1.

0Introduction
IFS team comprising of Mr. Abhishek Sharma and Mr. Arijit Kr. Jasu did the As is
Process study at Aircraft Division on 21/07/04. Implementer team had a discussion with
the following persons
S.
No.
1.

IFS Module Mapping

IFS Projects

Process
Responsible for
Owner Name
Mr. D.K. Tyagi Facility Planning

2.0 Process Name

FACILITY PLANNING
2.1 Process Objective
2.2 Process Flow Diagram

2.3 Process Description

2.3.1 Capital Budget Preparation

Initiation of IOM to all the departments for inviting the requirement of

machines, IT facilities, Welfare items, taking into consideration the production
schedule for next three years. The information required from the departments
are:i. Name of the equipment
ii. Estimated cost of the item.
iii. Justification (Text write up)
iv. Brief specifications of the item
v. Cost benefit analysis:- It is mathematical analysis justifying the return on
investment i.e. monetary benefits by introduction of the facility.

Consolidation/ grouping of the requirement in the various Budget/ Asset Head

which are :
Budget Heads
i.
New Projects
ii.
Existing Projects
iii.
Improvement and Rationalization
iv.
Replacement
The machines, which have lived their life, have to be condemned.

The proposal for condemnation is referred to the PRC (Plant Rehabilitation

Committee). The item approved by PRC goes under Replacement category.
v.
Welfare
vi.
IT
Each Budget has the following Asset Heads
i.
Building
ii.
Plant and Machinery
iii.
Furniture and Equipment
iv.
Transport Vehicles
Format will contain the following field:i. Sl. No
ii. Item
iii. Value
iv. Justification

Division level review of the projections and finalizing the list of items to be
projected to CO (Corporate Office). A copy of this list to be given to Finance
Department to prepare Capital Budget.

Submission of the Capital Budget along with justification, cost benefit

analysis (for items costing more than 10 Lakhs only).

2.3.2 Post Budget Approval

Preparation of technical specifications and circulated to following department

for approval:i. DM (FP)
ii. User Department
iii. SM (PM)
iv. DGM (Q)
v.DGM (M)
vi. DGM (P)
vii. AGM (M)

After the specification approval, financial approval for incurring the

expenditure to be obtained vide CAPR format. The format to be signed by:i.
DM (FP)
ii.
DGM (P)
iii.
AGM (P)
iv.
DGM (F)
v.
GM (A)

After approval of Technical Spec and CAPR, the same to be

forwarded to Purchase Department to get the quotations.

Quotation evaluation:-

Technical comparison of the quotation w.r.t. approved technical specifications.

Preparation of Technical recommendations:Technical recommendations based on the quotation evaluation and circulation
to Technical committee members for their signature.

After recommendation approval, same to be sent to Purchase for Order

Placement.

After order placement, updation of order in the Comprehensive Data base

which includes the following field:i.
Sl. No.
ii.
CAPR No.
iii.
Item Name
iv.
Budgeted Estimate
v.
P.O. No.
vi.
Suppliers Name
vii.
Due Date for supply
Viii Installation requirement
ix. RR No.
This database is maintained to have hand on information of all the items
procured over a period of time.

On receipt of items, User Dept draws the item from Stores by producing
TOCA.

After items is installed and commissioned, Stores prepares RR and the same is
sent to Purchase for making the payment to the vendor.

2.3.3 Maintenance of Vendor Database

Creation of comprehensive vendor data base grouping them in the scope of

supply. This data base contains the following information;i.
Supplier Name
ii.
Type of machines in vendor s scope of supply
iii.
Vendors address, phone, fax, e-mail, website etc.

2.4 Process Documents

IOM from FP to all Departments.

Capital Asset Purchase Request (CAPR) In the Post Budget
scenario, after the specification approval is given, financial approval for incurring the
expenditure to be obtained vide CAPR format.
Transfer of Capital Assets (TOCA) - On receipt of items, user
department draws the item from Stores by producing TOCA.

Receiving Report (RR) - After items is installed and

commissioned, the Stores prepare RR and the same is sent to Purchase for making the
payment to the vendor.

2.5 Outputs

i.
ii.
iii.

Format generated by FP with following fields:Item name

Technical Specifications (A text)
Space for signatures of all the Technical Committee.

2.6 Interface(s) with other departments

Tooling Department , MSD Department , IMM Department .Projects

Department assign activities to all the departments included in the project and
collect activity progress reports .
Draft quotation is discussed at divisional level with DGM (Finance)
Final quotation is sent to Corporate office.

2.7 Interface(s) with other divisions

Final quotation is sent to Corporate.

2.8 Scope of Improvement

Historical data to be made available to support making quotation.

Improvement in the contract management system.
Online status at all the levels of project.
Communication between inter-connected departments.