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Wednesday, September 2, 1998

SAIL adopts standardisation to cut costs 

PRESS TRUST OF INDIA  
Calcutta, Sep 1: As part of its ongoing cost saving exercise, Steel Authority of India Ltd (SAIL), which suffered a loss of Rs 311 crore in the first quarter of the current fiscal, has taken up a `standardisation' drive which was expected to help the company to save about Rs 80 crore.

SAIL sources here today said that various kinds of machinery and equipment at SAIL plants in Bhilai, Rourkela, Durgapur and Bokaro, built with Russian, German and British collaboration, had resulted in the usage of diverse material, higher cost per unit and longer time of procurement.

Standardisation would reduce these effects to a large extent and save cost.

The sources said that material like wire ropes for cranes were bulk purchase items and were required by all shopfloors in every steel plant. Now a limited number of sizes were selected instead of different sizes and types.

Apart from purchase of material and equipment, standardisation was also extended to design, operation, maintenance, materials management,packaging and safety.

Standardisation of lubricants like film bearing oil, antiwear hydraulic oil and multipurpose grease alone, the sources said, helped in average annual saving of Rs 2.65 crore for Bokaro steel plant and Rs 86.6 lakh for Durgapur steel plant.

In addition to lubricants, efforts to standardise other items like electric motors, sinter plant pallets and carbon brushes for motors had yielded a benefit to the tune of Rs 5.8 crore.

Stating that standards were also being set in the area of packaging of products like sheets, plates, HR/CR coils and wire rods besides merchant mill products.

Attempts, the sources said, were being made to ensure that the products reach the customer in damage-free condition. Demurrage charges were being reduced to the minimum by designing a system for easy handling of products in shortest possible time.

Recent formulation of two standards on high density polyethelene bags and sheets for coke oven by-products and finished flat products respectively, have thepotential of saving of about Rs 62 lakh.

The sources said that the present annual cost of maintenance of SAIL plants was Rs 2,900 crore and a modest one per cent saving by streamlining the process would help the company to save Rs 29 crore.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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