minor alterations being allowed as may be found necessary for purely local reasons. The system, as laid down, provides for the minimum analysis of the expenditure incurred in workshops and any reduction in the extent of the analysis requires the sanction of the Ministry of Railways (Railway Board).

1017. Printed Lists of Work Order Numbers. A printed (or roneoed) list of work order numbers in Form W.1017 should be issued for every workshop and all supervising staff that have to deal with such numbers should be supplied with personal copies, correction slips being supplied to them as and when issued.

FORM W.1017 LIST OF WORK ORDERS

………………………Workshops Nature of Work

Order Work Order

No. Description Allocation

Special instructions if any

1 2 3 4 5 Revenue

Overhead

Grouping

Manufacture under

Capital and so on.


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10.5

1018. Deleted. 1019. Deleted. 1020. Deleted.

1021. Deleted. 1022. Deleted. 1023. Deleted.

1024. Deleted. 1025. Official order for carrying out work on Work Order. No works other than those chargeable to repair and maintenance, and covered by the provision in the Authorization Rolls, may be carried out in a workshop without an official order (W.1025) from competent authority for the work being undertaken in the workshops. The work order numbers allotted to different classes of work do not constitute such a sanction.

FORM W.1025 WORK ORDER

SANCTIONED, vide…………………………… *AGAINST…….…………………………. No…………….…….dated…………………………………………………………………….. TO BE COMPILED BY …………………. ESTIMATE No……………of………........ WORK ORDER No………….of……… DRAWING No…………………………. CHARGEABLE TO ………………………………………………………….

DESCRIPTION ……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Countersigned Workshop Accounts Officer, ……………………... Dated……………………..20…… Works Manager Work finished on ……………………….. and this order returned to the Workshop Accounts Officer.

………………………….. Dated……………………………20…… Works Manager * Write “Capital”, “Minor Works”, “Petty additions” or the sub-head of Loco. charges or when for another department, the name of the department or when for private parties, write “Deposit Rupees. ‘X’ realised.”


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1026. Work Order Register. All works carried out on requisitions placed on the workshops should be carefully registered and serially numbered in Work Order Registers (W.1026), separate registers being maintained for different departments, divisions, etc., in order to facilitate references being traced. These are important initial records and should be maintained with the utmost care. All orders issued to the shops for work to be carried out on such requisitions should show the serial number and the correct accounts allocation (work order type) and should be signed by the Works Manager. Alternatively, files of copies of work orders may be kept, provided the information given in columns 3 and 4 of Form W.1026 is inserted on the work orders.

FORM W.1026 …………………………Department

WORK ORDER REGISTER Shops through

which the work has to go Work Order

No. and Date

No. Date

Date of commencing

work

Date of completion

Description of order

By whom

ordered Referenc

e No. Foundry Smithy and so

on

Head of account

to which to be

charged

Remarks as to

despatch etc.

1 2 3 4 5 6 7 8 9

1027. Load Chart. The issue of all work orders should be carefully regulated by the Production Staff, preferably with the help of load charts (W. 1027) or Gantt 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 outturn of the shop.

FORM W. 1027

LOAD CHART

Particulars of work Name and Number of machine on which work is to be

done

Reqn. No. and

date

Part No.

QuantityHrs.

OMW Hrs.

OMW Hrs.

OMW Hrs.

OMW Hrs.

OMW and so

on

Description of Work

O:– Operation. M:– Month. W:– Week.


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1028. Method of posting the Load Chart and allotment of jobs to machines. The chargeman in the planning section responsible for the posting of the load chart should prepare a paper ticket for each job showing the following information:

Requisition No. Quantity Part No. Casting or Forging Machine on which to be done and post it against the particular machine on which the work is to be done and in the week in which the work is to be taken in hand. Each week a list of jobs to be undertaken in the following week should be sent to the shop in Form No. W.1028. When a job is finished the appropriate ticket on the board should be removed, thus showing at any time the work that is on a machine. Also tickets left over on the board at a particular moment indicate the work that is behind time. When a machine or group of machines is overloaded, work should provisionally be booked to another machine that can take it on.

FORM W. 1028

WEEKLY PROGRESS SCHEDULE FOR WEEK ENDING ………………..

Code M C No. Job No. Part No. Remarks

1 2 3 4 5

1029. A work order bears all particulars of what is to be done, and the requirements stated therein are converted into values, thus determining the estimated cost of a job. All work orders should be treated as individual items by foremen, and all transactions appertaining to the job should be booked either by debit or credit, as the case may be, to the particular work order concerned. 1030. The distinguishing number of each work order should be quoted on all stores vouchers, vendors’ bills and labour allocation sheets, in order to collect together all the debits pertaining to each individual order.


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1031. Copies of all work orders should be sent Workshop Accounts Office. On receipt of the work orders, the Accounts Office should check them to see that the numbering has been correctly done, that the work has been sanctioned by competent authority, that funds are available and that all other relevant rules and orders have been observed (para. 1032). 1032. Points to be seen before issuing a work order. The following points should be seen before a work order is issued. (1) For works to be undertaken for Government Departments, where charges are to be adjusted through transfer transaction, it should be seen that formal acceptance of the estimated cost has been obtained before a work order is issued.

(2) For works to be taken for railway employees, it must be seen that the sanction of the Chief Mechanical Engineer has been received and that the estimated cost has been deposited.

(3) For works to be undertaken for outsiders, it should be seen that: (a) the work has been sanctioned by competent authority; (b) the estimated cost has been deposited; and (c) the outsiders agrees, in the event of the estimate being exceeded, to

pay the excess before delivery of the work is effected.

(4) Work Orders will be issued in the case of repairs and maintenance works and for those work orders for which estimates are prepared (para. 1201).

(5) For works chargeable other than to repair and maintenance of rolling stock, the requisitioning department is responsible for seeing that adequate sanction and funds exist for the work. Information as to the probable cost of the work should be furnished, if desired. 1033. The Locomotive and Carriage and Wagon Sections of the Mechanical Department are to regard one another as separate departments. A section requiring work to be done for it by another section should issue an allocated requisition in a suitable form. On receipt of this requisition the section concerned will issue a work order in the same manner as for any other department. Such work orders will be allocated to the main work order for which the subsidiary work is required.

1034. Advice of Completion. It should be seen that there is no delay in charges being booked to work orders. Delays in advising completion or in the booking of the charges and cases of irregular booking, should be regularly listed up and explanations called for from the staff responsible. It is one of the important duties of the Accounts Office to see that the procedure for chasing delays and irregularities is effective.


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1035. Monthly Statement of Work Orders completed. When a work order is completed, it should be returned by the shop to the office of issue with the date of completion marked thereon. The office of issue should send each month, before 10th of the month following, a statement (W. 1035) showing the dates of completion of work orders completed during the month to the Workshop Accounts Office. From this statement the copy of the Work Order originally received (para. 1031) should be endorsed “completed on ….” in red ink under the initials of the Assistant Accounts Officer. He would be responsible for seeing that all expenditure relating to such work orders has been correctly included and brought into account.

FORM W. 1035 STATEMENT OF WORK ORDERS COMPLETED DURING THE MONTH OF ………

Work Order Serial No. No. Date

Particulars Date of completion

1 2 3 4 5

B. STANDARD SYSTEM OF WORK ORDER NUMBERING

1036. Shop/Cost Centre Numbers. The shops/cost centre should be distinctly numbered. 1037. Classification and numbering of Work Orders. (i) The instructions contained in paragraphs 1004 to 1011 in connection with the classification of work orders should be strictly followed. The numbers allotted in paragraphs 1038 et seq. for the different kinds of work orders mentioned therein are recommended for adoption. The type and number of various work orders are given below:

Work order number

Type

5xxxxxxxxxxxxx Replacement projects 6xxxxxxxxxxxxx Improvement Fund (IF) projects 7xxxxxxxxxxxxx Capital projects 8xxxxxxxxxxxxx Work order for manufacturing of store items 9xxxxxxxxxxxxx Work for periodic / nominated repair of rolling stock and work for

other departments of Pakistan Railways 00000000000000 Work order for recording / accumulating overhead costs.


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10.10

(ii) Each of the above mentioned 14 digits of a work order code has significance according to its position in the code, which is explained as follows:

Digit Description

1 Work order type 2-3 Year of issue 4-5 Month of issue 6-8 Accounting unit

9-12 Serial number of work order 13-14 Specific element

For example, number of a work order for periodic overhauling of locomotive under a “9xxxxxxxxxxx” series of work orders will be as follows:

Work Order Type

Year of

Issue

Month of Issue

Accounting Unit

Serial No. of Work Order

Specific Element

9 10 07 007 4567 01 = 14 digits

(iii) Specific element of a work order categorize the work orders according to its function under the main types of work orders i.e. a P.O.H or N.R. work order in a “9xxxxxxxxxxx” series of work orders or a springs manufacturing work order in “8xxxxxxxxxxx” series of work orders. The numbers allotted in paragraphs 1038 et seq. for the different kinds of work orders mentioned therein are recommended for adoption. 1038. Work Orders for Locomotive Repairs. The expenditure on repairs to locomotives should be analysed under the following work orders with corresponding specific element number shown against each, however, the distinctive number of locomotive sent for repair will be mentioned on the work order form:

Type of Repair Work Order Series

Code Specific

Element No.

Periodic Overhauls 9xxxxxxxxxxx 01

Special Repairs/Nominated Repair 9xxxxxxxxxxx 02

Other Repairs 9xxxxxxxxxxx 03

Trials and experiments 9xxxxxxxxxxx 04


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1039. Work Order for Periodical Overhauls. Periodic overhauls are fixed on considerations of the kilometreage worked by each class of locomotive, but as the periodical examination of boilers is compulsory once in three years, a time limit also comes into play, as it is necessary to carry out this examination to strip the locomotive and it is generally most economical to so regulate the kilometreage covered as to bring the locomotive in for periodical overhauls at least once in three years. When such a repair and maintenance will be carried out in the workshop, the charges incurred thereon will be debited to Revenue and classified by work orders of “9xxxxxxxxxxx” series with the specific element number “01”. 1040. Deleted. 1041. Work Order for Special Overhauls/Nominated Repairs. The overhauls of locomotives are occasionally found necessary in between periodical overhauls, either owing to some special damages sustained in operation or owing to material or other defects. Such repairs if and when carried out should be distinguished from periodical overhauls and the expenditure incurred thereon charged to Revenue and classified by work order number of 9xxxxxxxxxxx series containing the specific element number as “02”. The expenditure incurred on the reconditioning of locomotives should be treated likewise. These repairs should be carried out only after estimates have been prepared and sanctioned by competent authority. 1042. Deleted. 1043. Work Order for Other Repairs. The items of work done in the workshops for running sheds, that cannot be carried out in the running shed themselves either owning to consideration of economy or to lack of mechanical equipment, should be clearly defined and all expenditure on such work should be charged to work order number of “9xxxxxxxxxxx” series with the Specific Element number “03”. This work order will be credited with the amounts charged to the running sheds of the respective division.

1044. Work Order for Trials and Experiments. The cost of all trials and experiments relating to locomotives should be charged to the work order number of “9xxxxxxxxxxx” series with the Specific Element number “04”.

1045. Work Order for Overcharges and Undercharges “Overheads”. The difference between the actual “Overhead” expenditure booked to “Overhead” work orders and that distributed amongst the various work orders should be continually watched and transferred to the above work order periodically or at least once in a year, an adjustment memo being prepared for the purpose. There should be no balance outstanding in Work-in-Process Account under the Overhead work orders at the end of the year.


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10.12

1046. Work Order for Overcharges and Undercharges “Manufacture and Repairs”. It is important that such charges are brought to prominent notice and subjected to security until they are finally adjusted suitably within the accounts of the financial year. Such undercharges and overcharges are generally due to differences between actual costs of manufacture or repair and

a) The estimated costs at which materials have been issued: (i) by the manufacturing shops such as the smithies, and foundries to stores, or (ii) by the finishing shops to stores or out-stations or for use on work in the shops

themselves.

b) The estimated cost

The differences mentioned above should be as small as possible, not only at the end of the financial year, but during each month, and an effective watch should be kept over them continuously throughout the year, through a monthly return in suitable form, bringing out the differences, explaining the reason contributing thereto and the measures taken for their being wiped out (as nearly as possible) before the close of the official year. 1047. Such differences remaining outstanding at the debit (or credit) of Work-in-Process Account, after the completion of the work should be transferred by means of an adjustment memo giving full particulars, to work order and debited (or credited) to that head of revenue account. Copies of such adjustment memo should be furnished to the Chief Controller of Stores for information, to enable him to call for an adjustment of the prices of manufactured articles. 1048. Repairs to and maintenance of plant, machinery and tools. The expenditure on repairs to and maintenance of plant and machinery should be booked under the work orders of “9xxxxxxxxxxx” series with the Specific Element number as shown below:

Particulars Specific Element No

of a work order.

Repairs to and overhaul of machines 10

“ “ “ stationary boilers 11

“ “ “ lifting 12

“ “ “ line shaft 13

“ “ “ hydraulic compressors 14

“ “ “ pneumatic compressors 15


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10.13

“ “ “ Repair to and overhaul of traversers

16

“ “ “ weigh-bridges 17

“ “ “ gauges 18

“ “ “ jigs and fixtures 19

“ “ “ pneumatic tools 20

“ “ “ welding equipment 21

“ “ “ safety first equipment 22

“ “ “ forging dies 23

“ “ “ moulding plates 24

Reconditioning of workshop machine tools 25

“ “ “ plant 26

Sundries 27

1049. Repairs to, maintenance and working cost of service motor-cars (Rail, Road and Trollies). The expenditure incurred in repairs to and maintenance of the items mentioned below should be charged to 9xxxxxxxxxxx series work orders while that incurred in working them should be charged to Revenue under work order number of 9xxxxxxxxxxx series both with the Specific Element Number of a work order as shown below: Sr. No.

Particulars Specific Element No. of a work order.

Repair Costs Working Costs

1. Rail Motor-Cars 35 45

2. Road Motor-Cars, Lorries & trucks 36 46

3. Lister Trucks 37 47

4. Trollies 38 48

1050. Repairs to furniture and office equipment. Repairs to and maintenance of furniture and office equipment including computers should be charged to the work order of “9xxxxxxxxxxx” series with Specific Element number “50”.


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10.14

1051. New Minor Works. The expenditure in connection with all minor original works or additions to the existing assets the cost of each of which does not exceed the new minor works limit and that in connection with replacements or renewals not exceeding the new minor works limit over the original cost of the work replaced should be charged to Revenue under work order number of “9xxxxxxxxxxx” series and classified and booked against the Specific Element number of work orders mentioned below:

Original works or additions.

Replacement or renewals.

Sr. No. Particulars

Specific Element No. Specific Element No. 1. Locomotive

60 65

2. Machinery and Tools

61 66 3. Service motor-cars (Rail, Road and

Trollies.) 62 67

1052. Job orders. Job orders may be classified mainly under two groups, viz.-

1) Sub-division of standing work orders (sundry orders) 2) Manufacturing orders for stores,

1053. Work Orders for Work done for other government departments and public bodies. All work done for other Government Departments and Public bodies including “Home Line” railway employees, the cost of which exceeds Rupees 50,000 and is chargeable to them on completion, should be done and accounted for under individual work orders having the following Specific Element Numbers:

(1) Military Department 70

(2) Irrigation Department 71

(3) Civil Departments 72

(4) Foreign Railways 73

(5) Railways Employees 74

(6) Outsiders (Private Parties) 75

Inter-departmental work orders (for Railways Departments only) and Capital and Replacement work orders falling under this group are detailed in paragraphs 1066 and 1067.


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1054. Stores Manufacturing Work Orders. It is essential that a close working alliance is maintained between the workshop stores depot and the main progress office and that manufactures are not held up through shortages of stocks. Stock recoupments are made from two sources:

(1) purchase of raw materials and commodities which cannot be manufactured in the shops;

(2) articles manufactured in the shops for recoupment of stores. The procedure for (a) is fully explained in the Pakistan Railways Code for the Stores Department. In the case of (b) the officer in charge of workshop stores is responsible for sending recoupment orders for manufactured parts to the progress office when his stocks are down to the minimum normal requirements. 1055. “8xxxxxxxxxxxxx” series of work orders will be used for all work orders for manufacturing of stores items. Manufacture orders for recoupments of stock may be classified under the three main headings:

(1) Part orders for distinguishing by the letter P followed either by the part number and year or by the work order number given to the lot to be manufactured.

(2) Assembly orders distinguished by the letter G followed either by the part number and year or by the work order number given to the lot to be manufactured.

(3) Repair orders distinguished by the letter R followed by the part number and year or by the work order number.

1056. P. Orders. Separate work orders should be issued for the manufacture of all items stocked as single parts, and held either for issue as parts or as components for assembly orders. For example, injector cones should be made on part orders, placed in stock and eventually issued either to replace worn out cones or for fitting into new injectors assembled on assembly orders. In addition to the large number of finished standard parts that are stocked, many partly finished parts are also stocked and these are standard only up to a certain stage in their manufacture. For all such items should also be manufactured on P. Orders, separate work orders of “8xxxxxxxxxxx” series distinguished by Specific Element number “01” for part orders will be issued for each item. 1057. G. Orders. Separate assembly work orders of “8xxxxxxxxxxx” series should be issued for each item requiring the assembling of fittings from completed parts which will be distinguished by Specific Element number “02”.


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1058. R. Orders. All worn out fittings that are worth repairing should be repaired on R. Orders. Such work orders will be assigned “8xxxxxxxxxxxxx” series number of work order with specific element number “03”.

1059. Overhead Work Orders. Overhead Work orders will be used to book the actual shop, general and administrative overheads in the relevant shops and cost centres. These will be numbered as “00000000000000”. All the actual overheads of workshops/ factories will be first booked under these work orders and then allocated to other work orders on the basis of allocation statement para. 906A W.

1060. Deleted.

1061. Deleted.

1062. Work Orders for Process Shops. The minimum permissible analysis of the expenditure incurred in the process shops of Pakistan Railway workshops will be made through work orders of “8xxxxxxxxxxx” series with following Specific Element numbers assigned to them:

04. Iron foundry metal and melting charges.

05. Foundry charges for white metal and melting.

06. Foundry charges for brass metal and melting.

07. Foundry charges for gun-metal and melting.

08. Foundry charges for brazing metal and melting.

09. Foundry charges for bronze metal and melting.

10. Foundry charges for aluminium metal and melting.

11. Manufacture of bolts.

12. Manufacture of new springs.

13. Repair to old springs

14 Copper and Tin Smith Shop Manufacturing and Miscellaneous Jobs Accounts.

15. Patterns for standard imprest parts.

16 Jigs, fixing and special tools for standard duplicates

1063. Actual labour and stores charges incurred on the several operations should be booked to the work order concerned which should be cleared by debit to finishing shops or to stores work orders in the proportion of the outturn.

1064. “Grouping” work orders should be issued in the case of works mentioned in paragraph 1014. The expenditure incurred thereon should be analyzed only under the grouping (main) work orders.


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1065. Deleted. 1066. Inter-departmental Work Orders. Separate special or job work orders of “9xxxxxxxxxxx” series, with following Specific Element number as part of work order number, should be issued for each job and the actual cost realized, on completion of each job, from the Department concerned:

Specific Element No.

Departments. Specific Element

No. Departments.

1 Engineering. 7 Audit.

2 Other Workshops. 8 Accounts.

3 Electric. 9 Stores (other than manufacturing

orders).

4 Transportation. 10 Cash and Pay.

5 Medical. 11 Railway Police. 1067. Capital and Replacement Works Orders. The following scheme of capital and replacement work orders may be adopted for classifying expenditure on works (addition or betterments or replacements), separate special work orders (job orders) being issued by the Workshop Accounts Officer for each job.

Work Order for Addition Work Order for Betterments–

or/and Replacements Series Specific Element of

Work Order No. Series Specific Element of

Work Order No.

Classifications

7 01 6/5 01 Erection of machinery.

7 02 6/5 02 Service motor boats.

7 03 6/5 03 Rail motor trollies and lorries.

7 04 6/5 04 Road motor cars lorries/trucks.

7 05 6/5 05 Erection of steam locomotives.

7 06 6/5 06 Erection of diesel electric Locomotives.

7 07 6/5 07 Erection of boilers.

7 08 6/5 08 Erection of electric locomotives.

7 09 6/5 09 Rail cars (internal combustion engines).

7 10 6/5 10 Diesel multiple units.

7 11 6 11 Electric multiple units.


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1068. Carriage and Wagon Workshops Work Orders. The method of numbering work orders for use in carriage and wagon workshops will follow closely the lines prescribed for locomotive workshops, as indicated in the following paragraphs. 1069. The principles involved in the main analysis and recording of expenditure under this work order will be the same as in the case of locomotives (Paragraphs 1038 et seq), subject to the following remarks:

(1) “Periodical overhauls” of coaching vehicles and rail cars should be carried out in workshops according to a definite line of policy by the administration.

(2) Special Repairs. Occasional special repairs to damaged stock, each estimated to cost over Rupees 100,000 in the case of carriages (including rail cars) and Rupees 20,000 in the case of wagons and service motor cars should be carried out only after necessary estimates have been prepared and sanctioned by competent authority. The expenditure incurred on the reconditioning of stock and on the conversion of stock chargeable to revenue should also be debited to work orders under this head.

(3) Petty repairs. The work orders under this head should be debited with the expenditure incurred on minor repairs, viz., repairs estimated to cost not more than Rupees 5,000 per bogie vehicle and Rupees 2,000 per four-wheeler vehicle excluding the cost of deficient parts in the case of coaching vehicles, and not more than Rupees 2,000 and Rupees 1,000 respectively in the case of goods wagons.

(4) Other repairs. The cost of petty repairs to coaching vehicles and goods wagons, costing more than the monetary limits prescribed in (3) above and treated as non-periodical overhaul should be recorded under these work orders.

1070. The following list of work orders of “9xxxxxxxxxxx” series having different Specific Element numbers shows the minimum analysis for recording expenditure on the repairs and maintenance of coaching and goods stock:


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10.19

WORK ORDERS FOR THE REPAIRS AND MAINTENANCE OF COACHING VEHICLES, RAIL CARS AND GOODS VEHICLES.

Periodic Overhauls

Nominated Repairs

Petty Repairs Trials and

Experiments Description of Carriages

Specific Element

No.




Passenger Coaching Vehicles

Broad Gauge 1 11 21 Meter Gauge 2 12 22

Other Coaching Vehicles Broad Gauge 3 13 23 Meter Gauge 4 14 24

Rail Cars 5 15 25 Wagons

Broad Gauge 6 16 26 Meter Gauge 7 17 27

1071. Repair to and Maintenance of Plant and Machinery. The expenditure incurred under this head should be analysed at least in the detail shown below:

(1) MACHINERY AND TOOLS.

Description Specific Element No.

Repairs to and overhauls of machine 40 ,, ,, ,, stationary boilers 41 ,, ,, ,, lifting gear 42 ,, ,, ,, line shaft 43 ,, ,, ,, hydraulic compressors 44 ,, ,, ,, pneumatic compressors 45 ,, ,, ,, traversers 46 ,, ,, ,, Weigh-bridges 47 ,, ,, ,, gauges 48 ,, ,, ,, jigs and fixtures 49 ,, ,, ,, pneumatic tools 50 ,, ,, ,, welding equipment 51 ,, ,, ,, safety first equipment 52 ,, ,, ,, forging dies 53


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10.20

,, ,, ,, moulding plates 54 Reconditioning of Workshop machine tools 55 ,, ,, ,, plant 56 Sundries 57 Repairs and maintenance of hydraulic press 58

(2) REPAIRS, MAINTENANCE AND WORKING COSTS OF SERVICE MOTOR CARS (RAIL, ROAD AND TROLLIES).

Work Order No. Description

Repair costs Working costs

1. Rail motor cars 65 69

2. Road motor cars, lorries & trucks 66 70

3. Lister trucks 67 71

4. Trollies 68 72

(3) REPAIRS TO, AND MAINTENANCE OF, FURNITURE AND OFFICE EQUIPMENT

including computers.

Repairs to, and maintenance of, furniture and office equipment including computers should be charged to “9xxxxxxxxxxx” series work order number with Specific Element number “80”.

1072. New Minor Works. The expenditure on new minor works should be classified and booked under the “9xxxxxxxxxxx” series of work orders containing the following Specific Element number of work order:

Work Orders Nos. Description Original Works or

Additions Replacement or

Renewals

1. Coaching vehicles 85 92

2. Other coaching vehicles 86 93

3. Rail cars (steam propelled) 87 94

4. Rail cars (Internal combustion engine propelled). 88 95

5. Goods wagons 89 96

6. Machinery and tools 90 97

7. Service motor cars (rail, road and trollies). 91 98


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1073. Deleted 1074. Capital and Replacement Work Orders. The expenditure on works chargeable to Capital and Replacement should be classified and booked under the work orders shown below. A separate job order should be issued for each job undertaken in the shop.

Work Order for Addition Work Order for

Replacements and or Improvements

Series Specific Element of Work Order

No.

Series Specific Element of Work Order

No.

Classifications

7 10 5/6 10 Erection of machinery.

7 11 5/6 11 Service motor boats.

7 12 5/6 12 Rail motor trollies and lorries.

7 13 5/6 13 Road motor cars and lorries.

7 14 5/6 14 Rail cars (internal combustion).

7 15 5/6 15 Diesel electric multiple unit stock — (motor coaches)

7 16 5/6 16 Electric multiple unit stock—(motor coaches).

7 17 5/6 17 Diesel electric/electric multiple unit stock—(trailer coaches).

7 18 5/6 18 Carriages.

7 19 5/6 19 Wagons.

CHAPTER XI

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER XI

JOB COSTING

23

CONTENTS


OBJECT OF A COSTING SYSTEM 11.1 1101 — 1103

COMPARISON OF TIME TAKEN WITH TIME FIXED 11.1 1104

PLANNING 11.2 1105 — 1106

OPERATION CODE 11.3 1107

KINDS OF ORDERS DEALT WITH 11.3 1108

“PART” ORDERS 11.3 1109

“GROUP” ORDERS 11.4 1110

“REPAIR” ORDERS 11.4 1111

RECOUPMENT OF STOCK 11.4 — 11.5 1112 — 1113

PATTERN REQUISITIONS 11.5 1114

PATTERN ALTERATIONS 11.6 1115

FOUNDRY WORK ORDERS 11.6 1116

OPERATION SHEETS 11.7 1117

SPECIFICATION SHEETS FOR ASSEMBLY OF PARTS 11.8 — 11.9 1118 — 1119

PROGRESS SHEET 11.9 1120

STORES SHEETS 11.11 1121

COST SHEET 11.13 1122

OPERATION TIME SHEET 11.15 1123

JOB TIME SHEET 11.16 1124 — 1125


CHAPTER XI

JOB COSTING

24

CONTENTS


MATERIAL DELIVERY SHEET 11.16 1126

ISSUING WORK ORDERS TO SHOPS 11.17 1127

PROGRESSING WORKS 11.17 1128

TOOL SETTINGS 11.18 1129

BOOKING TIME 11.18 1130

INSPECTION 11.19 1131

REJECTED PARTS 11.19 1132

ALTERATIONS TO WORK ORDERS 11.20 1133

PROGRESS CARDS 11.20 1134

COMPLETION OF COST SHEET 11.21 1135 — 1138

FINAL COSTING 11.21 1139

RECONCILIATION OF COST SHEETS WITH FINANCIAL

ACCOUNTS

11.21 1140

WORKS MANAGER’S COST CARD 11.21 1141


CHAPTER XI

JOB COSTING

11.1

1101. The Object of a Costing System. All Pakistan Railways Workshops are designed and are primarily intended for the repairs and maintenance of the rolling-stock and other property required for railway operation. It would ordinarily have been a simple matter to analyse the total expenses of such repairs and maintenance. But, as in a large number of cases the repairs have to be carried out by using a multitude of spare parts and fitting, manufactured in advance and kept in stock for the purpose, the cost of such spare parts and fittings has to be ascertained with a fair degree of accuracy, and a system of detailed job costing of such parts becomes, therefore, more or less inevitable. 1102. The objects of any system of cost analysis are:

(1) to throw light on past experience and to locate profits or losses on previous work;

(2) to act as a guide for future transactions; (3) to compare different methods of manufacturing the same article; (4) to appreciate in what ways overhead expenditure may be reduced; (5) to check employees and prevent waste, whether intentional or accidental;

and (6) to locate the particular item of work or of operation, expenditure on

which is susceptible of closer control. 1103. The nature of the repair work carried out in Pakistan Railways workshops is such that the question of profits and losses on previous work does not arise. A comparison of different methods of manufacturing the same article does not call for the installation of a system of costing for the whole workshop, as experiments carried out under working conditions, as and when required, would yield the requisite data. In respect of overheads, owing to the permanent nature of the outlay on buildings and plant and of the tenure of the supervising and other staff, the scope for economies is extremely limited. The most important objectives, therefore, of a costing system in Pakistan Railways workshops are thus the checking of employees to see that they yield full service, ensuring that waste is prevented or at least minimized and the utilization of the figures of the costs of manufacture ascertained as a guide for future transactions and for the correct allocation of the expenditure incurred. 1104. Comparison of Time Taken with Time Fixed. No method of checking up employees or of preventing waste in materials can be carried out without the cost system used providing for the comparison between the limits fixed in respect of labour and materials for each item of work with the actual performance. The system actually adopted may take any shape that may be found suitable to local requirements but its essential feature should be the estimating in advance, of the time that should be spent and the materials that should be used and the systematic comparison of the results of actual performance with such estimates. The institution of any detailed system of


CHAPTER XI

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11.2

costing, that may be so called, is thus contingent upon the initial fixation by suitably trained technical staff of standards of time and of materials for the items of work to be undertaken, and for the prompt comparison of the standards thus set with the actual results obtained. In the paragraphs that follow, details are given of the system of Job costing that has been found to work well in practice. This procedure is not mandatory, but any system that may be actually adopted in the future or may be already in force at present should contain the essential features of the system described and provide for the interlocking of the cost accounts with the financial accounts.

1105. Planning. When a new standard part is to be manufactured for stock purposes, the drawing as finally approved should be sent to the Workshop Production Office where the following procedure should be adopted by the Planner and Rate Fixer, working under the supervision of the Production Engineer.

(1) The number of parts to be manufactured should be decided.

(2) The drawing should be examined to see if there are any alterations required to design, in order to cheapen the cost of production.

(3) When parts are made from castings, it should be decided whether the

moulds are to be made on a Moulding Machine or by hand.

(4) The section and length of material, required for making one part, should be recorded. (This applies to parts not made from Castings).

(5) The details of various operations and types of machines’ on which the parts

are to be made, should be set out, estimated times being fixed for each operation on the best data either available or obtained for the purpose.

(6) The jigs, fixtures or special tools required should be decided on. Particulars

of jigs and tools required should be passed to the Jig and Tool Draughtsmen, who should prepare the necessary drawings. The layout of operations explained briefly in the Code under paragraph 1107, together with particulars of jigs to be used and lists of material required, should be passed on to the Progress Office.

1106. The Progress Office should then issue Pattern Requisitions, Foundry Orders, Operation Sheets, Progress, Stores and Cost Sheets, Time and Material Delivery Sheets, descriptions of which are given in paragraphs 1114 to 1126. A separate time sheet should be issued preferably for each operation, with complete information of the work to be carried out, the type of machine on which it is to be carried out, and the special jigs to be used.


CHAPTER XI

JOB COSTING

11.3

1107. The Operation Code. The code index shown below should be used for indicating, on the cost records, the operations involved and the machines to be used.

Index Letter Code Index for Operations and Machines.

A . . Bar Lathes and Bar Automatics. B . . Broaching. *C . . Coppersmith. D . . Drilling. *E . . Tinsmith. *F . . Forging. G . . Grinding. *H . . Heat Treatment. *J . . Joinery Work. *K . . Boiler Maker. L . . Lathes. M . . Milling. N . . Horizontal Boring Machine. O . . Vertical Boring and Turning. P . . Planning. Q . . Shaping. *R . . Rolling, Shearing, Punching and Flanging. S . . Slotting. *T . . Tube Repairing. U . . Screw Machine. V . . Sawing.

*W . . Electric or Acetylene Welding and Cutting. *X . . Fitting and Assembling. Y . . Gear Cutting. Z . . Polishing. ( . . Marking off. £ . . Hammering Piston Rings. % . . Castings available. ? . . Material Available except Castings.

Note. Job Time Sheets (see paragraph 1124) are for operations marked* and are used for Hand operations and for machines, that require several operators.

Procedure in connection with progress office orders

1108. Kinds of Orders dealt with. The Progress Office deals generally with three kinds of job orders which may be referred to as:

(1) “Part” or ‘P’ Orders. (2) “Group” or ‘G’ Orders. (3) “Repair” or ‘R’ Orders.

1109. “Part” Orders. These should be used for items that are stocked as single parts, either for issue as such or as components for “P” Orders. (Paragraph 1056).


CHAPTER XI

JOB COSTING

11.4

1110. “Group” Orders. These should be used for stock assembled fittings, vide paragraph 1057. If any of the component parts of these fittings are demanded they should be machined on “P” Orders. In addition, components, that are standard for various types of fittings, should be manufactured for stock on “P” Orders. This procedure should apply to items such as studs, etc. 1111. “Repair” Orders. All worn stock fittings, that are worth repairing, should be collected in suitable batches for inspection and report. A report should be drafted, showing the work to be done and the new parts required, and then sent to the Progress Office. The subsequent procedure should be similar to the system described for dealing with “P” and “G” Orders. The costs of “R” Orders should finally be checked with the costs of similar new fittings, made on “P” or “G” Orders. (See also paragraph 1058). 1112. Recoupment of Stock. All work orders for newly designed parts, that have not previously been stocked, should emanate from the Production Office. When a part becomes a stock item, the Officer-in-Charge of the Workshop Stores should be made responsible for arranging for recoupment as soon as the stock reaches the fixed minimum. A requisition for such recoupment should be placed by the Stores Department in triplicate on Form S. 1437 reproduced below (on next page):


CHAPTER XI

JOB COSTING

11.5

PAKISTAN RAILWAYS DEPOT WORK REQUISITION (DWR)

Form No. S.1437 PR.10.7.3/MOD.12

Class Sub Class Quantity Unit

01020304050607080910

DWR

Project No.

No.

Drawing No.

Date

ACCEPTED BYAPPROVED BY

To Cost Center

Stock Code

No.

PREPARED BY

Sr. No.

Loco Class No.Required completion Date

No. DateWork Order

From Cost Center

Last RateRupees

Item Code

Name

Remarks

Reason for non approval

DateNon

approved by

Description of Material or Service

Item

No. Name

WORKSHOPS USE ONLYSIGNED BY

DATE

WORK ORDER NUMBER

ApprovedCheckOne

Yes No

1113. On receipt from the Stores Department of requisition for manufacture of stores in Form S. 1437, the Progress Office should immediately refer to the Operation Sheet and place orders direct on the shops for the manufacture of those items which have been manufactured previously. Where the item has not been manufactured before, the necessary examination should be made and if the estimated quantity warrants it, drawings should be ordered and the full procedure gone through as for a new order (paragraphs 1105 and 1106).

1114. Pattern Requisitions. In the case of castings, a Pattern Requisition, for making new patterns, should be made out by the Progress Office in Form W. 1114 and placed on the Pattern Shop. On completion of manufacture of the pattern, the pattern requisition should be returned to the Progress Office with the date of actual completion filled in.


CHAPTER XI

JOB COSTING

11.6

Form W. 1114 PATTERN REQUISITION

Work Order No. ………………… Completion date . . . . . . . . . . . . .

Part No. Material Type of pattern Remarks

1 2 3 4

IR 40 . . G.M. . . Plate Pattern for Hydraulic

Moulding Machine A5. Make Pattern to Drawing

No. 14327.

. . . . . . . . . . . . . . . . . . . . . . . . Date: …………………….. for Works Manager 1115. Pattern Alterations. A pattern Alteration is an order form for altering patterns and should be made out in Form W. 1115 and dealt with in the same way as a pattern requisition.

Form W. 1115

PATTERN ALTERATION Work Order No. ………………….

Part No. Drawing

No. Alteration No. on Drawing

Alteration

1 2 3 4

T.W. 1 . .

xxxxx . . . . Alter Pattern leaving Journal Radius 70 mm rough instead of 75 mm finished.

. . . . . . . . . . . . . . . . . . . . . . . . Date:……………… for Works Manager 1116. Foundry Work Orders. Foundry Work Orders should only be issued when the Progress Office has been notified that the patterns have been made. The Progress Office should issue three copies of the Foundry Work Order in Form W. 1116 for each order put in hand. Only one item should appear on each Foundry Work Order. One copy of the work order should be sent to the Foundry Office, two copies to the Stores. These Work Orders should be printed in two colours, grey for iron castings and yellow for


CHAPTER XI

JOB COSTING

11.7

non-ferrous castings. Castings should be charged to the relevant work order number of the particular class of castings required or to the job as the case may be, depending on the system of costing in operation in the Foundry (See Chapter XIII). On completion of a work order, the castings together with the Foundry Copy of the Work Order should be sent to Stores, where the weight of the castings should be entered on all the three Foundry work order forms, one form being returned to the foundry as a receipt and one to the Progress Office for record. Whether the castings are sent direct into Stock or passed on to the Finishing Shops, they would be treated in the records and accounts as having been first issued to ‘Stores’ and then drawn from Stores for use on work.

Form W. 1116 Std. 10 M/M Injectors. Progress Office.

FOUNDRY WORK ORDER Completion Date:………………. Work Order No. ………………..

Total Weight Rate No. Off.

Part No.

Description Drawing

No. Material

Kgs. Price Unit Value

Rupees Kg. Rupees 50 I.R.

40 Injector Body

14327 G.M. 845 450 380,250

Total . . 380,250

. . . . . . . . . . . . . . . . . . . . . . . . Date:…………………………. for Works Manager 1117. Operation Sheets. Operation Sheets, Form W. 1117 should be made out in duplicate in the Planning Office, one being filed in the Planning Office and the other in the Progress Office. The section and length of material, required for making one part, should be shown on these sheets, when the part is not made from a Casting. From the entries on the sample form below it will be noticed that special tools and fixtures are stamped with the Part number of the item for which they are made, e.g., Operation No. 2 explains to the Tool Setter that he must obtain three special Tools IR1/T1 to T3, IR401, T1 to T3 and IR401, F1 to F3 before setting up the job.

to Foundry

to Stores.


CHAPTER XI

JOB COSTING

11.8

Form W. 1117 OPERATION SHEET

Part No. IW 40 Description–Injector Body. Drawing No. xxxxx Material–G.M.

Opn No.

Opn Code

Instructions Setting time

Time

1 L Chuck steam connection end; Bore and screw body 50 mm and 63 mm; face one end. Tool No. IR 1/T.1 to T.3.

(No. 9 Herbert) . . 14 Mins. 2 L Clamp, face end, bore 60 mm bore and

screw 70 mm and face end to length.

Tools Nos. IR 40/T.1 to T.3 and IR 40/F.1. (No. 9 Herbert) . . 12 Mins.

3 Q Mill foot, boss and flanges. Fixture No. IR 40/F.2.

(Vert Miller) . . 15 Mins. 4 D Drill six 17.5 mm, two 20.5 mm one 19 mm

tapping, and eight 16 mm tapping holes.

Jig No. IR, 40/F.3. (Pillar Drill) . . 35 Mins.

5 D C./sk. 16 mm tapping holes on Joint faces. (Pillar Drill) . . 4 Mins.

6 D Tap eight 16 mm and one 19 mm hole.

(Pillar Drill) . . 15 Mins.

1118. Specification Sheets for Assembly of Parts. A standard specification sheet should be made out in Form W. 1118 by the planning section, and passed on to the Progress Office for record. This specification sheet should show every item required for assembling a fitting. The item marked “stock” should be made on “P” orders and those marked “standard stock” should be obtained from outside sources.

Form W. 1118

SPECIFICATION SHEET FOR STANDARD 10 M/M INJECTORS No. off

Part No. Material

size Description

Drawing No.

Material Operations

1 IR 40 . . Injector Body 14327 G. M. L. L. Q. D. D. D. 1 IR 277 . . Clack Body 17316 ,, L. L. L. L. D. D. 1 IR 42 . . Valve Guide 9849 ,, L. L. M. 1 IR 43 . . Valve for Clack Box 9849 ,, L. L. 1 IR 44 . . Cap for Clack Box 9849 ,, L. L. M. 1 IR 273 . . Steam Connection

(Vertical). 17289 ,, L. L. L. D. D.

1 IR 46 . . Cap for Steam Connection.

17289 ,, L. L. M.


CHAPTER XI

JOB COSTING

11.9

1 IR 47 . . Delivery Cone 9024 G. M. Stock. 1 IR 48 . . Restarting Valve 9024 ,, ,, 1 IR 49 . . Combining Code 9024 ,, ,, 1 IR 50 . . Steam Cone 9024 ,, ,, 1 IR 8 . . Injector Feed Cock

Body. 9025 ,, M. D. L. L.

1 IR 9 P. F. Plug for Feed Cock. 9025 L. 1 IR 10 . . Washer. 9025 ,, Stock. 1 IR 15 . . Overflow Valve Body 9850 ,, M. L. D. 1 IR 16 . . Valve Guide. 9850 ,, L. L. M. 1 IR 17 . . Overflow Valve 9850 ,, L. L. 2 IR 51 . . 16 mm Bolt Hex.

(Special) . . M. S. Stock.

GENERAL 14 Threaded 22 mm

and 16 mm

Studs 16 mm D x 50 mm

. . . . Stock.

14 . . . . 16 mm Nut Hex. Blk . . . . Std. Stock. 1 . . . . 19 mm Nut Hex. Brt . . . . ,, 1 . . . . 4.5 mm + 27 mm Split Pin . . . . ,, 1 . . . . ASSEMBLY 1 . . . . Assemble Injector Body. 14327

and 9024 . . X.

1 . . . . Assemble Injector Clack Box.

9849 . . X.

1 . . . . Assemble Injector Steam Connection.

14325 . . X.

1 . . . . Assemble Feed Cock. 9025 . . X. D. 1 . . . . Assemble Overflow

Valve. 9850 . . X.

1 . . . . Final Assembly. 14327 . . X.

1119. After the work in connection with the items mentioned above has been finished, the Progress Office should prepare two Progress Sheets (W.1120), one stores sheets (W.1121) and one Cost Sheet (W.1122), separately for “P” and “G” orders, vide paragraphs 1109 and 1110. It will be noticed that the headings shown in these three sheets (columns 1 to 7) are almost identical and are practically three foils of the same form, though with different names, each sheet being meant to be used for a different purpose. The four sheets should be typed together, the carbon papers being trimmed so that the operation Code Index Letters are not typed on the Stores and Cost Sheets. The information for typing these sheets should be obtained from the Specification Sheets (W-1118).

1120. Progress Sheet. The Progress Sheet prepared separately for “P” and “G” orders, shows every item of stores required for assembling fittings, the number off, the part number material size, description of the material, drawing number, classification of material and operation number. It serves as a guide to the shop in drawing the material from the stores and also indicates the various operations which are required to be


CHAPTER XI

JOB COSTING

11.10

carried out in executing the order. One copy of the Progress Sheet should be filed in the Progress Office, and the other copy sent to the Shop performing the first operation, along with the relative Operation Sheet (W.1117), showing the “lay-out”, or the sequence of the operations involved.

Form W. 1120 P SPECIMEN PROGRESS SHEET FOR “P” ORDERS

Order No. ………………. Date: …………………….. Description–Fork End for Injector Steam Valves.

No. off

Part No.

Material size

Description Drawing

No. Material Operation

1 2 3 4 5 6 7

200 IR 26 42 mm D

x 15 Meter long Brt.

Fork End . . xxxxx M. S. A. M. D.

Form W. 1120 G

SPECIMEN PROGRESS SHEET FOR “G” ORDERS Order No. …………………….. Dated: …………………. Description–Standard 10 M/M Injectors.

No. off

Part No.

Material size

Description Drawing

No. Material Operation

50 IR 40 . . Injector Body . . 14327 G. M. %L. L. Q. D. D. D. 50 IR 277 . . Clack Body . . 17316 ,, %L. L. L. L. D. D. 50 IR 42 . . Valve Guide . . 9849 ,, %L. L. M. 50 IR 43 . . Valve for Clack Box . . 9849 ,, %L. L. 50 IR 44 . . Cap . . . . 949 ,, %L. L. M. 50 IR 273 . . Steam Connection (Vert). 17289 ,, %L. L. L. D. D. 50 IR 46 . . Caps . . . . 17289 ,, %L. L. M. 50 IR 47 . . Delivery Cones . . 9024 ,, Stock. 50 IR 48 . . Restarting Valves 9024 ,, ,, 50 IR 49 . . Combining Cones 9024 ,, ,, 50 IR 50 . . Steam Cones 9024 ,, ,, 50 IR 8 . . Injector Feed Cock Body. 9025 ,, %M. D. L. L. 50 IR 9 P. F. Plug for Feed Cock . . 9025 ,, L. 50 IR 10 . . Washers . . . . 9025 ,, Stock. 50 IR 15 . . Overflow Valve Body. . 9850 ,, %M. L. D. 50 IR 16 . . Valve Guide . . 9850 ,, %L. L. M. 50 IR 17 . . Overflow Valves . . 9850 ,, %L. L.

100 IR 51 . . 16 mm Bolt Hex. (Special) 9854 M. S. Stock.


CHAPTER XI

JOB COSTING

11.11

GENERAL 700 Th. 22

mm & 16

mm

. . Studs 16 mm D x 50 mm . . . . M. S. Stock.

700 . . . . 16 mm Nut Hex. Blk . . . . ,, Std. Stock. 50 . . . . 19 mm Nut Hex. Brt . . . . ,, ,, 50 . . . . 4.5 mm + 27 mm Split Pin . . ,, ,,

ASSEMBLY 50 . . . . Assemble Injector Body. 14327 &

9024 . . X.

50 . . . . Assemble Clack Box . . 9849 . . X. 50 . . . . Assemble Steam

Connection. 14325 . . X.

50 . . . . Assemble Feed Cock. 9025 . . X. D. 50 . . . . Assemble Overflow Valves. 9850 . . X. 50 . . . . Final Assembly . . 14327 . . X.

1121. Stores Sheets. The Stores Sheet which is prepared simultaneously (separately for ‘P’ and ‘G’ orders) is really a Stores Inquiry Sheet which is sent to the Stores Department to ascertain the availability of materials. The Store-keeper should scrutinize the relevant stock cards and if the material is in stock, he should stamp the availability of stores against each item in the Stores Sheet and reserve the materials for the work. If certain material is not available, the probable date of availability should be recorded against such items on the Stores Sheet. The Stores Sheet duly completed on the above lines should then be returned to the Progress Office which should note against the respective items on its copy of the Progress Sheet (W.1120) that the material is in stock and return the Stores Sheet to the Stores Department either for filing or for necessary action in respect of items which had been marked as, ‘not available’.

Form W. 1121/P SPECIMEN STORES SHEET FOR “P” ORDERS

Work Order No. ………………….. Dated:……………… Description–Fork End for Injector Steam Valves.

No. off.

Part No.

Material size Description Drawing

No. Material Remarks

1 2 3 4 5 6 7

200 IR 26 (42 mm D x 15 Meter long Brt).

Fork End . . 15038 M. S.


CHAPTER XI

JOB COSTING

11.12

Form W. 1121/G SPECIMEN STORES SHEET FOR ‘G’ ORDERS

Work Order No. …………………… Dated: ………………….

Description–Standard 10 M.M Injector.

No. off

Part No.

Material size

Description Drawing No.

Material Remarks

50 IR 40 . . Injector Body . . 14327 G. M. 50 IR 277 . . Clack Body . . 17316 ,, 50 IR 42 . . Valve Guide . . 9849 ,, 50 IR 43 . . Valve for Clack Box . . 9849 ,, 50 IR 44 . . Cap for Clack Box . . 9849 ,, 50 IR 273 . . Steam Connection

(Vert). 17289 ,,

50 IR 46 . . Caps . . . . 17289 G. M. 50 IR 47 Stock Delivery Cones . . 9024 ,, 50 IR 48 . . Restarting Valves 9024 ,, 50 IR 49 . . Combining Cones 9024 ,, 50 IR 50 . . Steam Cones 9024 ,, 50 IR 8 . . Injector Feed Cock

Body 9025 ,,

50 IR 9 P. F. Plug for Feed Cock . . 9025 ,, 50 IR 10 Stock Washers . . . . 9025 ,, 50 IR 15 . . Overflow Valve Body. . 9850 ,, 50 IR 16 . . Valve Guide . . 9850 ,, 50 IR 17 . . Overflow Valves . . 9850 ,,

100 IR 51 Stock 16 mm Bolt Hex. (Special)

. . M. S.

GENERAL 700 . . Stock Th.

22 mm & 16 mm

Studs 16 mm D x 50 mm . .

. . M. S.

700 . . Std. Stock. 16 mm Nut Hex. Blk . .

. . ,,

50 . . ,, 4.5 mm + 27 mm Split Pin

. . ,,

ASSEMBLY 50 . . Std. Stock. Assemble Injector Body. 14327 &

9024 . .

50 . . . . Assemble Clack Box . . 9849 . . 50 . . . . Assemble Steam

Connection. 14325 . .

50 . . . . Assemble Feed Cock. 9025 . . 50 . . . . Assemble Overflow

Valves. 9850 . .

50 . . . . Final Assembly . . 14327 . . Date Completed…………….


CHAPTER XI

JOB COSTING

11.13

1122. Cost Sheet. The Cost Sheet should cover the whole field of record of productive activity. The entire progress of a production work order in the way of consumption of material and the charging of labour and of Overheads should be reflected on the Cost Sheet. The cost of each job should be ascertained through the Cost Sheet (W.1122), the form of which differs from that of the Progress and Stores Sheets only in so far as it provides for additional particulars being entered therein. The illustrative entries given in the Specimen Cost Sheet below relate to ‘P’ orders. Similar entries relating to ‘G’ orders should be filled in the Cost Sheet from the relevant documents. The Cost Sheets should be sent to the Accounts Office where they should be completed in the manner indicated in paragraphs 1135 to 1139.


CHAPTER XI

JOB COSTING

11.14

Form W. 1122 MECHANICAL DEPARTMENT

Progress Office COST SHEET

Shop:Work Order No.Start Date:Completion Date:Description of Work Order:Rolling Stock / Stock Item No.Quantity:Quality:Drawing No.Work Requisition No. and date

Cost Type Stock Item Code

Qty (Kg) / Hrs

Per Unit Cost

Total Cost

Rupees Rupees

Material Cost 123456789 1,000 325 325,000 685689745 500 135 135,000

Labour CostRegular 11,440 412 412,000 Overtime 770 28 28,000 Piece Rate 1,100 40 40,000 Allowances 250 250,000

Prime Cost 1,190 1,190,000 OverheadsShop 200 200,000 General 150 150,000 Administrative 125 125,000

Total Cost 1,665 1,665,000

Cost Type Total Cost Rupees

Material 460,000 Labour 710,000 Overheads:

Shop 200,000 General 150,000 Administrative 125,000

475,000 Total estimated cost 1,645,000

Variance (20,000)

Prepared By: Approved By:

xxxxx, 12-12-2009

Estimated Costs

Actual Costs

Size…..., Length….., Weight….., Color……,15038

1000 Units

Loco Shop8xxxxxxxxxxxxx15/12/200915/01/2010Manufacturing of Brake Blocks for DE Locomotives123456789


CHAPTER XI

JOB COSTING

11.15

1123. Operation Time Sheet. Separate Operation Time Sheets should be issued by the Progress Office for each operation, in Form W.1123, specimen given below. The Operation Time Sheet should only be used for machine work.


OPERATION TIME SHEET (Obverse)

Date Man’s No.

Rate M/c. No.

Start Time

Finish Time

Time observed

Work Order No. …………. Part No. IR 40. No. Off 50. Drg. No. xxxxx Opn. Code 1st Opn. L. Setting time…….Est. Time* Matl.–G. M.

3458

Rupees 75

349/67

8 Hours

11 Hours

Hours 3

Description

Brass Casting Rough . . Do. Do. Do. 8 Hours 12 Hours 4

Injector Body . . Do. Do. Do. 2 Hours 5 Hours 3

Chuck Steam Connection End Bore & screw body 50 mm x 63 mm Face One End.

Do. Do. Do. 8 Hours 12 Hours 4

*(To be entered on completion only.)

Remarks…………..…….Passed by……….…………..Inspector. Total Hrs. 14 Date……………… Checked by………………. Cost Rupees………………… Next Operation……………..

(Reverse)

Insp

ectio

n P.

O.

S. P

. O.

Insp

ectio

n

Machine breakdown

Sam

ple

In

spec

tion

Tool repairs

Tool Stores

In Out In Out

Stop

Star

t

Stop

Star

t

In Out

Stop

Star

t

Stop

Star

t

In Out In Out

This time will be excluded from Job time but is limited to three hours.

All this time will be included in Job time.


CHAPTER XI

JOB COSTING

11.16

1124. Job Time Sheet. Separate Job Time Sheets should be issued in Form W.1124, specimen given below for Hand Operations and for machines that require several operators.


Progress Office JOB TIME SHEET

Description 10 M.M Injector IR 40 Assembled. Work Order No. ………………… Part No………………….Drg. No. xxxxx and yyyy. No. off. 50. Opn. No. & Code………..…………….Mat. Size…………………………. Next Operation. Final Assembly. Estimated Time 62-30 Operation Layout:–

Fit in delivery cone IR 47. Restarting Valve IR 48 combining cone IR 49 and Steam Cone IR 50. Screw n body 16 mm D x 50 mm long studs with nuts on. Remove burs and complete.

Man’s No.

Rate M/c No.

Date Start Finish Date Start Finish Date Start Finish Total hours

Amt..

Total . .

Remarks……………………………………………………………………….…………Date ……………………………………..Passed by Inspector…………………………... 1125. The First operation Time Sheet should have two Material Delivery Sheets (W.1126) attached to it which should be secured by perforated edges. Second and subsequent Operation Time Sheets should have no Material Delivery Sheets attached to them. The Time and Material Delivery Sheets should be typed together by the use of carbon paper. Complete information of the work to be carried out, of the Jigs and special tools to be used and of the type of machine on which the job has to be machined, should be clearly shown on each Operation Time Sheet, the information being obtained from the Operation Sheet (W.1117). 1126. Material Delivery Sheet. The Material Delivery Sheets should be prepared in Form W.1126 given below, and should be typed in triplicate, one copy being retained as the office record and two being attached with the first Operation Time Sheet as indicated in paragraph 1125. Material Delivery Sheets without Operation Time Sheets attached should be issued for each finished part or casting or general material, such as standard nuts and split pins. On no account should any extra material be issued, unless sanctioned by the Progress Office.


CHAPTER XI

JOB COSTING

11.17

Form W. 1126 MATERIAL DELIVERY SHEET

Workshop to Stores 10 M/M Injectors. Machine Shop

Weight Rate Work Order No. …… Part No. IR 40. No. Off 50. Drawing. No. xxxxx Opn. Code 1st Opn. L. Setting Time 0-40 Est. Time…………..Matl.–G. M. Kgs. Price Unit

Value

Rupees Kg. Rupees Description Brass Casting, Rough Injector Body . . . . . . 84 400 33,600 Chuck Steam connection End; Bore and screw body 50 mm x 63 mm, Face One End.

1127. Issuing Work Orders to Shops. Work Orders should be issued to Shops as soon as the Stores Department notifies the Progress Office that all material is available in stock. Time and Material Delivery Sheets and one copy of the Progress Sheet should be issued to the Shop performing the first operation. A key copy of the Progress Sheet should be filed in the Progress Office, in loose-leaf folders.

1128. Progressing Works. Where a system of Gantt charts is not being worked, each machine should be represented by a Pigeon Hole in the Machine Shop Progress Office and the Time Sheets distributed in the various Pigeon Holes, thus giving a visual indication of the amount of work accumulating for each machine. A Progress Extension Sheet (W.1128) should be filed in a folder opposite the Shop Copy of the Progress Sheet. The sequence of operations and the machine numbers, to which the Time Sheets are allocated, should be entered on the Progress Extension Sheets, when the Time Sheets are posted in the Pigeon Holes. The date and the mark, following the Machine Number, should be entered when the Time Sheet is issued to the operator. Directly the operation is finished, the Time Sheet should be returned to the Machine Shop Progress Office clerk, who should cross out the entry in the operation column. This Form should show at a glance how any particular order is progressing. Twenty-four hours before an operator finishes an operation, a chargeman should notify the Machine Shop Progress Office that material for the next work order is required. The Progress Clerk should turn to the Machine Pigeon Hole, take out the top Time Sheet and detach the Material Delivery Sheets, with the Machine Number entered thereon. The Material Delivery Sheets should be sent to the Stores and the material should be brought to the machine. A similar procedure should be adopted for second and subsequent operations, except that the partly finished parts should be moved from one machine to another and Material Delivery Sheets are not required. In cases where the operations are performed in more than one shop, the Time, Material Delivery and Progress Sheets should be sent to the first shop, which, on completion of the operation laid down for it, should return the Sheets to the Progress Office, which should re-issue the Progress Sheet and the next Operation Time Sheets to the Shop concerned.


CHAPTER XI

JOB COSTING

11.18

Form W. 1128 PROGRESS EXTENSION SHEET

Work Order No. ………………….

No. off. Part No. Opn. & M/c No.

Opn. & M/c No.

Opn. & M/c No.

Opn. & M/c No.

Opn. & M/c No.

Opn. & M/c No.

200 IR 26 A/2621/17-6-26.

M 36/ 21-6-26.

D 124 . . . . . . . .

1129. Tool Settings. Tools on Combination and Turret Lathes and on Automatics should be set by Tool Setters. Operators should not be allowed to set tools on these types of machines.

1130. Booking Time. The Time Sheets should preferably be fixed in tin holders attached to the machines or to the fitters’ benches. Where there is no installation of time clocks to be used for recording time spent on operations, the particulars of “time on” and the “time off” should be entered on the Time Sheets by the Workmen with the help, where necessary, of the shop clerks. The chargeman of each section is responsible for seeing that the Operation Time Sheets are correctly filled in. On completion of each operation, the Time Sheets should be forwarded to the Machine Shop Progress Office for marking up the “Gantt Boards” usually maintained there for regulating the load on individual machines. After this is done, the Time Sheet should be forwarded to the Progress Office. The completed operation is recorded on the key copy of the Progress Sheet in this office and the Time Sheet is then filed pending the return of all the other Time Sheets issued for the order. Such time, as cannot legitimately be booked on “P”, “G” or “R” orders, should be booked to the standing work order for Idle Time and entered on the back of Operation Time Sheet (See paragraph 1123). The time booked on each Operation Time Sheet should be summarized by the Progress Office on the Labour Sheet (W. 1130). The total time on the Labour Sheet added to that on the monthly Time Sheet should agree with the total time booked in the Time Office Register against any particular man.

Form W. 1130 LABOUR SHEET

Man’s No. 3640 Machine No. 749 Name.

Work Order No. Hours Hours Hours Total 8xxxxxxxxxxxxx 10½ 20 16¾ 47¼

8xxxxxxxxxxxxx 6¾ 15 20 41¾

8xxxxxxxxxxxxx 7¾ 8 16¾ 32

8xxxxxxxxxxxxx 15 10 10 35

8xxxxxxxxxxxxx 20 10 6 36

8xxxxxxxxxxxxx 5 5 . . 10 Total . . . . . . . . Hrs. 202


CHAPTER XI

JOB COSTING

11.19

1131. Inspection. When the last operation of a part is completed, the Machine Shop Progress Office should dispatch the finished parts, accompanied by the last Operation Sheet (layout form) to the Inspection Department. This department should inspect and gauge the parts and stamp the part number on all parts, before sending them to the Stores Department. After inspection, the Final Time Sheet should be signed by the Chief Inspector Production and forwarded to the Progress Office. The finished parts should be dispatched to Stores accompanied by “Material Production Note” (S. 1531). The “Material Production Note” should be prepared in quintuplicate and the various foils disposed of as laid down in paragraph 1531 of the Pakistan Railways Code for the Stores Department. The first of each batch on every “P” order is inspected by Inspection Department. 1132. Rejected Parts. A Waster Sheet should be prepared in Form W.1132 given below, in triplicate, by the Inspection Department when parts are rejected. The Waster Sheet should briefly state the reason for rejection. The cases of faulty workmanship should be taken up with the Forman responsible. One copy should be retained by the Inspection Department, one copy sent to the Progress Office and one copy to the Workshop Accounts Office. In the Workshop Accounts Office the wasters should be priced at the raw material rate and their value credited to the relevant work order by per contra debit to ‘Stores’ or the work order on which the wasters are used accordingly as they are returned to Stores or used in shops. The Stores should not accept any Waster Sheet unless it is accompanied by the rejected parts.

Form W. 1132

WASTER SHEET Work Order No. …………… Date: ………… Waster Shop

Total Weight No. Part No. Matl. Description

Kgs.

Price Rupees

Amount Rupees

Brass Scrap 3 IR 42 G. M. Valve Guide for 10 mm

Injector. 2.5 300 pr k.g. 750

Opern. Man’s No. M/c No. Hours

1 656 78 . . 3 Bad Castings (Blow Holes) 750

StoresOffice Progress


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JOB COSTING

11.20

1133. Alterations to Work Orders. The Costing Section of the Workshop Accounts Office and the Stores should be notified of all alterations to work orders by the use of the Alteration Sheet (W. 1133). These sheets should be made out in triplicate in the Main Progress Office, one being filed in the Main Progress Office, one sent to Stores and third to the Workshop Accounts Office. The majority of the alterations occur owing to parts being rejected.

Form W. 1133

MECHANICAL DEPARTMENT Progress Office

ALTERATION SHEET TO ACCOUNTS / STORES

Work Order No. ………….. Dated………………….…………. Description–Fork End Part No…………………….……..

1. Please alter above Cost/Stores sheet in accordance with the following particulars. All sheets in circulation have been dealt with to correspond.

Part No. altered from ………………..……to……………..……See Drawing No………………………… Description altered to………………………………………………………………………………………… Matl. Size altered from…………………...……………………to…………………………………………… Quantity altered from…………….……….to…………….…………owing to……………………………..

2. Please note that the above work order has since been cancelled.

Works Manager

1134. Progress Cards. The Progress Office should have a Progress Card, to be maintained in Form W. 1134, for each item manufactured and these cards should show the total quantity made and the position of work orders in progress.

Form W. 1134 MECHANICAL DEPARTMENT–Progress Office

OBVERSE PROGRESS CARD

Part No………………… Drg. No……………………. ………………………………………………………….

No. ordered Work Order

No. Date

Material available

Work Order Compd.

Remarks

(Reverse) Matl. Size…………………………………………………… Stock list……………………………………………………

No. ordered Work Order

No. Date

Material available

Work Order Compd.

Remarks


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JOB COSTING

11.21

1135. Completion of Cost Sheet. From the list of Issues received from Stores Accounts Office, the clerk concerned of the Costing Section in the Accounts Office should post each item of Stores supplied in the appropriate column of the Cost Sheet against the corresponding item noted thereon by the Progress Office. 1136. Information in respect of the labour charges pertaining to each work order should be obtained from the labour cost section of the subsidiary coding scheme which are recorded on the basis of summary of Time Sheets received from the Head Time Keeper Office. 1137. In a similar manner, the total amount representing overheads should be posted against the overheads section in the Cost Sheet from the subsidiary coding scheme. 1138. If an order is not completed within the month, the posting relating to that month should be noted on the reverse of the Cost Sheet in respect of 'labour' and 'Overheads'. 1139. Final Costing. Immediately after the Progress Office receives the last Operation Time Sheet for a work order, the cost of labour should be worked out and the Time Sheet forwarded to the Cost Office. This would be a signal to the Accounts Office of the completion of the job. The final cost of labour should be compared with that recorded on the Cost Sheet and all discrepancies set right before working out the final cost. The cost of material and overhead charges should then be added to the cost of labour and the final cost worked out. 1140. Reconciliation of Cost Sheets with Financial Accounts. There should be a monthly reconciliation of the total debits (Labour, Material and Overheads) recorded against the work orders in the Cost Sheets, during the month with those booked under the Work Order, in the Subsidiary Ledger for Costing. Differences, if any, should be fully investigated and all discrepancies set right before advising the final cost of the job to the Works Manager through his cost card described in paragraph 1141. 1141. Works Manager’s Cost Card. From the information available in the Cost Sheet (W.1122) particulars of the manufacture of articles should be posted by the Accounts Office in the Works Manager’s Cost Card to be maintained in Form W.1141, specimen given on next page. This card would enable the Works Manager to see if there is any improvement, as successive orders pass through the Workshops.


CHAPTER XI

JOB COSTING

11.22

FORM W. 1141 COST CARD

BDA-12 (Assembled) Drg. xxxx & yyyy

Buffer assembly completed

Date of manufacture

No. ordered

Work Order No.

Material cost

Labour cost

Overhead Charges

Labour Time

Total cost

Total cost each

Remarks

1 2 3 4 5 6 7 8 9 10

Rupees Rupees Rupees H. M. Rupees Rupees

10-04-2010 10 G. 2 60,000 9,000 8,000 310 58 77,000 9,625 2 Wasters.12-04-2010 10 G. 3 64,000 9,000 9,000 310 45 82,000 9,111 1 Waster. 28-10-2010 10 G. 5 62,000 9,000 9,000 330 41 80,000 10,000 2 Wasters.28-12-2010 10 G. 82 63,000 6,000 7,000 250 24 76,000 9,500 2 Wasters.23-02-2011 10 G. 94 65,000 7,000 6,000 250 21 78,000 11,142 3 Wasters.07-03-2011 10 G. 96 68,000 6,000 6,000 220 48 80,000 10,000 2 Wasters.25-06-2011 10 G.188 64,000 5,000 5,000 220 56 74,000 8,222 1 Waster.

Note: Assumed figures.

CHAPTER XII

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER XII

ESTIMATES AND COMPLETION REPORTS

25

CONTENTS


ESTIMATES 12.1 1201

FORM OF ESTIMATE 12.1 1202

ESTIMATES FOR ROLLING-STOCK ADDITIONS 12.4 1203

ESTIMATES FOR WORKSHOP MACHINERY 12.5 1204

SCHEDULES OF CARRIAGE MATERIAL 12.5 — 12.7 1205 — 1206

REPORT ACCOMPANYING THE ESTIMATE 12.7 1207

ESTIMATES FOR RENEWALS AND REPLACEMENTS 12.7 — 12.8 1208 — 1210

“AVERAGE ANNUAL COST OF SERVICE” OF AN ASSET 12.8 — 12.9 1211 — 1213

ESTIMATES FOR NEW MINOR WORKS 12.9 1214

REVISED ESTIMATES 12.10 1215 — 1216

ESTIMATES OF WORK FOR PUBLIC BODIES AND PAKISTAN

RAILWAYS EMPLOYEES

12.10 1217

ESTIMATES OF WORK FOR OTHER GOVERNMENT

DEPARTMENTS

12.10 1218

CHARGES FOR PREPARATION OF ESTIMATES 12.11 1219 — 1220

INTEREST DURING CONSTRUCTION FROM OTHER

GOVERNMENT DEPARTMENTS

12.11 1221 — 1222

(1223 Deleted)

ALL-IN-COST OF WORK EXECUTED IN RAILWAY

WORKSHOPS

12.12 1224

EXTENT OF ADMINISTRATIVE OVERHEADS LEVIABLE 12.12 1225

WAIVING OF ADMINISTRATIVE OVERHEADS AND PROFIT 12.14 1226 — 1227


CHAPTER XII


26

CONTENTS


DEPARTMENTAL CHARGES ON A RECIPROCAL BASIS 12.14 1228

WORK DONE OUTSIDE THE WORKSHOPS 12.14 1229 — 1230

SANCTION FOR WORKS TO BE EXECUTED IN WORKSHOPS 12.14 1231

FUNDS FOR PAKISTAN RAILWAYS REVENUE WORKS 12.15 1232

VERIFICATION OF ESTIMATES 12.15 1233

PROPRIETY OF EXPENDITURE 12.15 1234

INCIDENCE AND CLASSIFICATION OF CHARGES 12.15 1235 — 1236

THE EXISTENCE OF BUDGET PROVISION 12.16 1237

ERRORS AND OMISSIONS 12.16 1238

COMPETENCY OF SANCTION 12.16 1239

SUBSIDIARY POINTS TO BE CHECKED 12.16 1240

CERTIFICATE OF ACCOUNTS VERIFICATION 12.17 1241 — 1242

ESTIMATE REGISTER 12.17 1243

SANCTION TO ESTIMATES 12.17 1244

CURRENCY OF SANCTION 12.18 1245 — 1246

EXECUTION OF WORKS 12.18 1247

COMPLETION REPORTS 12.18 — 12.19 1248 — 1250

COMPLETION REPORT REGISTER 12.19 — 12.20 1251 — 1253

ADJUSTMENT OF CHARGES AND CREDITS REPORTED ON

COMPLETED WORKS

12.20 1254


CHAPTER XII


12.1

A. ESTIMATES

1201. Estimates. Detailed estimates for works to be undertaken in railway workshops should be prepared in the following cases:

(1) All works whether chargeable wholly or in part to Capital or to Replacement Projects and works of a special nature, such as special overhauls of rolling-stock, even though chargeable to ordinary revenue.

(2) New minor works.

(3) Works undertaken for outsiders (including those for Pakistan Railways

Employees) and other Government Departments. No detailed estimates need, however, be prepared in the case of new minor works costing Rupees 25,000 and less each or repair and reconditioning works each costing not more than the following limits:

Rupees

Locomotives . . . . . . 500,000

Carriages (including rail cars) . . 700,000

Wagons, tenders, boilers and service motor cars 100,000 1202. Form of Estimate. The estimates should be prepared in quadruplicate in Form No. W. 1202. One copy should be retained as office copy, the other three copies being sent to the Workshop Accounts Officer. The Workshop Accounts Officer will retain one copy and return two copies duly checked and certified to the authority competent to sanction the work through the Deputy Chief Mechanical Engineer concerned (or the Works Manager). The authority sanctioning the work should retain one copy and return the other duly sanctioned to the Deputy Chief Mechanical Engineer concerned or the Works Manager concerned as the case may be.


CHAPTER XII


12.2

OUTER SHEET–(Front page) FORM W. 1202/E. 906

Estimate No……………of………20…………….. Framed by…………………………………………………..………………………………….. Name of work…………………………………………………..……………………………… Reference…………………………………………………………..…………………………...

Cash

Nature of Work Labour Material

Stores in stock

Overheads Total

Original total in case of Revised Estimate

Rupees Rupees Rupees Rupees Rupees Rupees

Capital . . . .

Replacement

Revenue . . . .

Deposit Works . .

Total . . .

Funds to be provided from budget for. . . . . . . .Item No. . . . . . directly or by re-appropriation.

*Report and Justification. *Specification. . . . . . . . . . . . . . . . . . *Drawings and annexures.

No. . . . . . . . . dated. . . . . . . . . 20 . . . . . . . . . .

Incidence and Allocation verified (subject to the

check note attached). This requires the sanction

of . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Sanction registered as No. . . . . dated . . . . . .20 . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D.A.

Accounts Officer.

GM/C.M.E./Dy. C.M.E./DSW

*See paragraphs 922 to 924 and 941 of the Pakistan Railways Code for the Engineering Department.

Debit Credit


CHAPTER XII


12.3

FORM W. 1202/E. 906 OUTER SHEET–(Back page)

Allocation Statement

Heads of Account

Nature of Work (Source of fund)

Minor and detailed heads) Cash Stores Total

Rupees Rupees. Rupees. Capital . . . .

Total . . Replacement . .

Total . . Revenue . . . . Deposit Works Total . .

Movement of Estimate

From To Dispatching

Clerk’s initials and date.

Receiving Clerk’s initials

and date. Remarks

INNER SHEET

Details of estimated cost of …………………………… (Description of work or sub-work)

Cost Allocation Serial number

of items

Description of items of

work

Quantity estimated

Rate Labour Material Overheads Total Capital Replacement Revenue

Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees

Debit Credit


CHAPTER XII


12.4

1203. Estimates for Rolling-stock Additions. In the case of rolling-stock the estimate should indicate the number and the types of the stock to be built and provide inter alia for the following items being shown separately:

(1). Locomotives, (Diesel Electric, Electric) and Wagon: (i) Cost of engines, boilers, or wagons including sea freight, etc., at official

exchange rates if imported and if purchased locally; the likely contract price.

(ii) Customs duty (in case of imports). (iii) Freight charges for such stores, the cost of which is not inclusive of

freight charges, and/or haulage charges when chargeable direct to work, as forming part of cost of stores.

(iv) Sundry stores for erection/manufacture. (v) Labour for erection/manufacture. (vi) Shop Overheads (for erection/manufacture). (vii) General Overheads (for erection/manufacture). (viii) Percentage charges for freight on stores (such stores the cost of which is

not inclusive of such charges). (ix) Administrative Overheads. (x) Contingencies. (xi) Write-back of the original cost of replaced stock. (xii) Credits for released material.

(2). Coaching Stock: (i) Cost of axle, wheels and axles, bearings, brake discs etc., including sea

freight, at official exchange rates if imported and the likely contract price if purchased locally.

(ii) Customs duty (in case of import). (iii) Freight and/or haulage charges when chargeable direct to work as

forming part of cost of stores. (iv) Body fittings and stores including paint, obtained for construction,

inclusive of customs charges, if any. (v) Electrical equipment. (vi) Steel plates, sheets and rolled sections. (vii) Brake equipment. (viii) Timber/wooden ply sheets. (ix) Sundry Stores. (x) Synthetic material including insulating material. (xi) Labour. (xii) Shop Overheads. (xiii) General Overheads.

In the case of replacement, renewal and abandonment works only.


CHAPTER XII


12.5

(xiv) Percentage charges for freight on stores (such stores the cost of which is not inclusive of such charges).

(xv) Administrative Overheads. (xvi) Contingencies. (xvii) Write-back of original cost. (xviii) Credits for released material.

1204. Estimates for Workshop Machinery. Estimates for the provision of workshop machinery should show:

(i) The cost of each machine, including sea freight, at official exchange rates if imported and the likely contract price if purchased locally.

(ii) Customs duty (in case of import). (iii) Freight charges for such stores, the cost of which is not inclusive of

freight charges, when chargeable direct to work as forming part of cost of stores.

(iv) Foundation charges. (v) Electrical Installation charges. (vi) Erection and commissioning charges. (vii) Shop Overheads. (viii) General Overheads. (ix) Percentage charges for freight on stores (such stores the cost of which is

not inclusive of such charges). (x) Administrative Overheads. (xi) Contingencies. (xii) Write-back of original cost. (xiii) Credits for released materials.

1205. Schedules of Carriage Material. Estimates for the construction of coaching stock should be accompanied by schedules showing full particulars of the quantities and cost of the materials required, preferably in the following detail:

(1) Bogie: (i) Bogie. (ii) Wheels and axles. (iii) Axle bearings. (iv) Axle boxes.

(2) Underframes and attachments: (i) Underframe proper. (ii) Buffing and draw gear. (iii) Miscellaneous.




CHAPTER XII


12.6

(3) Underframe fittings: (i) Air or Vacuum brake equipment and fittings. (ii) Water tank connected fittings and pipe work. (iii) Hand Brake arrangements. (iv) Miscellaneous.

(4) Carriage body:

(i) Bottom framing. (ii) End framing. (iii) Side framing. (iv) Doors and windows. (v) Partitions. (vi) Roof. (vii) Seats. (viii) Bunks and racks. (ix) Footboards and sundries.

(5) Carriage fittings:

(i) Fittings for bottom framing. (ii) Fittings for end framing. (iii) Fittings for side framing. (iv) Fittings for doors and windows. (v) Fittings for partitions. (vi) Fittings for roofing. (vii) Fittings for seats. (viii) Fittings for bunks and racks. (ix) Fittings for footboards and sundries.

(6) Electrical fittings:

(i) Dynamo with suspension gear. (ii) Accumulator box with fittings. (iii) Switch panel with hangers. (iv) Body fittings. (v) Cable. (vi) Body work. (vii) Miscellaneous stores. (viii) Train lighting (TL)Diesel Generator Equipment (in case of TL Vans) (ix) Cables. (x) Piping.


CHAPTER XII


12.7

(7) Air Conditioning System: (i) Air conditioning Equipment. (ii) Installation and ducting. (iii) Cable. (iv) Piping.

(8) Power Van System:

(i). Diesel Generator Equipment (ii). Cable (iii). Piping (iv). Fuel Tank

(9) Paint.

1206. The provision for Steel plates, Sheets and rolled sections, brake equipment, wheels & axles, axle bearings, air condition equipment, Power van equipment, TL van equipment, body fittings and for sundry stores should be based on actuals for similar or other vehicles previously built, suitable allowance being made for fluctuation in prices and other known changes. Estimates for electrical equipment should be obtained from the Chief Electrical Engineer. 1207. Report accompanying the Estimate. The necessity or the financial justification for the work, should be briefly explained either in the Estimate itself or in a Report accompanying the Estimate and a certificate appended that funds exist. The certificate of funds should be given with reference to the provision under Capital, Replacement Account and Revenue in the Budget order, as supported by the approved program of works and of rolling-stock (Approved Public Sector Development Program projects/scheme). In those cases in which the provision made in the budget under Capital, Replacement Account or Revenue is less than the amount of the estimate (Capital, Replacement Account or Revenue portions) or if there is no provision in the Budget, it should be shown how it is proposed to find the amount required for expenditure, i.e., whether this would be met from savings in the provision for other items in the Budget. The particular items under which savings are excepted should be indicated along with the reasons therefor. 1208. Estimates for Renewals and Replacements. In the case of replacements of rolling-stock, a note should accompany the Estimates giving full particulars of the stock to be replaced, such as:

(1) the distinguishing codes and numbers, (2) the dates of purchase or the approximate ages,


CHAPTER XII


12.8

(3) the original cost, reference being given when possible to the relevant Completion Report; if the original cost is not ascertainable, it should be estimated.

(4) the amount of original cost charged to Capital, if the total is not so charged.

(5) the materials likely to be released from the stock replaced. The note should also show the tractive effort, the floor area, the carrying capacity or other appropriate measure used for allocating the charge to Capital of each of the replaced and of the replacing units of stock, and the calculations actually made in arriving at the amount debitable to Capital. The cost of fittings (and of improvements) in the replaced and replacing rolling-stock should be shown where such cost is taken into account separately for purposes of allocation. 1209. Before submitting estimates for renewals or replacements, it should be critically examined whether it would not be possible to avoid or, at least, postpone such replacements by adopting methods of “reconditioning” at a cost that could be justified financially. In all cases, in which reconditioning is decided upon, the total cost of reconditioning an asset should be charged to “ordinary repairs and maintenance” in the same way as the cost of other repair work. Detailed estimates should, as already stated in paragraph 1201, be prepared for all such works, the cost of which exceeds Rupees 1,000,000. 1210. In all cases in which it is considered necessary to replace an asset, instead of reconditioning it, it should be examined (vide paragraph 1211) whether the average annual cost of service of the new asset is likely to be less than that of the old asset after reconditioning. 1211. “Average Annual cost of Service” of an Asset. The average annual cost of service of an asset is the sum of

(1) the average annual expenditure that would be incurred in connection with the upkeep, operation, maintenance and repairs of the asset.

(2) The necessary annual payment to a sinking fund, and (3) the annual interest charges on the capital invested.

1212. The following example is intended to illustrate the method of financial justification to be employed when, with the data given below, it has to be decided whether a locomotive should be replaced or reconditioned.


CHAPTER XII


12.9

Particulars Old Locomotive New Locomotive

Cost of the locomotive . . . . Rupees 10,000

(2nd hand cost)

Rupees 1,50,000

(new cost)

Cost of reconditioning . . . . Rupees 25,000 . . . .

Rate of interest . . . . . . 10 per cent. 10 per cent.

Life . . . . . . . . 6 years 35 years

Scrap value . . . . . . Rupees 6,000 Rupees 10,000

Maintenance, Operation and Repair Charges. Rupees 10,000

(a year).

Rupees 8,000

(a year). The average annual cost of the existing locomotive after reconditioning would be Rupees 13,500 made up of the following:

Rupees

(a) Cost of maintenance, operation, repairs, etc. . . 10,000

(b) Interest at 10 per cent on Rupees 35,000

(10,000+25,000) . . 3,500

Total Rupees . . 13,500 The average annual cost of the new locomotive would be Rupees 23,400 made up of the following:

Rupees

(a) Cost of maintenance, operation, repairs, etc. . . 8,000

(b) Interest at 10 per cent on Rupees 154,000 (i.e., new cost

Rupees 150,000 + the 2nd hand cost of the old

locomotive, Rupees 10,000–the scrap value of the old

locomotive, Rupees 6,000).

. .

15,400

Total Rupees . . 23,400

1213. It follows from the above figures that, with the data assumed, it is cheaper to recondition the old locomotive instead of replacing it by a new one. 1214. Estimates for new minor works. Detailed estimates for works chargeable to “new minor works, each costing over Rupees 2,000” should be prepared on the same form as is used for capital works.


CHAPTER XII


12.10

1215. Revised Estimates. As soon as it becomes apparent that the expenditure on a work or project is likely to exceed the amount provided therefor in the detailed estimate, a revised estimate should be prepared and submitted for the sanction of the competent authority. It should, unless otherwise ordered by the sanctioning authority, be prepared in the same form and the same degree of detail as the original estimate, and should be accompanied by a comparative statement, showing the excess or saving under each head of estimate against the latest sanction. In cases where a supplementary estimate or a previous revised estimate has been sanctioned by the Ministry of Railways (Railway Board), it should be made clear how the original sanction has been modified by such further sanction. In cases, however, where the work is in an advanced stage and is likely to be completed before a revised estimate is got out, the excess may, with the prior approval of the competent authority, be dealt with in the Completion Report (W. 1249) of the work. The fact that a competent authority has permitted the regularization of excess over an estimate through the Completion Report should invariably be intimated to the Accounts Officer. 1216. Revised estimates should also be submitted where there are Material Modifications (see paragraphs 1010 and 1011 of the Pakistan Railways Code for the Engineering Department) in the sanctioned estimates. 1217. Estimates of Work for Public bodies and Pakistan Railways employees. No work should be undertaken in railway workshops either for Pakistan Railways employees or for any outside public bodies for the manufacture or repairs of articles or supply of material, which can be executed by or obtained from an outside agency or the open market. In exceptional cases, such work may be undertaken but only after obtaining a certificate from the Chief Mechanical Engineer that the work is of a nature that cannot be executed outside the shops and that there are special circumstances justifying the work being carried out in the railway workshops. This power may not be delegated by the Chief Mechanical Engineer to any authority subordinate to him but must be exercised by him personally. Such works should not be undertaken until after the estimated cost of the job, viz., labour, materials, overheads (including Production Overheads and Administrative Overheads) and all other charges leviable under the rules (paragraph 1225), has been deposited in advance by the party ordering the work. 1218. Estimates of Work for other Government Departments. In the case of works for other Government Departments, the formal acceptance of the estimate and the estimated cost comprising of labour, material, shop overhead, general overhead, freight charges, storage supervision, administrative overhead and profit leviable under the rules should be obtained from the officers ordering the work before the work is put in hand. It should be made clear to such officers that the estimates will be treated purely as estimates and that the actual cost of the work, inclusive of administrative overhead and


CHAPTER XII


12.11

profit as agreed to, will be realized. When work is undertaken for other Government Departments, the estimate of the total outlay should also state the probable expenditure to be incurred during each financial year. 1219. Charges for preparation of Estimates. In the case of works, asked for by other Government or Non-Government Departments, private individuals or firms, which are subsequently not carried out, and for which estimates have been prepared, charges should be recovered from the parties ordering the work, according to the following sliding scale, to meet the cost of preparing plans and estimates:

Scale Percentage of

estimated cost of work For works costing Rupees 1,000,000 and above . . . . 2 For works costing Rupees 600,000 and above, but below 100,000 . . 2 For works costing Rupees 300,000 and above, but below 600,000 . . 3 For works costing Rupees 200,000 and above, but below 300,000 . . 3 For works costing Rupees 100,000 and above, but below 200,000 . . 4 For works costing Rupees 100,000 and above, but below 100,000 . . 4 For works costing below Rupees 10,000 . . 5

1220. The party concerned should be duly apprised in advance of its liability to meet the above charges and its acceptance thereof obtained before the work of preparation of estimates is taken in hand. In the case of local bodies and private individuals or firms, cash payment of such charges should be obtained in advance. The General Manager may, however, waive in any particular case, the levy of this charge subject to the conditions laid down in paragraph 1226.

Interest

1221. Interest during construction from other Government Departments. When capital expenditure is incurred on works constructed for use by another Department, subject to interest and maintenance charges being recovered under the rules, interest on outlay on such works should be charged during the period of construction. The amount of interest charges recoverable should be calculated annually on the total capital outlay up to the end of the preceding year plus half the outlay for the year concerned. The rate of interest should be that prescribed by the Ministry of Finance from time to time.

1222. Similarly, interest should be charged during the period of construction on the expenditure on works which are constructed by the Ministry of Railways (Railway Board) at the cost of another Department to be handed over to that Department after construction. Interest in such cases should be calculated on half the sum of the unadjusted outlay at the beginning and end of the year.

1223. Cancelled.


CHAPTER XII


12.12

Administrative Overheads

1224. All-in-cost of work executed in Railway Workshops. The “all-in-cost” of a work done in a railway workshop is made up of the following elements:

(a) Prime Cost. (i) Cost of labour. (ii) Cost of stores.

(b) Overheads. (i) Shop overheads (Paragraph 906). (ii) General overheads (Paragraph 905).

(c) Freight charges. The cost of stores under (a) (ii) and (b), freight charges on which have not been charged to the work, should be increased by 5 per cent or 6 per cent to cover such charges (Paragraphs 2328 and 2717 of the Pakistan Railways Code for the Stores Department).

(d) Percentage charges on Stores. Being 10 per cent on the total cost of stores, i.e., stores under (a) and (b) above as increased by (c), to cover the cost of supervision, storage, etc., and

(e) Administrative Overheads (Paragraph 903). (i) Supervision. (ii) Provident Fund Contribution, Commutation and other charges of works staff. (iii) Repairs and Maintenance. (iv) Interest and Depreciation.

1225. Extent of Administrative overheads leviable. In framing estimates for work to be carried out in Pakistan Railways workshops, provision should be made for prime cost [item (a), paragraph 1224] and ‘Shop' and 'General’ overheads [item (b), paragraph 1224] and Administrative overheads [item (e)] in all cases without exception, the other elements of cost being charged only to the extent indicated in the chart given below. The expenditure on “direct labour” likely to be incurred in each shop should, where possible, be shown separately and provision should be made for the inclusion of the shop overheads applicable to each such shop.

Added on the basis of last six months actual overheads incurred in each shop

(Paragraph 912).


CHAPTER XII


12.13

FORM W. 1225 Chart showing the charges to be levied on the cost of works executed in Railway Workshops

ALL-IN-COST

Production Overheads

Prime Cost

Shop Overheads General Overheads

For whom executed

Labour Stores Labour Stores Labour Stores

Frei

ght c

harg

es o

n co

st o

f sto

res

(col

umns

3+

5+7)

Perc

enta

ge c

harg

es

on s

tore

s on

ac

coun

t of s

tora

ge,

supe

rvis

ion,

etc

., (o

n co

lum

ns

3+5+

7+8)

Adm

inis

trat

ive

Ove

rhea

ds o

n (c

olum

ns 2

)

Prof

it pe

rcen

tage

(on

colu

mns

2 to

9)

Tota

l cha

rgea

ble

1 2 3 4 5 6 7 8 9 10 11 12

Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees

Assumed figures and percentages 500 1,000 50% of (2) 40% of (3) 40% of (2) 25% of (3) 5% 10% 125% 10%

(1) Pakistan Railways 500 1,000 250 400 200 250 625 3,225 (a) Revenue and Replacement Account 500 1,000 250 400 200 250 83 625 . . 3,308 (b) Capital 500 1,000 250 400 200 250 83 173 625 . . 3,481

(2) Lines under construction (3) Other Government Departments (4) Private parties (5) Pakistan Auxiliary Force Corps connected with Pakistan Railways

500 1,000 250 400 200 250 83 173 625 286 3,767

Same as per 3, 4 and 5 if the cost of work done in shops does not exceed Rupees 500 the charges leviable in the case of Home Line employees (item 7 below) will only be recovered provided that no additional establishment is entertained for such work.

(6) Pakistan Railways employees 500 1,000 250 400 200 250 83 173 625 — 3,481

Note 1. The percentage charges on account of Administrative Overheads will be levied in all cases. Note 2. Percentage on account of freight charges (column 8) will not be levied on the value of such stores the cost of which is inclusive of such charges. Note 3. In the case of stores manufactured for stock purposes, the same charges should be levied as in the case of Pakistan Railways Revenue Works. Note 4. The charges in column (11) will not be levied in the case of (i) Vehicles built for the Pakistan Post whether at the cost of that Department or at the cost of Pakistan

Railways. (ii) Conversion of existing carriages into Mail Vans and vice versa and alterations in the dimensions of and changes in internal arrangements or fittin postal vans. Note 5. The charges in column (11) will not be levied in the case of work done in connection with the reserved carriages for officers of the Railway Police whether at the

cost of the Provincial Governments concerned or the Pakistan Railways.


CHAPTER XII


12.14

1226. Waiving of Administrative Overheads and Profit. The General Manager is empowered to waive the recovery of Administrative Overheads and profit charges in respect of work done for outsiders or in tendering for supplies called for by the Stores or other Departments. But such remission may be allowed wholly or in part by the General Manager only after consultation with the Financial Adviser and Chief Accounts Officer and for reasons that should be recorded. It should be examined whether the Railway gains any advantage, financial or otherwise, by the remission and the fact that Railway did not actually incur any identifiable overhead charges should not by itself be treated as a necessary and sufficient reason for foregoing the recovery of such overheads. 1227. No charges in respect of expenditure on ecclesiastical works should, under any circumstances, be waived. 1228. Departmental charges on a Reciprocal basis. Notwithstanding the percentages mentioned in paragraph 1225 on account of Administrative Overheads and profit, such charges may also be levied on a reciprocal basis to cover “the cost of tools and plant and establishment supervision” in case of works undertaken in Pakistan Railways workshops for other Government Departments, private companies or other public bodies (e.g., municipalities, trusts). 1229. Work done outside the workshops. The above rules (paragraphs 1224 and 1225) apply to works done within the workshops. When works, are executed outside the workshops, an addition of 12 per cent only should be made on the total estimated outlay on labour and stores, to cover the cost of supervision, etc. 1230. When a work is done partly inside the workshops and partly outside, the costs of these portions should be separately worked out and Administrative overheads and profit levied only on the cost of the work done inside the shops and percentage charges mentioned in paragraph 1229 charged on the cost of work done outside the shops.

Sanctions and Funds

1231. Sanction for works to be executed in workshops. No works other than those of ordinary repairs and maintenance may be undertaken in Pakistan Railways Workshops without the previous sanction of the General Manager or of an office of the Mechanical Department to whom the General Manager may have delegated his powers in this respect, provided the rules in force from time to time relating to estimates and the provision of funds are observed.


CHAPTER XII


12.15

1232. Funds for Pakistan Railways Revenue Works. The outlay on works chargeable to Revenue is met from the provision made in the “Authorization Rolls”. For works chargeable to other Departments of Pakistan Railways, the requisitioning Department is responsible for seeing that adequate sanction and funds exist for the works for which it indents. Information as to the probable cost of works should, if desired by the indenting departments, be furnished by the workshops.

Verification of Estimates

1233. One phase of the control of expenditure on Railways is a regular check by the Accounts Officer of all estimates before they are sanctioned by the competent authority. The object of this preliminary check of estimates is to avoid irregular sanction to expenditure and the main points which require consideration are:

(1) the propriety of expenditure; (2) the incidence and classification of charges; (3) the existence of budget provision to meet the proposed expenditure during

the financial year; (4) the freedom from errors and omissions; and (5) the competency of sanction.

The checks relating to these points should be exercised with reference to the rules in this Code and in other Pakistan Railways Codes bearing on this matter. 1234. Propriety of Expenditure. It is the duty of the Accounts Officer, in his capacity as Financial Adviser, to examine zealously all proposals for expenditure, with a view to see:

(1) that the expenditure proposed to be charged to Railways funds in the estimate is properly and legitimately so chargeable; and

(2) that proper financial justification is forthcoming in the case of all works requiring such financial justification.

1235. Incidence and Classification of Charges. These should be verified in an estimate in accordance with the rules of incidence and the Chart of Accounts prescribed in the Pakistan Railways General Code. In his verification certificate, the Accounts Officer should clearly state that incidence and allocation have been so verified. 1236. The submission of an estimate to the sanctioning authority should not be delayed when there arises any doubt as to the correct allocation of the estimated cost and the question at issue will take time to settle. In such cases, the approximate allocation between Capital, Replacement / Renewal and Revenue may be certified by


CHAPTER XII


12.16

the Accounts Officer, as far as it is possible for him to do so, and the sanctioning authority may sanction the estimate, if otherwise in order, leaving over the question of final allocation for subsequent consideration. 1237. The existence of Budget provision for a proposed work should be verified from the sanctioned budget statements for the year. 1238. Errors and omissions noted in the course of Accounts verification of estimates, if any, should be got corrected by the Executive Authority responsible for the preparation of (or sanction to) the estimate. The Accounts Officer may, in cases where this becomes necessary, append to his verification certificate, a note specifying such items of errors or omissions as have been pointed out by him, but have not been accepted by the Executive Authority and any other matters of importance. 1239. Competency of Sanction. This should be verified with reference to the limitations laid down in the schedules of powers of various authorities (Appendix III to the Pakistan Railways General Code). The rule regarding grouping of works for the purposes of determining the authority competent to sanction an estimate is given in para. 950 of the Pakistan Railways Code for the Engineering Department. 1240. Subsidiary points to be checked. In the check of estimates the following subsidiary points also require attention. It should be seen:

(1) that the particulars of work to be done are furnished in sufficient detail and that a proper distribution is made of the estimated outlay between Material, Labour and Overheads;

(2) that the allocation of each item is given and that department allocation is made;

(3) that all incidental expenditure that can be foreseen has been provided for in the estimate;

(4) that in the case of renewal, replacement and dismantlement works, credit for sale proceeds of released material has been provided for;

(5) that in the case of work to be done for other Government Departments, and private bodies, provision has been made for the necessary additional charges as laid down in paragraph 1225;

(6) that in the case of estimates for manufacturing operations, the outlay and outturn are distinctly shown;

(7) that estimates are prepared for materials released from stock condemned or broken up without replacement; and

(8) that in the case of revised estimates, a statement comparing the figures with the previous sanctioned estimates and containing explanations for variations accompanies the revised estimate.


CHAPTER XII


12.17

1241. Certificate of Accounts Verification. All estimates verified by the Accounts Officer should bear a certificate of such verification. The form of the certificate may be as under:

“Incidence and allocation verified (subject to the check note attached). This requires the sanction of. . . . . . . . . . . . . . . . . . . . “

1242. A copy of the estimate as verified by the Accounts Officer together with a verbatim copy of his check note, if any, should be submitted to the authority competent to sanction the estimate. In forwarding an estimate for sanction, it should be clearly mentioned whether it has been accepted by the Accounts Officer as unobjectionable. In cases where the Accounts Officer has recorded any objection, the attention of the sanctioning authority should be drawn to the Accounts Officer’s check note stating the objection. 1243. Estimate Register. Details of all estimates received in the Workshop Accounts Office for verification should be recorded in this Register (W. 1243) and all entries should be attested by the Assistant Accounts Officer.

FORM W. 1243 ESTIMATE REGISTER

Estimate Chargeable

to Reference to sanction

S. No.

No. Date

Nam

e of

wor

k

Estim

ated

cos

t

Cap

ital

Rep

lace

men

t

Rev

enue

Date of

receipt

Date of return after verification

Authority sanctioning the estimate.

No. Date

Remarks

1 2 3 4 5 6 7 8 9 10 11 12 13 14

1244. Sanction to Estimates. Advice of all sanctions to estimates by the competent authorities should be communicated to the Accounts Officer and to the Director General Audit, Railways in such form as may be prescribed by such authorities. A copy of the sanctioned estimate should also be furnished to the Accounts Officer.


CHAPTER XII


12.18

1245. Currency of Sanction. The sanction to an estimate will ordinarily remain current for five years from the date on which it has been accorded, unless it has been renewed for a further term by the acceptance of a revised estimate. Acceptance by competent authority, however, of a budget estimate which includes specific provision for expenditure on a work which is in progress, may be regarded as reviving for the year in which provision is made, the sanction to the estimate–regardless of the five years' limit. But if no work has been commenced on a sanctioned estimate within two years of the date on which the sanction was accorded, such sanction should be held to have lapsed and fresh sanction should be obtained from the competent authority by the submission of an up-to-date estimate, if necessary. 1246. The currency of sanction begins from the date of sanction to the estimate itself and not from the date on which the allocation of the estimate is finally accepted.

Execution of Works

1247. All works should be carried on as rapidly as is possible, due regard being had to the extent of funds allotted and to soundness of execution. The general rule in regard to the building of rolling-stock is that all stock should be built to design approved by the Ministry of Railways (Railway Board). In cases where it is proposed to build stock to new designs, no indents for the necessary materials should be allowed to go forward, nor should any work be taken in hand, until the approval of the Ministry of Railways (Railway Board) has been obtained to the new designs. In the case of Coaching Stock, however, all designs, whether already sanctioned by the Ministry of Railways (Railway Board) or new ones, should be submitted for the prior approval of the Ministry of Railways (Railway Board) and no indents for materials should be allowed to go forward, nor should any work be taken in hand, until such prior approval has been obtained.

B. COMPLETION REPORTS

1248. All delays in the advice of date of completion by the Mechanical Department should be regularly taken up. The works on which no expenditure is incurred for three consecutive months should be specially brought to the notice of the Mechanical Department and that Department should be asked to intimate whether the work has been completed and when a completion advice may be expected. 1249. Completion Reports. As soon as the advice of completion is received (paragraph 1035) the clerk who maintains the Works Register should prepare a Completion Report in Form No. W.1249. The figures of actual expenditure as well as those of estimated amount should be shown in the same details in which the estimate has been prepared and sanctioned, but before preparing the Completion Report it


CHAPTER XII


12.19

should be seen that (1) all charges under different cost types of estimate have been booked, (2) the total charges have been correctly apportioned between Revenue, Capital and Replacement, where necessary and (3) the credit for released materials has been adjusted.

FORM W. 1249 . . . . . . . . . . . WORKSHOPS

COMPLETION REPORT OF . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . No. . . . . . . . . . Date. . . . . . . . . Authority. . . . . . . . . . . . . . . Estimate No. . . . . . . . . . . . of . . . . . . . . . . . . . Name of Officer in charge . . . . . . . . . . . . . . . . When commenced. . . . . . . . . . . . . When completed . . . . . . . . . . . . . .

As estimated As executed Difference Cost types

of Estimate Quantity

Number Amount

Quantity

Number Amount

Excess

(+)

Saving

(-)

Remarks

1 2 3 4 5 6 7 8

Material

Labour

Overheads

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Deputy Chief Mechanical Engineer / Works Manager 1250. The Completion Report should be submitted to the authority competent to sanction the excess, after scrutinizing the explanation regarding excesses over estimates obtained from the Works Manager or the Deputy Chief Mechanical Engineer, as the case may be. Completion Reports which do not show any excess over the estimate should be filed after obtaining the explanation for the saving, if any, from the Works Manager or the Deputy Chief Mechanical Engineer concerned and after endorsement of a certificate of verification thereon. Savings of over 15 per cent should be reported to the Chief Mechanical Engineer. 1251. Completion Report Register. The Accounts Office should watch through a register (W. 1253) that the completion reports involving excesses over sanctioned estimates are received back duly sanctioned from the authority competent to sanction the excess.


CHAPTER XII


12.20

1252. A note should also be recorded in the Works Register under the work concerned in the following form:

“Work completed and completion report prepared and submitted to . . . . . . . . . . . on . . . . . . . . . . . . . for sanction.”

1253. All completion reports should be entered in the Completion Report Register. This register should show the following details:

(1) Serial number. (2) Date of submission. (3) Particulars of work. (4) Estimated cost. (5) Booked expenditure. (6) Reference to Works Register. (7) Department. (8) Work Order number. (9) Reference to sanction to the excess, where necessary. (10) Remarks.

1254. Adjustment of charges and credits reported on completed works. The following procedure should be followed in cases of charges and credits reported on completed works necessitating the revision of Completion Reports:

(1) If charges or credits are received for a work after the submission of a Completion Report not yet sanctioned, a revised Completion Report should be prepared and necessary postings should be made in the Works Register against the work concerned.

(2) If charges or credits are received after sanction to the completion report for the work, charges not exceeding Rupees 20,000 should be adjusted against the appropriate New Accounting Model NAM head of account relating to Repair and Maintenance and credits not exceeding Rupees 50,000 against Sundry Earnings. When charges or credits exceed Rupees 50,000 the account of the work should be re-opened and necessary adjustment made thereunder. In the case of works done for private parties or other Government Departments, the actual amount spent on the work should be recovered even though the completion report may not be revised.

CHAPTER XIII

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER XIII

FOUNDRY ACCOUNTS

27

CONTENTS


JOB COSTING IN PROCESS SHOPS 13.1 1301

IRON FOUNDRY 13.1 1302

WORK ORDER FOR METAL AND MELTING 13.1 1303 — 1304

FOUNDRY OVERHEADS CHARGES 13.1 1305

DEFECTIVE CASTINGS 13.2 1306 — 1307

COST OF MOULDING, CLEANING AND DRESSING 13.2 1308

SPECIAL STEELS 13.2 1309

CONSUMABLE FOUNDRY MATERIALS 13.2 1310

DAILY LOG 13.2 1311

MONTHLY WASTAGE STATEMENT 13.3 1312

MONTHLY OUT-TURN STATEMENT 13.4 — 13.6 1313 — 1314

OVERCHARGES AND UNDERCHARGES 13.7 1315

ALTERNATIVE SYSTEM OF COSTING FOR THE IRON

FOUNDRY

13.7 — 13.8 1316 — 1322

BRASS FOUNDRY 13.8 1323 — 1324

SMITHY SHOP 13.9 1325 — 1327

LABOUR 13.9 1328

MATERIALS 13.9 1329

SHOP OVERHEADS WITHIN SMITHY SHOP 13.9 1330

METAL LOSSES 13.9 — 13.10 1331 — 1332


CHAPTER XIII

FOUNDRY ACCOUNTS

28

CONTENTS


WASTAGE 13.10 1333

DEFECTIVE PRODUCTS 13.10 1334 — 1335

SPRING SHOP 13.10 1336 — 1339


CHAPTER XIII

FOUNDRY ACCOUNTS

13.1

1301. Job Costing in Process Shops. The cost of manufacture of spare parts and rolling-stock components cannot be ascertained with sufficient accuracy if the costing of individual parts is not commenced from the stage of rough castings and carried through to that of the finished products. Any scheme of job costing in the finishing shops cannot, therefore, be considered as complete or satisfactory unless it has been extended to the process shops, of which the most important is the Foundry. As shop costs do not include charges for depreciation and interest on the outlay of plant and machinery, and the cost of labour incurred in finishing shops is generally a fraction of the cost of the materials (rough castings) used, the expense of adopting a job costing procedure in finishing shops for ascertaining the labour costs alone accurately will not be ordinarily justified, if the cost of the rough castings were not ascertained with great accuracy.

The Iron Foundry

1302. The procedure to be followed in an Iron Foundry in which job costing has been introduced should be on the lines detailed in paragraphs 1303 to 1315. 1303. Work Order for Metal and Melting. A separate work order should be operated upon, under which should be recorded the expenditure on metal and melting Paragraph 1602.W. These charges will include:

(1) Cost of metal. (2) Cost of fuel including freight. (3) Cost of limestone and other flux. (4) Cost of repairing cupolas. (5) Cost of blast and repairs to blast plant. (6) Cost of repairs to ladle and cupola equipment. (7) Cost of labour for charging the cupola and for carriage of raw material. (8) Cost of pouring metal into moulds.

Note. The cost of repairs to ladles and cupola equipment and blast plant is not chargeable to the head. 'Repairs to Plant and Machinery', but to the Work Order for metal and melting charges.

1304. The total charges recorded under the Work Order for metal and melting should be distributed over the various jobs under-taken in the foundry in the direct proportion of the tonnage of metal booked against each job during the month. 1305. Foundry Overheads Charges. In addition to the usual shop overheads (paragraph 906), following overhead charges will be incurred in the foundry shop:

(1) Cost of repairing moulding boxes and tools. (2) Cost of drying cores and moulds. (3) Fuel for and repairs to core ovens and appliances.


CHAPTER XIII

FOUNDRY ACCOUNTS

13.2

(4) Cost of procuring and mixing moulding sands and binders. (5) Miscellaneous Stores used generally in the foundry. (6) Cost of defective products, where it is not charged to individual jobs.

1306. Defective Castings. For certain classes of castings which are extremely liable to defects, such as cylinders which have to stand pressure and slide valves which should be machined to a clean face, charges for wastages and defective castings are appropriately allocated to the job, instead of being booked to overheads.

1307. In the case of new designs, where wasters are likely to be produced before the process is initially adjusted, the charges on account of bad castings should be booked against the Work Order for “Overheads”, as the work in all such cases would be essentially of an experimental character.

1308. Cost of Moulding, Cleaning and Dressing. The labour charges for moulding and core making and for cleaning and dressing should be charged by the Production Office to the individual job orders on the strength of which the parts are being manufactured.

1309. Special Steels. If special metals, such as nickel chrome, are used for casting, the expenses for such metal and the melting thereof should be booked on a separate Work Order, and all foundry records, such as the daily log, the monthly out-turn and the wastages statements, should be separately maintained.

1310. Consumable Foundry Materials. The work of accounting for the stock in a foundry (receipts, issues and balances) of coal, coke, metals, scrap, etc., that have necessarily to be kept within easy reach of the foundry, should devolve upon the Stores Department and not on the Foundry Foreman, the procedure laid down in Chapter XV of the Pakistan Railways Code for the Stores Department being followed. The stores should be requisitioned for in the usual way and the weights shown on requisitions should be the exact amount required for each charge or for each day's use, as the case may be, double weighments of stores being thus avoided as far as possible.

1311. Daily Log. The foundry foreman should keep a daily log (W. 1311) showing full particulars of each draw of molten metal. This form shows the quantities of the different materials drawn daily and should be examined by the Metallurgist Foundry Foreman of the Works Manager, whose duty it will be to control the operations in the foundry. The last five columns should be filled in within a few days after the melt has been fed into the moulds, i.e., as soon as the castings can be weighed after they have been dressed, cleaned and inspected for defects. The inspection and weighment are preferably carried out by an agency independent of the Foundry Foreman. The weight of the scrap may be estimated, except once in a half-year, when it should be weighed (Non-ferrous scrap should always be weighed).


CHAPTER XIII

FOUNDRY ACCOUNTS

13.3

FORM W. 1311 IRON FOUNDRY DAILY LOG

Serial No. . . . . . . . . . . Date. . . . . . . . . Metals

No.

of c

upol

a

Tim

e B

last

sta

rted

Tim

e B

last

sto

pped

Tota

l tim

e ru

n

Hou

r Ta

pped

Issu

e N

ote

No.

and

dat

e

Pig Iron

Char-coal pig

high silicoin coke

Foundry scrap

Re-melt scrap

Ferro Mangan

ese

Ferro Silicon

Steel scrap

Moulding Boxes scrap

Yard scrap

Total Metal used

(Total of cols. 7 to

14)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Good Castings Defective Castings

ScrapLoss of Metal

Coal Coke Limestone Melting Ratio

Iron Melted in

tonnes per hour

Work Order No.

DescriptionNo. of pieces

Weight No. of pieces

Weight

Tota

l wei

ght o

f ca

stin

gs.

Weight Weight

17 18 19 20 21 22 23 24 25 26 27 28

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Works Manager Foreman, Iron Foundry Foundry Metallurgist To be returned to Iron foundry for file and future reference. Note. Columns 24 to 28 are optional. 1312. Monthly Wastage Statement. A statement of Foundry Wastage should be prepared in form W. 1312 monthly from the data available in the Daily Log Sheets. The percentage of Good Castings and the percentage of loss of Metal should be worked out and recorded on the statement, which should be submitted to the Production Engineer and the Works Manager.


CHAPTER XIII

FOUNDRY ACCOUNTS

13.4

FORM W. 1312 MONTHLY WASTAGE STATEMENT

––––––Foundry

Month. . . . . . . . . . . . . Metal. . . . . . . . . . .

Total Weight of

Melt

Good

Castings Defective Castings Scrap Loss of Metal

Date

Kgs. Kgs. Kgs. Kgs. Kgs.

1 2 3 4 5 6

1

2

3

. .

. .

. .

31 Percentage of Good Castings to Total Melt (3/2 x 100).................Percentage of Loss of Metal……….... Do..........(6/2 x 100)...................... 1313. Monthly Out-turn Statement. A monthly out-turn statement in form W. 1313 should be posted daily by the Foundry from the Daily Log, Advices of Returned Stores, etc. It should be closed at the end of the month and sent to the Accounts Office. Against each work order should be shown the actual number and weight of the castings sent to the Stores Department or the Finishing Shops, references to the supply vouchers being given. Where work is in progress at the end of the month, the estimated weight of such work in progress and the number of pieces should be included under the relevant work order, the words “in progress” being shown in the column for “Reference”.

When such “work in progress” is included in the final out-turn of succeeding

months, the estimated weight should be deducted from the total weight out-turned, as provided for by the Form. The weight of the “work in progress” at the end of each half-year should be ascertained by actual weighment, that on the 30th June being conducted in the presence of an Accounts Stock Verifier.


CHAPTER XIII

FOUNDRY ACCOUNTS

13.5

FORM W. 1313

IRON FOUNDRY MONTHLY OUT-TURN STATEMENT For the month of . . . . . . . . . . . . .

Dr. Cr.

IN PUT

posted from

Daily log

OUT-TURN

Quantity of

Metal Weight

Rate Amount Dates

Kilograms

Reference to

issue

voucher

Number

of work

order

Number

of

pieces Kilograms Rupees Rupees

1,2,3 and so

on

Total Cost of Melt as per Work Order No .......

Add Cost of materials used in the Foundry, debit for which is still awaited.

Deduct Cost of materials used in the Foundry in a previous month, debit for which has been received in the current month.

Net Cost Total Net Outturn

Rate per tonne

Total Out-turn

Less work in progress shown in previous month’s Out-turn Statement under work order Nos. . . . . . . . .

Total Net Outturn.


CHAPTER XIII

FOUNDRY ACCOUNTS

13.6

1314. In the Accounts Office, the out-turn statement (W. 1313) should be checked with the reference to the issue vouchers accounted for therein and completed in respect of the total cost of the melt for the month, which will be the total amount debited, for the month, to the Work Order for metal and melting charges. This amount should then be distributed amongst the work orders for which the castings have been made during the month in proportion to the actual out-turn. The amount shown under each work order will thus represent the amount debitable to the work order in the Subsidiary ledger for costing (W. 808B) and in the relevant cost sheets. Before distributing the amount amongst the work orders, the cost of such materials as have been consumed in the foundry during the month but debit for which has not been raised by the Stores Accounts Office, should be added to the total cost of the melt booked against the Work Order. Similarly, the total cost of the melt booked against the Work Order should be reduced by the cost of the materials consumed in a previous month but debit for which has been received in the current month. The requisite information will be afforded by the Material Requisition charged to the Foundry Work Order (vide paragraph 808A). The following diagram indicates how the total cost of castings is ascertained.

Diagram showing how the total cost of casting is ascertained

* Patterns:- Generally under Shop Overhead. If special patterns for special non-repeat orders, then under direct costs.

CASTINGS Rupees 14,000 Total Cost

Direct wages Rupees 700

Shop Overhead

Rupees 500

General Overheads Rupees 300

Metal in Ladle Rupees 12,500

Metal Rupees 11,200

Furnace charges

Rupees 1,300

Shop Indirect Lahour

Rupees 200

Shop Indirect Material

Rupees 300

* Patterns

Moulders Rupees

500

Core-makers

Rupees 200

Labour Rupees

100

Material Rupees

200


CHAPTER XIII

FOUNDRY ACCOUNTS

13.7

1315. Overcharges and Undercharges. The actual charges, incurred each month on each work order for the manufacture of castings, would consist of the 'labour’ directly booked against such work orders, the cost of metal including melting charges, ascertained from the out-turn statement (W. 1313), and the overheads in respect of labour and materials allocated to the work order on the basis of direct labour cost and direct material cost respectively, while the credits under each work order as afforded by the Stores Department would be on the basis of the average book rate for each article supplied by the workshops. A difference will generally exist between the actual cost (the debits) and the credits received from the Stores Department. This difference represents the undercharges or the overcharges, which should be cleared each month, in respect of work orders completed during the month, from Work-in-process Account, by debit or credit to the appropriate account heads. 1316. Alternative System of Costing for the Iron Foundry. Where a system of job costing has not been extended to the Iron Foundry on the lines detailed in paragraphs 1303 to 1315, the procedure indicated below in paragraphs 1317 to 1322 should be followed. 1317. The total cost of molten metal as ascertained in paragraph 1314 together with the total foundry overheads including the charges referred to in paragraph 1305 and all the labour charges in the shops incurred for moulding, core making and dressing should be added together and the total cost as thus ascertained distributed over the whole out-turn of the month. 1318. The castings themselves should be classified at least into four classes, i.e., heavy, medium, light and special, and allotted weight-ages or points which would represent fairly accurately the relative cost per kg. of the out-turned rough castings. These 'points' should be fixed by the Production Engineer after such study and experiment as he might find necessary to carry out.

1319. The total number of 'points’ worked in the Foundry during any month should be calculated on the lines shown below:

Classes Outturn kg. Allotted

points per kg.

Total Numbers of

points Heavy . . . . . . 10,000 1 10,000Medium . . . . . . 15,000 1½ 22,500Light . . . . . . 10,000 1¾ 17,500Special . . . . . . 5,000 2 10,000

40,000 60,000


CHAPTER XIII

FOUNDRY ACCOUNTS

13.8

1320. The total cost of the foundry for the month divided by the total number of points worked in the month gives the cost per point. In the illustration given in the previous paragraph, if the total cost of the foundry had been Rupees 75,000 the cost per point would be Rupees 75,000 ÷ 60,000 or Rupees 1.25 per point, and the cost per kg. of each class of castings should be taken to be Heavy–Rupees 1.25, Medium–Rupees 1.875, Light–Rupees 2.187, Special–Rupees 2.5, so that the value of the outturn would be distributed as shown below:

Classes Kg. Rate per kg. Value

Rupees Rupees Heavy . . . . . . 10,000 1.25 12,500Medium . . . . . . 15,000 1.875 28,125Light . . . . . . 10,000 2.187 21,875Special . . . . . . 5,000 2.50 12,500

75,000

1321. The 'points’ system of accounting for expenditure in foundries prescribed above is amongst the simplest and most economical in time and labour and yields results at least as reliable as any other system that falls short of complete job costing. The 'point' system should, therefore, be adopted in foundries to which job costing has not been extended. 1322. The Daily Log (W. 1311), the Monthly Wastage Statement (W. 1312) and the Monthly Out-turn Statement (W. 1313) should all be maintained, as suitably modified. The instructions in paragraphs 1311 to 1314, apply mutatis mutandis.

The Brass Foundry

1323. Owing to the expensive nature of the metals employed, the adoption of the job costing system in a brass foundry is even more important than in an iron foundry, when the products of the brass foundry are to be dealt with in the finishing shop under a job costing system. Whether the brass foundry is worked under a system of job costing or not, separate Work Orders for metals and melting charges should be issued and separate log books and outturn statements should be maintained for the different mixtures employed, such as white metal, brass, gun metal, brazing metal, bronze, etc. 1324. The monthly accounts and statements for all the above metals should be prepared separately on forms similar to those prescribed for the Iron Foundry and should be dealt with on the lines indicated in paragraphs 1303 to 1315.


CHAPTER XIII

FOUNDRY ACCOUNTS

13.9

The Smithy

1325. Where this has not been done already, the Smith Shop should be divided into the following three sub-shops:

(1) Forge. (2) General Smithy. (3) Bolt Shop.

1326. The expenditure incurred in each of these sub-shops should be allocated as for the foundries under the following main headings:

(1) Cost of Metal. (2) Direct labour charges. (3) Overheads.

1327. In the Forge, General Smithy and Bolt sub-shops, the metal and direct labour charges should be booked to individual work orders issued by the Production Office, or to Repair and maintenance work orders. The charges which cannot be directly allocated to any particular work order should be booked against the work orders for overheads, within the respective sub-shops, and distributed in the usual way over the jobs done during the month, in proportion to the productive labour booked against each. 1328. Labour. In the Smithy, more than one man is often employed on any one particular job done and the Gang Card (W.709), is best used for recording the daily labour charges incurred on various jobs. 1329. Materials. Different kinds of steel or iron are required for use in the Smithy from time to time. It is essential that there is available a sufficient stock equal to one or one and a half month's demand of steel and iron in the shop. As in the case of the foundries, the Store-Keeping Service should be rendered by the Stores Department. 1330. Shop Overheads within the Smithy Shop. The charges in connection with heating, fitting, pickling, annealing, general labour and transport cannot be allocated to any particular job and should, therefore, be accounted for as shop overheads. 1331. Metal Losses. The metal loss varies according to the type of forging or smithy work and can only be dealt with properly by charging the gross weight of metal issued to the work order concerned, and crediting the amount realised from the total scrap from the smithy to 'shop overheads’. In the case of those jobs in which these losses are particularly heavy, the cost of scrap should be credited to the jobs.


CHAPTER XIII

FOUNDRY ACCOUNTS

13.10

1332. There are metal losses by scaling and sometimes by ends left over on account of irregular lengths and sizes of bars, etc., but these latter can hardly be considered as scrap. The amount realized from such metal should also be credited to shop overheads.

1333. Wastage. The percentage of wastage should not be “assumed” and the instructions in regard to the ascertainment of wastage in foundries apply with equal force to the Smithy and its connected shops.

1334. Defective Products. Defective products are not likely to figure to any extent in the Smith Shop Accounts and any correction found necessary after checking over the jobs is usually better corrected under the original order.

1335. When defects are due to defective material or other exceptional cases, the matter should be brought to the notice of the Production Engineer and his orders for the disposal of such defective products obtained.

Spring Shop

1336. The work done in the Spring Shop is of two kinds, viz.,

(1) Manufacture of new springs; and

(2) Repairs to old springs (i) received as such or (ii) springs from engines / Passenger Carriage / Freight Wagons under repairs in shops or (iii) springs from tenders under repairs in shops.

1337. The labour and stores charges for (1) should be booked to the relevant work orders issued by the Production Office, those for (2) (i) to a Work Order “Repairs to old springs received from division through Stores” and those for (2) (ii) and (2) (iii) to the Work Orders for repairs to engines, tender passenger carriage and freight wagons respectively.

1338. Charges incurred in the spring shop, which cannot be directly allocated to any of these work orders, should be booked as usual to “Shop Overheads” and distributed over the jobs done in the spring shop during the month in proportion to the productive labour charges booked against each.

1339. Where separate accounts are maintained of repairs of individual locomotives, there should exist separate work orders for repairs to springs for engines and tenders passenger carriages and freight wagons under repairs and the foreman should submit, at the close of every month, a list showing the total number of springs for engines and tenders, passenger carriages and freight wagons (separately) dealt with during the month. On receipt of these lists, the total charges incurred against the Work Orders should be distributed over the various locomotives, passenger carriages and freight wagons for which the springs had been repaired.

CHAPTER XIV

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER XIV

SAW-MILL ACCOUNTS

29

CONTENTS

DESCRIPTION PAGE NO.

PARA NO.

INTRODUCTORY 14.1 1401

STOCKS OF TIMBER AND SCANTLINGS 14.1 1402

TIMBER LEDGERS AND REGISTERS 14.1 1403 — 1404

TIMBER MEASUREMENT BOOK 14.2 1405

TIMBER CONSIGNMENT REGISTER 14.2 1406

LOG REGISTER 14.3 1407 — 1408

INSPECTION OF TIMBER 14.3 1409

STORAGE OF LOGS 14.4 1410

NUMBERING OF LOGS 14.4 1411

LOG STACK REGISTER 14.4 1412

ISSUE OF LOGS 14.5 1413

SAW-MILL LOGS DRAWN REGISTER 14.5 1414

MONTHLY TALLY OF LOGS 14.5 — 14.6 1415 — 1416

CUSTODY OF SCANTLINGS AND MACHINED TIMBER 14.6 1417 — 1418

TIMBER FOR CONSTRUCTION OF STOCK 14.6 1419

SURPLUS SAWN TIMBER 14.7 1420

STACKING OF SCANTLINGS 14.7 1421 — 1422

MONTHLY STOCK-TAKING 14.7 1423 — 1424

COSTING OF SAWN TIMBER 14.8 1426

(1425, 1427 Deleted)


CHAPTER XIV

SAW-MILL ACCOUNTS

30

CONTENTS


PARA NO.

SAW-MILL YIELD AND WASTAGE 14.8 1428

MACHINING WASTAGE 14.9 1429

WOOD SEASONING 14.9 1430

STANDING WORK ORDERS 14.9 1431 — 1433

SAWING OPERATION (OVERHEADS) EXPENSES 14.10 1434 — 1435

DISTRIBUTION OF OPERATING EXPENSES 14.11 1436

SAW-MILL MANUFACTURE ACCOUNT 14.11 1437

FIXATION OF PRICE OF SCANTLINGS 14.11 1438

DAILY REPORTS OF RECEIPTS 14.12 1439

DAILY REPORTS OF ISSUES 14.12 1440

SAW-MILL OUT-TURN STATEMENT 14.13 1441

TIMBER ACCOUNTS 14.13 1442

TIMBER PRICED LEDGERS——RECEIPTS 14.13 — 14.14 1443 — 1446

ISSUES 14.14 1447 — 1448

CHECK OF SAW-MILL OUTTURN STATEMENTS 14.14 — 14.15 1449 — 1450

CHECK OF WOOD MACHINE SHOP OUTTURN STATEMENTS

14.15 1451

TEST—CHECK OF TIMBER LEDGERS AND REGISTERS 14.15 1452

REVIEW OF RATE OF OUTTURN 14.15 — 14.16 1453 — 1454

SURVEY OF TIMBER 14.16 — 14.17 1455 — 1458

DISPOSAL OF SAW DUST, WOOD CHIPS AND SHAVINGS

14.17 — 14.18 1459 — 1460

FREIGHT ON TIMBER 14.18 1461

INCIDENTAL CHARGES 14.18 1462


CHAPTER XIV

SAW-MILL ACCOUNTS

14.1

A. TIMBER RECORDS

1401. The responsibility for the maintenance of the initial records and accounts of timber devolves partly on the Stores and partly on the Mechanical Department. The procedure to be followed by these departments has been prescribed in this chapter. Paragraphs 1414, 1417 to 1420, 1423, 1426 to 1438, 1441, 1449 to 1454, 1459 and 1460 have particular reference to the Mechanical Department and the Workshop Accounts Office and the remaining paragraphs to the Stores Department and the Stores Accounts Office. 1402. Stocks of Timber and Scantlings. All logs, bottom boards, breast bars, scantlings and machined timber received in the Carriage and Wagon Shops should, after having been inspected and passed by the Works Manager, be entrusted to a timber store-keeper or other subordinate of the Stores Department for safe custody and issue as and when required. For the purposes of accounts, timber should be classified as shown below:

(i) Round Logs. (ii) Squares. (iii) Floor boards (bottom boards). (iv) Breast bars. (v) Machined Timber. (vi) Scantlings (all timber not falling under any of the other five

categories).

Items (i), (ii), (v) and (vi) should be further classified according to the class of wood, as below:

(a) Burma Teak. (b) Other Teak. (c) Hardwood, i.e., sheesham (sissoo), babool (kikar), sal, padauk, gurjan,

bolJong, eng, maiyang, haldu, jaman, asna, etc. (d) Softwood. i.e., deodar, fir, kail, chir, etc.

1403. Timber Ledgers and Registers. All ledgers and registers relating to timber accounting must be on prescribed printed forms. No unauthorized manuscript register should be used. 1404. All trucks loaded with logs, etc., intended for the Shops, should be checked personally by the timber store-keeper in the station yard, and he should satisfy himself that the numerical contents of each truck compare with the “No. of Articles” shown in the Railway Credit Note or the Railway Receipt Note as the case may be.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.2

1405. Timber Measurement Book. On receipt in the shops of the trucks or wagons containing logs, squares, bottom boards, breast bars or scantlings, the timber store-keeper should, before unloading, check up the contents with the loading notes (S.2140). Before the loading notes are verified, all consignments should be inspected and checked by the Works Manager or one of his assistants. No consignments of timber should be unloaded until the loading notes are received. After unloading, the timber store-keeper should remeasure each log, see that the dimensions are correct and make necessary entries in a measurement book (W.1405).

FORM W. 1405

TIMBER MEASUREMENT BOOK

Details Contents or

area Sr. No.

Material Receipt Note/ Materail Transfer Note Particulars

No.

L.

B.

T.

Cubic Meter

Total Last

measurement

Total to date

1406. Timber Consignment Register. A Timber Consignment Register should be maintained by the Timber Storekeeper in Form No. W.1406. The columns of the register are self-explanatory. Column 1 should give the actual date of receipt of the consignment. Columns 2 to 6 and 9 should be posted from the loading note. Column 8 should give reference to the Daily Report of Receipt (W.1439) in which the receipt of the consignment is accounted for.

FORM W. 1406

TIMBER CONSIGNMENT REGISTER

Date of Receipt

Truck No.

Kind of Timber

Individual No. of logs received

Total Number of logs

Material Receipt

Note No. and Date

Loading Note No. and Date

Reference to Daily Report of Receipt in

which accounted for

Name of Contractor

1 2 3 4 5 6 7 8 9


CHAPTER XIV

SAW-MILL ACCOUNTS

14.3

1407. Log Register. A Log Register should be kept in form No. W.1407. The top entries should be posted from the contract agreements entered into with the contractors in respect of each contract. Separate pages should be allowed to each class of timber. Columns 3 and 4 should be posted from the Measurement Book (W.1405) and 6 should be posted from the loading note. Column 5 should give the actual date of receipt of logs. Column 7 should give the number of the stack in which the logs are kept.

FORM W. 1407 LOG REGISTER

Quantity on order . . . . . . . . . . . . . . . . . . . Name of Contractor. . . . . . . . . . . . . . . . . . Kind and brand of Timber. . . . . . . . . . . . . . . . . . . . . . Year of Contract. . . . . . . . . . . C.C.P.* Rate per Tonne Rupees . . . . . . . . . . . . . . . . . .W.M.’S Order No. and date . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Dimensions Cubical Contents

Shop Serial No.

Contractors Serial No.

L B T Cubic Meter

Date of receipt

Truck No.

In Stock No.

Requisition No. and

Date

1 2 3 4 5 6 7 8

* Chief Controller of Purchase 1408. In exceptional cases, when loading notes have not been received and the exigencies of work do not permit of any delay in the unloading of timber, the timber should be checked and inspected by the Works Manager or one of his assistants. Entries of timber as passed by the Inspecting Officer should be made directly into the Timber Measurement Book (W. 1405) and the Daily Report of Receipt of timber (W. 1439) and the fact that the loading notes had not been received, duly recorded. In such cases, the loading notes, when subsequently received, should be corrected and made to agree with the measurement book and the date of the receipt of the loading note recorded in the measurement book. 1409. Inspection of Timber. All timber passed at a Contractor's Depot should be re-inspected by the Works Manager on its arrival in the Carriage and Wagon Shops. If timber has not been measured and passed by an officer when selected at a Contractor's Depot it should, on arrival in the Workshops, be remeasured by the Stores Department and inspected and finally passed by the Works Manager. Detailed reports of all such inspections should be submitted to the Chief Mechanical Engineer, copies thereof being sent to the District Controller of Stores and District Controller of Purchase. If timber is found on receipt to be defective or not in accordance with the specification, its arrival


CHAPTER XIV

SAW-MILL ACCOUNTS

14.4

should be acknowledged in appropriate grade authorized by depot officer and a formal written complaint should be sent promptly to the suppliers and others concerned, giving the necessary details Defects such as cracks, that may develop in transit, after the initial inspection, should be distinguished as far as possible from the defects, such as knots, that must have existed at the time of initial inspection. 1410. Storage of Logs. Logs should be stored in stacks of not more than 75 logs, and the stacks should have boards showing the following particulars:

Name of contractor. Kind of timber. Number and date of order. Number of tonnes ordered. Stack number and number of logs in stack.

1411. Numbering of Logs. Immediately logs are unloaded and stacked in shops, the logs in each stack should be given numbers and these together with the accepted dimensions stamped on each log with 50 mm steel stamps on a painted white ground. Each class of timber, viz., Burma teak, Indian teak, hardwood and softwood, should be given a separate series of numbers commencing from 'one' for each lot of the annual contracts. The last two figures of the year of purchase should be prefixed to the number of each lot, e.g., “11-1”, “12-2” (For lot No. 1 purchased in 2011, and lot No. 2 purchased in 2012 respectively). 1412. Log Stack Register. After numbering, the logs should be checked with the log register and then entered into a stack register in form W. 1412. When issues are made, the logs issued should be checked with the individual and corresponding numbers in the stack register and the entries therein completed.

FORM W. 1412

LOG STACK REGISTER Class of Timber. . . . . . . . . . . . . . . . . . . . . . . . . Contractor’s name . . . . . . . . . . . . . . . . . . . . . . Quantity on order . . . . . . . . . . . . . . . . . . . . . . Total number of Logs . . . . . . . . . . . . . . . . . . . . Total number of Stacks. . . . . . . . . . . . . . . . . . .

Serial No. of Stack

Number of logs in Stack

Individual log Nos.

Date issued. Initials of the issuer.

Remarks


CHAPTER XIV

SAW-MILL ACCOUNTS

14.5

B. SAW-MILL RECORDS

1413. Issue of Logs. On receipt of Material Requisition from the Saw-mill Foreman in form S. 1302A showing the number of logs required and the class of timber specified, the timber storekeeper should enter thereon the dimensions and cubical contents of the logs if required and return the requisitions to the Saw-mill Foreman for signature. He should simultaneously post the log register, showing therein the number and date of the Material Requisition. 1414. Saw-mill Logs Drawn Register. The Saw-mill Foreman should maintain a “Logs Drawn” Register in Form W. 1414 and a “Logs Sawn” Register showing the logs cut up daily on each log saw in Form W. 1414-A. These registers should be initialled daily by the Saw-mill Foreman and scrutinized monthly by the Assistant Works Manager.

FORM W. 1414

SAW-MILL “LOGS DRAWN” REGISTER

Number of logs in

Stack Date

Individual No. of Logs

Contractor’s Name

Kind of Timber

and Brand

Stack No.

Number of Logs

drawn

Balance of Logs in

Stack

Remarks and initials of Saw-mill Foreman

1 2 3 4 5 6 7 8 9

FORM W. 1414-A

SAW-MILL “LOGS SAWN” REGISTER

Date

Individual No. of Log cut

up

Machine No.

Contractor’s Name

Kind of Timber

and Brand

Number of Logs cut up

Balance Number of Logs uncut

on hand

Remarks and initials of Saw-mill Foreman

1 2 3 4 5 6 7 8

1415. Monthly Tally of Logs. The timber storekeeper should prepare a Monthly Tally Check of all logs in the log yard and submit, to the District Controller of Stores, a statement showing the results of such check in suitable form.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.6

1416. The Timber Storekeeper should also submit to the District Controller of Stores along with the Monthly Tally a certificate in the following terms.

“This is to certify that a tally check of all logs in the Log Yard has this day been made by me and that

the number of Logs has been found to be correct as per books.” _____________________

Date. . . . . . Timber Store-keeper 1417. Custody of Scantlings and Machined Timber. Scantlings cut up in the saw-mill for, either for immediate issue to shops, outstations, stores etc., or for seasoning and stock purposes, should be sent by the Saw-mill Foreman on Material Return Note (S.1539) to the timber Store-keeper, while those, for which work orders for machined timber have been issued, should be sent first to the wood-machine shop foreman or chargeman, machining, quoting thereon reference to the work order number and date. The wood-machine shop foreman or machine chargeman, on completion of the work detailed on the sub-work order, will send on the timber (machined) to the timber Store-keeper on Material Return Notes (S.1539) quoting thereon reference to the sub-work order number and date. Scantlings, large sal, machined timber, bottom boards and breast bars received by the timber store-keeper should be issued by him to workshop foremen for Capital and Revenue works on Material Requisition (S.1302 A) and to out-stations stores, etc ., on an ordinary Material Transfer Note (S.1302). 1418. Shop Foremen should place their Material Requisitions for timber direct on the timber storekeeper who will meet the demands from stock where possible. Where this cannot be done the timber storekeeper should arrange to have work orders issued on the saw-mill and / wood-machine shops for compliance. The timber issued the saw-mill and wood-machine shops, though issued direct, will in all cases be accounted for as issued to the Stores Department in the first instance and supplied by that department to the shops. 1419. Timber for construction of Stock. For new builds, the requirements should be made out in the form of complete Material Requisitions in Form No. (S.1302A) by the carriage builder Foreman (who should incorporate the requirements of other Foremen) and these Material Requisitions should be sent to the timber storekeeper, in triplicate, for compliance quoting the special work orders allotted for the work. The timber storekeeper should supply what he can from his stock in the (scantling or machined) timber stores and note the same against each relevant item in the schedules, after which the triplicate copies of the Depot Work Requisition should be forwarded to the saw-mill foreman and wood-machine shop foreman. The saw-mill foreman should cut up the balance of the items and forward the scantlings to the timber stores on Material Production Notes. When the scantlings are required for machining, the wood-machine


CHAPTER XIV

SAW-MILL ACCOUNTS

14.7

shop foreman should place Material Requisitions on the timber stores for the items required. On completion, these should be returned to the timber stores on Material Production Notes for storing and issue as required against Material Requisitions placed by the foreman concerned. 1420. Surplus Sawn Timber. Any items of timber, rendered surplus by reason of change of design or other causes, should be returned to the timber stores on Material Return Note by the foreman concerned, crediting the relevant work order. A statement, showing in detail all such items, with remarks regarding their utilization or otherwise, should be submitted to the Chief Mechanical Engineer and the sanction of competent authority obtained for writing off the loss, if any. 1421. Stacking of Scantlings. The timber storekeeper should stack the planks, scantlings and machined timber in his custody in an approved manner and label each stack with a board showing the following information:

Stock Code No. Description of item. Kind of timber. Number of pieces in stack or running meter. Width. Thickness.

1422. Stocks of scantlings and machined timber should be kept by the timber Store-keeper only of the standard (Stock) sizes required for the purposes of the railway, minimum balances of such stocks being fixed by the Works Manager, from time to time. All scantlings and machined timber for new builds should be stocked by the timber storekeeper and kept earmarked until such time as these are required by the foreman concerned, when they should be issued against Material Requisitions, debiting the relevant work order. Non-stock items should be separately stored and steps taken to utilize them. 1423. Monthly Stock-taking. Stock should be taken, during the last three days of each month, of the timber on hand in the timber stores, saw-mill and wood-machine shop, by the timber Store-keeper, the saw-mill foreman and the wood-machine shop foreman, respectively. 1424. A monthly statement (W.1424) showing receipts, issues and balances of all kinds of timber in the timber stores, i.e., logs, scantlings, bottom boards, breast bars, etc., should be submitted by the timber storekeeper to the District Controller of Stores by the 10th of each month. No abbreviations may be used in any register, ledger, return or other document.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.8

FORM W. 1424

STATEMENT SHOWING RECEIPTS, ISSUES AND BALANCES OF ALL KINDS OF TIMBER DURING THE MONTH OF. . . . . . . . . . . 19. . . .

Item No.

Description of Timber

Opening balance. Receipts Issues Balance

1 2 3 4 5 6

No. Cubic Meter No. Cubic Meter No. Cubic Meter No. Cubic Meter

C. COSTING OF SAWN TIMBER

1425. Cancelled. 1426. The limiting sizes of planks and scantlings, for which primarily the logs and squares are purchased, for use on broad gauge carriages and the initial cutting up of the logs, “the first cut”, should be so planned as to yield the maximum quantity of such sizes. The standard sizes for the other gauge carriages (if any) will be such as will be prescribed by the Chief Mechanical Engineer/Carriage & Wagon. Subject to actual requirements and the stocks in hand, the maximum possible out-turn of these larger sizes should normally be obtained as the result of “the first cut” and the rest of the requirements from the “material left over after the first cut”. The quantity of scantlings resulting daily from the first cut (i.e., the bigger sizes out-turned) should be separately listed by the subordinate supervisory staff in a measurement book showing the number of pieces and the dimensions of such scantlings obtained from the logs cut in meeting the requirements as shown in the relevant requisitions. 1427. Cancelled. 1428. Saw-mill yield and wastage. The yield is the quantity of planks and scantlings obtained. The wastage is the off cuttings, generally only useful as firewood, and the sawdust.

Whenever timber is broken down from the log into planks and or scantlings

both the yield and the wastage–expressed in cubic meter–should be worked out as percentages of the total volume of timber in log from which has been broken down.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.9

1429. Machining Wastage. When a saw-mill and wood machine shop are worked as a single shop or department and the outturn is measured in terms of the actual output, part of which at least is machined (i.e., has been planed and trimmed), it becomes necessary to allow for the wastage that takes place in machining. When shops, etc., requisition for machined timber, they should add to the finished sizes they require, one eighth of an inch all round and one inch in the length and show the cubical contents of their requirements after they have provided for this margin for machining wastage. The machining wastage is thus charged to the individual work orders and is not included in the saw-mill wastage. 1430. Wood Seasoning. Where there is a seasoning plant in operation, this plant should be treated as a separate 'shop’ and the expenses incurred therein distributed on the cost of the scantlings processed through the shop. The seasoned scantlings should be kept distinct from other scantlings. 1431. Standing Work Orders. The following standing work orders, may, with advantage, be operated upon in the saw-mill and wood-machine shops:

Saw-Mill

Cutting up teak. Cutting up hardwood. Cutting up softwood. Breaking up teak for seasoning. Breaking up hardwood for seasoning. Breaking up softwood for seasoning.

Wood-Machine Shop

Machining of hardwood. Machining of softwood. Machining of bottom boards.

1432. Cutting up and machining charges, which can be directly attributed to any particular kind of timber, should be allocated to the work order for that timber.

1433. Those charges which cannot be attributed to any particular class of timber should, in the first instance, be allocated to the work order for recording Overheads charges and thereafter apportioned between the various work orders by the Workshop Accounts Office in the method stated in paragraph 1436.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.10

1434. Sawing Operation (Overheads) Expenses. The net operation overheads expenses of the saw-mill are best ascertained in the manner indicated below, a single operation account being maintained for all classes of timber cut.

General Operation Account–Saw-mill

No. Dr. Rupees 1. To labour (Indirect) 400,000 2. To miscellaneous Stores (other than logs) 150,000 3. To other overheads 150,000 700,000

No. Cr. 4. By off-cuttings (Fuel)– Cubic

Meter

Teak Wood 3,300 Sal Wood 200 Padouk Wood 100 3,600@ Rupees 2,000 per tonne (rate fixed by CCS) 144,000

5. By Saw Dust– Cubic Meter

Teak Wood 1,000 Sal Wood 200 Padouk Wood 100 1,300@ Rupees 300 per tonne (rate fixed by CCS) 7,800

6. By Balance transferred to manufacturing accounts (to be distributed between the different classes of wood–teak, sal and padouk, in the proportion of the logs of each class cut during the month).

548,200

700,000

1435. Item 1 represents the total indirect labour charges booked against the overheads work order and item 2 the total expenditure on stores (indirect material) required for the maintenance of the saw-mill shop. Item 3 is the total actual overheads for the shop worked as a percentage on direct labour. The value of off-cuttings of each class of wood is calculated for the quantity shown in the out-turn statement, at the rate of Rupees 2,000 per tonne fixed by the Chief Controller of Stores, and is shown against item 4. The balance of the wastage of each class of wood is worked out and the total value at Rupees 300 per tonne is shown against item 5. Item 6 represents the net Operating (Overheads) Expenses which are to be distributed to the different classes of wood.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.11

1436. Distribution of Operating Expenses. The operating expenses referred to above are then to be distributed as shown in the illustration below:

The net operating charges being Rupees 548,200, if the total quantity of logs cut by the shops were 10,000 cubic meter, the net cost for sawing per 100 cubic meter would be Rupees 5,482 and the distribution by different classes of timber should be carried out as under:

Cubic Meter Rupees Teak . . . . . . . . 9,000 493,380 Sal . . . . . . . . 700 38,374 Padouk . . . . . . . . 300 16,446 10,000 548,200

1437. Saw-mill Manufacture Account. The operating charges, after being distributed as above, should be transferred to manufacturing account, maintained for each class of timber, in the manner indicated below:

MANUFACTURING ACCOUNT FOR TEAK WOOD No. Particulars Quantity Amount

Dr.

Cubic Meter

Rupees

1 To uncut timber (teak) in hand in the saw-mill at the end of the previous month (valued at Rupees 200 per cubic meter).

1,000 200,000

2 To uncut timber (teak) drawn during the month at Rupees 400 per cubic meter.

8,500 3,400,000

3 Operation Account (Para. 1436) . . . . . . . 493,480 Cr. Total . . 9,500 40,93,480

4 By scantlings issued at Rupees 800 per cubic meter. 4,700 3,760,000 5 By off-cuttings (weighed and converted to cubic meter) Para. 1434, item 4. 3,300 . . . . . . 6 By Saw Dust (by difference) Para. 1434, item 5. 1,000 . . . . . . 7 By uncut timber in hand at the end of the month (valued at Rupees 400

per cubic meter). 500 200,000

8 Difference representing “Loss” . . . . . . 133,400 9,500 40,93,400

1438. Fixation of price of scantlings. The figures in respect of items 1, 2, 4 and 7 are obtained from the out-turn statement (W.1441) and items 3, 5 and 6 from the Operation Account. The actual rate for scantlings is arrived at by dividing the total amount on the debit side of the above account less the value of uncut timber in hand at the end of the month by the volume of scantlings turned out as shown below:

Rupees 40,93,400 minus

Rupees 200,000 Rupees 38,93,400 4,700 cubic meter

= 4,700 cubic meter

= say Rupees 800 per

cubic meter


CHAPTER XIV

SAW-MILL ACCOUNTS

14.12

1439. Daily Reports of Receipts. Logs, bottom boards, breast bars, scantlings and machined timber received by the Timber Storekeeper should be accounted for by him in a Daily Report of Receipts of Timber, in Form No. W.1439.

FORM W. 1439

6No.

Timber Store-keeper …………………………..

RupeesRupeesRupeesCubic Meter RupeesRupeesRupeesRupees

Material Requisition

No. and Date

Stock Code

Description of

timber

From whom

receivedQuantity Rate

Vendor's bill

Freight

Transfer from out-

sideTotal

Heads to be credited in Accounts Officer books

Timber Store-

keeper'sOther

charges

PurchasesTransfers

within railways

Account Officer

Ledger folioReference to

the entry in the Measurement

Book

Remarks

DAILY REPORT OF RECEIPTS OF TIMBER FOR ………..DAY, THE ……….. 20

1 2 3 4 5 7 8 9 10 1715 1611 12 13 14

1440. Daily Reports of Issues. Logs, bottom boards, breast bars, scantlings and machined timber issued by the Timber Store-keeper will similarly be accounted for in a daily report of issues in Form No. W.1440. The reports of receipts and issues should be sent daily to the Stores Accounts Office.

FORM W. 1440

DAILY REPORT OF ISSUES OF TIMBER FOR . . . . . . . . . . DAY, THE . . . . . . . 20. . .

Quantity 6 Chargeable to

No.

of M

ater

ial T

rans

fer N

ote

No.

and

dat

e of

req

uisi

tion

Cla

ss

Des

crip

tion

of ti

mbe

r

To w

hom

issu

ed

No. Cubic Meter

Rat

e

AmountCapital or Revenue

W.O. No.

Tim

ber

Stor

ekee

per’s

ledg

er fo

lio

Acc

ount

s O

ffice

r le

dger

folio

Rem

arks

1 2 3 4 5 6 7 8 9 10 11 12 13

Timber Storekeeper . . . . . . . . . . . . . . . . . . . . . . . . . . .


CHAPTER XIV

SAW-MILL ACCOUNTS

14.13

1441. Saw-mill Outturn Statement. The quantities of logs received and scantlings issued by the saw-mill foreman should be accounted for by him, on the receipt and issue sides, respectively, of his outturn statement (W.1441). This outturn statement should be priced in the Workshop Accounts Office. For each kind of timber dealt with, there should be a separate outturn statement and besides the receipts of logs and issues of scantlings (and machined timber where the saw mill and the wood machine shop are worked as a single charge) during the month, they should show also the balance at the commencement and close of the month, and the quantity of wastage. The outturn statements should reach the Workshop Accounts Office within eight days of the close of the month to which they relate.

Note. Where the-saw mill and wood machine shops are not worked as a single charge, separate outturn statements should be prepared for each class of timber dealt with in the wood machine shop in the same manner as the saw-mill outturn statements.

1442. Timber Accounts. In the Stores Accounts Office, the Daily Reports of Receipts and Daily Reports of Issues of timber received from the timber storekeeper should be dealt with as described below. 1443. Timber Priced Ledgers—Receipts. The Daily Reports of Receipts of timber should be priced and posted in the priced ledgers (W.1443). Scantlings received from the contractors should be priced at the contract rates. Scantlings and machined timber received from the saw-mill foreman (and the wood machine shop foreman) should be priced at the rates fixed by the Workshop Accounts Officer periodically on the basis of the average manufacturing rate during the previous period after allowing for any rise or fall due to fluctuations in the rates of logs anticipated at the time of fixing the rates. When there is a difference of over 10 per cent between the fixed rate and the actual rate for a month, the fixed rate should be revised.

FORM W.1443 TIMBER PRICED LEDGER

Receipts Issues Balance

Quantity Quantity Quantity

Mon

th a

nd d

ate

From

who

m r

ecei

ved

or

to w

hom

issu

ed

Vou

cher

No.

and

dat

es

Tonn

es

Cub

ic M

eter

Rat

e

Am

ount

Tonn

es

Cub

ic M

eter

Rat

e

Am

ount

Tonn

es

Cub

ic M

eter

Rat

e

Am

ount

Rem

arks

1 2 3 4 5 6 7 8 9 10 11 12 13

Rupees Rupees

Rupees Rupees

Rupees Rupees


CHAPTER XIV

SAW-MILL ACCOUNTS

14.14

1444. The value of logs, etc., received from contractors should be adjusted by debit to the head “Stores, spares and loose tools — Inspection stores” and credited to the head “Sundry Creditors - Purchases”, the latter account being cleared when the contractors’ bills are passed for payment. Contractors’ bills, when received by the Accounts Office, should be checked with the Daily Reports of Receipts, reference to which is given on Loading Notes received in support of the bills. Reference to the bills under which payments are being made should be quoted against the entries in the Daily Reports of Receipts.

1445. Measurement Books (W.1405) which are kept by the timber store-keeper and are submitted to the Stores Accounts Office for check of arithmetical calculations of cubical contents of logs, should also be checked into the Daily Reports of Receipts and a remark to this effect recorded in the latter and in the Measurement Books.

1446. The value of scantlings and machined timber received by the timber store-keeper from the saw-mill and wood machine shop foremen, should be credited to “Stores in Transit” by debit to the head “Stores, spares and loose tools”. 1447. Issues. The Daily Reports of Issues will be priced and posted in the priced ledgers (W.1443). The pricing should be at the rates fixed periodically by the Workshop Accounts Office. The rates of scantlings and machined timber should be fixed in the manner stated in paragraph 1438 ante, and those of logs should be fixed on the basis of the book rate, the rates to be paid for the timber contracted for in the ensuing year and the approximate amount of railway freight and inspection charges. 1448. In the Daily Reports of Issues, reference to work orders and requisitions should be quoted in respect of issues to outside authorities. The Daily Reports of Issues should be checked with the receipted vouchers submitted in support thereof. The value of all timber issued should be adjusted by credit to the head “Stores” and debit to the parties concerned. 1449. Check of Saw-mill Outturn Statements. The opening balance on the receipt side of these outturn statements should be checked with the closing balance of the preceding month, and the receipts (quantity) during the month should be tallied with the timber figures to be supplied by the Stores Department. The proportionate amounts of operating charges, relating to the various kinds of timber, should then be worked out by deducting the value of saw dust and scrap wood (off-cuttings) from the total amount booked against the operating work orders and distributing the balance on the various manufacturing work orders in the ratio of the quantities of timber of each kind dealt with as indicated in paragraphs 1434 to 1436. The share attributable to each kind of timber, so worked out, should be added on the receipt side of the respective outturn statements and the total amount of debits struck out. The quantity of scantlings


CHAPTER XIV

SAW-MILL ACCOUNTS

14.15

accounted for on the issue side, as issued to the Stores Department, should be checked with the credit summary sent by the Stores Accounts Office prepared from Daily Reports of Receipts (W.1439) and that issued to the wood machine shop foreman with the receipt side of his outturn statement. 1450. The balance of uncut or partly cut logs should be valued at the rate for logs. The issues of scantlings shown in the Outturn Statement should be priced at rates fixed by the Workshop Accounts Office periodically and their value credited to “Work In Process Account” (work orders of saw-mill for various kinds of timber), by debit to the head “Stores In Transit” for issues to the Stores Department and other relevant heads of account for all other issues. The difference between the total debits representing the actual cost of manufacture and the total credits (issues and the closing balance) representing loss or gain will be allowed to remain outstanding against the manufacturing work orders concerned of the saw-mill shop. Any amount outstanding at the end of each month should be adjusted by debit or credit to the “Stores in Transit” Account. 1451. Check of Wood Machine Shop Outturn Statements. The outturn statements of the wood machine shop should be checked and valued in the same way as saw-mill outturn statements, except that the quantity received during the month should be checked with both the debit schedule received from Stores Accounts Office prepared from the Daily Reports of Issues (W. 1440) and the issues side of the outturn statement of the saw-mill foreman and the quantity issued with reference to the connected Material Transfer Notes. 1452. Test-check of Timber Ledgers and Registers. The Stores Accounts Officer should make a periodical check of entries in the ledgers and registers maintained by the timber store-keeper and the Workshop Accounts Office should do the same in respect of the ledgers and registers maintained by the saw-mill foreman and should submit the inspection reports (results of periodical checks) to the Financial Adviser and Chief Accounts Officer (FA & CAO) and the Chief Controller of Stores or the Chief Mechanical Engineer, as the case may be. 1453. Review of rate of Outturn. An abstract should be prepared monthly by the Workshop Accounts Office comparing the (i) actual rate of outturn for the month with the average rate for the immediately preceding six months as also the fixed issue rate and (ii) the percentage of wastage during the month with the minimum percentage of wastage during the preceding six months, and the causes responsible for the variations in both should be explained therein.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.16

1454. For the preparation of this Abstract a manuscript register (Form W.1454) showing the input, the output, the wastage and the unit cost, from month to month should be maintained. The abstract should be circulated to the Works Managers and Shop Foreman concerned for information. If the variations are abnormal, a copy of this Abstract should also be sent to the Divisional Superintendent, Workshops / the Deputy Chief Mechanical Engineer. 1455. Survey of Timber. The actual stock of all logs and squares on the books of the timber Store-keeper should be taken by the District Controller of Stores every year on or about the 30 June, and the latter should submit his survey statement (W. 1455) to the Chief Controller of Stores through the Stores Accounts Officer within a week of the date fixed for the survey.

FORM W. 1455

SURVEY STATEMENT OF LOGS AND SQUARES IN THE STORES DEPARTMENT . . . . .

. . . . . . . . . . . . . . . . . . FOR THE YEAR ENDING ON . . . . . . . . . . . . . . . . . . . .

Book balance on………...

Actual balance on………...

Difference Item No.

Description of timber

No. Tonnes Cubic Meter No. Tonnes Cubic Meter No. Tonnes Cubic Meter Rem

arks

. . . . . . . . . . . . . . . . . . . . . . Timber Store-keeper

No. . . . . . . . . . . . . . . . . . . . Date. . . . . . . . . . . . . . . . . . . . . . Forwarded to the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . through the Stores Accounts Officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for information. Certified that the undersigned has satisfied himself by actual check that the figures given above are correct.

. . . . . . . . . . . . . . . . . . . . . . . District Controller of Stores

1456. The Timber Store-keeper should, on or about the 30th June every year, take the actual stock of all scantlings, bottom boards, breast bars and machined timber on his books and submit his survey statement (W. 1456) to the District Controller of Stores for counter signature and transmission to the Chief Controller of Stores through the Stores Accounts Officer within 15 days of the survey.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.17

FORM W. 1456

SURVEY STATEMENT OF SCANTLINGS, MACHINED TIMBER, PLANKS, ETC., HELD IN STOCK. . . . . . . . . . . . .FOR THE YEAR ENDING ON. . . . . . . . . . . . .

Book balance on………...

Actual balance on………...

Difference Stock Code

Description of timber

No. Tonnes Cubic Meter No. Tonnes Cubic Meter No. Tonnes Cubic Meter Rem

arks

. . . . . . . . . . . . . . . . . . . . . . Timber Store-keeper

No. . . . . . . . . . . . . . . . . . . . Date. . . . . . . . . . . . . . . . . . . . . . Forwarded to the . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . through the Stores Accounts Officer, . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . for information. Certified that the undersigned has satisfied himself by actual check that the above figures are correct.

. . . . . . . . . . . . . . . . . . . . . . . District Controller of Stores

1457. The Inspector of Stores Accounts should carry out a stock verification of all logs and timber on the Stores books, which verification may be extended to the saw-mill and wood machine shop, every alternate year on the 31st December and submit stock sheets for the same to the Chief Controller of Stores / Chief Mechanical Engineer through the District Controller of Stores/Works Manager, who should give his remarks regarding the differences, if any. The stock verification should include the actual check of measurements of approximately 10 per cent of the scantlings, machined timber, bottom boards, etc., and 100 per cent of the squares and logs in stock. 1458. Any difference coming to light in the course of stock verification, between the actual count and the quantity shown in the ledgers, should be written off against “write of inventories” under the sanction of competent authority, after investigating the causes for differences and taking such remedial action as may be considered justifiable. 1459. Disposal of saw dust, wood chips and shavings. Outstations and local demands for these should be met by issue at rates authorized by Chief Controller of Stores. For the surplus, tenders should be invited by the Chief Mechanical Engineer annually and contracts let out for the removal of the same.


CHAPTER XIV

SAW-MILL ACCOUNTS

14.18

1460. Scrap wood and off-cuttings released from condemned stock may be sold to railway employees at rates fixed by the Chief Controller of Stores. For the surplus, tenders should be invited by the Divisional Superintendent, Workshops, as and when required, and contracts let out for the same. 1461. Freight on Timber. Freight on consignments of timber should be included in the cost of stores. The Timber Priced Ledger should show “Freight included in cost of Stores.” 1462. Incidental Charges. Miscellaneous charges on timber, e.g., insurance, loading and unloading and yard charges and purchase and inspection percentage charges by other Government Departments should also be included in the cost of timber.

CHAPTER XV

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER XV

ROLLING-STOCK PROGRAM AND BUDGET

31

CONTENTS


PRELIMINARY ROLLING-STOCK PROGRAM 15.1 1501 — 1502

DATA FOR PREPARATION OF PRELIMINARY PROGRAM 15.1 1503

PREPARATION OF DRAFT PROGRAM 15.2 1504

REDUCTIONS IN THE AUTHORISED ROLLING-STOCK 15.2 1505

ROLLING-STOCK ADDITIONS 15.3 — 15.4 1506 — 1509

JUSTIFICATION FOR ADDITIONAL LOCOMOTIVES 15.4 — 15.5 1510 — 1515

JUSTIFICATION FOR ADDITIONAL DIESEL ENGINES 15.5 1516

JUSTIFICATION FOR ADDITIONAL COACHING STOCK 15.6 1517 — 1518

JUSTIFICATION FOR ADDITIONAL GOODS STOCK 15.7 1519

GENERAL SERVICE WAGONS 15.7 1520 — 1521 (1522 Deleted)

JUSTIFICATION FOR ADDITIONAL SPECIAL TYPE WAGONS

15.7 1523

RENEWALS OF ROLLING-STOCK 15.7 — 15.8 1524 — 1525

SUBMISSION OF PRELIMINARY PROGRAM TO MINISTRY OF RAILWAYS (RAILWAY BOARD)

15.8 1526

GENERAL ARRANGEMENT OF THE PROGRAM 15.8 — 15.9 1527 — 1531 (1528, 1529 Deleted)

DETAILED JUSTIFICATION 15.9 1532


CHAPTER XV


32

CONTENTS


ITEMIZED PROGRAM 15.10 1533

APPENDICES 15.13 1534

STOCK STATEMENT (APPENDIX I) 15.14 1535

RENEWAL STATEMENT. [APPENDIX II (a)] 15.15 1536

DEFERRED RENEWALS STATEMENT. [APPENDIX II (b)] 15.17 1537

REPLACED STOCK STATEMENT. (APPENDIX III) 15.17 1538

UTILIZATION AND PROGRAM STATEMENT OF LOCOMOTIVES. [APPENDIX V (a)]

15.19 — 15.21 1539 — 1541

LOCOMOTIVES DISTRIBUTION BY KILOMETRES GROUPS. [APPENDIX V (b)]

15.21 1542

AGE STATEMENT OF LOCOMOTIVES. [APPENDIX V (c)]

15.22 1543

PROGRAM OF COACHING STOCK [APPENDIX V (a)] 15.23 1544

SCHEDULE OF COACHING STOCK REQUIREMENTS. [APPENDIX V (b)]

15.24 1545

AGE STATEMENT OF COACHING STOCK. [APPENDIX V (c)]

15.25 1546

STATEMENT OF INSPECTION CARRIAGES. [APPENDIX V (d).]

15.26 1547

UTILIZATION STATEMENT OF GOODS STOCK. [APPENDIX V (a).]

15.28 1548


CHAPTER XV


33

CONTENTS


AGE STATEMENT OF GOODS STOCK. [APPENDIX V (b).]

15.28 1549

PROGRAM STATEMENT OF LOCOMOTIVES. [APPENDIX VI.]

15.29 1550

COACHING STOCK PROGRAM STATEMENT. [APPENDIX VI.]

15.32 1551

GOODS STOCK PROGRAM STATEMENT. [APPENDIX VI.]

15.36 1552

PROGRESS STATEMENT. [APPENDIX VII.] 15.39 1553

FINAL PROGRAM 15.41 — 15.42 1554 — 1561

BUDGET ESTIMATES OF OPEN LINE WORKS 15.43 1562

REVISED ESTIMATES OF OPEN LINE WORKS 15.43 1563

REVISED AND BUDGET ESTIMATES OF STORES TRANSACTIONS

15.44 1564

REVISED AND BUDGET ESTIMATES OF MANUFACTURE OPERATIONS

15.44 — 15.48 1565 — 1567

REVISED AND BUDGET ESTIMATES OF WORKING EXPENSES

15.48 1568 — 1569

FINAL RE-APPROPRIATION STATEMENT 15.48 1570

GRANT REGISTER 15.49 1571

FINANCIAL REVIEWS 15.49 1572


CHAPTER XV


15.1

A. PRELIMINARY PROGRAM

1501. The Preliminary Rolling-stock Program. The purchase or construction of rolling-stock has to be programed at least a year in advance of the period for which the stock is required, mainly for two reasons. Foreign firms manufacturing rolling-stock find it helpful to have as early notice as possible of orders for stock to be placed with them for deliveries in the ensuing year, as this enables them to arrange their manufacturing program to the best advantage. It takes generally not less than six months to obtain delivery of rolling-stock, and in order to enable Pakistan Railways to obtain the rolling-stock, which they require, in time to carry the traffic anticipated in the ensuing year, the orders are best placed not less than six months, and preferably longer, before the year begins. Pakistan Railways Administrations should, therefore, submit to the Ministry of Railways (Railway Board) their preliminary rolling-stock program for the second succeeding financial year, not later than 15th January each year, or on such other date as may be specially prescribed by the Ministry of Railways (Railway Board). 1502. The preliminary rolling-stock program for, say, 20X2-3 should reach the Ministry of Railways (Railway Board) on the prescribed date. As explained in paragraph 1554, it will be discussed with the General Manager and placed before the Member Finance (paragraph 1555). Tenders would then be called for and commitments entered after this. Pakistan Railways Administration will communicate to the Ministry of Railways (Railway Board) such amendments and alterations to the program as may be found necessary (paragraph 1557). The final program as suitably modified will constitute the Rolling-stock Budget and form part of the budget estimates for 20X2-3 presented to the competent authority. 1503. Data for preparation of Preliminary Program. For the preparation of the preliminary program, the Chief Mechanical Engineer should provide the Chief Operating Superintendent with information in respect of the following:

(1) Items of rolling-stock already condemned and not provided for replacement, up to the end of the financial year preceding that to which the program relates,

(2) Arrears of renewal, on a life basis, to the end of the financial year preceding

that to which the program relates, i,e., details of all items of rolling-stock which, on 1st July of the budget year, will have exceeded the life limit as laid down in paragraph 1525, excluding:


CHAPTER XV


15.2

(i) those already condemned, details of which should be given under (1) above; and (ii) those included in the program already accepted.

(3) Further renewals falling due on a life basis in each of the next three years.

1504. Preparation of Draft Program. The Chief Operating Superintendent should therefrom prepare a program showing the additions and renewals of locomotives, carriages and wagons, which he considers necessary to be carried out during the second succeeding financial year in order to meet transportation requirements, adequately giving his reasons for each item in the program, and submit this to the Chief Mechanical Engineer, for including any items of additions and or renewals before finally submitting it to the General Manager for his approval. For the purpose of allocation of the estimated costs between Capital and Replacement account, in the case of renewals, particulars should be given of cost, tractive effort, floor area, carrying capacity, etc., in respect of both the old and the new stock. 1505. Reductions in the Authorised Rolling-stock. Pakistan Railways Administration is authorized by the Ministry of Railways (Railway Board) to keep a specified number of rolling-stock which is referred to as authorized stock. The following rules should be observed in regard to the proposals for reduction in the authorized stock:

(1) Sanction to the reduction in the numbers of authorized stock should be sought only in those cases in which it is fairly certain that the stock would not be required in the near future.

(2) (a) When a reduction in the authorized stock is sanctioned, an estimate

should be prepared writing down the original cost of such stock from Capital by debit to Replacement Account.

(b) The estimate should show, parenthetically and for purposes of information only, the estimated value of the released materials. No adjustments should be made at this stage of the cost of such released materials, and the estimate should be closed promptly by the adjustments being carried out in the accounts.


CHAPTER XV


15.3

(c) Simultaneously with the above adjustments being made, the stock in question should be removed from the list of authorized stock and brought on to a separate list of “Stock reduced from the authorized list”, which will be printed as a supplement to the annual statement of statistics in the analysis of working of the railway. As and when such stock gets broken up and the materials are released therefrom, the cost of released materials should be credited to Capital by contra debit to relevant head of account. The cost of released materials so adjusted should be shown against the appropriate items in the list of reduced stock, which should be reviewed from time to time to see that such adjustments are actually carried out when the stock is cut up.

(3) The procedure set out in rules (1) and (2) above should be followed also in the case of materials released from replaced stock that is not immediately cut up.

1506. Rolling-stock Additions. “Renewals” of rolling-stock should always take precedence of “Additions”, and no new rolling-stock should be obtained as an addition, if the actual stock of such class in existence on the line is below the authorized stock for the railway of that class. 1507. For the purposes of the above rule, rolling-stock should be divided into the following classes, but if there is any doubt whether particular item belongs to the one class or to the other, the decision of the Ministry of Railways (Railway Board) should be obtained.

Class Particulars

1. . . Locomotives, steam including “Spare boilers”. 2. . . Locomotives, electric. 3. . . Locomotives, Diesel Electric 4. . . Coaching stock (Suburban, Motor units). 5. . . Coaching stock, self-propelled. 6. . . Motor-trollies. 7. . . Saloons. 8. . . Tourist cars and Restaurant cars. 9. . . Coaching stock, Upper class, including all air conditioned vehicles.10. . . Coaching stock, including brake, luggage and postal vans and all

vehicles in which second class accommodation is provided.


CHAPTER XV


15.4

11. . . Other coaching vehicles including brake, luggage, postal, motor, fruit, fish, poultry, duck vans and horse-boxes.

12. . . Officer’s carriages. 13. . . Service coaching vehicles, including stores vans, tool vans, break-

down vans and inspection carriages. 14. . . General service goods wagons, including flat, open, covered, low-

sided, high sided, rail and timber trucks. 15. . . Explosive vans, oil and petrol tank wagons. 16. . . Other goods vehicles, including cattle wagons. 17. . . Well wagons. 18. . . Goods brake-vans. 19. . . Service wagons, including ballast, hopper, crane support, wagons,

cranes and weigh-bridge testing wagons, and water tank wagons. Note. The above represent the maximum number of classes. A smaller number of classes may be observed, when deciding whether an item of new rolling-stock is to be treated as an addition or a replacement. Within each such class, the particular item of rolling-stock which should be considered as being replaced is that which approximates most closely to the vehicle that is being provided on renewal account, or the replacement of which leads to the smallest charge to capital. 1508. No additional rolling-stock may be provided for by Pakistan Railways unless it can be definitely shown that there is likely to be a need for such additional stock. 1509. In estimating the rolling-stock requirements of Pakistan Railways the general principles indicated in paragraphs 1510 to 1523 should be followed. 1510. Justification for Additional Locomotives. Additional locomotives are considered justified only if it can be shown that the existing locomotive stock is fully employed, that the anticipated increase in traffic warrants the provision of additional engine power and that justification exists for the provision of such power on capital account. 1511. If the percentage of engine kilometres per day per engine on the line of Pakistan Railways to its engine kilometres per day per engine in use, is less than the highest figure achieved or 70 per cent (whichever of the two is higher), it should be generally presumed that no additional locomotives are warranted.


CHAPTER XV


15.5

1512. The engine kilometres per day per engine in use should show a pronounced increase over the figures for the previous year, before additional locomotives may be considered as justified.

1513. The number of locomotives, in good repair, stored during the busiest and the slackest months respectively of the previous year, the percentage of locomotives under repair, and the kilometrage obtained from engines in use over a period of years are amongst the factors that should be examined in order to determine whether better utilization of the existing stock of locomotives is not possible. All additional requirements should be estimated only after taking all possible steps for the better utilization of rolling-stock.

1514. The number of additional locomotives required for new lines would, however, depend almost entirely on the additional route kilometrage and train requirements due to the new lines being opened for traffic, and the extent to which existing stock on the working or parent line can cope with such traffic.

1515. If the total power provided for Pakistan Railways in the shape of locomotives can, in actual working, meet the transportation daily requirements for its busy season, after allowing for the number of locomotives likely to be permanently out of commission undergoing repairs and maintenance, no additional locomotives may be considered as being justified.

1516. Justification for Additional Diesel Engines. Pakistan Railways is authorized to maintain a reserve of spare diesel engines for each type of locomotives running on the line, up to a maximum limit of 7 per cent of their total authorized stock of particular type of diesel electric locomotives. The cost of such “Diesel Engines” will be borne on the Capital account in the same way as rolling-stock. These diesel engines are intended to accelerate D.E Locomotive repairs by replacing the diesel engine of a locomotive that has come into shops for classified/nominated repairs by a spare diesel engine unit, without waiting until the former is repaired. The diesel engine released from the locomotive should be taken into the reserve of spare diesel engines after it has been completely repaired. In those cases in which the diesel engine released from locomotives undergoing repairs are unfit for further use, new diesel engines may be provided to take their place. In all such cases, it is not the “Spare diesel engines” that are to be regarded as having been replaced, but the diesel engine of the particular locomotives undergoing repair. Spare diesel engines may, however, be provided as additions and charged to capital, provided that the limit of 7 per cent mentioned above is not exceeded, and there is actual need for additional diesel engines.


CHAPTER XV


15.6

1517. Justification for Additional Coaching Stock. The additional requirements of coaching stock should be considered under each of the following nine classes, and additional coaching stock may be provided only if it can be shown that the estimated requirements, under each of the classes mentioned above, are in excess of the authorized stock of that class:

(1) Upper class including all air conditioned class, excluding tourist, restaurant and inspection cars.

(2) Lower class (Economy, Second). (3) Brake-vans, luggage-vans, postal-vans. (4) Miscellaneous stock for public traffic. (5) Miscellaneous stock for departmental use, including inspection cars, inspectors’

vans, store-vans, accident trains, etc. (6) Tourist and restaurant cars. (7) Military cars. (8) Special stocks Trailers.

Rail Motors. (9) Diesel hydraulic/Diesel Electric/Electric stock (multiple units)

(a) Upper. (b) Lower.

1518. The requirements of additional coaching stock will be estimated as follows:

(1) To the number of vehicles in each class employed on normal services at the time the estimate is prepared, should be added the estimated additions required to deal with expected increases in traffic on existing lines and the additional traffic likely to be due to the opening of new lines during the period. A further addition should be made of the number of spares of each class necessary for normal requirements as well as for special reservations and mela traffic.

(2) To the total number of vehicles thus worked out in (i) above, should be added a percentage representing what has been ascertained, in practice, to represent the normal requirements of the railway for repair purposes in mechanical workshops and sick lines.

(3) The additional stock worked out under (i) and (ii) above, will then represent

the estimated additional requirements of each class of coaching stock.


CHAPTER XV


15.7

1519. Justification for Additional Goods Stock. For the purpose of estimating additional requirements, goods stock should be considered under the following two divisions:

(1) General Service Wagons; (2) Special Type Wagons.

1520. General Service Wagons. In respect of General Service Wagons, the following statistics of Pakistan Railways, by gauges, should be charted over a period of years:

(1) The percentage increase in traffic as forecast by the railway compared with the actual percentage increase or decrease in traffic in terms of net tonne kilometres for a period of years.

(2) The net tonnes kilometres per wagon day which Pakistan Railways are

expected to reach compared with the actual net tonne kilometre per wagon day that they have reached in actual working during the same period of years.

1521. The wagon user in terms of net tonne-kilometres per wagon day that may be expected during the period for which the provision of additional stock is being considered should then be estimated as carefully as possible in the light of the anticipated traffic requirements of that period. 1522. Deleted. 1523. Justification for Additional Special Type Wagons. Additional special type wagons may be justified only on the basis of additional specific needs, the existence of which should be fully proved with the help of such information as may be available. 1524. Renewals of Rolling-stock. As the rolling-stock program for a year is prepared 15 to 18 months before its commencement, it has necessarily to be based on rough estimates of the traffic requirements of a later period and on the condition of rolling-stock, as it might be expected to be more than a year later. A detailed examination of each individual item of rolling stock included in the program as to whether it should be repaired or replaced is thus impracticable. The renewals of rolling-stock are therefore determined primarily with reference to the general present condition of the class of units proposed to be replaced or renewed. The suitability of the existing locomotives or vehicles to meet modern


CHAPTER XV


15.8

requirements and the expenditure which will be incurred in carrying out further repairs to the locomotives, vehicles or wagons if they are to be kept in service, are important considerations that have to be taken into account before renewal of an individual item of stock is preferred to its reconditioning or repair. For this purpose, the instructions laid down in Chapter VII of the Pakistan Railways General Code should be followed. 1525. The useful lives that may be assumed for the different kinds of rolling-stock for the purpose of arriving at decisions of this nature are given below. It should be clearly understood that the average life is not the maximum economic life and, with good maintenance, stock can be kept in service for many years longer. Electric Locomotives . . . . . . . . 35 years Diesel Electric Locomotives . . . . . . . . 20 ,, Steam Locomotives . . . . . . . . 35 ,, Boilers . . . . . . . . 25 ,, Battery Locomotives . . . . . . . . 25 ,, Diesel Hydraulic/Diesel Electric/Rail Cars . . . . . . . . 20 ,, Diesel Electric/Electric Multiple Unit Stock–Motor Coaches

. . . . . . . . 30 ,,

Trailer Coaches . . . . . . . . 30 ,, Coaching Vehicles . . . . . . . . 30 ,, Goods Vehicles . . . . . . . . 40 ,, 1526. Submission of Preliminary Program to Ministry of Railways (Railway Board). The draft program, completed in accordance with the instructions detailed above and as finally approved by the General Manager should be printed and submitted to the Ministry of Railways (Railway Board) in the shape of PC-I proforma for onward submission to Planning Commission, Govt. of Pakistan for approval by competent authority/forum and with the appendices described in the following paragraphs. 1527. General Arrangement of the Program. The program should be arranged in the following order:

(1) Index. (2) General note, containing very brief remarks on salient features of the program. (3) Financial abstracts. (4) Detailed justification. (5) Itemized Program.


CHAPTER XV


15.9

(6) Appendices. (7) Project Digest including following details

• Name of Project • Location • Authorities responsible • Plan Provision • Project objectives • Description and justification of project including feasibility study. • Capital cost estimates • Annual operating and maintenance cost after completion of project • Demand and supply analysis • Financial Plan • Project benefit and Analysis • Implementation schedule • Management structure and manpower requirements • Additional projects/decisions required to maximize social economic

benefits from the proposed project • Certifications

1528. Deleted. 1529. Deleted. 1530. Different types of stock should not be grouped together under the same item number of the Itemized Program, but should be shown separately.

1531. The monetary provisions should be calculated on the basis notified by the competent authority and, in estimating, special steps should be taken to arrive at the closest possible approximations of cost. 1532. Detailed Justification. The detailed justification should contain cross references to demands in the itemized program. Justification and explanatory notes on the provisions for the year that are not adequately covered by the various appendices should be included here. The demands for locomotives and coaching stock should be based on probable actual requirements, allowing for probable future improvements in operating and workshops practice. The detailed justification for coaching stock should incorporate a brief


CHAPTER XV


15.10

note showing the annual carriage building capacity and an abstract of arrears by gauges separately. The note should also show that the workshop building capacity will be co-ordinated with the sanctioned work outstanding plus the proposed new demands. The demands for replacements will be held to imply that the administration has no intention of using the replaced stock for revenue earning purposes, unless specific reference to the effect that this condition cannot be complied with is made. 1533. Itemized Program. The itemized program showing demands for the year should be in the following form. Works previously sanctioned by Ministry of Railways (Railway Board), on which it is proposed to incur expenditure during the year, should be itemized under uncompleted works. New stock for the new lines together with the estimated cost and the amount to be spent in the year should be shown in the program and necessary adjustment of financial provision should be made by deduction at the foot of the program when the value is included in the construction program. Expenditure chargeable to “Ordinary Maintenance and Repairs” should be shown in brackets. When “Expenditure expected” differs from the actual budget provision, the budget provision should be shown in brackets immediately below the “Expenditure expected,” and the reasons for the difference should be given in the remarks column. Gross figures of estimated cost of each item should be given. Credits anticipated from released materials should be shown in brackets, separately beneath the gross figures for each item. If this is impracticable, the total credits for all released materials should be shown (in brackets) beneath the gross totals for each head, viz., Locomotives, Carriages and Wagons and a grand total also shown.


CHAPTER XV


15.11

FORM W. 1533 SPECIMEN ITEMIZED PROGRAM

For 2011-12 OPEN LINE–Rolling-Stock

(Rupees in thousand)

Estimated cost

Expenditure expected

during 2011-12

Expenditure proposed in

2012-13

Item

Num

ber Page Nos.

of detailed justification and other refer-ences

NAME OF WORK C

apita

l

Rep

lace

men

t

Cap

ital

Rep

lace

men

t

Cap

ital

Rep

lace

men

t

Bal

ance

req

uire

d to

co

mpl

ete

proj

ect

Rem

arks

Rup

ees

Rup

ees

Rup

ees

Rup

ees

Rup

ees

Rup

ees

INCOMPLETE WORKS ROLLING-STOCK FOR WHICH PROVISION HAS BEEN MADE IN SANCTIONED BUDGETS PRIOR TO 2011-12 AND ON WHICH EXPENDITURE IS TO BE INCURRED.

Locomotives–Betterments 1 5, 14

Item 7 (20….20… program)

27 D.E Locomotives (HGMU-30) Total Locomotives

Carriage–Additions

2 10, 31 Item 12 (20….20… program)

Provision TL van to block rakes Total Carriages

Wagons–Betterments 3 4

Item 24 (20….20… program)

Conversion of plain bearing to Roller bearings Total Wagons

Total Rolling-stock thrown forward


CHAPTER XV


15.12

Estimated cost


during 2011-12


2012-13

Item

Num

ber Page Nos.


NAME OF WORK

Cap

ital

Rep

lace

men

t

Cap

ital

Rep

lace

men

t

Cap

ital

Rep

lace

men

t

Bal

ance

req

uire

d to

co

mpl

ete

proj

ect

Rem

arks

R

upee

s

Rup

ees

Rup

ees

Rup

ees

Rup

ees

Rup

ees

NEW WORKS ROLLING-STOCK FOR WHICH PROVISION HAS BEEN MADE IN THE BUDGETS PRIOR TO 2011-12.

Locomotives–Additions 4 . . 5 Locomotives (3000 HP) Total Locomotives–Additions Locomotives–Betterments 5 1 12 Locomotives(HGMU-30) Total Locomotives–Betterments Total Locomotives Diesel Engine–Additions 7 2 Diesel Engines Total Diesel Engine–Additions Carriages–Betterments

8 4, 47 40 Bogie Economy class and brake vans

Total Carriages–Betterments Wagons–Additions 9 4 50 Bogie Oil Tank wagons Total Wagons–Additions

Wagons–Betterments


CHAPTER XV


15.13

Estimated cost


during 2011-12


2012-13

Item

Num

ber Page Nos.


NAME OF WORK

Cap

ital

Rep

lace

men

t

Cap

ital

Rep

lace

men

t

Cap

ital

Rep

lace

men

t

Bal

ance

req

uire

d to

co

mpl

ete

proj

ect

Rem

arks

R

upee

s

Rup

ees

Rup

ees

Rup

ees

Rup

ees

Rup

ees

10 5 50 Bogie Oil tank Wagons Total Wagons–Betterments Total Wagons Total Rolling-stock (new items)

Total Rolling-stock (un-completed works and new items)

Total Rolling-stock

Deduct provision for new lines included in construction program

Total

1534. Appendices. The following appendices should accompany the program. I Stock statement. II(a) Renewal statement. II(b) Deferred renewal statement. III Replaced stock statement. IV Justification for additional stock Required for new lines. V(a) Utilization and program statement of Diesel Electric/Electric locomotives. V(b) Locomotives distribution by Kilometerage groups. V(c) Locomotives age statement. V(a) Program of coaching stock. V(b) Schedule of coaching stock requirements. V(c) Age statement of coaching stock.

Locomotives, Coaching stock, Goods stock.


CHAPTER XV


15.14

V(d) Inspection carriages. V(a) Goods stock utilization statement. V(b) Goods stock age statement. VI Program statements for locomotives, coaching and goods stock. VII Progress statement. 1535. The Stock Statement (Appendix I). This statement is designed to arrive at the actual stock on the 31st March of the year previous to that to which the program relates and should be prepared in Form W.1535 shown below with specimen entries. Coaches which have passenger compartments, as well as brake, luggage or postal compartments, should be included in the class under which the passenger compartments fall. Composite passenger coaches should be included in the class to which the major portion of the coach is allotted. The sub-divisions under coaching stock should accord with those in Appendix V (a) (Coaching) excepting that items (d), (e), (f) and (g) of Appendix V (a) (Coaching) should be included under “Miscellaneous”. Sanctioned additions not yet placed on the line on prescribed date and Estimate of sanctioned additions to be placed on the line on prescribed date will include all sanctions received for stock sanctioned on additional account against current program demands and any other previous sanctions against which stock will have not been placed on the line. The Coaching and Goods stock should be shown in the statement in terms of four-wheeled units.


CHAPTER XV


15.15

FORM W. 1535 . . . . . . . . . . . . . . . . . . . . . . . . . . Gauge

STOCK STATEMENT Locomotives, coaching and goods stock on the line and the stock authorized up to that

date Locomotives Coaching stock Goods stock

Diesel Electric

Air conditioned

class

Lower Class

Brake, postal and

luggage vans

Misce-llaneous

General service

Misce-llaneous

Actual stock existing on 31st Dec, 20--- Add– Estimate of stock to be placed on the line on renewal account. Estimate of sanctioned additions to be placed on the line. Deduct– Estimate of stock to be broken/cut up, sold. Estimated actual stock. Authorization Deduct estimate of– Stock broken/cut up, or sold and not yet replaced. Sanctioned additions not yet placed on the line (to exclude stock sanctioned on renewal account) Add estimate of– Replaced stock on line. Estimated actual stock.

1536. The Renewal Statement. [Appendix II (a)]. This statement is intended to furnish information as to the number of units that are being prematurely removed or removed late and should be prepared in the form shown below. The age of the stock should be calculated as for the year during which replacement is proposed and the coaching and goods stock should be shown in terms of four-wheeled units.


CHAPTER XV


15.16

FORM W. 1536 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gauge

RENEWAL STATEMENT Locomotives

Units in Locomotives Financial year to which program relates

Program Item No. Under

35 years of age

35 years age and

over

Broken/cut up and not replaced

Total tractive effort in 1000 kg

Code Type

Reasons for

premature renewal

Total

Carriages

Units Financial year to which

program relates


35 years of age

35 years age and

over


Code Type Reasons for premature renewal

Total Goods Stock

Units Financial year to which

program relates

Program Item No.

Under 40 years of age

40 years age and

over


Total carrying capacity in 100 kg of load

Code Type

Reasons for

premature renewal

Total


CHAPTER XV


15.17

1537. Deferred Renewals Statement. [Appendix II (b)]. This statement is intended to furnish information as to the extent renewals, that may be regarded as ‘due’ in the year, have been deferred. It should be prepared in the form given below. Renewal and spare Diesel Engines should not be shown in this statement and the number of coaching and goods stock should be given in terms of four-wheeled units.

FORM W. 1537 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gauge

DEFERRED RENEWAL STATEMENT Locomotives Total locomotives which will have been in service 35 years and for which provision for replacement has not been made during the year. Percentage of authorization

Deleted Carriages Total carriages which will have been in service 30 years and for which provision for replacement has not been made during the year. Percentage of authorization

Goods Stock Total goods stock which will have been in service 40 years and for which provision for replacement has not been made during the year. Percentage of authorization

1538. Replaced Stock Statement. (Appendix III). This statement shows the number of different kinds of rolling-stock in terms of relevant units, which though replaced, are in use, pending final breaking up. It should be prepared in form W.1538 and should give the information of the year just previous to the year to which the program relates. The number of coaching and goods stock should be given in terms of four-wheeled units.


CHAPTER XV


15.18

FORM W. 1538 . . . . . . . . . . . . . . . . . . . . .. . . .. . . . . . . . . . . . .. . . . . . . . . .Gauge

REPLACED STOCK STATEMENT Locomotives, coaching and goods stock on the line on 20.........

Locomotives

–– Units

Total Tractive effort in 1000 kg

Code Type

Year in which stock

was due replacement

Reasons for retention in

service

Total . .

Percentage of total authorized.

Coaching Stock

–– Units Code Type Year in which stock

was due replacement


service

Total . .


Goods Stock

–– Units

Total carrying

capacity in 100 kg of

load

Code Type

Year in which stock

was due replacement


service

Total . .



CHAPTER XV


15.19

1539. Utilization and Program Statement of Locomotives. [Appendix V(a)]. This statement should be prepared in the form shown below.

FORM W. 1539 . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . Gauge UTILIZATION AND PROGRAM STATEMENT OF LOCOMOTIVES

ACTUALS ESTIMATES

Item No.

Date Year

Peak Month

(...) Year

Peak Month

(...) Year

Peak Month

(...) Year Year Year

Engine Kilometres 1.1 Passenger 1.2 Mixed 1.3 Goods 1.4 Shunting 1.5 Departmental 1.6 Total (1.1 to 1.5) Engine Hours Total Engines in use Average number daily– 3.1 Passenger 3.2 Mixed 3.3 Goods 3.4 Shunting 3.5 Departmental 3.6 Total (3.1 to 3.5) 3.7 Maximum number, on any

one day.

3.8 3.7 minus 3.6 3.9 Percentage of 3.8 to 3.6 Engines Spare 4.1 Average number daily– 4.2 Percentage of 4.1 to 3.6

Engines–under repair -under awaiting

Average number daily– 5.1 In Mech. Workshops 5.2 Percentage of 5.1 to 3.6 5.3 In Sheds and Trans

Workshops

5.4 Percentage of 5.3 to 3.6 5.5 5.1 + 5.3


CHAPTER XV


15.20

5.6 Percentage of 5.5 to 3.6

6 Engines required

Average number daily– (3.6 + 4.1 + 5.5)

7 Engines Stored Actual number (…) (…) (…) Engines on line Average number daily– 8.1 Passenger types 8.2 Goods types 8.3 Shunting types 8.4 Total (8.1 to 8.3)

Engines Kilometres/day/ engine in use

9.1 Passenger 9.2 Mixed 9.3 Goods 9.4 Shunting 9.5 Departmental 9.6 Total

10 Engines Hours/day/ engine in use

Total

1540. The form given above is intended to cover a period of six financial years ending with the year to which the program relates. The figures in the form should be filled as follows:

(1) Figures for the first three years will be the actuals intimated to the Ministry of Railways (Railway Board) through the relevant statistical returns.

(2) Figures for the fourth year will be the program figures for that year as modified by the actuals up to the end of the latest month for which figures have been intimated to the Ministry of Railways (Railway Board) and by revised estimations (if any) for the subsequent months of that year. Reasons for modifications (if any) made should be very briefly indicated in a foot-note.

(3) Figures for the fifth year will be the program figures for that year, revised, wherever necessary, by anticipated changes in traffic estimations on which the program for that year was based. Reasons for modifications (if any) made should be very briefly indicated in a foot-note.

(4) Figures for the sixth year (i.e., the year to which the program relates) should be based on carefully prepared traffic estimates.


CHAPTER XV


15.21

1541. For the purpose of this statement, the term ‘Peak month' means the month in which the average train Kilometres per day (for all services) were the highest. In selecting the 'Peak month' for each year, regard should be had to the following considerations:

(1) Slight variations in the “average train Kilometres/day” may be ignored if thereby the selection of the same or closely preceding or following months (coinciding with the traffic trend) for all or most of the years can be secured.

(2) Variations in the “average train Kilometres/day” due to any unusual and non-recurring (i.e., not annually recurring) causes should not be lost sight of.

1542. Locomotives distribution by Kilometres groups. [Appendix V(b)]. The form in which this appendix should be submitted is given below. Figures to be shown should be for the ‘peak-months' of the years (1), (2) and (3), vide Form W.1539. The figures for the third year, i.e., the latest complete year, should be given in bold characters.

FORM W. 1542 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gauge

LOCOMOTIVES DISTRIBUTION BY KILOMETRES GROUPS Service types

Passenger Goods Shunting

(1) (2) (3) (1) (2) (3) (1) (2) (3)

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2

Num

ber

% o

f 1.1

2 Engines that ran Kilometres- within Kilometre groups as under– 1.1 Over 15,000 1.2 14,000-15,000 1.3 13,000-14,000 1.4 12,000-13,000 1.5 11,000-12,000 1.6 10,000-11,000 1.7 9,000-10,000 1.8 8,000-9,000 1.9 7,000-8,000 1.10 6,000-7,000 1.11 5,000-6,000 1.12 Below 5,000

1.13 Total . .


CHAPTER XV


15.22

Engines that ran no Kilometres – (having been) 2.1 Spare 2.2 Under repair 2.3 Stored

2.4 Total . .

1543. Age Statement of Locomotives. [Appendix V(c)]. The form in which this statement should be submitted is given below, with specimen entries. This statement should exclude replaced stock, stock broken up, the replacement of which is not required and the original cost of which will be written back from Capital to Revenue, and stock provision for the replacement of which has been made in the programs of previous years, but should include the stock provision for the replacement of which has been made in the Rolling-Stock Program in hand. Column 5 should show the age which the locomotives will attain in the year to which the program relates.

FORM W.1543 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gauge

AGE STATEMENT OF LOCOMOTIVES DIESEL ELECTRIC

Class Type

No. of locomotives of

each class broken up and not replaced

No. of locomotives of each class 20* years of age or

over in 2010-11

No. of locomotives of each class that will attain 20* years of age in

2011-12

Total of columns 3,

4 and 5

No. of locomotives of each class

that will attain 20* years of

age in 2012-13

No. of locomotives of each class that will attain 20* years of age in

2013-14

1 2 3 4 5 6 7 8

* for Diesel Electric Locomotives


CHAPTER XV


15.23

1544. Program of Coaching Stock [Appendix V(a)]. This appendix should be submitted in the form given below. Specimen entries of years have been made in the form. Replaced stock should be excluded from this statement and all figures should be shown in terms of four-wheeled units. Coaches which have passenger compartments as well as brake, luggage or postal compartments should be included in the class under which the passenger compartments fall. Composite passenger coaches should be included in the class to which the major portion of the coach is allotted. The actual number of spares required should be entered in columns 5, 6 and 7, and administration should be prepared to justify the numbers shown.

FORM W. 1544 ……………………………………………..………….Gauge

PROGRAM OF COACHING STOCK

Description

Estim

ated

Sto

ck o

n th

e lin

e on

June

30,

201

2 in

clud

ing

vehi

cles

san

ctio

ned

but n

ot p

lace

d on

line

Prob

able

num

ber o

f veh

icle

s re

quire

d fo

r nor

mal

trai

n se

rvic

es o

n Ju

ne 3

0, 2

011.

Estim

ated

add

ition

s re

quir

ed d

urin

g 20

12-1

3 to

dea

l with

in

crea

se o

f tra

ffic

on e

xist

ing

lines

and

new

line

s to

be

open

ed.

Num

ber

of s

pare

veh

icle

s ke

pt a

t sta

tions

to m

eet n

orm

al

day-

to-d

ay tr

affic

fluc

tuat

ions

.

Num

ber

of s

pare

veh

icle

s re

quir

ed fo

r se

ason

al tr

affic

and

sp

ecia

l res

erva

tion

(exc

ludi

ng m

ela

traf

fic).

Num

ber

of s

pare

veh

icle

s re

quir

ed fo

r Ei

d/U

rs/M

ela/

Spec

ial

trai

ns tr

affic

, add

ition

al to

thos

e sh

own

in c

ol. 6

ove

r an

d ab

ove

any

repl

aced

sto

ck a

vaila

ble

for

this

pur

pose

Und

ergo

ing

repa

irs.

Col

.8 a

s pe

rcen

tage

of c

ol.3

Plu

s co

l.4 P

lus

col.5

Plu

s co

l.6

plus

col

.7.

Gra

nd to

tal r

equi

red

in 2

012-

13.

Diff

eren

ce b

etw

een

col.2

and

col

.10

Exce

ss (+

) or

shor

tage

(-).

1 2 3 4 5 6 7 8 9 10 11 Main Line and suburbanStock– (a)Air Conditioned class (excluding tourist andinspection cars). (b) Lower class


CHAPTER XV


15.24

(c)Brake-vans, luggage vansand postal vans (d) Miscellaneous stock forpublic traffic (excluding touristand restaurant cars). (e) Miscellaneous stock fordepartmental use (includinginspection cars, inspector’s vans, stores vans, Relief trains, etc.) (f) Tourist and Restaurant Cars. (g) Military Cars Total Main Line and SuburbanStock.

(h)Special Stock for PublicTraffic. Rail Cars Trailers

Electric Multiple Units(EMUs) Upper Lower

Diesel Electric Multiple Units(DMUs) Upper Lower

Total Diesel Electric Stock

1545. Schedule of Coaching Stock Requirements. [Appendix V(b)]. The schedule of probable stock requirements for normal passenger train services should be submitted in Form No. W.1545 given below and should show the information as on 30th June of the year just previous to the financial year to which the program relates. The Pakistan Railways Standard Code Classifications should be adopted in filling this form.


CHAPTER XV


15.25

FORM W. 1545 ……………………………………………….…………Gauge

SCHEDULE OF PROBABLE STOCK REQUIREMENTS FOR NORMAL PASSENGER TRAIN SERVICE ON JUNE 30, 20……………….

Vehicles required to form rakes

Air conditioned Class Lower Class Brake Luggage

and Postal Vans

Restaurant/ Kitchen carsTrain Nos. in

links

Number of rakes employed

belonging to the administration

Total Stock employed in

rakes.

Add No. of through service

carriages employed on

trains.

Total Stock employed by

classes

Total stock employed under

4 heads, in vehicles and

four- wheeled units.

1546. Age Statement of Coaching Stock. [Appendix V(c)]. This statement should be prepared in Form No. W.1546 given below, with specimen entries. This statement should exclude replaced stock, Inspection Carriages for Railway Officers, stock broken up, the replacement of which is not required and the original cost of which will be written back


CHAPTER XV


15.26

from Capital to Revenue and stock, provision for the replacement of which has been made in the programs of previous years, but should include the stock, provision for the replacement of which has been made in the Rolling-stock program in hand. Saloons and other coaching vehicles having a useful life in excess of 30 years should be included in the statement, qualified with a suitable foot-note. Column 5 is intended to show the information in regard to the year to which the program relates.

FORM W.1546 .............................................................................Gauge

AGE STATEMENT OF COACHING STOCK

Class Bogie or

four-wheeled

No. of coaching

vehicles of each class broken up

and not replaced

No. of coaching vehicles of each

class 30 years of age

and over in

2011-12


class that will attain30 years of age in 2012-13

Total of Cols. 3, 4 and 5


class that will attain 30 years of age in 2013-14



1 2 3 4 5 6 7 8 Total vehicles..

Total 4-wheeled units.

1547. Statement of Inspection Carriages. [Appendix V(d).] The particulars which this statement should show are given in the form below, with specimen entries, assuming 2011-12 to be the year to which the program relates. The “hours” to be shown in this statement should be expressed in terms of hours per inspection carriage/day and based on duration of tours of all officers concerned as shown in travelling allowance bills for a period of not less than six months. Hours should be reckoned from time of commencement to time of completion of tours and should include all tours regardless of whether made in inspection carriages or public vehicles. When two or more officers tour in the same inspection carriage, the periods of tours of the officers concerned should be reckoned in


CHAPTER XV


15.27

the same manner as if they had toured independently of one another. For the purpose of calculating the average utilization the actual number of inspection carriages shown in column 3 should be taken. This statement should be confined to bona fide Inspection Carriages for the use of the Gazetted Officers on the cadre of the Pakistan Railways and should exclude carriages allotted to the Federal and Provincial Governments, Ruling Chiefs, Officers of the Ministry of Railways (Railway Board), Federal Government Inspector of Railways and Inspector General of Pakistan Railway Police.

FORM W.1547 ………………………………..……………….Gauge

INSPECTION CARRIAGES FOR OFFICERS

Class Authorized

Number

Actual Number on June

30, 2011

Excess (+) or

shortage (-)

Number included in column 3, 40 years of

age and over on June 30,

2011

Number included

in column 3 that will attain 40 years of age in

2011-12

Total of columns 5

and 6

Number included


2012-13

Number included


2013-14

1 2 3 4 5 6 7 8 9 Bogie Four-wheeler Number of officers using inspection carriages Administrative Officers Executive Officers Assistants

Total Average utilization

hours


CHAPTER XV


15.28

1548. Utilization Statement of Goods Stock. [Appendix V(a).] The utilization statement of goods stock should be prepared in Form No. W.1548 given below and should give the information for the four years preceding that in which the program is prepared. The tonne-kilometres and wagon-kilometres should be shown for the busiest single month of the year, the month being stated. Such proposals as are likely to reflect themselves in a material alteration of the trends shown should be outlined very briefly in 'explanatory notes' and demands for additional goods stock of miscellaneous types should, in addition, be justified separately in the "Detailed justification" on a basis of actual requirements.

FORM W.1548 ……………………………………………..…………….Gauge

UTILIZATION STATEMENT OF GOODS STOCK

Net tonne kilometres / wagon /day

Wagon kilometres / wagon/day

Average percentage of wagons under or awaiting repairs to total

number on the line Year

Tonne-kilometers

Month Kilometers Month In

Mechanical Workshops

In Transportation to/from workshops

and sick lines 20 . . - 20 . . 20 . . - 20 . . 20 . . - 20 . . 20 . . - 20 . . Explanatory Notes

1549. Age Statement of Goods Stock. [Appendix V(b).] The age statement of goods stock should be submitted in Form No. W.1549, shown below with specimen entries. Column 5 is intended to show information for the year to which the program relates. This statement should exclude replaced stock, stock broken up, the replacement of which is not required and the original cost of which will be written back from Capital to Revenue and Stock, provision for the replacement of which has been made in the programs of previous years, but should include the stock, the provision for the replacement of which has been made in the Rolling-stock Program in hand.


CHAPTER XV


15.29

FORM W.1549 …………………………………………………..……Gauge

AGE STATEMENT OF GOODS STOCK

Class Bogie or

four-wheeled

Number of goods

vehicles ofeach class broken /cut up and not replaced

Numberof goodsvehicles

of each class40 years

of age andover in 2011-12

Number of goods vehicles of each


Total of

columns3, 4 and

5

Number of goods

vehicles of each class that will attain

40 years of age in 2013-14

Number of goods

vehicles of each class that will attain 40

years of age in 2014-15

1 2 3 4 5 6 7 8 General Service Wagons Miscellaneous

Total vehicles Total 4-wheeled units.

1550. Program Statement of Locomotives. [Appendix VI.] The program statement of locomotives should be prepared in the form given below. The ‘units’ should be shown in terms of locomotives. The “tractive effort” should be the summation of the tractive effort of the locomotives shown in the ‘Units’ column and should be shown in thousands of Kilograms. The column “Reductions in authorization” should only show permanent reductions due to scrapping with no intention of ultimate replacement.


CHAPTER XV


15.30

FORM W.1550 …………………........................................................Gauge LOCOMOTIVES PROGRAM STATEMENT FOR 2011-12

Additions–New Lines–Appendix IV

Units

Program Item No.

For inclusion in Ministry of

Railway (Railway Board) call for tenders

Excluded from Ministry

of Railway (Railway Board) call for tenders

Tractive effort

Code Type Remarks

Total

Percentage of authorized total

Additions–Existing Lines

Units

Program Item No.

For inclusionin Ministry of

Railway (Railway Board) call for tenders

Excluded from Ministry of

Railway (Railway Board)

call for tenders

Tractive effort

Code Type Remarks

Total



CHAPTER XV


15.31

Renewals–Appendix II (a)

Stock for replacement Stock to be built on renewal account

Units Units

Program Item No.

Und

er 2

0* y

ears

of

age

20*

year

s ag

e an

d ov

er

Trac

tive

effo

rts

Cod

e

Type

For inclusionin Ministry of

Railways (Railway Board) call for tenders

Excluded from

Ministry of Railways (Railway Board)

call for tenders

Trac

tive

effo

rts

Cod

e

Type Remarks

Total


* for Diesel Electric Locomotives

Reduction of Stock

Units

Program Item No. Reduction in authorization

Scrapping without

immediate replacement

Tractive effort

Code Type Remarks

Total



CHAPTER XV


15.32

ABSTRACT Old locomotive to

be scrapped New locomotive to be obtained

Units

– Units

Tractive effort

For inclusion in Ministry of Railways

(Railway Board)’scall for tenders

Excluded from Ministry of Railways

(Railway Board)’s call for tenders

Tractive effort

Additions (New Lines) Additions (existing lines) Renewals Reductions

Total


1551. Coaching Stock Program Statement. [Appendix VI.] This statement should be submitted in Form No. W. 1551 given below. The 'units' should be shown in terms of four-wheeled carriages. The column "Reductions in authorization" should only show permanent reductions due to scrapping with no intention of ultimate replacement.


CHAPTER XV


15.33

FORM W.1551 ……………………………………………………….Gauge

COACHING STOCK–PROGRAM STATEMENT FOR 2011-12 Additions–New Lines–Appendix IV

Passengers Cars required

Number of Carriages available


Railways (Railway Board) call for tenders

Excluded from

Ministry of Railways (Railway Board) call for tenders

Program Item No.

Units

Bogie stock

Four-wheeled stock

Bogie stock Bogie stock

Code Type Remarks

Total units

Percentage of authorized total units


CHAPTER XV


15.34


Carriages required

Number of Carriages available


Railways (Railway Board)

call for tenders


(Railway Board) call for tenders

Program Item No.

Units

Bogie stock

Four-wheeled stock


Code Type Remarks

Total units

Percentage of authorized total units


CHAPTER XV


15.35

Renewals–Appendix II(a) Stock for replacement Stock to be built on renewal account

Units Number of Carriages

required Remarks

Number of Carriages under

construction (ongoing)

for inclusion in Ministry of

Railways (Railway Board)

call for tenders

Excluded from

Ministry of Railways (Railway Board)

call for tenders


30 years of age

30 years of age and over

Cod

e

Type

Bogie stock Bogie stock Bogie stock

Cod

e

Type

Total Units Percentage of authorized total units.

Reduction of Stock

Units

Program Item No. Reduction in

authorization

Scrapping without


Code Type

Total Units Percentage of authorized total units.


CHAPTER XV


15.36

ABSTRACT

Number of Carriages required

Old stock to

be scrapped

Number of Carriagesavailable


Railways (Railway Board) call for

tenders

Excluded from Ministry of

Railways (Railway Board) call for

tenders

Units Bogie Stock

Four-wheeled

stock Bogie Stock Bogie Stock

Additions (New Lines) Additions (Existing Lines) Renewals Reductions

Total Units

Percentage of authorized total units.

1552. Goods Stock Program Statement. [Appendix VI.] The program statement for Goods Stock should be submitted in Form No. W.1552 given below. The “carrying capacity” should be the summation of the carrying capacity of the units shown in the adjacent columns and should be shown in hundreds of tonnes load. The ‘units’ of ‘stock for replacement’ and ‘reductions of stock’ should be given in terms of four-wheeled wagons. The column “Reductions in authorization” should only show permanent reductions due to scrapping with no intention of ultimate replacement.


CHAPTER XV


15.37

FORM W.1552 …………………………………………………………..Gauge GOODS STOCK PROGRAM STATEMENT FOR 2011-12

Additions–New Line–Appendix IV

Units For inclusion in

Ministry of Railways (Railway

Board)call for tenders



Program Item No.


Carrying Capacity

Code Type Remarks

Total Percentage of authorized total.




Board) call for tenders



Program Item No.


Carrying Capacity

Code Type Remarks

Total Percentage of authorized total.


CHAPTER XV


15.38

Renewals–Appendix II(a)

Stock for replacement Stock to be built on renewal account

Units Units For

inclusion in Ministry

of Railways (Railway




Car

ryin

g C

apac

ity

Program Item No.

Und

er 4

0 ye

ars

of a

ge

40 y

ears

age

and

ove

r

Car

ryin

g C

apac

ity

Cod

e

Type

Bogie stock

Bogie stock

Cod

e

Type

Rem

arks

Total Percentage of authorized totals.

Reduction of Stock

Units

Program Item No. Reduction in

authorization

Scrapping without


Carrying capacity

Code Type Remarks

Total Percentage of authorized total


CHAPTER XV


15.39

ABSTRACT Old stock to be

scrapped New stock to be built






Unit

Carrying capacity


Carrying Capacity

Additions (New Lines)

Additions (Existing Lines)

Renewals

Reductions

Total

Percentage of authorized total.

1553. Progress Statement. [Appendix VII.] This statement is designed to show the progress in construction and supply of rolling-stock and should be prepared in Form No. W. 1553 given below. The information in this statement should be given in respect of the year in which the program is prepared. The units of Coaching and Goods Stock should be shown in terms of four-wheeled vehicles.


CHAPTER XV


15.40

FORM W.1553 ……………………………………………………….…Gauge

PROGRESS DEPARTMENT Progress in construction and supply of rolling-stock during the year ending

June, 2012

Stock sanctioned by the Ministry of Railways (Railway Board) but not placed on line B. FINAL PROGRAM

Units

Stock for which tenders have not been accepted or constructions not commenced Units

Stock for which tenders have not been accepted or constructions in

hand or completed Units

Stock placed on line during the year up to

June, 20…….. Units

Description (by types).

Add

ition

s

Ren

ewal

s

Financial year

sanctioned Add

ition

s

Ren

ewal

s

Financial year

sanctioned Add

ition

s

Ren

ewal

s

Percentage of labour

expended on stock being constructed in Railway workshops

Additions Renewals

Remarks

Locomotives

Totals

Boilers

Totals

Coaching Stock–

Totals

Totals


CHAPTER XV


15.41

B. FINAL PROGRAM 1554. The preliminary programs, having been scrutinized by the Ministry of Railways (Railway Board), are discussed by them with the General Managers of Railways and such of the items as, in the opinion of the Ministry of Railways (Railway Board) are not considered essential or not fully justified, are either omitted from the program or the Pakistan Railways Administration is called upon to furnish further justification or such other information as may be considered necessary by the Ministry of Railways (Railway Board). On receipt of further information from Pakistan Railways Administration, the Ministry of Railways (Railway Board) finally decide, upon the items of rolling-stock expenditure which should be undertaken during the next financial year and draws up a program for Pakistan Railways accordingly in the form and in the detail in which the budget estimates are prepared to be presented to the National Assembly. The individual items included in the program are processed for approval by competent forum Departmental Development Working Party (DDWP), Central Development Working Party (CDWP), Executive Committee and National Economic Council (ECNEC).

1555. The programs, as accepted by the Ministry of Railways (Railway Board) are submitted for the approval of the Ministry of Finance and after making such amendments as may be desired by the Ministry of Finance the final programs are placed before the Ministry of Finance for approval.

1556. As soon as the programs have been approved by the Ministry of Finance Pakistan Railways Administration is authorized to enter into commitment for the next financial year, provided that no actual expenditure is incurred on the items included in the program before the commencement of that year.

1557. The programs as approved by the Ministry of Finance are subject to further modifications which may become necessary due to one or other of the following reasons:

(1) If any item of rolling-stock ordered for delivery in the current year is not delivered before the end of the year and remains unpaid, it becomes necessary to provide money in the program for the next year for such of the items as will be delivered in that year.

(2) Later information may suggest alterations in the estimated prices at which stock can be purchased.

(3) When owing to the early date on which the programs are prepared, other modifications may be found necessary during the course of the year.


CHAPTER XV


15.42

1558. It is however important that the programs to be finally placed before the National Assembly should present as correct an estimate of rolling-stock expenditure, as possible and that any modifications which may have to be made therein should be made, as far as possible, before the programs are presented to the National Assembly in the form of rolling-stock budget. 1559. In order to ensure this being done, detailed estimates should be prepared by Railway administration for all items of "additions and renewals" provided for in the programs, and checked by the Accounts Officer. The Accounts Officer should particularly examine that there are no items which, under the rule, should have been treated as 'renewals’ instead of 'additions' and that “renewals” for which there is inadequate financial justification (vide Chapter VII of the Pakistan Railways General Code), are not undertaken, except with the special sanction of the Ministry of Railways (Railway Board). If such a “renewal” has been provided for but no commitments have been entered into, the provision for such renewal should be omitted from the program. If, however, commitments have been entered into, such stock should, after replacement, be brought on to the list of 'Replaced Stock' and should not be broken/cut up as long as it can be utilized profitably. This would make it necessary to exclude from the program the provision made for credit on account of released materials. 1560. Any modifications in the programs, necessitated by the examination of detailed estimates prepared under the preceding paragraph, should be communicated to the Ministry of Railways (Railway Board) on or before the prescribed date to admit of their incorporation in the rolling-stock budget to be presented to the National Assembly. 1561. In urgent cases where it is proposed to build additional rolling-stock or carry out renewals of stock not included in the sanctioned budget, application for sanction should be made by letter, which should contain the same particulars in respect of the proposal as are given in rolling-stock programs. The sanction communicated by the Ministry of Railways (Railway Board) in reply to such a letter will constitute their administrative approval and the amount sanctioned by them should be regarded as the abstract estimate sanctioned by them.


CHAPTER XV


15.43

C. BUDGET AND REVISED ESTIMATES 1562. Budget Estimates of Open Line Works. The rolling-stock program, as approved by the Ministry of Finance (paragraph 1556) and as finally modified as a result of subsequent information furnished by the Pakistan Railways (paragraph 1557), forms part of the Budget Estimate of Demand No. xxx, capital outlay of Pakistan Railways (Open Line Works) to be presented by the Ministry of Railways (Railway Board) to the National Assembly. This estimate shows also the expenditure, chargeable to Capital and Replacement account, on Works, other than rolling-stock and on “Work in Progress”. The program of open line works (other than rolling-stock), chargeable to Capital and Replacement account proposed to be undertaken in the workshops during the next financial year, should be prepared in the form and in accordance with the general instructions contained in Chapter XXI of Pakistan Railways Code for the Engineering Department in time for the submission of the preliminary program. For instructions regarding the Revised and Budget Estimates of “Work in Progress” see paragraphs 1564 to 1567. 1563. Revised Estimates of Open Line Works. The revised estimates of expenditure on open line works (including rolling-stock) for the current year should be prepared in the form and in accordance with the instructions contained in paragraphs 2133 to 2138 of Pakistan Railways Code for the Engineering Department and submitted to the Ministry of Railways (Railway Board), in triplicate, so as to reach them, unless otherwise authorized, on or before the prescribed date each year. For the preparation of the revised estimates, a forecast of expenditure on Works and Rolling-stock for the current year should be prepared and submitted to the General Manager on such date as may be prescribed by him. A list showing the particulars of works “in progress” and “under order” and another showing particulars of works on which commitments have been incurred should accompany this forecast. A third list should also be attached showing separately the approximate figures of the cost of works which are considered essential and those which can be postponed to a later year if conditions necessitate the restricting of expenditure to the sanctioned grant. Each work must be scrutinized as closely as possible with due regard to:

(1) the progress as regards supply of assemblies, rebuilding kits, spares, machinery, etc., from abroad.

(2) The probable arrival of locomotives, locomotive kits, carriages, wagons &

material etc., as given in the contracts which have been let out, and


CHAPTER XV


15.44

(3) the progress expected to be made on works in hand in shops, i.e. which of the works will be completed by the end of the current year and which of them will be carried forward to next year and what progress will be made on the latter during the current year.

1564. Revised and Budget Estimates of Stores Transactions. The Revised and Budget estimates of Stores Transactions are compiled by the Chief Controller of Stores. The Works Manager should supply the Chief Controller of Stores such information as may be required by him in connection with the purchase of stores required for use on works to be executed in workshops.

1565. Revised and Budget Estimates of Manufacture Operations. The Revised and Budget Estimates of manufacture operations should be compiled in Form W.1565 and submitted to the Chief Mechanical Engineer. The form provides for the inclusion of items relating to the Printing Press and the Mechanical Engineering Workshops (including the opening and closing balances relating to such items, though not shown separately). The following instructions for the preparation of the form may be found useful:

(1) Material and Stores (from stores suspense) Debits. Against this item should be provided the cost of stores anticipated to be drawn from stock. The figures provided against this item should agree with the corresponding figures provided in the Estimates of Stores Transactions under Issues to work in progress and should be estimated for , as laid down in paragraph 3108 of Pakistan Railways Code for the Stores Department .

(2) Advances to others by Railways–Debits and Credits. The anticipated debits and credits under the head Advances to others by Railways in the Capital Account should be provided for against this item. This head, though not affecting Works in Progress, has been included in form W.1565 to complete the estimate of ‘control’ heads affecting the Capital grant.

(3) Capital Stores–Credits. Against items (1) and (2) under this heading, should be provided the anticipated cost of stores to be manufactured for stock. The cost of stores to be returned from Workshops to Stores by locomotive and carriage and wagon shops the credit for which is to be afforded to “work in progress”, should be shown against item (5). The figures shown under this head should agree with the figures taken in the Estimates of Stores Transactions on account of Receipts from workshops (paragraphs 3123 and 3124 of Pakistan Railways Code for the Stores Department).


CHAPTER XV


15.45

(4) Revenue Credits. The provision under this head should agree with the provision made in the estimates of repair and maintenance of diesel locomotives and carriages (Revenue Abstracts B and C) against the head (1) ‘Workshop repairs’ under (a) ‘Rolling-stock’, (b) “Equipment” and (2) “New Minor works”.

(5) The Anticipated Balance is the difference between the grand total on the debit side and the total credits during the year.

(6) The Net Debits / Credits during the year is the difference between the total debits and the total credits during the year, i.e., the difference between the opening and closing balances.

FORM W.1565

Demand No. xxx Pakistan Railways. “WORKS IN PROGRESS” …………….. PAKISTAN RAILWAYS

(To be dispatched in triplicate so as to reach the Ministry of Railways (Railway Board) on the prescribed date without fail). (Figures in thousands of rupees)

Debits

Act

uals

, 201

0-11

Bud

get,

2011

-12

Rev

ised

Est

imat

e, 1

2011

-12

Bud

get E

stim

ate,

201

2-13

.

Credits

Act

uals

, 201

0-11

.

Bud

get,

2011

-12.

Rev

ised

Est

imat

e, 2

011-

12.

Bud

get E

stim

ate,

201

2-13

.

1 2 3 4 5 6 7 8 9 10 Rs Rs Rs Rs Rs. Rs. Rs. Rs.

Balance at debit of manufacture at commencement of year. Balance at debit of

Credits during the year

I.– To Works, Capital and Replacement Account– (1) Locomotive Rolling-stock.


CHAPTER XV


15.46

advances by Railways at commencement of year. Total

(2)Carriage and Wagon Rolling-stock (3) Engineering and Structural Works. (4) Plant and Equipment.

Total Works

Debits during the year I.– Locomotive Workshops– (1) Payment of Shop labour, etc. (2) Material and Stores. (3) Erection by Contract with outside Agencies.

II.–To Capital Stores “Work in Process”. (1) Locomotive Shops. (2) Carriage and Wagon Shops. (3) Engineering Shops (4) Other Manufactures. (5) Released material returned to stock.

Total Locomotive Shops

Total Stores

II.–Carriage and Wagon Workshops– (1) Payment of Shop labour, etc. (2) Material and Stores. (3) Erection by Contract with outside Agencies.

III.–To Revenue– (1) Repairs of Locomotive Rolling-stock. (2) Repairs of Carriage and Wagon Rolling-stock. (3) Repairs of Plant (4) Engineering and Structural Works. (5) Miscellaneous Manufactures for Revenue.

Total Carriage and Wagon Shops

Total Revenue


CHAPTER XV


15.47

IV.–Work done for Foreign Railways, Government Department and the Public– (1) Locomotive Shops. (2) Carriage and Wagon Shops. (3) Other Shops

III.–Engineering Workshops– (1) Payment of Shop labour, etc. (2) Material and Stores.

Total Foreign Railways etc.

Total Engineering Workshops

V.– Advances by Railways–

Total Credits during the year. Anticipated balance at close of the year

Grand Total

IV.–Other Manufactures– (i) Electrical Workshops–

(1) Payment of Shop labour, etc.

(2) Material and Stores.

Net Debit or Credit during the year, being Budget allotment required

(ii) Signal Workshops.

(1) Payment of Shop labour, etc


(iii) Printing Press

(1) Payment of Shop labour, etc.


Total “Work in Process”

V. Advances by Railways

Total Debits during the year.

Grand Total


CHAPTER XV


15.48

1566. The provision against the various items on the debit and credit sides should be estimated for the current year on the basis of the total actual expenditure under each head after taking into consideration the change in the program of works both relating to Capital and Revenue. The provision for the ensuing year should be based on the figures of revised estimates of the current year, after taking into account the program of works for that year and also, in the case of labour, of all grade increases, appointments, retrenchments, etc., to be given effect to during that year. 1567. A brief narrative explanation of the differences between the opening and closing balances should be given. Special features of the estimates, if any, should be brought out clearly and full explanations furnished indicating the amounts in each case. 1568. Revised and Budget Estimates of Working Expenses. The following revised and budget estimates of working expenses in respect of the workshops should be prepared by the Deputy Chief Mechanical Engineer or the Works Manager and submitted to the General Manager, through the Chief Mechanical Engineer, on such dates as may be prescribed by the General Manager. In the preparation of these estimates, the general rules laid down in Chapters IV and V of the Pakistan Railways General Code should be followed. 1569. Pakistan Railways organized on a Divisional basis, the estimates under these demands for each Division would be prepared separately by the Divisional Superintendent and submitted to the Chief Operating Superintendent. The estimates relating to the Locomotive and Carriage and Wagon Departments would be forwarded by the latter to the Chief Mechanical Engineer who is ordinarily responsible for the consolidated estimate for the whole railway, including workshops. 1570. Final Re-appropriation Statement. It is necessary that expenditure on each individual work in each financial year should be covered by a budget provision or appropriation. In the month of March, or earlier if desired by the General Manager, a final reappropriation statement showing the revised requirements for each work as compared with the Pink Book provision should be submitted through the Workshop Accounts Officer to the General Manager for sanction. Similarly, a final re-appropriation statement for funds required under detailed heads should be submitted to the General Manager for his sanction.


CHAPTER XV


15.49

1571. Grant Register. The grants communicated by the General Manager and the Chief Mechanical Engineer from time to time should be entered in a Grant Register (W.1571) under the several heads for which they are allotted. The entries in this register should be attested by a gazetted officer. In the case of appropriation and reappropriation from the grants under each primary head, it should be seen that such appropriations and reappropriations are, in each case, sanctioned by competent authority, that the amount appropriated is available under the unit from which it is allotted and that no violation of the rules on the subject is involved.

FORM W.1571 GRANT REGISTER FOR THE YEAR 20……

Demand No. xxx. Capital outlay on Pakistan Railways (Open Line Works)

Pakistan Railways working expenses

Works costing over Rupees 1,000,000 each

Works costing Rupees 1,000,000 and under each

Total

Seri

al N

o.

Aut

hori

ty

Capital Replacement Capital Replacement Stor

es.

Man

ufac

ture

.

Cap

ital

Rep

lace

men

t

Tota

l

1572. Financial Reviews. With a view to keep an effective control over the revenue and capital expenditure from month to month, monthly statements or “Financial Reviews”, showing the progress of expenditure as compared with the budget grant should be prepared in accordance with the instructions contained in Chapter VIII of Pakistan Railways General Code, and sent to the Chief Mechanical Engineer through the Financial Adviser and Chief Accounts Officer, every month, by such date as may be fixed by the former. In the case of repairs to rolling-stock, the budget proportion to the end of each month should be based on the monthly quota of outturn and the rate fixed for repairing each unit of rolling-stock; and in case of heads like leave-salary, the actual events, e.g., of officer proceeding on leave, should be taken into account. In the financial review for a


CHAPTER XV


15.50

month in which periodical adjustments (e.g., provident fund contribution, stock adjustment account) have to be made, the probable amount of adjustments should be based on past experience. In other cases, the budget proportion should be worked out on the basis of the average of twelve months. The financial review for capital expenditure should be supported by detailed statements showing the progress of expenditure under “Stores” and “Works in Process” as compared with the modified grant.

CHAPTER XVI

20 October, 2011

PAKISTAN RAILWAYS




CHAPTER XVI

WORK IN PROCESS ACCOUNT

34

CONTENTS


PARA NO.

COMPILATION OF WORK IN PROCESS ACCOUNT 16.1 1601

SUBSIDIARY LEDGERS FOR WORKSHOP COSTING 16.1 1601A

CHECK SHEET 16.2 1602 (1603 Deleted)

RECORDING OVERHEAD CHARGES 16.3 1603A (1604 Deleted)

WORK IN PROCESS REPORT 16.3 — 16.7 1605 — 1614 (1609 Deleted)

WORKSHOP DEPOSIT SCHEDULE 16.7 1615

WORKSHOP ACCOUNT-CURRENT (WORK IN PROCESS ACCOUNT)

16.8 — 16.9 1616 — 1619 (1618 Deleted)

REVIEW OF WORK IN PROCESS ACCOUNT 16.9 1620

IRREGULAR BOOKING OF CHARGES 16.10 1621

WORKSHOP SUBSIDIARY BALANCE REGISTER 16.10 1622 (1623 Deleted)

RECONCILIATION WITH THE GENERAL BOOKS 16.10 1624

REVIEW OF BALANCE UNDER “WORK IN PROCESS ACCOUNT”

16.11 1625 — 1626


CHAPTER XVI


16.1

1601. Compilation of Work-in-process Account. (i) The work Summary of Labour Distribution Statements and Material Requisitions (MRs) having been received as indicated in paragraph 711A and 808A, the totals of (a) the Labour charges and (b) the Stores and Miscellaneous charges, for the month, relating to each work order should be debited to the Work In Process Account by recording under the relevant work orders, shop by shop (cost centre wise), care being taken to see that no item is left out in posting. (ii) Credits to Work-in-process Account will be recorded at the time of completion of work orders on the basis of completion reports (W.1249). (iii) These postings will be made in relevant sections of the “Subsidiary Ledgers for Workshop Costing”, which will be linked with the “Work In Process Account (NAM Code F03306)” in the Chart of Accounts of Pakistan Railways. (iv) After all the transactions have been recorded in the Work-in-process Account a Work In Process Report will be prepared in Form W. 1605 which will show the work order wise position of jobs in hand and completed in the workshops. The aggregate of all the jobs in hand and completed in the workshops will be reported through the Workshop Account Current Form W. 1616. 1601A. Subsidiary Ledgers for Workshop Costing. (i) The Subsidiary ledgers are based on a coding scheme (Form W. 1601A) through which a transaction is recorded in each section of the subsidiary ledgers for each work order. The procedure for recording transactions in the subsidiary ledgers, is described vide para. 02.23 of Master Scheme of Codification, Section 02 of Accounting Manual.

FORM W. 1601A

SUBSIDIARY CODING SCHEME FOR WORKSHOP COSTING

Shop/Unit Cost Centre NAM Code

Work Order No. Code Description Code Description

F03306 8xxxxxxxxxxxxx 01 Locomotive Shop

7000 FO.M.W-LOCO SHOPS

9xxxxxxxxxxxxx and so on …. and so on …. and so on ….


CHAPTER XVI


16.2

Cost Type

Description Code Description

Code Description Rupees

01 Material 000000001 Description of inventory item 02 Labour A01151000 Basic Pay

A01152000 Personal Pay 03 Overheads Actual NAM Code

used Relevant NAM account head 04

Overheads Allocated NAM Code

used Relevant NAM account head 05 Estimated Cost

1602. Check Sheet. Simultaneously with the posting of the subsidiary ledger for costing, a summary of all the source documents (Direct Labour and Direct Material) called the Check Sheet should be prepared on form (W.1602) given below. This is done with a view to check the correctness of the postings of Labour and Stores charges, including Miscellaneous charges, in the Subsidiary Ledger for Costing, and to ensure that the amounts are correctly transferred to the Work In Process Report (W. 1605) Parts I and II against each work order operated upon in the Workshop during the month (c. f. paragraph 1606). The check sheet should be totalled down and crosswise. The grand total of the check sheet for the month under “labour” should be equal to the total of the amounts appearing in the Summary of Labour Distribution Statements (W. 711A) and that under “Stores” should be equal to the total debits appearing in the Summary of Material Requisitions (Departmental Summaries of Issues) (S-2702).

FORM W. 1602 CHECK SHEET FOR THE MONTH OF …………………………………..

W.O.No.1 W.O.No.2 W.O.No.

a,b,c Total

Shop/Cost Centre

No.

L. S. L. S. L. S. Labour Stores

1 .. .. 2 .. .. 3 .. .. 4 .. .. 5 .. ..

And so on .. .. Total ..

1603. Deleted.


CHAPTER XVI


16.3

1603A. Recording Overhead Charges. The actual overhead charges (Administrative, General and Shop) will be initially recorded in Subsidiary Ledger for Costing by debiting the Work Orders used for recording overhead costs (para 1012.W). These actual overheads will then be allocated to different work orders, on the basis of allocation principles for each category of overhead (paras W. 907A, 907B and 908A respectively), and corresponding credit will be given to the Work Order used for recording overhead costs. 1604. Deleted. 1605. Work In Process Report. The total (debits) for the month in respect of each work order under Labour, Stores and Overhead charges will be reported in Form (W.1605) which will be prepared showing all the work orders, whether in hand, or completed, in the workshops, the outlay on which is awaiting adjustment; and the expenditure that has been incurred on each of them. This statement is necessary for the purpose of charging the total expenditure incurred in the workshops to the account heads concerned.

FORM W.1605 WORK IN PROCESS REPORT

FOR THE MONTH OF……….. 20……..

Previous expenditure

Charges during the month

Overheads

Wor

k or

der N

o. a

nd a

lloca

tion.

Aut

hori

ty.

For

who

m e

xecu

ted.

Part

icul

ars.

Estim

ate.

Ope

ning

bal

ance

Adj

uste

d du

ring

the

mon

th.

Una

djus

ted.

Labo

ur.

Stor

es.

Act

ual

Allo

cate

d

Tota

l.

Tota

l to

date

.

Cre

dits

dur

ing

the

mon

th.

Clo

sing

bal

ance

.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Total

Compiled by ……………………………… ….…….……………………. Checked by……………………………….. Workshop Accounts Officer


CHAPTER XVI


16.4

1606. The postings in the Work in Process Report (W.1605) of the charges for the month against each work order should be compared with those in the Check Sheet (W.1602). This comparison will bring out errors, if any, in the posting of the Subsidiary Ledger for Costing (W.1601-A) from various source documents, as also of the Work In Process Report from the Subsidiary Ledger for Costing, which should be investigated and rectified. The method of comparison is illustrated by the following chart:

1607. The Work In Process Report (W. 1605) should be prepared in two parts–Part I and Part II. Part I will show all outlay (separately against each work order) adjustable during the month and Part II will show outlay on works in progress and completed works which are awaiting acceptance by the parties ordering them. 1608. Part I of this report should be arranged and posted under the following heads:

Part I–(Adjusted items)

I. Capital Works / Projects

(i) Locomotives. (ii) Boilers. (iii) Coaching Vehicles. (iv) Goods Wagons. (v) Loco Machinery and Plant. (vi) Carriage and Wagon Machinery and Plant.


CHAPTER XVI


16.5

II. Replacement Works / Projects III. Capital Stores

(i) Manufacturing Stores. (ii) Returned Stores.

IV. Revenue Account

(i) Locomotives. (ii) Passenger Carriages. (iii) Other Coaching Vehicles. (iv) Goods Vehicles (v) Locomotive Machinery, Tools and Plant. (vi) Carriage and Wagon Machinery, Tools and Plant. (vii) Service Motor Cars. (viii) Furniture and office equipment. (ix) New Minor Works.

V. Work done for

(i) Divisions, (ii) Railway Departments, (iii) Foreign Railways, if any, (iv) Other Government Departments and Public Bodies, and (v) Pakistan Railways employees.

1609. Deleted. 1610. The following are the classes of expenditure for which bills have been accepted before adjustment:

(1) Outlay on works executed for other departments of the Railway. (2) Outlay on works executed for foreign railways, if any. (3) Outlay on works executed for other Government Departments. In all these cases the outlay incurred will remain outstanding in Part II till such time as the bills issued against the parties concerned are received back duly accepted. Such of the items as have been accepted should be shown in Part I of Work In Process Report in the month in which the acceptance has been received and the necessary debits raised


CHAPTER XVI


16.6

against the parties concerned in the same month’s account. (In the case of works executed for the other departments of the Railways, the debits may, if found convenient, be adjusted in anticipation of the acceptance of the bills issued.) 1611. Part II of the Work In Process Report should be classified under the following heads:

Part II–(Awaiting acceptance)

(1) Manufacturing works.

(2) Stores Department works.

(3) Works done for the Departments of Railways and Divisions.

(4) Works done for Foreign Railways, if any, other Government Departments, Railway Employees and private bodies.

(5) Deleted.

1612. In preparing Parts I and II of the Work In Process Report the following procedure will be found convenient:

Part I– (i) Such of the items relating to previous months as are to be adjusted during the month should be equal to the closing balance of Work In Process Report Part II of the previous month and shown in column 8 of Part I and columns 6 and 7 of Part II of the month concerned. (ii) Outlay relating to a month and cleared in the same month should be shown against the respective work orders in columns 9 to 13 of Part I. Part II– (iii) “Previous Expenditure” in respect of items other than those falling under (i) above should be equal to the closing balance of Work In Process Report Part II of the previous month. (iv) “Expenditure during the month” should be posted from the Subsidiary Ledger for Costing.


CHAPTER XVI


16.7

1613. The two parts of the Report (Parts I and II) should be totalled down and crosswise. A summary as per Chart of Accounts, showing the total expenditure chargeable to various heads of account, should be prepared in the case of Part I. A similar summary by the various heads described in paragraph 1611 should be prepared in the case of Part II. These summaries should form part of the respective parts of Work in Process Report. 1614. The total of the summary of Part II should be carried over to that of Part I and the total of the two parts exhibited in the latter. 1615. Workshop Deposit Schedule. With a view to ensure that no private work is undertaken in the shops without the necessary deposit being received in advance as required under the rules (paragraph 1217) and to watch the progress of expenditure against deposit on each case, a “Deposit Schedule” in form W.1615 should be prepared every month. The column “Balance of deposit” of the form should be posted from the closing balance shown in the previous month’s schedule, the column “deposits during the month” should be filled from the intimations of deposits received during the month, care being taken to see that the total of this column agrees with the corresponding credits to “Deposit works for private and public bodies (G 11293)” in respect of works to be executed in the workshops, and the column “Debits during the month” should be posted from the Work In Process Report Part I.

FORM W.1615 WORKSHOP DEPOSIT SCHEDULE FOR THE MONTH OF …………..20…….

Work order

No. Date Particulars

By whom

ordered

Balance of

deposit from

previous month

Deposit during

the month

Total

Debits to

deposit during

the month

Balance at credit

of deposits

at the end of

the month

Remarks.

1 2 3 4 5 6 7 8 9 10


Total

……………………………… Workshop Accounts Officer


CHAPTER XVI


16.8

1616. Workshop Account-Current (Work In Process Account). An Account-Current of all the transactions pertaining to “Work In Process Account” for each Workshop should be prepared monthly in form W.1616, given below. This account should show the total debits and credits to the Work In Process Account, under the heads provided in the form, and the opening and closing balances.

FORM W.1616

WORKSHOP ACCOUNT-CURRENT OF………….SHOPS FOR THE MONTH OF ……………..

Debits. Credits.

Particulars Details Amount Total Particulars Details Amount Total

1 2 3 4 5 6 7 8

(i) To opening balance.

(ii) To labour (iii) Deleted (iv) To stores (v) To Overheads. (vi) To workshop

transfers. (vii) Deleted. (viii) Deleted. (ix) Total debits

during the month.

(i) By Capital works / projects

(ii) By works chargeable to Replacement / projects.

(iii) By Revenue works & operations.

(iv) By work done for the Stores Department.(i) Manufactured material (ii) Returned stores.

(v) By work done on Deposit Account (Deposit works for private and public bodies (G11293).

(vi) By work done for Railways Divisions and Departments. (Transfer within the same railways).

(vii) Deleted. (viii) By work done for

other workshops (Transfers within the same railways).

(ix) Total credits during the month.

(x) By closing balance.

Grand Total .. Grand Total ..

………………………………. Workshop Accounts Officer.


CHAPTER XVI


16.9

1617. For preparing the Account-current the following instructions should be observed:

(1) Posting the debit side: (i)“Labour”. The figures appearing in the Labour schedule (W.714) should be reconciled with the amounts posted against this head. (ii) Debits to Work In Process Account which comprise of the contractors’ bills for direct purchase, etc., motor license fees, municipal taxes, etc., should be reconciled with the total of such charges posted in the Monthly Classified Abstract of Cash Transactions (A.1106). (iii) “Stores” charges should be reconciled with the Summary of Material Requisitions. Note. Deleted. (v) “Other Charges” including Intershop transfers should also be posted from the Summary of Material Consumption Reports (W.827). (vi) Total amounts appearing under the cost type overhead actual and overhead allocated in subsidiary ledger for costing should appear against this head.

(2) Posting the Credit Side. The credit side should be reconciled with the Part I of

Work In Process Report (W.1605), and should be supported by the detailed schedules. The closing balance should be worked out by deducting total credits during the month from the total debits including the opening balance and it should agree with the balance shown in the Work In Process Report (W.1605) Part II.

1618. Deleted.

1619. After the “Work In Process Account” has been prepared, the outstanding balance of work orders for other Government Department and private bodies will be worked out. These balances should be tallied with the corresponding balances in the Work In Process Report. Discrepancies, if any, should be promptly investigated. Special efforts should be made to clear up irregular balance, if any (paragraph W.1621).

1620. Review of Work In Process Account. The Work In Process Account (W.1601-A) should be reviewed monthly to see that all works shown therein are current. The work orders on which no expenditure has been booked for three consecutive months should be reported to the Works Manager and advice of completion called for (see also paragraph 1035).


CHAPTER XVI


16.10

1621. Irregular booking of charges. On receipt of an advice of completion of a work order from the Works Manager, the date of completion should be noted against that work order in the Work In Process Account (W.1601). If charges are booked by the shops against a work order which has previously been reported as completed, the matter should be reported to the Works Manager and steps taken to rectify the irregular booking. 1622. Workshop Subsidiary Balance Register. The balance under Work In Process Account operated upon in the Workshop Accounts Office should be reconciled and proved with the General Books of the Railway every month. For this purpose a subsidiary register should be maintained in the following form, in which should be shown opening balances, debits and credits during the month and the closing balances. The debits and credits should be posted form the Journal (A.1107). The correctness of the balances in this register should be certified by the Books Section. Any discrepancy found as a result of this reconciliation should be promptly investigated and the Subsidiary Balance Register (W. 1622), together with the result of reconciliation, put up to the Workshop Accounts Officer within 10 days of the close of the account for the month.

FORM W.1622

WORKSHOP SUBSIDIARY BALANCE REGISTER HEAD OF ACCOUNT…………………..

Month Opening

balance Debits Credits

Closing

balance


1623. Deleted.

1624. Reconciliation with the General Books. The balance under Work In Process Account appearing in the Account Current (W.1616) should be compared with the corresponding balances shown in the Workshop Balance Register (W.1622). The differences between these figures should be analysed and Discrepancy Statement prepared in the following form. The discrepancies should be investigated and necessary adjustments carried out to clear them. Special attention should be paid to old discrepancies. The Discrepancy Statement together with the Account-Current should be put up to the Workshop Accounts Officer every month. The action taken to clear the discrepancies should be stated in the “Remarks” column of the Discrepancy Statement.


CHAPTER XVI


16.11

FORM W.1624

DISCREPANCY STATEMENT OF WORK IN PROCESS ACCOUNT ……………… shops ……….. for the month of …………….

Item Particulars Month in which the

discrepancy originates More in account

Less in account

Remarks

Rupees Rupees

Total ..Deduct column less in account ..

Net difference ..

1625. Review of Balance under “Work In Process Account”. The balance under the “Work In Process Account” should be reviewed monthly to see:

(1) that all the items are current and have been undertaken after the issue of a proper work order, under the sanction of a competent authority;

(2) that the details consist of nothing else except labour, material and

overhead charges expended on unfinished jobs or completed jobs awaiting adjustment;

(3) that there are no credit items in the detail of balance and if there are any

such items, they are noted for immediate adjustment;

(4) that in the case of jobs undertaken for outsiders, a sufficient deposit has been made, where such a deposit is required by rules, and on the first appearance of a work it is seen that an estimate is on record, containing the extra percentage charges required under the rules, and accepted by the party ordering the work; and

(5) that there are no inefficient balances and the adjustments in respect of

“differences between actual and estimated cost of completion of work orders” are carried out regularly and the outstanding are not allowed to accumulate.

1626. The results of the review should be put up to the Financial Adviser and Chief Accounts Officer at least twice a year.


APPENDIX I

Page 1 of 7

RULES FOR THE RECRUITMENT AND TRAINING OF APPRENTICE SUB-ENGINEERS AND TRADE APPRENTICES IN THE MECHANICAL WORKSHOPS OF PAKISTAN

RAILWAYS (Vide para. 212.)

I. Apprentice Sub-Engineers. 1. Extent of application. These rules apply to the Locomotive, Carriage and Wagon and Electrical Workshops, Diesel Back Shops/Sheds, Carriage and Wagon Depots, Carriage Factory and Locomotive Factory of Pakistan Railways. 2. Recruitment. (a) Recruitment should normally be made once a year and the date on which apprenticeship should commence determined by the General Manager. (b) The number of apprentice sub-engineers to be recruited each year will be determined by the General Manager on the basis of the estimated number of vacancies in specific trades plus five per cent, of such number to cover the failure of some apprentices to complete their training. The number so determined may be increased, if accommodation is available and other circumstances permit, at the request of Provincial Governments to meet other than railway requirements, provided that in the absence of any special arrangement the full cost of training of the additional number is borne by the Provincial Government concerned. (c) Advertisements inviting applications for employment as apprentice sub-engineers should be inserted in newspapers circulating in areas from which candidates are to be recruited. In recruiting, effect shall be given to the instructions issued from time to time regulating the communal proportion for the various minority communities in direct recruitment to the subordinate railway services. Sons of employees or retired employees, who have rendered special service to the railways or the Government, may be given preference. (d) No person will be eligible for recruitment unless:

(i) he has passed the three year Diploma of Associate Engineer from a recognized institution, or has such higher qualification as the General Manager may prescribe; (ii) he will have attained the age of 18 and will not have attained the age of 25 years on a date in the year of recruitment, to be determined by the General Manager.


APPENDIX I

Page 2 of 7

3. Conditions of apprenticeship. A candidate selected for apprenticeship will be required:- (a) to pass such medical examination as regards his physical fitness as may he prescribed by the General Manager;

(b) to enter into an agreement which should inter alia embody the following conditions:

(i) the periods of apprenticeship to be one year;

(ii) the apprentice to be entitled to board and lodging on payment, in a railway hostel where one is provided;

(iii) the apprentice to be given the stipend of Rupees 6,600/- (Minimum of BS-11) without allowances per mensem, during his apprenticeship.

Where railway hostels are not provided, or if an apprentice is required to undergo a period of his apprenticeship at a place where there is no railway hostel the amount of stipend payable to be such as may, from time to time, be determined by the General Manager;

(iv) the apprentice not to be eligible during the period of his apprenticeship to be a member of the General Provident Fund;

(v) apprentice to undergo training in the trade or trades to be specified and to sit for such tests and examinations during the period of his apprenticeship as may be prescribed by the General Manager;

(vi) the agreement to be terminated if in the opinion of the General Manager the apprentice is physically unfit for service, or is guilty of misconduct or fails to pass any of the prescribed tests or examinations;

(vii) the agreement to be terminated at any time at the option of the apprentice;

4. Hostels:- At most workshops a hostel will be provided by the railway for apprentice sub-engineers who will ordinarily be required to live in it. Permission to live outside the hostel may be given at the discretion of the Chief Mechanical Engineer, but in all such cases no payment in excess of the fixed stipend can be allowed to the apprentice.


APPENDIX I

Page 3 of 7

5. Workshops for training. Apprentices will be trained at the following workshops/ facilities depending on trade:

Pakistan Railways Moghalpura Locomotive, Carriage and Wagon, Electrical and Signal shops, Steel shops.

Pakistan Railways Karachi Diesel Training Centre, Diesel Locomotive shops & shed

Pakistan Railways Rawalpindi / Islamabad

Central Diesel Locomotive Workshops, Carriage Factory.

Pakistan Railways Lahore & Karachi

Carriage and Wagon Depots

Note. The number of shops at which training will be given has been limited in order to restrict the number of hostels and the provision of workshop instructional staff.

6. Workshop instructors. Unless these are provided by a Provincial Government under special arrangements entered into with railway administration, the General Manager, will arrange, if he considers it necessary, to provide workshop instructors and assistants to ensure that apprentice-sub-engineers receive personal attention and adequate instruction in workshops. 7. Practical training. Apprentices will be required to undergo training in the trade or trades specified in their agreements. Schedules of training for each trade will be prescribed by the Chief Mechanical Engineer. A list of trades is given in Annexure A. 8. Technical instruction. At least twenty per cent of the total period of apprenticeship shall be allotted to technical instruction. 9. Progress tests. Examinations shall be held periodically under the direction of the General Manager to test the progress made both in the workshop and in the training centre/centres. Such tests should also be designed to ensure that the importance of the application of technical instruction to practical working is recognized. These examinations may be held as frequently as is considered desirable, but at least once a year.

10. Grant of certificates. An apprentice-sub-engineer on the completion of his apprenticeship shall be given a certificate on a form to be prescribed by the General Manager. The certificate will specify inter alia the trade to which the holder thereof was apprenticed, the dates of commencement and termination of the apprenticeship and, if practicable, an indication of the technical standard attained. 11. General Manager may delegate his powers under Rules (2) (a) and (b), 3 (b) (v), 3 (b) (vii) and 9 to the Chief Mechanical Engineer, on Pakistan Railways, under rules 3 (b) (vii) and (viii) to the Divisional Superintendent, Workshops, and may issue such subsidiary or supplementary rules as he may consider desirable.


APPENDIX I

Page 4 of 7

II. Trade Apprentices 1. Extent of application. These rules apply to the Locomotive, Carriage and Wagon and Electrical Workshops of Pakistan Railways.

2. Recruitment. (a) The intervals at which recruitment shall be made will be laid down by General Manager in accordance with the needs of Pakistan Railways.

(b) The number of apprentices to be recruited each year will be determined by the General Manager on the basis of the estimated number of vacancies. The number so determined may be increased, if accommodation is available and other circumstances permit, at the request of Provincial Governments to meet other than railway requirements provided that, in the absence of any special arrangement, the full cost of training of the additional number is borne by the Provincial Government concerned.

(c) In making recruitment effect shall be given to the instructions issued from time to time regulating the communal proportions for the various minority communities in direct recruitment to the subordinate railway services. Sons of employees or retired employees, who have rendered special service to Pakistan Railways, may be given preference.

(d) No person will be eligible for recruitment unless:

(i) he has passed the Matric/equivalent with one year training in relevant trade at a recognized technical training centre or has such higher qualification as the General Manager may prescribe.

(j) (ii) he will have attained the age of 18 and will not have attained the age of 25 years on a date in the year of recruitment to be determined by the General Manager.

3. Conditions of apprenticeship. A candidate selected for apprenticeship will be required:-

(a) to pass such medical examination as regards his physical fitness or, as may be prescribed by the General Manager.

(b) to enter into an agreement which should inter alia embody the following conditions:-

(i) the period of apprenticeship to be one year; (ii) the stipend to be paid;

Note. The stipend to be paid to trade apprentices will be fixed by the General Manager.

(iii) the apprentice not to be eligible during the period of his apprenticeship to be a member of the General Provident Fund;


APPENDIX I

Page 5 of 7

(iv) the apprentice to undergo training in the trade or trades to be specified and to sit for such tests and examinations during the period of his apprenticeship as may be prescribed by the General Manager;

(v) the agreement to be terminated if in the opinion of the General

Manager the apprentice is physically unfit for service, or is guilty of misconduct or fails to pass any of the prescribed tests or examinations;

(vi) the agreement to be terminated at any time at the option of the

apprentice; (vii) that no guarantee or promise of employment on completion of

apprenticeship is given or implied.

4. Workshops for training. Apprentices will be trained at the following Workshops: Pakistan Railways Moghalpura Workshops Note. The number, of shops at which training will be given has been limited in order to restrict the number of workshops instructional staff required. 5. Workshop instructors. Unless these are provided by a Provincial Government under special arrangements entered into with railway administration, the General Manager will arrange, if he considers it necessary, to provide workshop instructors and assistants to ensure that apprentices receive personal attention and adequate instruction in workshops. 6. Practical training. Apprentices will be required to undergo training for the trade or trades specified in their agreements. A complete list of the trades in which training will be imparted is given in Annexure B. 7. Technical instruction. The General Manager will arrange, if he considers it necessary, for elementary technical instruction to be given to apprentices for periods to be laid down by the General Manner. Instruction will normally be given during workshop hours and will consist of elementary arithmetic, mensuration, geometrical drawing and applied machines. 8. Progress tests. Examinations shall be held periodically under the direction of the General Manager to test the progress made both in the workshop and in the technical training centre/centres. Such test should also be designed to ensure that the importance of the application of technical instruction to practical working is recognized. The examinations may be held as frequently as is considered desirable, but at least once a year.


APPENDIX I

Page 6 of 7

9. Grant of certificates. An apprentice on the completion of his apprenticeship shall be given a certificate on a form to be prescribed by the General Manager. The certificate will specify inter alia the trade to which the holder thereof was apprenticed, the date of commencement and termination of the apprenticeship and, if practicable, an indication of the technical standard attained. 10. General Manager may delegate his powers under Rules 2(a) and (b), 3(b) (iv) and (v) and 8 to his Chief Mechanical Engineer and on Pakistan Railways, under rule 3(b) (v) to the Divisional Superintendent, Workshops, and may issue such subsidiary or supplementary rules as he may consider desirable.

ANNEXURE A

TRADES FOR APPRENTICE SUB-ENGINEERS IN MECHANICAL WORKSHOPS

These trades may be added to at the discretion of the General Manager.

1. Electrician

2. Air Conditioning and refrigeration

3. Internal Combustion Engine Fitter

4. Diesel Electrician

5. Diesel Fitter

6. Boiler Maker

7. Blacksmith

8. Coach Builder

9. C&W Fitter

10. Fitter & Erector

11. Machinist

12. Millwright

13. Steel Re-roller

14. Steel Melter

15. Tool Maker

16. Moulder

17. Welder

18. Painter and trimmer


APPENDIX I

Page 7 of 7

ANNEXURE B

TRADES IN WHICH TRADE APPRENTICES WILL BE TRAINED IN MECHANICAL WORKSHOPS

These trades may be added to at the discretion of the General Manager.

1. T.L. Wireman

2. Refrigerator mechanic

3. Internal Combustion Engine Fitter

4. Coach building

5. Trimmer

6. Blacksmith

7. Moulder steel (Foundry)

8. Power Wireman

9. Armature Winder

10. C&W Fitter

11. Boiler Maker

12. Moulder cast iron

13. Pattern Maker

14. Steel furnaceman

15. Painter

16. Steel Re-roller

17. Machinist

18. Turner

19. Welder

20. Millwright

21. Tool Maker

22. Diesel Fitter

23. Diesel Electrician

24. Fitter and Erector

pakistan railways code for the mechanical … · 2016-09-24 · reference in a code to the...

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