1. Item Total Permissible Unaccounted Accounted Rule
tolerance In % tolerance In % tolerance In %
Str. Steel - less than 0.5m in
Struct. Steel 3 0.5 2.5 length is considered as
wastages.
Plates - less than 0.5 sqm in
Struct. Plates 3 0.5 2.5 area / 200mm in width - is
considered as wastages.
Pipes - less than 0.5m in
All Pipes 3 1.5 1.5 length is considered as
wastages.
Steel Buying INR 40,000
Price
Scrap Selling INR 23,000
Rate

2. Customer Estimation Customer
Requirements & Bidding Requirements
Design &
Engineering
Estimation &
Design & Material Bidding
Planning
Engineering / Material Planning /
Optimiza Optimization
tion
Pre-Ordering Procurement
Pre-Ordering Procurement
Inventory
Inventory
Producti
on Real-Time
Reconciliation Fabrication Planning
Planning
Thump
rule !!
Reconciliation Fabrication
Erection
Erection
Wastage Off-Cut
Reduced to Frequent
Reconciliation
5.4% Reconciliation
7%
Saving Rs.10,96,500 on 750 T Project – Rs.1500/T

3. Mr Alwyn Bowden CEO & President Essar Projects commenting on their vision:
‘To be a Global Engineering, Procurement, and Construction (EPC) Contracting
Company executing projects to world class standards for our customers and
delivering industry benchmarked value to our stakeholders, we are confident that
‘StruM.I.S’ will be one of the resources to help us achieve our stated vision’
Mr Tapash Bhattacharya CFO Essar Projects :
‘The implementation of ‘StruM.I.S’ will bring about significant cost
efficiencies and enhance competitiveness of Essar Projects’
Mr. Srinivas Tata, CIO Essar Projects commenting on the investment in StruM.I.S:
‘The cross-over of departments using ‘StruM.I.S’ will streamline our material
management and project monitoring. The ability for any member of the
appropriate department management team to provide real time data to clients is
fantastic for the business to client relationship’.