360 degree performance budget for rte

7/31/2019 360 Degree Performance Budget for RTE

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RuthnaTea Estate


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Vision and MissionRuthna TeaEstate


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MissionRuthna TeaEstateWe are proposed four (04) basic principles of our Mission Statement:-

1) Satisfied Consumers:The consumer is essential that we provide a product that satisfies all of customer expectations. Our primaryfocus is to produce teas that offer a unique and truly gratifying experience. We will not allow price tocompromise our products. Good flavor and product freshness are the prime considerations in the creations ofour teas.

2) Strong Relationships:

With our customers and suppliers we continuously work to build and maintain strong business relationships.We realize that is through excellent communication and mutual respect that we grow and prosper together.

3) Satisfied Employees:Here is an equal opportunity employer dedicated to providing our employees with a challenging and positiveenvironment in which to work. Recognizing that each and every employee plays a pivotal role in the successof our company, we seek to attract and retain outstanding individuals who will take pride in all aspects of theirareas of responsibility, and understand the importance of cooperation among their fellow employees. We strive

to motivate and satisfy our employees as well as promote individuals based on merit and contribution.

4) Good Management System:Our company has been, and always will be based upon strong ethical business practices and is dedicated toonly the highest standard of behavior in all areas. We feel an obligation to support the local communitieswhere we reside so as to build a good working relationship as well as to contribute to worthy local andnational causes.


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ValuesRuthna TeaEstate

The following values are:-

1. Customer Focus: We will focus on our customers as the central purpose for ourexistence and mandate.

2. Transparency: We will act in unambiguous, predictable and understandable manner.Further, we will remain accountable to our stakeholders and shoulder the responsibilityfor decisions made on their behalf.

3. Creativity and Innovation: We will endeavor to be creative and innovative in seekingsuccessful ways to move the industry forward.

4. Integrity and Fairness: We will endeavor to act morally and ethically. Our serviceprovision will be free from favoritism, self-interest or unfairness. To achieve this, we willbe guided by set standards, policies, rules and regulations.

5. Leadership: The courage to shape a better future.6. Collaboration: Leverage collective genius

7. Accountability: If it is to be, it's up to me8. Passion: Committed in heart and mind9. Diversity:As inclusive as our brands10. Quality: What we do, we do well


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Strengths1. Management is committed and confident.2. Experienced Staff

3. Product innovations ongoing.

4. Logistic Support

5. Green initiative

6. Physical Infrastructure

Weaknesses1. No direct marketing experience.2. High employee turnover rate.

3. Dealing with huge illiterate people with primitive

mind set

4. Conflict between corporate culture and traditional

tea culture.

5. Lack of Internet facilities.

6. Lack of tea related soft ware

Opportunities1. Buildup the clear strategy.

2. Chances of producing verities of Tea.3. Increased yield per hector

4. Improved drainage system and modern

Technologies.

5. Financial Sound Backup

6. Expansion of existing Plantation area.

7. Increasing Per Kg prices.

Threats

1. Global impact on tea market price.

1. Garden worker s unwanted unrest.2. Local Politics3. Urbanization4. Undesirable environmental or climatic

situation.5. Product substitute


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ObjectivesRuthna TeaEstate

Specific

What : Planting 100 acre of land

Why : To increase yield per hac and profit for the coy

Who : MS, NMS and Workers

Where : Mokam-4, Bamboo Bari, Shankhola, Mokam -3

Which : By planting Material collection and shade tree collection

Measurable

How much? : 10 lac tea nursery , 1 lac shade nursery and 100 acrenew planting , previous area infilling

How Many ? : 100 acreHow will I know when it is accomplished? : within 01 year


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Attainable

How can the goal be accomplished? : By arranging planting material intime , in time land preparation, agro chemical supply, compost ,fertilizer application as per dose , weed and paste control , nursery

raising

Reliable

Does this seem worthwhile? : yes

Is this the right time? : yes

Does this match our other efforts/needs? yes

Are you the right person? yes


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Timeliness

When? Within one year

What can I do 6 months from now? : monthly allocation of target

What can I do 6 weeks from now? : collect soil , collection of cuttings,development of nursery infrastructure , collection of compost ,arrange transport

What can I do today? : planting and infilling

d


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Click to edit Master subtitle style

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HR

Assumptions

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Production AssumptionRuthna TeaEstate

Production Assumption


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Production AssumptionRuthna TeaEstate

Type 2012 - 2013 Remarks

In house Production 2,00,000 kg Ruthna Tea Estate

Out Side Production 1,25,000 kg Muraicherra Tea Estate

Total 3,25,000 kg


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Out Side Production

Assumption

Ruthna TeaEstate

Type 2012 ( Jan to Dec )as per crop calendar

Remarks

Out Side Production 1,25,000 kg Muraicherra Tea Estate

Total 1,25,000 kg


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Total Production

Assumption

Ruthna TeaEstate

FY-2011-2012-Actual FY-2012-2013-Budget %

Year Production Total Year ProductionSub-

ContractTotal Changes

2011/2012 1,76,965 1,76,965 2012/2013 2,00,500 1,25,000 3,25,00Both 83.65Own 13.30


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Quantity and quality of crop depends largely on the correctimplementation of pruning practices

Plucking round practices

Maintenance Foliage Ensuring Proper Growth and regeneration of tea Shoots System of Plucking Leaving a leaf ( plucking height by one leaf ) Permissible Creep and breaking back near Janam leaf

Banjhi shoots Training to the Pluckers

Action Plan to Achieve the

Target

Ruthna TeaEstate


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Workers Wages

Workers Wages

Assumption

Ruthna TeaEstate


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Workers Cost

Assumption

Ruthna TeaEstate

2009 2010 2010-2011 2011-2012* 2012-2013**

105,68,223/-(Per month=8,80,685/- andper week =2,20,171/-)

164,63,403/-(Per month =13,71,905/- andper week =3,42,987/-)55.78% increase

224,61,727/-(per month =18,71,810/- andper week = 4,67,952/-)36.43% increase

292,00,245/-(per month =24,33,353/- andper week =6,08,338/-)30% increase

*note:May-June assumption

**note:May-June assumption

The wages may be changed if new labor agreements of workers wages heldin this year


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Machine Hour

Assumption

Ruthna TeaEstate

Machine Hour Assumption


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Machine Hour

Assumption

Ruthna TeaEstate

Machine Jan Feb Mar Apr May June

- 30.43 hr 126 hr 134.78 hr 195.65 hr

Machine July Aug Sep Oct Nov Dec

237.18 hr 252.17 hr251.30

hr243.47 hr 179.13 hr 93.25 hr


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Material By Product Cost CategoryRuthna TeaEstate

Material By Product Cost

Category


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Material By Product Cost

Category

Ruthna TeaEstate

Not Applicable


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Sales AssumptionRuthna TeaEstate

Sales Assumption


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FY-2011-2012-Actual FY-2012-2013-Budget %

Quarter Sales Quarter Sales Changes

1st Quarter 1,19,57,715 1st Quarter 1,53,31,680 28.21

2nd Quarter 92,23,170 2nd Quarter 1,06,78,320 15.77

3rd Quarter 3,43,695 3rd Quarter 6,30,000 83.30

4th Quarter (Estimate) 76.74,645 4th Quarter ( Estimate) 94,50,000 23.13

Total 2,91,99,225 Total 3,60,90,000 23.60

Sales in Quantity

Comparison

Ruthna TeaEstate


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Capacity OptimizationRuthna TeaEstate

CapacityOptimization


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Capacity Optimization

Assumption

Ruthna TeaEstate

Available Capacity :5,00000 kg made teamaximum

Hourlytarget :500 kg greenleaf

Daily Working Hour : 08 to 16 hrs depends ongreen leaf

q 3,25,000 kg made tea total capacity of 65% capacity in theyear 2012- 2013

q 90,903 kg made tea total capacity of 19% capacity in theyear 2011- 2012


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Training arrangement for team.

Effective Production planning .

Training and Motivation in mid level management.

Capacity Optimization Assumption

Action PlanRuthna TeaEstate


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HR AssumptionRuthna TeaEstate

HR Assumption


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MS statistics Total salary

Existing New Recruitment Total Cost 2011-2012 Cost 2012-2013 Difference % Cost 2011-2012 Cost 2012-2013 Difference %

Ruthna 5 4 9 4902624 7213052 2310427 47 3952961 5177091 1224130 31

PF bonus lv encash

Cost 2011-2012 Cost 2012-2013 Difference % Cost 2011-2012Cost 2012-

2013Difference % Cost 2011-2012

Cost 2012-2013

Difference %

43133 81429 38296 89 284012 300424 16412 6 21575 50071 28496 132


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gratuity insurance ISP car allow

Cost 2011-2012Cost 2012-

2013Dif ference % Cost 2011-2012Cost 2012-2013 Dif ference % Cost 2011-2012Cost 2012-2013 Dif ference % Cost 2011-2012

Cost 2012-2013

Difference %

25514 75106 49592 194 71138 48014 -23124 -33 324292 844943 520651 161 180000 180000 0 0

1 The cutoff date for existing is 30th April 2012

2

Cost is including Gross salary, ISP, Leave Encashment, Festival Bonus, PF, Gratuity, Insurance, CarAllowances etc.

3

Cost for 2012-2013 given here assuming 16% increment on gross considering the current inflation(10%) and GDP growth rate (6%).

4

ISP is calculated here based on 100% business (17.5%) & personal (7.5%) performance for the year2012-2013. ISP for 2011-2012, 1st half given actual which was approved in Jan, 2012, 2nd halfassuming 100% performance.

5 Gratuity kept as provision for next year @1 basic for each employee.

6

Leave Encashment is calculated based on 100% (20 days) balance of annual leave for 2012-2013. For2011-2012 encashment given based on actual leave balance from HRIS.

7

Cost of 4 new recruitment is included here. Among this recruitment some are replacement and someagainst vacancies in organogram.

8

The cost of car allowances presented here based on existing data, if could be change if new employeeavail the benefit.


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Training AssumptionRuthna TeaEstate

Training Internal and Externallearning process Assumptions


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Internal Training External Training

vTraining on tipping and plucking tablemaintenancevTraining on Lung Pruning or thumb

pruning.vTraining to the mid wife and compounderrelated with pregnant patient handlingvLight Pruning techniques and the systemof pruning.vHealth & Safety training.

vFire fighter and First aider trainingvVAT and TAXvTraining in BTRI

Budget= 1,20,000

Training AssumptionRuthna TeaEstate


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Business Process Improvements

AssumptionRuthna TeaEstate

Business ProcessImprovements Assumptions


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Action plan:. Good relationship with buyer and broker

house. Creating Brand Image. Certification from various Organization

for export market. Smooth supply chain management.

Long term relationship and market

Business Process Improvements

AssumptionRuthna TeaEstate


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Quality Assurance Actions and Target

AssumptionsRuthna TeaEstate

Quality Assurance Actions

and Target Assumptions


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Action plan:

. Plucking round control

. High good leaf percentage

. Careful transportation about green leaf handling to ensure lessdamage of green leaf

. Ensure good withering

. Control fermentation time

. Drying temperature must be appropriate

. Proper grading and sorting of tea

. Time to time tea tasting and take necessary action about teatasting report

Quality Assurance Actions and Target AssumptionsRuthna TeaEstate


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Top Customers feed-back process and target


Top customers feed-backprocess and targets

Assumptions


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Action plan:

. Respect all the buyers in the same way and take necessaryaction about their feed back

. Collect all the buyers feed back time to time and ensure turnaround time (TOT ) for all the buyers

Top Customers feed-back process and target



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Financial Cost Savings AssumptionsRuthna TeaEstate

Financials Cost savingsAssumptions


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Cost saving targets for Factory

Target Action Plan

Quality tea Make good quality tea in one time whichreduce reprocessing

Electricity/Gas consumptionSwitch off lights, computer and machine whilenot in use

Green leaf QualityBy plucking fine leaf quality which reduce

electricity consumption



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Cost saving targets for HR

Target Action Plan

Use less paper Motivation to the office staff

Medical costingSanitation and health safety motivation to

workers

Wages Checking the attendance always



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Cost saving targets for Maintenance

Target Action Plan

Mechanical- cost reduce Use wastage spare parts where necessary

Electrical cost reduceProper use of electricity and use of voltage

stabilizer

Civl cost reduce Proper Planning and execution

Automobiles cost reduce Proper maintenance and proper use



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Internal Control- SAP and internal Audit


Internal Control -SAP andInternal Audit Assumptions


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we dont have SAP due tointernet facility


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Internal Audit: Financial

Internal audit will be conducted by the Group Internal Audit team in the prescribed timeperiod.

1. Monthly2. Quarterly3. Half yearly4. Yearly




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Particulars Yearly

Fire Equipment 20,000

Medical Expenses 2,75,000

Health, Safety and House KeepingRuthna TeaEstate


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CSR Action PlanRuthna TeaEstate

CSR ACTION PLAN


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Distribution of medicinal and other plants Eye camp 0-5 clinic

CSR Action PlanRuthna TeaEstate


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Inventory assumptionRuthna TeaEstate

Inventory Assumption


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INVENTORY-2012-2013

ParticularsJun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 T0tal

BDT BDT BDT BDT BDT BDT BDT BDT

T0tal

Particulars

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 T0tal

BDT BDT BDT BDT BDT BDT BDT

T0tal

Inventory assumptionRuthna TeaEstate


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Capex and Projectimplementation Plan

Capex and Project Implementation PlanRuthna TeaEstate


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Description Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13

Exhaust fan(10pcs) .0000 .60000 .60000 60000

Gas Burner(10pcs) .200000

Tractor(1pc) 1350000

Staff Qtr(2pcs) .850000 .850000

Green leaf Weight manhouse(10pcs)

.75000 .375000 375000 .375000 .75000 .375000 .375000 .75000 75000 375000

Labour House(346pcshouse) by CI & sungrass

.195900 .195900 .195900 .1195900 .1195900 .195900 1195900 1195900

Spare parts(Electrical

&Mechanical Items).50000 .175000 .80000 .95000 .20000 .60000 .85000 50000 65000 90000 .5000 .5000

Disel Godown repair &car Garage

.150000 120000

Capex and Project Implementation PlanRuthna TeaEstate


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Overall Action Plan

Overall Action PlanRuthna TeaEstate

Descriptio Results to beActions to be taken

Responsibili

Deadlin Status ofEnd Status


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pn achieved

Actions to be taken nsibility

es ProgressEnd Status

Build upthe clearstrategy

Productivitygain

Optimistic plantationraising target

Manager

1 year

Brining up into bearingspecially the young teathrough proper pruning

Ensure proper pluckinground

Proper paste and weedcontrol

Training for employeedevelopment

Description Results to be Responsi Deadlin


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Descriptionof Items

Results to beachieved

Actions to be takenResponsi

bilityDeadlin

esStatus of Progress End Status

Improvedrainage

system andproper

fertilizerapplication

Yield per hac willbe increased

Field drain and maindrain draw upproperly to reducewater logging

Manager 1 year

Doze and split willbe follow asrecommended

Training of employee


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Description ofItems


Actions to betaken

ResponsibilityDeadline

sStatus ofProgress

End Status

Nursery

To raise good

plantingmaterial for tea

and shade innew extensionor replanting

area

Soil collectionCompost collectionFresh cuttingcollectionNurseryinfrastructure

Good maintenance

Asst Manager 1 year

Training to

employee


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Description ofItems


Actions to betaken

Responsibility

Deadlines

Status ofProgress

End Status

Teaprocessing

Good price inauction house

Good witheringSorting of Bad

and Damageleaf

Uninterrupted

powersupply

Timely CTCrollersharpening

Maintenance ofmachinery

Asstmanager(factory)

ExecutiveMaintenance

1 year

Training ofemployee


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Description ofItems


Actions to betaken

Responsibility

Deadlines

Status ofProgress

End Status

Young teaMaintena

nce

Good plantationmaterial for future

replanting area andinfilling

Weeds and pestcontrolPruningManuring

Shade treeIrrigation duringdrought seasonInfilling

Assistant

Manager

1 year


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Description ofItems


Actions to betaken

Responsibility

DeadlinesStatus ofProgress

EndStatus

Internal roadand fencerepair and

maintenance

Proper in housecommunication

Bridge and ringculverts to be

constructed

Earth filling tobe done

ExecutiveMaintenance

1 year


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Any Question


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Thank You

360 degree performance budget for rte

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