Baseline & Evaluation Methodology

SSF Plastics: Hosur, TN

Prepared By Renoir Consulting (India) Pvt. Ltd Date: 06-12-2024

Table of Contents
1 Introduction ...................................................................................................................................... 2
2 Baseline .............................................................................................................................................. 2
2.1 Baseline Period....................................................................................................................... 2
2.2 Monthly Production (Tons) ................................................................................................ 2
2.3 Planned Performance Indicator ....................................................................................... 2
2.4 Man-days per Ton (Blue Collar Productivity) ............................................................. 0
2.4. White Collar Manpower............................................................................................................ 0
2.4. Power Consumed (Units/Kg)................................................................................................... 1
2.5. Inventory (Tons) ........................................................................................................................ 1
2.5 Yield ............................................................................................................................................ 1
2.6. Cost Parameters ....................................................................................................................... 2
3. Evaluation Methodology .................................................................................................................... 2
4. Operational & Financial Benefit Calculation ................................................................................... 2
5. Exclusions..................................................................................................................................... 2
1 Introduction
This document is a reference document for baselines and associated definitions, which have been used
for calculating the baselines. Once the baselines have been established and agreed, this document
explains the methodology to calculate the savings.

2 Baseline
2.1 Baseline Period
The baseline period to measure the performance of the project is Oct-23 to Sep-24. The idea behind
considering the said period for baseline is that it takes into account all the improvements done by
SSF prior to the analysis/project start.

2.2 Monthly Production (Tons)

Production is a lag KPI, which defines the performance of the plant. Ideally, increase in production
should be a direct function of improvement in OEE, however there could be other reasons as well
such as change in SKU mix. Monthly production is the sum of daily good production of the plant in
MT. Good production is defined as the one which is packed and is ready for dispatch (FG). The
source of data is Production Ledger ERP.

EBM IBM IM ISBM Total

Oct-23 411.18 14.60 229.31 76.71 731.81
Nov-23 498.05 17.87 237.93 105.84 859.68
Dec-23 498.12 20.04 276.64 78.02 872.81
Jan-24 505.64 22.49 263.28 56.05 847.45
Feb-24 481.67 26.42 228.53 34.29 770.92
Mar-24 434.84 32.03 258.44 69.07 794.38
Apr-24 427.81 29.38 226.88 76.98 761.06
May-24 426.01 22.23 240.24 80.83 769.32
Jun-24 440.12 22.90 327.18 94.87 885.07
Jul-24 472.68 26.13 341.59 116.05 956.45
Aug-24 450.27 44.15 316.44 88.36 899.22
Sep-24 456.46 26.41 388.20 57.25 928.32
Average 458.57 25.39 277.89 77.86 839.71

2.3 Planned Performance Indicator

Planned performance Indicator is a critical lag indicator to evaluate operational efficiency in a plant.
It measures the actual productive hours earned against the planned hours, reflecting resource
utilization and output effectiveness. The source of data is ERP Database
2.3.1 Planned Performance Indicator- Overall

Downtime Summary in Hours Nov-23 to Oct-24 (Data Source ERP Data Base- Downtime Machine wise Summary)
Weekly Man Plastic
Total Available Colour Material Mould Power Production Run
Section Off / Auxiliary Machine Power Mould No Plan Others CLD Trial
Hours Hours Change Shortage Change Failure / Process Hours
Holiday Shortage Shortage

EBM 2,10,456 16,432 1,94,024 1,651 144 6,574 2,152 346 1,261 1,817 34,060 2,055 37 9,117 5,661 1,790 1,27,359

IBM 33,672 2,680 30,992 68 4 1,051 53 8 16 181 18,540 223 0 1,038 221 23 9,567

IM 4,54,785 25,168 4,29,617 586 365 4,611 2,322 1,876 942 21,202 1,31,571 1,502 0 14,275 3,273 10,852 2,36,243

ISBM 36,608 2,984 33,624 87 0 916 76 4 626 607 13,363 439 0 1,406 611 144 15,343

Overall 7,35,521 47,264 6,88,257 2,392 512 13,151 4,603 2,234 2,844 23,807 1,97,534 4,219 37 25,836 9,766 12,809 3,88,512

Production Summary in Hours Nov-23 to Oct-24(Data Source ERP Data Base- Production ledger)

Section Total Production Hours Rejection Hours Hold Hours Earned Hours

EBM 124844 1953 753 122138

IBM 9388 111 80 9197

IM 240176 4455 1061 234660

ISBM 15169 118 85 14966

Overall 389577 6637 1980 380960

 SSF Plastics - Hosur - Overall - Earned Hours
Oct'23 to Sep'24
7,90,000

6,90,000
0.3% 0.1%
1.9% 0.7% 0.3% 0.4%
3.5%
5,90,000

4,90,000

28.7% 0.6% 0.0%

Hrs

3,90,000 3.8% 1.4%

1.9% 1.0%
0.3%
2,90,000
Planned Performance Index: 55.4%

1,90,000

-0.2%
90,000

-10,000
 2.3.2 Planned Performance Indicator- EBM
Weekly Man Plastic
Total Available Colour Material Mould Power Production
Section Off / Auxiliary Machine Power Mould No Plan Others CLD Trial Run Hours
Hours Hours Change Short Change Failure / Process
Holiday Short Short

Oct-23 17,856 3,264 14,592 51 12 352 21 1 63 178 3,416 37 - 836 318 58 9,249

Nov-23 17,272 1,264 16,008 102 11 564 141 - 157 144 2,325 125 - 414 564 24 11,437

Dec-23 17,840 1,136 16,704 90 8 633 46 - 98 105 3,008 20 - 782 495 42 11,378

Jan-24 17,848 2,320 15,528 84 10 613 53 31 131 152 958 1 - 764 462 228 12,042

Feb-24 16,648 576 16,072 136 11 508 203 15 105 144 1,932 78 - 754 461 476 11,249

Mar-24 17,856 1,424 16,432 169 24 329 528 - 113 139 2,906 576 - 294 524 108 10,724

Apr-24 17,272 1,464 15,808 180 3 440 254 7 98 148 3,730 311 - 335 547 25 9,731

May-24 18,176 1,896 16,280 137 6 619 130 5 82 130 3,844 75 - 985 406 24 9,835

Jun-24 17,256 264 16,992 86 24 596 420 239 84 156 3,053 568 37 1,210 501 61 9,957

Jul-24 17,840 1,144 16,696 388 13 997 91 2 129 131 2,654 264 - 900 490 115 10,521

Aug-24 17,848 1,104 16,744 121 17 448 99 26 91 78 3,480 - - 1,068 383 346 10,587

Sep-24 16,744 576 16,168 107 6 475 166 20 109 310 2,755 - - 774 510 284 10,651
Grand
2,10,456 16,432 1,94,024 1,651 144 6,574 2,152 346 1,261 1,817 34,060 2,055 37 9,117 5,661 1,790 1,27,359
Total

Production Summary in Hours Nov-23 to Oct-24(Data Source ERP Data Base- Production ledger)

Section Total Production Hours Rejection Hours Hold Hours Earned Hours

EBM 124844 1953 753 122138

IBM 9388 111 80 9197

IM 240176 4455 1061 234660

ISBM 15169 118 85 14966

Overall 389577 6637 1980 380960

 SSF Plastics - Hosur - EBM - Earned Hours
Oct'23 to Sep'24
2,50,000

2,00,000
0.9% 0.1%
3.4% 1.1% 0.2% 0.6%
0.9%
1,50,000
17.6% 1.1% 0.0%
Hrs

4.7%
2.9% 0.9%
1.3% 1.0% 0.4%
1,00,000

Planned Performance Index: 62.9%

50,000

0
 2.3.3 Planned Performance Indicator- IBM
Weekly Man Plastic
Total Available Colour Material Mould Power Production
Section Off / Auxiliary Machine Power Mould No Plan Others CLD Trial Run Hours
Hours Hours Change Short Change Failure / Process
Holiday Short Short

2,232 408 1,824 8 - 589 - - - 12 604 2 - 88 21 - 500

Oct-23
2,160 176 1,984 2 - 321 - - 1 14 984 3 - 50 12 - 598
Nov-23
2,992 256 2,736 12 - 11 - - - 12 1,905 - - 107 9 - 681
Dec-23
2,968 384 2,584 16 - 18 16 - - 15 1,675 - - 92 25 - 728
Jan-24
2,776 96 2,680 4 - 33 21 - - 25 1,620 8 - 109 20 7 833
Feb-24
2,976 240 2,736 8 - 31 8 - 5 32 1,455 96 - 34 36 - 1,031
Mar-24
2,880 288 2,592 10 - 21 - - - 24 1,568 16 - 18 27 - 908
Apr-24
2,976 208 2,768 1 - 11 - - - 10 1,992 2 - 54 6 - 691
May-24
2,880 - 2,880 4 - 0 8 - 3 7 1,936 96 - 133 11 - 681
Jun-24
2,976 192 2,784 2 - 4 - 8 1 6 1,880 - - 90 17 - 776
Jul-24
2,976 256 2,720 0 4 5 - - 6 11 1,154 - - 163 19 8 1,350
Aug-24
2,880 176 2,704 1 - 6 - - - 14 1,767 - - 101 18 8 790
Sep-24
Grand
Total
33,672 2,680 30,992 68 4 1,051 53 8 16 181 18,540 223 - 1,038 221 23 9,567

Production Summary in Hours Nov-23 to Oct-24(Data Source ERP Data Base- Production ledger)

Section Total Production Hours Rejection Hours Hold Hours Earned Hours

EBM 124844 1953 753 122138

IBM 9388 111 80 9197

IM 240176 4455 1061 234660

ISBM 15169 118 85 14966

Overall 389577 6637 1980 380960

 SSF Plastics - Hosur - IBM - Earned Hours
Oct'23 to Sep'24
40,000

35,000

30,000 0.2% 0.0%

3.4% 0.2% 0.0% 0.1%
25,000 0.6%
Hrs

20,000

15,000

10,000 59.8% 0.7% 0.0%

3.4% 0.7% 0.1% 0.6% 0.4% 0.3%
5,000 Planned Performance Index: 29.7%
0
 2.3.4 Planned Performance Indicator- IM
Plast
Weekly Man ic Producti
Total Available Colour Material Mould Power
Section Off / Auxiliary Machine Power Mould No Plan Others CLD on / Trial Run Hours
Hours Hours Change Short Change Failure
Holiday Short Shor Process
t

Oct-23 34,960 4,200 30,760 28 6 383 189 54 32 827 10,819 18 - 1,288 320 1,445 15,351

Nov-23 36,712 3,360 33,352 14 8 70 142 6 64 2,298 10,920 326 - 782 167 489 18,066

Dec-23 37,944 2,416 35,528 13 37 507 40 428 102 2,090 9,674 136 - 1,406 194 939 19,963

Jan-24 38,616 4,968 33,648 24 16 578 18 398 76 1,385 12,278 56 - 1,026 292 764 16,736

Feb-24 35,528 336 35,192 16 28 285 117 222 70 1,972 11,868 59 - 1,408 220 1,028 17,898

Mar-24 39,000 2,424 36,576 48 38 214 457 15 58 2,001 14,181 36 - 378 187 757 18,206

Apr-24 38,880 2,736 36,144 53 35 376 117 193 61 1,716 15,749 442 - 164 543 869 15,825

May-24 40,176 2,640 37,536 52 29 232 25 21 51 1,640 18,062 57 - 1,006 152 767 15,440

Jun-24 37,488 - 37,488 82 33 473 778 21 108 1,834 7,372 122 - 2,374 387 802 23,103

Jul-24 38,687 - 38,687 148 46 705 69 391 49 1,808 7,263 127 - 1,597 225 1,145 25,114

Aug-24 38,688 1,272 37,416 45 35 324 82 33 93 1,814 9,515 48 - 1,713 304 619 22,792

Sep-24 38,106 816 37,290 62 53 463 289 94 179 1,818 3,869 75 - 1,133 282 1,227 27,747
Grand
4,54,785 25,168 4,29,617 586 365 4,611 2,322 1,876 942 21,202 1,31,571 1,502 - 14,275 3,273 10,852 2,36,243
Total

Production Summary in Hours Nov-23 to Oct-24(Data Source ERP Data Base- Production ledger)

Section Total Production Hours Rejection Hours Hold Hours Earned Hours

EBM 124844 1953 753 122138

IBM 9388 111 80 9197

IM 240176 4455 1061 234660

ISBM 15169 118 85 14966

Overall 389577 6637 1980 380960

 SSF Plastics - Hosur - IM - Earned Hours
Oct'23 to Sep'24
5,00,000

4,00,000 0.1% 0.1%

1.1% 0.5% 0.4% 0.2%
4.9%

3,00,000

30.6% 0.3% 0.0%

3.3% 0.8% 2.5%
Hrs

2,00,000 1.0% 0.2%

Planned Performance Index: 54.6%

0.9%
1,00,000

-1,00,000

Note:

 No Plan Splitup
 A performance loss of -3933 implies that the actual production exceeds the rated production, suggesting the following possibilities:
1. The actual cycle time is shorter than the standard (STD) cycle time.
2. Additional delays have been recorded beyond the expected time."
 2.3.5 Planned Performance Indicator- ISBM
Weekly Man Plastic
Total Available Colour Material Mould Power Production
Section Off / Auxiliary Machine Power Mould No Plan Others CLD Trial Run Hours
Hours Hours Change Short Change Failure / Process
Holiday Short Short

Oct-23 2,976 384 2,592 1 - 49 - - 96 18 936 5 - 128 44 - 1,315

Nov-23 2,880 248 2,632 1 - 235 - - 24 125 399 - - 78 20 - 1,750

Dec-23 2,976 272 2,704 6 - 135 - - 24 86 1,157 7 - 114 34 - 1,141

Jan-24 2,976 480 2,496 4 - 30 - - 24 7 1,444 - - 86 17 - 884

Feb-24 2,792 192 2,600 - - 13 12 1 56 93 1,639 - - 120 20 - 646

Mar-24 2,976 192 2,784 7 - 23 - - 22 16 1,409 96 - 34 31 - 1,146

Apr-24 2,880 256 2,624 8 - 50 24 - 24 72 976 96 - 24 24 - 1,325

May-24 2,976 168 2,808 7 - 137 21 - 96 41 755 5 - 128 191 8 1,420

Jun-24 2,880 96 2,784 8 - 52 20 - 96 100 656 96 - 180 66 - 1,510

Jul-24 2,976 96 2,880 13 - 65 - - 69 18 420 96 - 186 78 80 1,855

Aug-24 3,720 360 3,360 19 - 26 - 3 44 7 1,541 36 - 189 67 - 1,428

Sep-24 3,600 240 3,360 14 - 100 - - 51 24 2,032 1 - 141 18 56 924

Grand
Total
36,608 2,984 33,624 87 - 916 76 4 626 607 13,363 439 - 1,406 611 144 15,343

Production Summary in Hours Nov-23 to Oct-24(Data Source ERP Data Base- Production ledger)

Section Total Production Hours Rejection Hours Hold Hours Earned Hours

EBM 124844 1953 753 122138

IBM 9388 111 80 9197

IM 240176 4455 1061 234660

ISBM 15169 118 85 14966

Overall 389577 6637 1980 380960

 SSF Plastics - Hosur - ISBM - Earned Hours
Oct'23 to Sep'24
40,000

35,000
0.3% 0.0%
30,000 2.7% 0.2% 0.0% 1.9%
1.8%

25,000
Hrs

20,000
39.7% 1.3% 0.0%
15,000 4.2%
1.8% 0.4% 0.5% 0.4% 0.3%
10,000 Planned Performance Index: 44.5%

5,000

0
Baseline & Evaluation Methodology: SSF Plastics

Metric Baseline Principle

 Planned performance Indicator is a critical lag indicator to evaluate operational efficiency
in a plant. It measures the actual productive hours earned against the planned hours, reflecting
resource utilization and output effectiveness.
 Earned Hours refers to the amount of time that has been theoretically "earned" based on the
production output compared to the standard time required to produce that output. It is a
measure of efficiency that indicates how much production has been completed in relation to
the expected time.
 Standard Time is the time it is expected to take to produce a specific units of products based
on the predefined norms

God Hours=Total time in Month (in Hrs.) * Number of Machines

Weekly off / Holidays= Planned weekly off and Holidays (in Hours) * Number of machines

Planned Planned Operating Hours = God Hours – Weekly off/ Holidays (in hrs.)
Performance
Run Hours = Planned Operating Hours – Machine Non-available time Eqpt. (Non-available
Indicator % includes No plan B/D, C/O, Manpower Shortage, PM etc.)

Performance Loss = Run Hours – Actual Production Hours

Actual Production Hours = Std. CT x Production Qty

Rejection Hours = Std. CT x Rejection Qty

Hold Hours = Std. CT x Hold Qty

Earned Hours = Actual Production Hours –Rejection Hours – Hold Hours

Planned Performance Indicator = Earned Hours/ Planned Operating Hours

 Baseline & Evaluation Methodology: SSF Plastics

2.4 Man-days per Ton (Blue Collar Productivity)

Man-days per Ton is a lag KPI to measure the productivity of the blue-collar (Direct manpower working on SKU) workforce. As the
name suggests, man-days / ton is calculated by dividing the total man-days consumed with the good production. One man-day is
equivalent to 12 working hours of a single workman. The source of data is Corporate HR Data – Sonam Misore.

Oct-23 Nov-23 Dec-23 Jan-24 Feb-24 Mar-24 Apr-24 May-24 Jun-24 Jul-24 Aug-24 Sep-24 Average
EBM
IBM
IM
ISBM Data Not Received from head Office
Indirect
Total Direct
Man-Days
Total
731.81 859.68 872.81 847.45 770.92 794.38 761.06 769.32 885.07 956.45 899.22 928.32 839.71
Production MT
Man-days/MT

Metric Baseline Principle

Blue collar means the direct & indirect manpower (excluding the staff) utilized to produce the production
Manpower Productivity (MP) = Total Man-days utilized/ Total MT Good Production
Blue Collar
Overall Metric baseline will be the avg. for the period from Oct 2023 -Sep 2024 for plant. This metric is just for
Productivity
monitoring purpose; however, the evaluation will be based on SKU-wise manpower improvement.
(MD/ MT)
SKU-wise baseline will be based on the Manpower Std. for each SKU for benefit realization purpose.
Any improvement in SKU-wise manpower std. will be incorporated in revised Manpower std.
Baseline & Evaluation Methodology: SSF Plastics

2.4. White Collar Manpower

White collar manpower is the count of employees from supervisor level up to below AGM level. The
source of data is HR –Bruno Kumar.

Department Count of Employees Annual CTC (₹)

Automation 1 3,19,742
Engineering 44 2,13,51,839
Finance & Accounts
4 25,68,832
HR & ADMIN 7 40,85,503
IT Department 1 5,00,874
Logistics & Dispatch 7 41,38,086
Marketing 1 4,29,096
Data Not Received
Materials 11 64,98,513
Production 72 3,79,88,861
Quality 28 1,42,58,465
Safety and Security 1 8,24,997
Tool Room 18 88,40,083
Warehouse 6 28,39,184
Total 201 10,46,44,076

Metric Baseline Principle Methodology

The revised structure with Head Counts will be

The current strength of Staffs at hosur plant as mentioned
White proposed & subject to SSF mgmt. agreement.
above will be considered for baseline.
Collar The agreed structure will be signed-off for
CTO (IM), Factory head, Automation and Block 1 Tool Room
Productivity benefit realization. The implementation of the
manpower above are not considered
same is subject to SSF management’s decision
 2.4. Power Consumed (Units/Kg)
Power consumed is the actual electricity units consumed for the production of goods. The
specific consumption of power is a lag KPI derived by dividing the actual units consumed by the
total good production in Kg. The source of data is Accounts – Pushpalata.

No. of
Total Total
Wind Solar IEX Disel Units Production
Month EB Units Units Units for Units/KG
Units Units Units Unit Consumed In Kg
Consumed Production
in Tooling
F= (A+B+
A B C D E G H= F-G
C+D+E)
Oct-23 1010081 298503 0 0 2100 1310684 39321 1271363 7,39,229 1.72
Nov-23 1167843 352397 0 0 1060 1521300 45639 1475661 8,69,280 1.70
Dec-23 871740 650176 0 0 1740 1523656 45710 1477946 8,77,103 1.69
Jan-24 319396 1065553 0 27359 3360 1415668 42470 1373198 8,51,664 1.61
Feb-24 189767 1177084 0 28713 1040 1396604 41898 1354706 7,76,751 1.74
Mar-24 966897 294496 0 232527 2720 1496640 44899 1451741 8,00,639 1.81
Apr-24 601735 379109 0 426780 1800 1409424 42283 1367141 7,63,107 1.79
May-24 19 980436 0 478021 11520 1469996 44100 1425896 7,76,204 1.84
Jun-24 0 1431468 98753 0 8220 1538441 30769 1507672 8,87,902 1.70
Jul-24 2639 1549741 91368 0 4380 1648128 32963 1615165 9,59,717 1.68
Aug-24 539130 723945 106245 239605 4100 1613025 32260 1580764 9,02,756 1.75
Sep-24 119892 1228735 110931 169373 4660 1633591 32672 1600919 9,31,924 1.72
Total 5789138 10131643 407297 1602379 46700 17977157 474983 17502174 10136276 1.73

Metric Baseline Principle

Power (P) = Total Units Consumed/ Good Production in Kg
Power Overall Metric baseline will be the avg. for the period from Oct 2023-Sep 2024 for plant

2.5. Inventory (Tons)

Inventory is the total days of SFG and FG present in the plant. The source of data is ERP –.

2.5 Yield
 2.6. Cost Parameters

3. Evaluation Methodology
Key Performance Indicators (KPIs) were set and agreed with the SSF Management during the analysis
phase to measure the performance of the project both operationally as well as financially. The
improvements will be evaluated against the Baselines defined in the Baseline section above at the month
ending.

4. Operational & Financial Benefit Calculation

The financial benefits from the project shall be realized in the following ways:

a) Savings from reduction in Direct manpower due to increase in volume on account of

improvement in Planned Performance Indicator.
b) Savings from improvement in blue collar productivity
c) Savings from improvement in specific consumption of power (units/kg)
d) Savings from reduction in white collar manpower
e) Savings from reduction in inventory (FG & SFG)
f) Savings from improvement in Yield

Total financial benefits will be the net of savings from all the categories put together and any outflow of
expenses to achieve these gains. The methodology to calculate the savings in each of the above-mentioned
case is explained below:

5. Exclusions
Renoir Renoir shall not be liable for non-achievement of the target annualized benefits and or the key
milestone to the extent that the computation of the same is influenced, without limitation, by the
following factors (and thus shall be entitled to invoice and be paid its fees in full):

1. Force majeure situations like strike, protests, storm alert, power failure, floods, disease
outbreak, etc.;
2. Drastic change in manpower absenteeism when compared to the baseline, more than 30%.
3. Unavailability of raw material.
4. Unavailability of spare part due to external factors
5. Utilization loss due to annual/unplanned shutdown of the plant
6. Change in management priorities/ scope of the project
7. Change in raw material mix.
8. Dip in demand in the market.
9. Business situations, as decided by the shareholders and/or the board of the client, that are
beyond Renoir’s reasonable control (e.g. sale or closure of a plant).
10. Non implementation of Renoir’s recommendation by SSF Plastics
Agreement & Sign-off

Mr. Sunil Dhawan (MD - SSF) Mr. Pulkit Dhavan (Ops Director, SSF)

Mr. KVR. Subramaniam (CFO, SSF) Mr. V. Baskar (Factory Head SSF)

Mr. Debadatta (EBM Operation Head SSF) Mr. M.N. Srinivas (IM Operation Head SSF)