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VISION

Fostering an environment that helps in the creation of knowledge and its application to work, we seek to

excel in all of business activities and strive to build Shapoorji Pallonji into a creative organisation.

MISSION

Shapoorji Pallonji & Co. Ltd. will be the company of first choice in the construction industry. We shall be

driven by our commitment to customer satisfaction.

VALUES

Core Values Trust and reliability Nurture people Adaptive and agile

Work Values Quality Safety Innovation

Service Values Relationship with stakeholders Synergy to enhance group value Environment and social responsibility

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ORGANISATIONAL STRUCTURE

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SCOPE OF MANAGEMENT CONTROL SYSTEMS

A project controls system should be established for each capital project. The scope and detail of the controls

system should be based on the size, complexity, sensitivity, and execution strategy of the specific project.

Each project controls system essentially includes a Cost Management Process that estimates, monitors,

predicts, and reports project cost.

Responsibilities for Key Members of the Project Team

Project Manager c Leads the Project Team

c Ensures that project controls systems are

effective and fully integrated for all

project entities

c Ensures that the change management decision-making process is

defined, documented, and understood

c Ensures timely decision-making to meet project needs

c Evaluates project status reports and forwards them to the business

Purchasing

Managerc Ensures that contractor cost and schedule reporting requirements are

included in the contract

c Ensures that a change management process in documented in each

Project Engineer

(Planner/ Scheduler)c Develops the overall project controls system

c Integrates engineering, construction, and start-up controls systems,

including: cost, schedule, and change management

c Manages the change decision process for engineering design

c Receives, analyzes, and integrates cost and schedule reports from

engineering design, construction, and startup leadership

c Reports status and variation from plan to the Project Manager on

periodic basis

ConstructionManager

c Develops construction management controls system

c Integrates controls systems from multiple construction contractors

c Receives and analyzes contractor cost and schedule reports

c Manages proposed change during construction

c Reports status and variations from plan to the Project Engineer on a

periodic basis

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STRUCTURE OF MANAGEMENT CONTROL SYSTEM

Shapoorji Pallonji & Co. Ltd. uses Balanced Score Card tool for Management Control System.

Balanced Scorecard (BSC) is an integrated measurement framework that enables the organization to align its

performance with strategic objectives. It retains the traditional financial parameters to measure the firms

current performance, but supplements it with learning and growth, customer and business process metricsthat evaluate its long term improvement measures.

The Parameters of Balance Score Card and the linkage of performance measures are depicted as follows:

Financial perspective - how does SPCL look to shareholders? Customer perspective - how do customers see SPCL? Internal perspectiveTo evaluate how well does SPCL manage its operational processes? Innovation and learning perspectiveTo examine how an organization learns and grows. Can the firm

continue to improve and create value?

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PRACTICES IN RELATION TO COLLECTING OF INFORMATION, THE

FREQUENCY OF INFORMATION COLLECTION, THE STRUCTURE OF

Purchase

Frequency Report Name(Information) Submitted By Submitted ToMonthly Vendor wise Monthly schedule Individual

BuyerPurchase manager

Vendor wise- Material received report Individual

Buyer

Purchase manager

Premium Freight report Individual

Buyer

Purchase manager

Quarterly Vendors delivery performance SPIG SCM Head

Material ReceivingDaily Material received Store-Supervisor

Store - Manager

Weekly Report - Material damaged during unloading Store-Supervisor

Store - Manager

Monthly Material Inward report Store-

Supervisor

Store - Manager

Short Quantity received report Store-

Supervisor

Store - Manager

Excess Quantity received report Store-

Supervisor

Store - Manager

DC for sample inward report Store-

Supervisor

Store - Manager

Material Storage and Issue department

Daily Shift reports - Sub assembly line feeding Store Supervisor

Stores Manager

Shift report - Assembly B line feeding Store Supervisor

Stores Manager

Shift report - Electric store line feed Store Supervisor

Stores Manager

Pending material requisition slip - Stores Store Supervisor

Store Supervisor

Store material shortage report Store Supervisor

Concerned Buyer

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Status report of Store material handling equipment Store Supervisor

Stores Manager

Monthly Monthly Inventory Status ( Class A & B) Store Supervisor

Purchase Manager,

Concerned Buyer

Rejected Part report in store and shop floor Store Supervisor

Stores Manager

Mov. 312 report Store Supervisor

Stores Manager

Quarterly Inventory audit report - Overall discrepancy Material Audit SCM Head, Stores Manager

Inventory audit report - category wise discrepancy Material Audit SCM Head, Stores Manager

Non Moving Part Report StoresManager

SCM Head

Production Department

Daily Shift report Production status (chassisintroduced vs completed

Production

supervisor

Production manager

Weekly Weekly production plan Production

manager

Head Operation

Weekly Line Down time due to part shortage ProductionManager

Stores Manager, SCM-Head

Monthly Vehicles assembles and stamped, Productionmanager

Head Operation

Planned monthly production vs

actual production

Production

manager

Head Operation

Quality Assurance

Daily Incoming quality inspection rejection report Incoming QA Supervisor

Incoming QA Manager

Daily Production line Quality reject report In Line QA Supervisor

In Line QA - Manager

Daily Finished vehicle Quality Issue report Final QA Supervisor

Final QA - Manager

Monthly TQM and Quality system report QA Manager Head - QA

Monthly status report QA, 5S, Training, Leaninitiative, etc.,

QA Manager Head QA, Head -Operations

Quarterly Supplier Rating QA Manager Head QA,Head - Operations

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CONCLUSION

The Balanced Scorecard (BSC) approach, structured information collection mechanismand predefined parameters of performance measures combined with long term cost

cutting, quality improvement initiatives helped SPCL to achieve its goals of lowestownership cost.

Periodic market research, capturing of customer insights supported by continuousinnovation has helped the company to launch new projects and maintain and grow

leadership in India through continuous evaluation of range of services offered.

Effective management has helped in maintaining a leadership position in the market.