Vendor Development

INTRODUCTIONBHEL is one of the largest engineering and manufacturing enterprises in India and is one of the leading international companies in the field of powerIncorporated as Heavy Electricals (Pvt.) Limited in August 1956

Manufacture electrical equipment required for generation, transmission and utilization of electrical power

Heavy Electricals (India) Limited formally merged with Bharat Heavy Electricals Limited (BHEL) in 1974

BHEL has 14 manufacturing unitsThe Company Profile

Marketing environment:-In the 1960's and 1970's, BHEL worked in a controlled business environment and the clients different state power sheets and other utility were not permitted to import the force plant supplies. It was basically an imposing business modelMarket trend:-The electrical supplies producers in India are overhauling the existing advances to give an intense edge to electrical gear produced in India and help them contend in the Global Electrical Equipment market. Market drivers:-One of the real drivers for the BHEL business sector is the developing Power industry in India. Market AnalysisCompetitors analysis

Product Range

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7SWOT ANALYSISThe company has 180 products under 30 major product groups that cater to the needs of the core sector like power, industry, transmission, transportation, defence, telecommunications and oil businessBHEL's ability to acquire modern technology and make it suitable to Indian conditions has been an exceptional strength of the company Quality Cost competitivenessAfter sales serviceR & DGlobal presenceStrengths9The company offers very stringent credit facilities to the customers and this is a weakness when compared in the face of rising competition.

The company is vertically integrated, which could have been avoided by outsourcing its components for power generation and transmission. This could have reduced the cost. Weaknesses10The power sector reforms are expected to pick up in the near future in India, which would directly benefit BHEL.

Increase in defence budget will increase the topline for the company. The business of modernization and renovations of power plants is expected to growin India.

The disinvestment plans of the government would bring in new resources and experience into the company.

Joint Venture with Siemens in the name of Powerplant Performance Improvement Ltd. (PPIL), is a major strength for the company. This tie-up will be beneficial as there is a lot of scope for business. During FY00 the PPIL received orders worth Rs. 320 crore.

Opportunities11The global trend of consolidation has already resulted in a fall in turnover of the company and this will prove to be a major threat in the years to come as well

Unsatisfactory financial performances

Threats12STRATEGIES

Technological StrategyResearch and Development StrategyWork-Culture and PhilosophyVendor DevelopmentQuality StrategyManufacturing StrategyFlexible Manufacturing TechnologyShare Point Portal Server Other strategies14BHEL is the leader company to provide a technology to the various products.

Acquiring technology & making product out of it through licensing.Developing its own technology. Upgrading its product engineering and manufacturing technology base by induction of state-of-the-art technologies. Upgrading equipment and facilities to maintain quality leadership.

Technological Strategy15BHEL is amongst the highest investors in Research and Development in the country.

The R&D efforts have made significant contributions to almost all areas of operation of BHEL; a few among them are:

Research and Development StrategyAtmospheric Bubbling fluidized bed Combustion (FBC) boiler up to 100 tones/hr.

Direct Ignition of Pulverized Coal (DIPC).

Ceramic liners for abrasion resistance application in thermal power plants.

Absorption of know-how from its international collaborators and integrating them with indigenous developments in its R&D facilities.17It conducts regular training programs for its employees to develop them into fulfilled individuals and effective managers.

Training programs include: General management Behavioral science Functional management

Work-Culture and Philosophy18Advantages of training programs: Development of a committed and motivated work force. Encouragement to all employees to participate in all activities.

Global meeting of about 200 vendors was held at HardwarVendor Development

Achieve highest international standards of quality at every stage of operationCorporate quality departmentQuality Strategy

Flexible Manufacturing Systems (FMSs), Automated Guided Vehicles (AGVs), robotics, Automated Storage and Retrieval Systems (ASRSs), Computer Aided Design (CAD), and Computer Aided Manufacturing (CAM)

Acquire more and more advanced machines whereby the productivity can be improved, cycle time reduced, cost of production lowered and the rate of stock removal is enhancedManufacturing Strategy

International competition, shorter delivery times, targets and commitments and other internal and external factors Ideal Time ReducedReduction in delivery time and levels of inventory and WIPIncrease the productivity with an underlying strategy of maximising profits through lowering unit costs

Flexible Manufacturing Technology

Current StrategySmall boilers strategy:

-BHEL enter in the small boilers segment .

-35 tonnes to 200 tonnes of steam an hour.

-Strategic enable enough to take quick, cost-saving decisions .

- Orders at hand, which further set to achieve a turnover of over Rs 800 crore in the current year.

Induction of technology-Higher cpapcity set viz-800MW thermal set,250MW hydro set and 250MW advance class Gas Turbines.

Current Strategy Renewable Energy-non-conventional energy sources :

-solar water and air heating systems

-order from the A.P. State Electricity Board to set up a 2 MW wind farm at Ramagiri in Anantapur district

-high level of indigenisation in manufacturing single crystal photovoltaic cells

-battery vehicle technology in India

Current StrategyBHEL to enhance capabilities to manufacture nuclear reactor components -Steam Generators, Reactor Headers and Nuclear Turbine Generator Sets to Nuclear Power Corporation of India Ltd. (NPCIL) -220 MW and 540 MW reactors BHEL registers 23.3% growth in sales in first quarterBHEL bags Rs.2600 Crore Contract from Jindal India Thermal Power Ltd. ConclusionStrategic intent is a very important part which should be developed and implemented for the organizations success and growth and in the strategic intent the various strategies which are adopted by various organizations.

BHEL is poised to take up the challenge and play a major role in meeting the energy demand of the country.

BHEL make the country Self Reliant in Power Plant Equipment manufacture, the company has grown in stature in both domestic and international markets BHEL expected to cater to both power and Industry sectors and will play a major role in meeting the energy demand of the country.

After studying BHEL we have found out that it is always adopting innovative strategies so that it can continue to grow and also earn profits for its shareholders.Thank You