Dinesh Divekar
Business Mentor, Consultant And Trainer

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i have a 10 MW Captive Power Plant for Cement. i would appreciate it if some one could help with the understanding of what should be the organogram for CPP like. currently we have above 80 people in CPP and i feel its terribly high. please help with the same.

Dear Shrija,

It will be difficult for the members of this forum to comment on the query. HR professionals from cement industry might answer your query. This query should be addressed to Business Process Re-engineering (BPR) consultant than HR professionals.

Nevertheless, we wish to know industry standard for "production in tonnes per person". Against whom have you benchmarked yourself?

Secondly, your output will depend on the processes as well. Have you mapped the entire production process? Is there any possibility to club processes, without diluting quality? Will this clubbing will reduce the manpower.

Lastly, when I checked the balance sheet of UltraTech Cement, I found employee cost was just 4.7% of sales turnover and 6.5% of the total expenses. Therefore, why bother so much on the employee cost?

Let us consider this company as case study and let us do little analysis further.

The same company has Inventory Turnover Ratio (ITR) of 9.5. More or less other companies also have the same ratio. This means roughly this company has inventory for 38.5 days. Your real cost saving efforts are required in this direction. If you save even a day's inventory, it will reduce your working capital in a big way.

On the contrary, power and fuel cost are 25% of the total expenses. Therefore, there is a huge scope to cut down costs here. In this context I will of little help to you. Earlier I had conducted a brainstorming session on energy conversation for one of the cement plants at north Karnataka. If you wish to organise my session, you may do so and reduce the energy cost.


Dinesh Divekar

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