LARSEN & TOUBRO LIMITED

ELECTRICAL CONSTRUCTION (DOMESTIC) QUALITY TROPHY APPLICATION

APRIL 2009 TO MARCH 2010
1.0) General: The Quality Trophy is an ANNUAL APPRAISAL on the performance towards excellent performance in Product quality, cost, timely completion, Safe working practices and Progress achieved through Quality Management System made towards business excellence. The applicant shall Study the criteria and make a self-assessment in the original copy either with a tick mark against "YES" or "No" providing with an objective evidence for "YES" at the time of assessing. This trophy intends to increase Quality awareness and motivate all towards 1.1) 1.2) 1.3) 1.4) 1.5) 2.0) Product Quality as an increasingly important element for competitiveness. Adoption of successful quality strategies and benefits derived from implementation of Quality Management Systems. Effective implementation of Quality Management System at sites. Effectiveness of corrective and preventive measures initiated at site. Safe working practices implementation

Scope: The awards will be given to one project in each BU for Electrical construction (Domestic) Substation Business Unit Industrial Electrification Business Unit Transmission Line Business Unit Railway Construction Business Unit Transmission Line Factories

The original self-assessed booklet shall be submitted to QMS - HQ in hard and soft copies. Applicants are requested to ensure the availability of all the objective evidences at the time of assessment. Non-availability of objective evidence / continuity breakdown in the workflow will lead to counting of "NO during the assessment.
QUALITY TROPHY APPLICATION 2009 10 ELECTRICAL CONSTRUCTION (DOMESTIC) 1

The awards will be distributed to winning job sites during New Year address of President Construction. The awardees list would be published in internal magazines. The site team members of the winning project will be awarded a Trophy along with Certificate of Merit.

3.0)

Application submission associated Processes and key dates:

EVP- Electrical Construction (Domestic) releases forms in Portal / e mail

27th October10

Site would submit the filled up application to QMS - HQ

5th November10

Evaluation of application and finalization of list of sites in consultation with BU Head

10th November10

Completion of Evaluation

15th December10

30th July 07

Submission of recommendation along with assessment report to HQ Committee for Winner selection

20th December10

Declaration of Winner

27th December10

Distribution of Trophy to Winners

January11

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4.0)

Eligibility:

50% or more Sales on erection achieved as of 31st March10, of the total contract value and should have achieved / exceeded 90% of the budgeted/MTR Sales, GM for the Assessment Year. Sites closing early are to be informed to QMS HQ along with Project completion reports for immediate assessment. Site Photos, site-in-charge Photo and list of salient Features of the site shall be handed over to assessor during the Initial assessment itself. 5.0) Assessment areas and scores: Max.Score 1. 2. 3. 4. 5. 6. PROJECT MANAGEMENT AND PLANNING SITE EXECUITON QUALITY MANAGEMENT SYSTEM QA / QC STORES MANAGEMENT EHS Max. Total: 6.0) 7.0) Incomplete applications are liable to be rejected. Site assessment will be carried out by HQ-QMS plus External. 30 25 10 10 10 15 --------100 ---------

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APPLICATION FOR QUALITY TROPHY 2009-10 (To be submitted in electronic form as well as hard copy booklet) 1. Name of Project Job No Address : __________________________________________ :___________________________________________ : ___________________________________________ ___________________________________________ Telephone: ____________________ Fax: _________________________ Email 2. : __________________________________________________ Passport Size of project manager to be pasted

Highest ranking official in the Project: Name ________________________________________ PS No.___________ Address _______________________________________ _______________________________________ Tel. No.: Office _________________Home _____________Cell Ph. ______________

3.

Category: Tick () as applicable Substation Business Transmissionline Business Railway Construction Business Industrial Electrification Business Transmissionline Factories

4. 5. 6. 7. 8.

No. of employees at peak ________________________ No. of workmen at peak__________________________ Project Value (original) __________________________________ Project Value (Actual / Expected) __________________________________ Date of project commencement (as per contract)____________________

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9. 10. 11. 12.

Date of project commencement (actual )____________________ Date of completion (as per contract)_______________________ Date of completion (Expected)___________________ Staff List for the Project as on 1st April09 to 31st March10 please attach the list of staff showing the name, PS Number and duration of the team member in the project for issuing of the certificate of merit. Site In-charges critical review on strengths and opportunities for improvement with respect to Quality (Min. 3 areas) Mandatory

13.

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ASSESSMENT FOR PROJECT MANAGEMENT AND PLANNING

NAME OF THE PROJECT:
ASSESSMENT BY QMS - HQ YES NO

PROJECT MANAGEMENT AND PLANNING SLNO FUNCTIONS REF DOCUMENTS

Tender documents Technical Specifications 1 Receipt and availability of the contract documents Techno commercial offers LOI / LOA / Letter of agreements Vendor offers / correspondences Approved L2 Schedules Kick Off Meeting (KOM) Date KOM attended as per procedure KOM Minutes 2 Review of the contract documents and its evidences Contract Variation PV Clause Approved BOQ Approved Drawings ACE Submission on 3 ACE Preparation and submission & approval ACE Approved by ACE Approved on 4 Availability of Approved L2 Schedule Submission on Approved on S0 to S10 Preparation 5 MPCS duly approved within a month from the date of LOI LOI date S0 to S10 submission S0 to S10 Approved Regular updation Review Variation identification 6 S1- Schedule of Invoicing Root cause analysis Corrective action in line to the above to eliminate the root cause Effectiveness of the corrective action Regular updation Review S5-Schedule of Labour requirement Variation identification Root cause analysis Corrective action in line to the above to eliminate the root cause Effectiveness of the corrective action QUALITY TROPHY APPLICATION 2009 10

APPLICANT YES NO

OBJECTIVE EVIDENCES

ELECTRICAL CONSTRUCTION (DOMESTIC) 6

PROJECT MANAGEMENT AND PLANNING SLNO FUNCTIONS REF DOCUMENTS

Regular updation Review 8 S6-Schedule of Material requirement & status Variation identification Root cause analysis Corrective action in line to the above to eliminate the root cause Effectiveness of the corrective action Regular updation Review 9 S8-Schedule of Direct cost Variation identification Root cause analysis Corrective action in line to the above to eliminate the root cause Effectiveness of the corrective action Regular updation Review 10 S9-Schedule of Indirect cost Variation identification Root cause analysis Corrective action in line to the above to eliminate the root cause Effectiveness of the corrective action Regular updation Review Variation identification 11 Job Cost Report Root cause analysis Corrective action in line to the above to eliminate the root cause Effectiveness of the corrective action Preparation Review 12 Daily progress Decision / Direction Action Effectiveness Preparation Review 13 Weekly progress Decision / Direction Action Effectiveness Preparation Review 14 Monthly progress Root cause action analysis & corrective

APPLICANT YES NO

ASSESSMENT BY QMS - HQ YES NO

OBJECTIVE EVIDENCES

Effectiveness of corrective action

QUALITY TROPHY APPLICATION 2009 10 ELECTRICAL CONSTRUCTION (DOMESTIC) 7

PROJECT MANAGEMENT AND PLANNING SLNO FUNCTIONS

Review of objectives & targets in terms of quality , cost & time

APPLICANT YES NO

ASSESSMENT BY QMS - HQ YES NO

REF DOCUMENTS
objectives for Planning

OBJECTIVE EVIDENCES

15

Monitoring of performance Action plan on adverse performance list of Statutory requirements & regulatory

16

Statutory & regulatory requirements

Compliances to the requirements Validation to period for invoicing required vs invoicing actual 17 Invoicing Validation to Submission Validation to Collection Effectiveness of the cycle time Timely winding up meeting Monitoring as per the Demobilization plan 18 Winding up & Project completion Final bill clearances from clients Project completion certificates from client Project completion report submission to HQ No of Sub Contractors engaged at Site Sub-contractor Management Sub-contractor induction evaluation before

19

Screening of subcontractor workmen Rating of subcontractor

Objective Remarks:

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ASSESSMENT FOR SITE EXECUTION

NAME OF THE PROJECT:
ASSESSMENT BY QMS - HQ
YES NO

SITE EXECUTION SLNO FUNCTIONS REF DOCUMENTS

Sequence of Processes identification List of processes and sub process availability 1 Process identification Approved Procedures Work Instructions /

APPLICANT YES NO

OBJECTIVE EVIDENCES

Weekly & daily planning for executing the activities Record of Approved Drawings Receipt and updation of the approved drawings; issue & control on the movement of the drawings Preparation or coordination for as built drawings 2 Drawings /Deliverables Control of Clients data/Drawings List of codes & standards for reference with regular updation to requirements Coordination for obtaining customer approvals for materials, drawings or any deliverables in time from the clients Validation of materials to the requirements before considering as input Competency of People Condition of Machines Control parameters identified executing the activities effectively Monitoring and controlling process established Effectiveness of control 4 Process verification Verification on in process authorization /clearance for erection process Acceptance criteria specification in the QAP Verification of output in line with QAP Authorization or clearance validation Acceptance by client Final inspection as per approved FQP 5 Final verification and Approvals Final inspection reports Client acceptance on final product client submission of for the

Input verification

Objective Remarks:

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ASSESSMENT FOR QUALITY MANAGEMENT SYSTEMS

NAME OF THE PROJECT:
ASSESSMENT BY QMS - HQ YES NO

QUALITY MANAGEMENT SYSTEMS SLNO FUNCTIONS REF DOCUMENTS

Receipt of QMS documents 1 Documentation Issue of QMS Documents Control of the QMS documents Verification of QMS Implementation though Audits Audit plan -Plan Vs Actual Audit Notification 2 Implementation Audit checklist Audit summary report Observations /NCR's Timely compliances observation points on audit

APPLICANT YES NO

OBJECTIVE EVIDENCES

QMS Orientation

QMS orientation ensured to all new staff at site Effectiveness of the Orientation Quality objectives for the Project site Review and analysis on achievement of Quality objectives at regular intervals Implementing the corrective measures for adverse performance Availability of Training plan Training conducted as per plan

Quality Objectives

Trainings Availability of Training records Effectiveness of Training Conducting regular review meetings CAPA/Monthly

CAPA / Monthly Review Meetings

Decision / Direction Effectiveness Identification of NCR's through audits, daily inspections etc identification of root causes

Control of Non conformities (NCR)

Implementation of Corrective action Review of effectiveness of Corrective action Initiating the actions to prevent the occurrences

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QUALITY MANAGEMENT SYSTEMS SLNO FUNCTIONS REF DOCUMENTS

Customer Compliant Receipt Method of updation Customer complaints & feedback Mechanism Response to the client Correction initiated Root cause analysis Action implementation & Corrective

APPLICANT YES NO

ASSESSMENT BY QMS - HQ YES NO

OBJECTIVE EVIDENCES

Effectiveness of Corrective action Receipt of CSR Review and Feedback analysis of the CSR 9 Customer satisfaction Reports (CSR) Corrective actions on feedback on improvements Customer

Feedback to clients on Action taken by the site for improvements Identify area for Improvement 10 Improvements Analyze the process for improvements identify the Preventive action for eliminating potential non conformity

Objective Remarks:

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ASSESSMENT FOR QUALITY ASSURANCE / QUALITY CONTROL

NAME OF THE PROJECT:

QUALITY ASSURANCE / QUALITY CONTROL SLNO FUNCTIONS REF DOCUMENTS

Approved work Procedures / Quality assurance plans / checklists Work done as per the stated method statement and checked at different stages. 1 QA/QC functions In process inspection as per approved procedure Inspection inspection reports/records for

APPLICANT YES NO

ASSESSMENT BY QMS - HQ
YES NO

OBJECTIVE EVIDENCES

Updation of Checklists List of Measuring equipment Calibration plan 2 Calibration Calibration schedule Calibration status-Required vs actual Issue of calibration certificates Non conformities identified during the process or product verification and validation 3 Control of process and product non conformities Correction Root cause analysis Corrective action implemented Effectiveness of Corrective action 4 Best Practices Number of best practices identified and implemented Cost Quality 5 Benefits Time Implemented in QMS

Objective Remarks:

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ASSESSMENT FOR STORES MANAGEMENT

NAME OF THE PROJECT:
ASSESSMENT BY QMS - HQ
YES NO

STORES MANAGEMENT SLNO FUNCTIONS

Storage area as per lay out drawing

APPLICANT YES NO

OBJECTIVE EVIDENCES

REF DOCUMENTS
Semi covered

Closed area Open yard Storage procedure & Loading and unloading instructions

Receipt of the materials

Designated area for receipt Purchase order(PO)/LR/DC Source inspection clearance report Manufacturer's TC Physical verification for damages Inward material inspection report Designated area rejected materials for accepted &

Inspection of the material at the store yard

Reporting against shortage or damage of the materials Action on the damaged materials Non acceptance report for rejected materials Inspection clearance by site and client Regular updation for material receipt note

Storage of the Materials

Storage as per designated areas All the materials are identified and readily traceable Indent place by the user shall necessarily cover cost code, material code, Quantity and description

Issue of the Materials

Signature of Authorized person as per authorization list Updating of Record/Bin cards Follow of FIFO Monthly stock statement list of materials (Own) List of client supplied materials

Monitoring & Control

Periodic physical verification against stock updation of Materials/consumables issued to Sub contractors (free) updation of Materials/consumables issued to Sub contractors (Chargeable) Verification of Shelf life materials Daily stock position of critical items

Objective Remarks:

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ASSESSMENT FOR ENVIRONMENT, HEALTH & SAFETY

NAME OF THE PROJECT:

ENVIRONMENT, HEALTH & SAFETY SLNO FUNCTIONS REF DOCUMENTS

Availability of EHS plan 1 EHS Plan Implementation of EHS procedures Awareness of EHS practices in all the staff & workman EHS audits complying with planned requirements Compliances to EHS requirements Availability of Emergency Evacuation plan Emergency preparedness response time testing and

APPLICANT YES NO

ASSESSMENT BY QMS - HQ
YES NO

OBJECTIVE EVIDENCES

EHS Audits

Emergency Evacuation plan

EHS Education program

Pep talk before the start of erection activities EHS awareness initiatives

Awards won by site for EHS

Award certificate

Objective Remarks:

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ASSESSMENT FOR FINANCIAL PERFORMANCE (Assessment Financial Year: 2009-2010)

NAME OF THE PROJECT:

POSITIVE VARIANCE FINANCIAL PERFORMANCE BUDGETED (ACE) ACTUAL APPLICANT YES NO

ASSESSMENT BY QMS - HQ YES NO OBJECTIVE EVIDENCES

SLNO

FUNCTIONS

REF DOCUMENTS Sales Gross Margin PBIT PBIT % of sales Average Working capital (AWC) Average Net assets (ANFA) EVA ROCE (%) Staff Man Months ROTE (PBIT/Staff Man Months) Submission of Client invoice as per contract More than months Six fixed

Project Financial parameters Budget Vs Actual

Invoicing

Collection Targets

Less than six months

Deduction of LD

Objective Remarks:

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MAIN ASSESSMENT SHEET (For use by Applicant and QMS)

NAME OF THE PROJECT & REGION / TFL: PROJECT MANAGER NAME:

JOB CODE OF THE PROJECT: SL NO

ASSESSMENT POINTS COMPLIANCE FOR "YES" COMPLIANCE FOR "NO"

DATE:
% WEIGHTAGE FOR " YES " WEIGHTAGE OBTAINED FOR " YES " APPLICANT QMS - HQ

FUNCTION/ACTIVITY

1 2 3 4 5 6

PROJECT MANAGEMENT AND PLANNING SITE EXECUITON QUALITY MANAGEMENT SYSTEM QUALITY ASSURANCE / QUALITY CONTROL STORES MANAGEMENT ENVIRONMENT, HEALTH & SAFETY

90 25 40 20 30 10

30% 25% 10% 10% 10% 15% 100%

GRAND TOTAL

APPLICANT NAME: SIGNATURE: DATE:

ASSESSOR NAME: SIGNATURE: DATE:

Recommendation:
HQ Committee evaluated the above parameters. After review, the site is recommended / not recommended for Quality Trophy Winners 2009-10. Reasons for Rejection:

Signature
QUALITY TROPHY APPLICATION 2009 10 ELECTRICAL CONSTRUCTION (DOMESTIC) 16