BHILAI STEEL SUGGESTION SCHEME - 2010

1.0 OBJECTIVES

1.1 To promote innovative thinking for work life improvement. 1.2 To encourage and recognize employee creativity. 1.3 To provide scope to participate in the development and growth of company. 1.4 To improve productivity, techno economics, quality and systems.

2.0 SCOPE

2.1 The scheme shall cover all regular employees of the company, including trainees.

3.0 ELIGIBLE SUGGESTIONS :

3.1 Any implementable suggestion pertaining to the suggestor's own area of work, incorporating all relevant details viz. WHAT, WHY, HOW, WHEN and by WHOM shall be covered under the scheme. An illustrative list of aspects/areas on which suggestions can be given is given below :

Improvement in quality of work

life. Safe work environment

Better customer(internal and external) satisfaction

Rationalisation/ simplification of systems and

procedure Cost reduction and revenue generation

Improved maintenance/work practices

Improvement in the design, utility, quality, yield or output of products and services

Conservation of raw materials, energy, power and process time and import

substitutions.NOTE : The above list is not exhaustive. Any idea/proposal conforming to the

objectives of the scheme shall also be accepted as suggestion.

4.0 AREAS/ASPECTS BEYOND THE SCOPE OF THIS SCHEME :

4.1 Capital investments 4.2 Replacement of capital assets 4.3 Company policy matters 4.4 Union Management agreements and collective bargaining matters.

5.0 SUGGESTION GIFT :

5.1 Only implemented /implementable suggestions will be eligible for suggestion gift.

6.0 IMPLEMENTATION :

Focus of the scheme being savings through quality suggestions, the implementation responsibility of accepted suggestions shall rest with the Head of Departments.

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:2:6.1 COMMITTEES :6.1.1 Bhilai Steel Plant has been divided into 20 zones for facilitating the

implementation of the Suggestion Scheme. There shall be a Zonal Award Committee(ZAC) in each zone to evaluate and decided on the suggestions generated in the respective areas. A plant level Apex Award Committee(AAC) will evaluate the suggestions referred by the ZACs.

6.1.2 Constitution of Zonal Award Committees :

GM/DGM : Chairman(of the same Zone)Deptt. Representative : MemberFinance Representative : MemberIED/O&M Rep. : MemberCost Management Deptt.Representative : MemberOperations.Representative : Expert MemberMech. Representative : -do- Nominated byElect. Representative : -do- Zonal HeadPersonnel Executive : Convenor

The Expert members from the Zone shall take the responsibility for facilitating the implementation of suggestions in the Zone/Department.

The Suggestion Cell will ensure the nomination of the Chairman and Convenors of the ZACs. Nominations of other members of ZAC shall be ensured by the respective Convenors.

ZAC shall meet at least once a month to review the progress on implementation and decide on cash awards for implemented suggestions.

6.1.3 CONSTITUTION OF APEX AWARD COMMITTEE:

Head of Works : ChairmanGM(Personnel) : MemberDGM(F&A) : MemberIncharge Suggestion Cell : MemberDGM(PP& E) : Convenor

In addition, Chairman of a ZAC will be co -opted as member of AAC whenever suggestions pertaining to his area are taken up for consideration.

7.0 AWARDS :

7.1 Cash awards will be given by ZAC only in the case of implemented suggestions. The ZAC may give cash awards up to a maximum of Rs.3,000/- only depending upon the benefits accruing to the company. The amount to be awarded against different slabs of saving potential shall be given per suggestor.

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The linkage between savings potential and award amount shall be as given below

Sl. Total Savings Potential Award Amount1 Upto Rs 1.00 Lakh Rs 100.00 per suggestor2 Above Rs 1.00 lakh & upto Rs 3.00 lakhs Rs 150.00 per suggestor3 Above Rs 3.00 lakhs & upto Rs 5.00 lakhs Rs 250.00 per suggestor4 Above Rs 5.00 lakhs & upto Rs 8.00 lakhs Rs 400.00 per suggestor5 Above Rs 8.00 lakhs & upto Rs 12.00 lakhs Rs 600.00 per suggestor6 Above Rs 12.00 lakh & upto Rs 15.00 lakhs Rs 750.00 per suggestor7 Above Rs15.00 lakhs & upto Rs 20.00 lakhs Rs 1000.00 per suggestor8 AboveRs 20.00 lakhs & upto Rs 30.00 lakhs Rs 1200.00 per suggestor9 Above Rs30.00 lakhs & upto Rs 50.00 lakhs Rs 1500.00 per suggestor10 Above Rs 50.00 lakh & upto Rs 1.00 Crore Rs 2000.00 per suggestor11 Above Rs 1 Crore & upto Rs 1.50 Crore Rs 2500.00 per suggestor12 Above Rs 1.5 Crores Rs 3000.00 per suggestor

Where the suggestions are found to be implementable but are yet to be implemented, letter of appreciation may be issued along with a suggestion gift by the Chairman of the ZAC

7.2 The Apex Award Committee will consider such of the outstanding implemented suggestions which bag the maximum award of Rs.3,000.00 at ZAC level, and are specifically referred by ZAC for additional cash award.

7.2.1 In exceptional cases, ZAC Chairman can refer a suggestion to the Apex Committee irrespective of the saving potential or the amount of award given by the ZAC, giving reasons thereof, and such suggestions will also be considered by the AAC.

7.2.2 Where a suggestion pertains to enhancement of intangible benefits such as better customer satisfaction, reduced service time etc., and the savings potential in not computable, the Chairman of the ZAC may use his to judgment to award, as an exception, a sum ranging between Rs 100.00 and Rs.1,000/-(Rupees one thousand only) per suggestor, for quality suggestions whose saving potential cannot be quantified.. As in most cases, it is possible to quantify the savings even where the benefits may initially appear to be intangible, efforts shall be first made for doing so and the services of any BSP official may be utilized for giving expert advise on the issue.. In cases where the ZAC Chairman is of the view that a higher monetary award is called for, going by the quality and reach of the suggestion, the case may be referred to the Apex Award Committee.

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7.3 The AAC shall grant award under 3 categories. The award amount granted by AACfor a particular suggestion for a total group and the maximum amount for anindividual member of the group shall be as follows :

Category Max.amount for whole Max.amount for onegroup (in Rs.) individual (in Rs).

I 35,000 15,000

II 25,000 10,000

III 15,000 5,000

7.4 This amount will be in addition to Rs.3,000/- awarded at ZAC level and paid onlywhere the suggestion has been implemented.

7.5 In addition to cash awards, Apex Award Committee may approve grant of specialindustrial tour/training or excursion tour for family for good suggestors.

7.6 A Rolling Trophy will be awarded to the zone which excels in implementation of thescheme in an year. The criteria for deciding the above will be based on thepercentage(i.e. number of implemented suggestions with regard to number ofemployees in that Zone) and also category of awards received by that Zone andsavings generated.

7.7 Recommendation for various National Awards will also be made by the Apex AwardCommittee.

8.0 DISTRIBUTION OF AWARDS :

8.1 ZAC Cash awards shall be distributed through pay slips

8.2 The awards recommended by Apex Award Committee and the Rolling Trophy will be distributed by the Managing Director in a bi-annual function to which the award winners will be invited with their spouses.

8.3 All award winners will be given a Certificate of Merit signed by the Chairman of the respective Award Committees.

8.4 List of ZAC award winners shall be notified by the ZAC Convenor.

8.5 Cash awards for group suggestions, both at the Zonal and the Apex level shall be equally distributed amongst all the members of the group.

9.0 PROCEDURE :

9.1 The employee may submit their suggestions in the prescribed proforma, which will be available with all the Shift Incharges/Personnel Officers. Suggestions can be submitted on plain paper also.

9.1.1 The Convenors / HODs/ZAC members shall help the employee(s) in filling up the suggestion form.

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:5:9.1.2 The suggestors may utilize the services of a facilitator in helping them write down

the suggestion, implement the same and document the process. The name of the facilitator shall be inserted in the suggestion form (O&M/PER-159).

9.2 A suggestion may be given by an individual or by a group of employees. In case of group suggestions, the maximum size of the group shall be limited to five employees.

9.3 Suggestions may be submitted to the concerned Personnel Officer/Shift Incharge/HOD of the department to which the employee belongs, who will then arrange to send the same to the concerned Member Convenor expeditiously.

9.4 Member Convenor would make a scrutiny of the proposal in consultation with the HOD. In case of implemented suggestions, a Suggestion Gift shall be given to all members of the group including the facilitator. Where a suggestion is found to be implementable but not yet implemeted, usually one suggestion gift shall be given only to the person first named in the group. However, where the Chairman of the ZAC is of the view that the suggestion is of high quality, the decision may be recorded by him in writing and in such an event, the suggestion gift shall be given to all the members of the group, including the facilitator.

9.5 Member Convenor will make necessary entries in the register to be opened specifically for this purpose. He will then forward the proposal to the evaluator. The evaluator normally will be an officer of the rank of Sr. Manager or above in the department where the proposal has been implemented or intended to be implemented. The evaluator will examine the proposal and record his recommendations in a prescribed proforma.

9.6 The Convenor will make a comprehensive compilation of the recommendations of the evaluators on implemented cases received during the month and will put up the same to the Zonal Award Committee which will meet regularly once in a month. Minutes of the meeting will be prepared and circulated by Member Convenor.

9.7 The Zonal Award Committee will scrutinize the cases broadly on recommendations of the evaluators/experts committee and record the decisions for award.

9.8 The Convenor will also make a compilation of the pending implementable suggestions and the recommendations of the evaluators thereon and place the same before the ZAC, which shall review the progress on pending implementable suggestions.

9.9 Public Relations Department will ensure sufficient publicity on the award winners through coverage in the House magazines, display of photographs at appropriate places and press coverage.

9.10 The Chairman of Zonal Award Committees will be responsible for effective implementation of this scheme in his area. The Convenor would be required to send a monthly report to the Dy. Manager (P-Suggestion Cell) and Convenor of the Apex Award Committee. Suggestion Coordination Cell will monitor activities of all ZACs.

9.11 A Central Technical Committee would be constituted with officers from different disciplines to examine the applicability of suggestions implemented in one department, in other departments. The committee would initially consider those suggestions which have been referred to the Apex Awards Committee. The constitution of the committee would be separately notified by Suggestion Cell.

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9.12 The Suggestion Cell would publish compilation of selected and implemented suggestions for information of all concerned and as knowledge management input.

10 ROLE OF THE APEX AWARD COMMITTEE :

10.1 The Apex Award Committee will meet once in a quarter to review the following :

10.2 To decide the awards on the cases referred by Zonal Award Committees.

10.3 To decide special awards for suggestors who have frequently been awarded for making fruitful suggestions.

10.4 To annually decide the Rolling Trophy

10.5 To review the progress of the scheme in various areas of the Plant based on monthly reports from the Convenors of the Zonal Committee.

10.6 To finalise recommendations for national level award.

11 ROLE OF SUGGESTION COORDINATION CELL :

11.1 Facilitate the implementation of scheme, including central procurement of token gifts.

11.2 Data collection and information sharing. 11.3 Organising competetions 11.4 Monitoring of ZACs working 11.5 Convening meetings of ZAC Convenors 11.6 Liaison and coordination of INSAAN level activities 11.7 Cash awards payment through Finance 11.8 Recommendations for national level awards 11.9 Screening, finalising National convention representations.

12 MONITORING MECHANISM :12.1 Regular monitoring of the suggestions will be done by the Convenor and Zonal

Personnel Officers and weekly reports will be generated by them.

12.2 The evaluation report will be kept with each suggestion by the respective Convenor for future records and reference.

12.3 In addition to above, weekly monitoring and additional support for monitoring suggestions and deriving maximum benefits out of the same will be provided by DGM (P-Mines &Rowghat)/ DGM I/c (P-Works, CLC,CS) / DGM(P-NW,MPS & Rectt).

13 AWARD FOR THE AUTHORS WHO HAVE BEEN GRANTED PATENT/ COPYRIGHT :

13.0 In order to encourage creative talent in BSP, provision has been made for rewarding copyright/patent certificates obtained through Quality Circle projects or otherwise. The procedure for processing proposals for patents/copyrights is as notified vide

No.O&M/MS-Genl/299 dated 31.5.2003 and can be referred on O&M website. Contd….

:7:The awards for patent/copyright granted cases would be as follows :

i. Patent certificates obtained through Quality Circle projects:

Facilitator of patented Quality Circle project

Circle member (subject to maximum 6) : Rs.10,000/-: Rs.7500/- each

ii. Patent/Copyright certificates obtained through other than Quality circle route :

- Individual author of the granted patent cases : Rs.10,000/-- More than one author (not exceeding 6) of the granted : Rs.7500/- each

patent cases- Individual author of the granted patent cases : Rs.3000/-- More than one author (not exceeding 6) of the granted : Rs.1500/- each

copyright cases

In case the number of authors exceed 6, the maximum amount payable shall be equally distributed amongst the authors.

On granting of any patenting/copyright certificate, Member Convenor of the Patenting & Copyright committee i.e. O&M Deptt. representative shall obtain approval of ED (P&A) for payment of the award money.