1. 379th PROJECT MANAGEMENT COMMITTEE
MEETING
Held on: May 14, 2005
At: 1100 hrs
Venue: Conference Room
Attendance: Except GM Spinning, all members present, MD in chair.

2. AGENDA POINTS

3. KTML
SPINNING
Spinning Performance Report
Month : May 2005
Period ----> Unit of May 06 to May 12 May 01 to May 12 Remarks
Measurm ent Desired Actual
Particulars Desired Actual % Qty %
Utilization
Installed Capacity - Spindle No 79,520 79,520
Shifts worked No 21 21 36 36
Utilization % 99.00 98.72 99.00 97.90
Working Efficiency
Average Count No 52.55 51.67
Average OPS 2.82 2.78 2.86 2.78
Working Efficiency % 94.09 92.59 94.07 91.63
Raw Material Issue
Pak Ctn Kgs / % 59,231 38.30 106,484 38.38
Impt Ctn Kgs / % 69,656 45.04 126,379 45.55
PSF Kgs / % 25,763 16.66 44,584 16.07
Kgs / % 154,650 100.00 277,447 100.00
Yarn Production Kgs / % 130,946 84.67 224,520 80.92
Hard Waste Kgs / % 906 0.69 1,501 0.66
Yarn - B. Grade Kgs / % 634 0.48 1,089 0.48

4. Period: 06.05.2005 to 12.05.2005
Maintenance Spinning: Following intimated:
Except one Orion – M all Auto Winder spindles are serviceable. M/s
ACMA TEX dispatched Switcher Box which would be received by
Monday.
Motor Tripping in Section IV; discussed. 30 KW Motor to replace
22 KW motor being used for 18000 RPM on 22 Count frames.

5. IT-OUTSOURCING
How to reduce searching cost
Select a trust worthy
vendor.
Vendor should be very
cooperative.
Interviewing the vendor’s
previous & current clients.

6. IT-OUTSOURCING
How to reduce contracting cost
Vague ideas from the contract
should be eliminated.
Contract should be flexible.

7. IT-OUTSOURCING
Necessary clauses in IT outsourcing
contract
Evolution clauses apply both to
the price and the technological
flexibility as bench mark
clauses.
Reversibility clauses are about
either material reversibility or
human reversibility.One gives
the company the options to buy
premises from the vendor and the
other allows the company to hire
employees from the vendors.

8. IT-OUTSOURCING
Hidden Cost #2
Transitioning to the Vendor
Elusive cost
Transition time is(1 year)
70% was no longer than 10
months

9. IT-OUTSOURCING
Determining Transition
Cost
Transition cost are elusive
A company incurs as long as the
vendor has not completely taken
over the internal IT department.
The time that internal employee
spent helping the vendor
transition cost.

10. IT-OUTSOURCING
Cost that stem from disruption and from
vendor's inability to react as quickly
and appropriately as the internal
department the beginning of the
contract are transition costs.
 Reducing transition Cost
The first step in decreasing transition
cost's to be aware of it.
Companies would be well advised to avoid
outsourcing activities that a
idiosyncratic an to keep IT employees in
house the company should know what it
wants from the out source
activity.Having experience with IT
outsourcing

11. IT-OUTSOURCING
Cost#3 Managing the
effort
This the largest category of
the hidden cost
It covers three areas:
Monitoring that IT vendors con
fulfill there contractual
obligations

12. IT-OUTSOURCING
Bargaining with IT vendors.
Negotiating any needed contract
changes.
Determining the cost of
managing Vendor
Unlike out sourcing fees vendor
management costs for IT
outsourcing are not readily
apparent.

13. IT-OUTSOURCING
Management costs purely
internal companies don’t take
management cost into account
until they become visible so it
create problem.

14. IT-OUTSOURCING
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
Less than $10 million Greater
$10 million to 100 than $100
million million

15. IT-OUTSOURCING
Reducing the cost of managing
vendor
IT outsourcing experiences
reduce the cost of managing the
relationship the more the company
the more a company deals with the
IT vendor the faster it can judge
the vendors performance.
Trust should be cultivated in
the vendor relationship this will
narrow the gaps between the both
parties.

16. IT-OUTSOURCING
The fourth hidden cost comes
from switching vendors or
reintegrating IT activities
internally:
Determine the cost of transition
after outsourcing.
This involves finding the
vendor, drafting a new contract
and transitioning resources.

17. IT-OUTSOURCING
Reintegrated cost involves
building a new internal
activity from scratch.
Reducing the cost of
transitioning after
outsourcing
Awareness of outsourcing
transition cost.

18. IT-OUTSOURCING
Presence of reversibility
clauses in the contract.
Sufficient level of IT
expertise inside the
company.

19. Vendor
search and
contracting Initial
cost transition cost
Post IT out
sourcing
Cost of managing the IT- transition cost
outsourcing effort
Time
Original idea to
Outsource
Beginning of the IT Change of IT vendor or
outsourcing relationship reintegration of IT

20. IT-OUTSOURCING
Steps to reduce the hidden costs
The activities should not be
critical or surrounded by
uncertainty.
Companies should spend time in
researching vendors.
The contracts should have clauses
that specify technology evolution
and reversibility
The relationship with the vendors
should be the best in order to
get desired performance.