Savings Journey
POT-Gantry travel drive-Overload Trip — the same candidate Project Details already looked at
One number, from the machine to the books.
The Journey: five checkpoints
Nothing is called real until it has passed all five.
We saved 67.6 lakh a year.
CAN WE PROVE IT?
Claimed
the project owner claims the result
Validated
operations confirm it
The loss behind that 67.6 lakh
310 pot-hours
Before: 47.1 pot-hours above the ideal relining time
After: 20.8 pot-hours
Reduced: 26.3 pot-hours
Potroom B - Baseline: 556 pot-hours of relining lost due to POT-Gantry travel drive - Overload Trip.
Reduced: 310 pot-hours saved.
Validated
finance confirm it
A reference cost certified with the finance department before any claim was made; nobody invents a rate on the day of the claim.
One pot-hour of that loss is worth
0.221 lakh
22,105 rupees: 0.1196 t of metal per pot-hour × 1.85 lakh per tonne economic impact (realisation 3.29 less cost of production 1.44 lakh per tonne)
Revenue improvement · a P&L saving · metal sales line · 37 t a year310 pot-hours × 0.221 lakh = 68.5 lakh
67.6 lakh a year, as claimed
One agreed formula, written once, checked by a loss team and a cost team sitting together, and built into the software. Nobody calculates by hand, and nobody calculates differently.
Sustained
It holds for a period set at claim — 9 months here, 1 month for a fix that is binary by nature. Only then is it called real.
How a sustained saving becomes realised
The sustain period
Set case by case at claim, proportionate to the frequency of the occurrence tracked, so the period covers enough occurrences to demonstrate the saving holds.
Approval as realised
A validated saving is approved as realised once sustained over its defined period, with the audit evidence in place.
Claimed
the project owner claims the result
Validated
operations confirm it
Validated
finance confirms it
Realised
sustained over its period, then approved
Reconciled
tied monthly to the P&L line it lands on
Realisation is event-driven, per saving. Consolidation is calendar-driven, at the budget cycle.
Two distinct events
A saving is realised when its sustain period completes, whenever in the year. At each budget cycle, savings are embedded in next year's budget cost basis.
The cut-off rule
Consolidation draws only on savings realised as at the budget cut-off. An unrealised saving may be a target, but is not consolidated as achieved.
Double-counting guard
A consolidated saving is marked as such. Holding the improved level afterwards keeps the new cost basis: not a fresh saving, not claimed again.
Realisation precedes consolidation, never the reverse.