organisation study

CHAPTER 1

EXECUTIVE SUMMARY

It gives a practical exposure to what we have learnt in theoretical form during the first

year of the MBA programme. It nurtures us to face the real corporate situations and gives

a firsthand experience in the real corporate world.

The project work enables the student to put down his/her thoughts in formal written

report and thus gives an opportunity to improve the written communication skills. During

the study the student also have to make an effort to collect the primary data through the

personal interviews with various officials of the company, which is again an opportunity

to improve the oral communication in the organizational context.

The study is made an integral and important part of the programme of MBA as it

provides insights into the industrial environment of which the company is a part. The

student is able to relate the impact of various industrial players’ viz. competitors,

suppliers, customers, government etc.

OBJECTIVES OF THE STUDY

To gain the practical knowledge while conducting the study.

To study the functions of an organization.

To study the impact of management on the performance of the organization.

To know about the policies, rules and regulations of the organization.

To suggest the measures to the organization on the basis of findings.

AISHWARYA INSTITUTE OF MANAGEMENT STUDIES & RESEARCH

STUDY METHODOLOGY

PRIMARY DATA

Direct interaction with Departmental heads

Interaction with superior and employees

SECONDARY DATA

Company Manuals

Magazines

Web sites

LIMITATION OF STUDY

It was difficult to gather all the information from various departments during the

stipulated period of time.

The report also suffers from the bias of information due to several restrictions

imposed.

The time allotted to do the project is limited.

The company is not allowing studding each department in details. As all executive

are busy in their schedule.

Regarding the data provided by the company is mostly secondary.


CHAPTER 2

INDUSTRY PROFILE

Analysais of Indian power sector

The critical role played by the power industry in the economic progress of a country has

to be emphasized. A self sufficient power industry is vital for a nation to achieve

economic stability.

India had been traditionally depending on thermal power as a major source of power

generation, which constitutes about 65 percent of current capacity. Balance is contributed

by Hyde power (26 percent), Nuclear (3 percent) and Renewable energy (6 percent).

Over 87 percent of the current installed capacity in the country is by the government;

with the state governments having lion’s a share of over 52 percent and the balance by

central (federal) government. Due to the initiative of government of India to encourage

Public Private Partnerships in power sector, share of private companies has gone up to

steadily to MW, about 13 percent of the installed capacity.

Indian Power Sector Analysis” focuses on the growing marketplace for power sector in

India. It thoroughly investigates the current market trends, evolving markets, and growth

prospects for the Indian power industry. It will help the client to analyze the driving

forces and leading-edge opportunities critical to the success of the power industry.

Indian Power Industry


Pre-Independence

The British controlled the Indian power industry firmly before Independence. The then

legal and policy framework was conducive to private ownership, with not much

regulation with regard to operational safety.

Post Independence

Immediately after Independence, the country was faced with capacity restraint. India

adopted a socialist structure for economic growth and all the major industries were

controlled by public sector enterprises. By 1970's India had nationalized most of its

energy assets, due to its commitment to social goals. By the late 1980's the Indian

economy felt the strain of the socialist agenda followed since independence. Faced with a

serious deterioration in public finance and balance of payment crisis, the Union

government as part of its policy of economic liberalization allowed greater investment by

private sector in the power industry.

The various types of Power

Non Renewable Energy

Fossil fuels

The Industrial Revolution in Europe in the 19th century forced human's to seek

alternative sources of fuel to cater to the increasing demand. Focus was shifted to fossil

fuels as an alternate source of energy. Fossil fuels were formed millions of years ago.

They are nothing but fossilized organic remains that after millions of years has been

converted into oil, gas and coal. Because this process takes a long time, they are known

as non renewable.

1.

Coal


It is the most easily available fossil fuel in the world. It is mostly carbon and is used as a

combustion fuel, especially after the Industrial Revolution. Coal can further be divided

into lignite, bituminous and anthracite. Lignite and Bituminous have lesser percentage of

carbon and therefore burn faster. They are not environmentally friendly, Whereas

Anthracite has about 98% carbon and therefore burns slowly and is more environmentally

friendly.

Oil and Gas

Oil and Gas is mostly found in underground rocks. Millions of years ago when plants and

animals died, they got buried in layers of mud and sand. The earth's crust changed its

shape and put immense pressure and heat on the dead plants and animals. Over a period

of time, the energy in those plants and animals changed into hydrocarbon liquids and

gases.

Renewable Energ

Because of the environmentally disastrous effect of non renewable energy, an alternate source of energy which would not pollute the environment and which can also be renewed was tapped. They are known as renewable energy.

Solar Energy

It is the most easily available renewable resource. After the oil shock in 1970's many

countries conducted research work to tap solar energy. It is believed in the next few years

millions of consumers across the world would switch to solar energy. In India the Indian

Renewable Energy Development Agency and the Ministry of Non Conventional Energy

Sources are devising strategies to encourage the usage of solar energy.

Hydra Energy

Energy available in fast flowing water can be used to generate electricity. Waves occur

due to the interface of the wind with surface of sea and represent a transfer of energy.

This energy can be tapped for commercial purpose.


Hydro Power

It is the one of the best, cheapest and cleanest source of power, though large dams could

have environmental and social repercussions. In view of these problems associated with

larger dams, experts have advocated the construction of smaller dams. New

environmental laws to safeguard the planet from the effects of global warming have made

smaller hydropower Projects more viable.

Wind Energy

It is the kinetic energy used for many centuries in water sports like sailing and for

irrigation. It converts kinetic energy into more usable forms of power. Wind turbines help

to convert the energy in the wind into mechanical energy which can be used for

generating power. Since the late 1980's the viability of wind energy has gained in

prominence across the globe.

Nuclear Energy

Nuclear energy can be created in nuclear reactors under strict human control. The nuclear

power can be generated by the fission of uranium, plutonium or thorium or the fusion of

hydrogen into helium. Nowadays mostly Uranium is used for generating nuclear power.

Findings of Power Sector

More than 64% of India’s total installed capacity is contributed by thermal power.

Significant jump in unit size and steam parameters will result in higher

efficiencies and better economics for the Indian power sector.

Western region accounts for largest share (30.09%) of the installed power in

India followed by Southern region with 27.76%.


Unbalanced growth remains the cause of concern for the Indian power sector.

Only about 56% of households have access to electricity, with the rural access

being 44% and urban access about 82%.

Southern region remains the dominant region in renewable energy source

accounting for more than 57% of the total renewable energy installed capacity.

CHAPTER 3

COMPANY PROFILE

3.1 BACKGROUND OF THE COMPANY

The Electronics Division (EDN) of BHEL, situated at Bangalore, was formed in

1976,mainly to establish a strong base in the areas of power and control

electronics, to supplement the company’s pioneering efforts in power generation

and transmission equipment manufacturing. The division came into being when

BHEL took over the Radio and Electricals Manufacturing Company (RAMCO),

which formally merged with BHEL

EDN in 1980. Making a modest beginning with a turnover of Rs.3 crore in 1976-

77, the unit was poised to record a turnover of over Rs.500 crore. The growth is

amply reflected in the fact that most of the power plants and process industries in

the country are equipped with products and systems made by BHEL-EDN.

It has established itself as a market leader in new generation Power Plant

Automation System. Besides manufacturing and supplying state-of-the-art control

and automation equipment and systems for power plants and process industries, the

Electronics Division has also emerged as a leading player in the fields of Power


Transmission and Distribution, Industry, Transportation and Renewable energy

sources.

BHEL-EDN has been successful in meeting the demanding requirements of

International markets in terms of technical specifications and qualities, establishing

references in over 25 countries by installation of Automation, Semiconductors and

Photovoltaic Systems..

In recognition of its commitment to the quality systems and procedures, the unit

has been certified for ISO 9001. It is also the first Electronics Industry in

Bangalore to get ISO 14001 Environment Management System Certification and

OHSAS 18001 Certification.

3.2 NATURE OF THE BUSINESS

The BHEL Business sectors are supported by various corporate functions and the

manufacturing units, all of which function in a well orchestrated manner in order to meet

the market needs or customer needs. To provide a strong orientation BHEL’s operations

are organized around 3 business sectors namely

Power: This sector contributes to around 65% of the company’s sales

Industry :BHEL’s entry into this sector in 1982 was a diversification move to

reduce company’s dependence on power sector

Exports (International operations): BHEL’s export strategy is to give in

competitive prizes, taking advantage of its low cost of operation. Its products and

systems are exported to around 45 countries.

3.3 AWARD AND ACHIVEMENTS

CMD, BHEL receiving the SCOPE MoU Excellence Award for ‘Highest Growth

Rate in Market Capitalization’ from the Prime Minister of India


CMD, BHEL receiving ‘ICWAI National Award for Excellence in Cost

Management’ for the 5th consecutive year from the Union Minister of State for

Corporate Affairs

BHEL receiving the ‘Business Standard Star PSU of the Year Award’ from the

Union Home Minister

Union Minister of Heavy Industries & Public Enterprises handing over BHEL’s

final dividend cheque to the Union Finance Minister

Prime Minister's Sham Awards 2007 (declared on 15th August 2009 by

Ministry of Labor)

National Safety Awards 2007 (declared by Ministry of Labor)

10th National Award for Excellence in Energy Management 2009

(Confederation of Indian Industry)

3.4 COMPETITORS PROFILE

ABB

GE

Siemens

Itachiwe

NTPC

3.5 AREA OF OPERATION

Sl.No Plant Location

1 Electronic Division Bangalore

2 Electro porcelains Division Bangalore

3 Industrial Systems Group Bangalore


4 Heavy Equipment Plant Bhopal

5 Industrial valve plants Gooddwal

6 Central forge and foundry plant Haridwar

7 Heavy electrical equipment plant Haridwar

8 Heavy power equipment plant Hyderabad

9 Insulator plant Jagadishpur

10 Transformers Plant Jhansi

11 Boiler auxiliary plant Ranipet

12 Component fabrication plant Rudrapur

13 High pressure boiler plant Trichy

14 Seamless steel tube plant Trichy


BHEL has been a profit making company right since its incorporation and has been

making significant contribution to the Government’s funds by way of dividend on the

equity, taxes and duties etc.. Major contribution of BHEL to the nation is by the way of

its involvement in the social development work such as adoption of backward villages,

running of schools, providing medical centers, providing self employment facilities for

widow, handicapped persons etc.

The wide network of BHEL with Corporate head quarters at New Delhi, consists of 14

manufacturing plants all over India with 9 service centers, 4 regional centers in addition

to over 150 project sites spread all over India. Over the years the company has developed

strong technological skills to manufacture a wide variety of sophisticated products.

3.6 INFRASTRUCTURE FACILITIES


BHEL-EDN has established comprehensive world class facilities for its entire range of

products, system and service.

The fabrication shop with state of art CNC machines.

The air conditioned PCB sub assembly shop with antistatic flooring and a range

of automated component preparation and assembly units, computerized wave

soldering machines etc…

A modern surface mount technology line with screen printer, pick and place

machine, reflow oven, inspection station etc…

The facilities in the PCB test area include computerized testing of components

using in circuit tester and environmental chambers for thermal cycling.

The system testing includes a number of specialized setups are built for functional

testing using simulation concepts.

A comprehensive functional testing facility for modules equipped with test racks,

fixtures and specific testing programs reduce cycle time for testing individual

modules.

Temperature control oven for testing temperature stability.

The solar photovoltaic manufacturing line has sophisticated equipment for the

manufacture of solar cells and PV modules.

The anti reflection coating equipment installed in the PV cell production line

increase cell conversion efficiency and average solar cell output.

3.7 FUTURE GROWTH AND PROSPECTS


Electronics Division Growth

BHEL- EDN has grown rapidly over a period of time. It’s shown in the below graph:

BHEL Diversification Strategies

Solar

Nuclear

Transportation

T&D

Water

NBFC

Solar

Strategic Alliance with BEL for formation of JV for setting up manufacturing

facility (250 MW) for silicon wafers, solar cells & modules.

Nuclear


1976-77

1980-81

1985-86

1990-91

1995-96

2000-01

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11(B)

2011-12

0

200

400

600

800

1000

1200

1400

1600

1800

2000

2200

3 30 55131

311406

748931

1082

12841490

1775

2115

Steam generators for new rating 700 MWe Nuclear sets .

MoU with GE-Hitachi for cooperation in Nuclear island equipment for Power

plants to be set up by NPCIL.

Transportation

MoUs with Alstom and GE for participating in the tender for setting up a factory

for Electric Loco components at Dankuni, West Bengal and Diesel Loco factory

at Marhowra, Bihar respectively.

Executing an order for 200 numbers of 5,000 HP 25 kV AC Mainline Electric

Locomotives (Type WAG -7) for Indian Railways.

T&D

Strategic Alliance with Toshiba, Japan to establish a JVC to address T&D

business in India and other mutually agreed countries. The JVC will cover

equipments and projects in EHVAC & UHVAC range including 765 kV

transformers and reactors & GIS, in addition to other products and systems.

Water

BHEL will be able to provide more cost-effective membrane-based water

treatment systems for power plants and industrial sector for all type of input water

like sea water, brackish water and waste water.

NBFC

Total Solution provider in power generation .

To finance power projects by providing funding support to attract potential

customers & optimize returns on our huge cash reserves.

May also expand to other segments like Renewable where funding support is

critical.


CHAPTER-4

PRODUCT PROFILE

Established in the late 50's, Bharat Heavy Electricals Limited (BHEL) is, today, a name

to reckon with in the industrial world. It is the largest engineering and manufacturing

enterprise of its kind in India and one of the leading international companies in the power

field. BHEL offers over 180 products and provides systems and services to meet the

needs of core sectors like: power, transmission, industry, transportation, oil & gas, non-

conventional energy sources and telecommunication. A wide-spread network comprising

14 manufacturing divisions, 8 service centers, 4 power sector regional centers, 18

regional offices, besides a large number of project sites spread all over India and abroad,

enables BHEL to be close to its customers and cater to their specialized needs with total

solutions -efficiently and economically. An ISO 9000 certification has given the company

international recognition for its commitment towards quality. With an export presence in

more than 60 countries, BHEL is truly India's industrial ambassador to the world.

PRODUCT RANGE POWER

Air pre heaters.

Boilers.

Controls relay panels.

Electro static precipitators.

Fabric niters.

Fans.

Gas turbines.

Hydro power plant.

Piping systems.

Pulverizes.

Pumps.

Seamless steel tubes.

Soot blowers.


Steam generators.

Steam turbines.

Turbo generators.

Industry

Capacitors.

Cerulean.

Compressors.

Desalination plants.

Diesel generating sets.

Industrial motors and alternators.

Gas turbines.

Oil field equipment.

Solar photovoltaic.

Power semi conductor devices.

Seamless steel tubes.

Soot blowers.

Steel casting and forging.

Steam generators.

Steam turbines.

Turbo generators.

Valves.

Transmission

Bushings.

Controls relay panels

Dry-type transformers.

Energy meters.


HVDC transmission system.

Insulators.

Switch gears.

Power semiconductor devices.

Power system studies.

Control shunts reactors.

Transportation

Battery powered road vehicle.

Electric rolling stock.

Electrics for rolling stock.

Electrics for urban transportation system.

Telecommunication

265 port RAX.

High capacity exchange.

Non-conventional energy source

Battery powered road vehicle.

Mini/micro hydro sets.

Solar lanterns.

Solar photo voltaic.

Solar water heating systems.

Wind electric generators.

R&D Products


Fuel cells.

Surface coatings.

Automated storage and retrievals.

Load sensors.

Power Generation Systems

Transmission systems.

Transportation systems.

Industrial systems.

SYSTEMS AND SERVICES

Power Generation Systems

Turnkey power stations.

Combined-cycle power plants.

Modernization and rehabilitation of power stations.

Erection commissioning, operation and maintenance services.

Spares management.

Consultancy services.

Transmission Systems

Sub-stations switchyards.

HVDC transmission systems

Shunt and series compensation systems.

Power system studies.

Erection commissioning, operation and maintenance services.

Consultancy services.


Transportation Systems

Traction systems.

Urban transportation systems.

Erection commissioning, operation and maintenance

Sample Photographs of BHEL-make Semiconductor Devices and Heat-

sink assemblies.


CHAPTER-5

ORGANIZATION STRUCTURE

Organization Study,

Organization is the foundation upon which the whole structure of management is built. It

is a tool of management. Organization is the pattern of ways in which a large number of

people engaged in a complexity of tasks, relate themselves to each other in the systematic

establishment and accomplishment of mutually agreed purposes.

B.H.E.L, a Public Sector Undertaking, is a Company form of Organization with

Corporate Functions, Business Sectors and Operating Units under the control of

Chairman & Managing Director reporting to the Board of Directors. Directors

individually deal with corporate functions with the help of Executive Directors/ General

Manager’s in-charge. Each unit is headed by an Executive Director / General Manager

in-charge.

The BHEL electronics division comes under the director of industrials groups

and units.

BHEL EDN has one unit head and four GM for commercials, operations,

engineering, HR and one AGM for finance.

The GM commercials heads the marketing and project management and

commercials department

The GM engineering head the engineering and design departments.

The GM operations head the production, PCB subassembly and system testing

departments.

The GM HR heads the human resource an factory service departments


SGM

GM/ CE ENGG & ES GM/ CE COMM & MM GM/CE PRODN

GM/ ESD GM/ SC&PV

GPC AGM/HR

AGM/ FIN AGM/ VIG AGM/ VIG DGM/ CC&PR AGM/ FST, SHIPPING CPD/

PTS

AGM/ ITS AGM/QS AGM/SA AGM/ P&D AGM/ EM

ORGANIZATION STRUCTURE OF BHEL-ELECTRONICS

DIVISION


FUNCTIONAL AREA

Introduction

The functional areas of BHEL are divided into categories. They are Production department,

Human Resource department, Finance department, marketing department; Finance is the main

source of every business. Finance department of BHEL involves managerial activities concerned

with procurement at low cost and utilization of funds for business purposes the financial manager

deals with planning, organizing, directing and controlling financial activities of the enterprise

Production is also an important work in every manufacturing unit. BHEL has latest technological

machineries so that the production process can be done easily.

The HR department of the company is well structured and employees are getting good benefits

and this is one strategy of the company to increase the productivity. .

To carry out the easy work.

To know how the company process is taken place.

To forecast the future needs of the each Department.

Functional areas

1. Marketing & Commercial Department

2. Human Resource Department

3. Health & Safety Department

4. Factory Service Department

5. Finance Management Department

6. Information Technology Department

7. Material Management Department

8. Production Management Department

9. Purchase Department

10. Stores Department

11. Quality Control Department


12. System Testing Department

MARKETING & COMMERCIAL DEPARTMENT

MARKETING DEPARTMENT

Departmental structure

FUNCTIONS:

Market exploration

Order booking

Offering.

Preparing annual budget.

Projections.


Assistant general manager(Marketing)

Deputy General Manager(Proposal &market)

Utility powerExportPADO

SCADAOMGEA


Hydro powerExportSCADA


Energy savingTransportation &

transmissionSCADA

Exploration of market is very important for new products as well as old products.

Planning Commission forecasts as well as based on the projections of the working group,

annual plans will be prepared by this Department and in turn it will be always tracking

the laying of the new electric line and tenders. Cost estimates will be given by Finance

department, which makes the work easy for this department for quoting to an offer.

Approach to marketing is different at BHEL as the customers are usually known and

orders are of large size and value. The main function of Marketing Department is to

procure manufacturing order in coordination with the commercial group. The central

manufacturing agency is located at the corporate office in Delhi.

The process of sanctioning a project goes through the following stages: -

Pro-active Marketing.

Tendering.

Post- tender follow up.

The following are the ways of getting an order-

Bidding after floating an enquiry, tenders are procured technical viability studies

and commercial analysis is done to select the Best one.

COMMERCIAL DEPARTMENT

FUNCTIONS

Every month follow-up has to be done.

Preparation of him over plans. Based on the internal orders and shop floor

capacity turnover plans will be prepared.

Billing, invoice and dispatch.


Periodical monitoring i.e. monitoring the achievements, and comparing that

whether they are doing as per the schedule.

Packing.

FLOW CHART OF HUMAN RESOURCE DEPARTMENT


HUMAN RESOURCE DEPARTMENT

Selecting tide right person for a right job is very important the major function of this

department is to manage people at work. This also includes white collared professionals.

Usually the HRD function will be tailor made to suit the organization needs.

With the changing scenario, BHEL is alive to the challenges before it in terms of new

approaches to human resource management. Developing and sustaining a dynamic work

culture, which enables joint optimization goals and individual potential, taking care of

changing aspirations of people, is the key focus area for the organization at this juncture.

On an average 35000 employees are trained every year across the organization through

in-house training program. Apart from this around 6000 apprentices are provided training

every under the apprentices act.

All the units have their separate HR department mat administrates the HR function of the

unit level's confinable HR controls all HR departments. The most prized asset of BHEL-

EDN is its more than 2000 employees.

Objectives of Human Resource Management Department

1) Procurement and Maintenance of adequate work force

Recruitment


Interviewing

Induction

Placement

Follow-up of new employees for adjustment

Merit rating

Promotion, Transfer and Discharge

Employment records

2) Education and training of present employees

Apprentice Training

Operative Training

Supervisory Training

Executive Training

General Industrial Education

Library Facility

3) Maintaining satisfactory employee relationship

Job analysis

Job specification

Wages, bonus and rewards

Regularization of employment

Handling grievances

4) Maintaining Employees health

Health standards

Sanitation control

Physical examination

Treatment of minor injuries and diseases

Hospitalization


Personal hygiene and health education

5) Maintaining Employees safety

Safety standards

Inspection of equipment

Fire protection and accident investigations

Workmen compensation for injury

6) Maintaining employees welfare activities

Insurance

Profit sharing

Pension

Legal assistance

Housing programme

Recreation plans

7) Maintaining satisfactory group relation

Contacting employees representatives

Contacting government agencies

Integrating group interest

Recruitment of employees

Recruitment is the major step in the total staffing process; recruitment develops and maintains adequate manpower to run an organization efficiently. Recruiting makes it possible to acquire the right number and type of people necessary to ensure the continued operation of the organization.

Sources of employment

a) From within the company


By Promotion

By Transfer

b) From outside the company

Through advertisement (newspaper, website etc)

Campus recruitment

Selection of employees

Selection of candidates is the process of assessing and hiring the right person for the job.

It is the process of examining the applicants with regard to their suitability for the given

job and choosing the best from the suitable candidates.

Education and Training

When the employment aspect of the personnel function has succeeded in providing

suitable employees for various tasks, it is followed by education and training aspect

which brings employees to standard where they can carry out industrial tasks efficiently.

One of the characteristics of modern society is the increasing rapidity of change today

compared with older social society. This intensifies the need for study, adaptation and

new education and training.

Type of training for different levels of staff in Industry

Sl.N

o

Staff Type of training

1 Workers Induction

By skilled and experienced workers

Apprentice Training

2 Supervisor Lecture


On job training

Written Instructions

3 Executives Conferences

Meetings

Special Projects

On the job training

Special courses and class.

Employee Classification

Executives

E1 -Officers \ Engineers

E2 -Senior Officers \ Engineers

E3 -Deputy Manager

E4 -Manager

E5 -Senior Manager

E6a -Deputy General Manager (DGM)

E6b -Senior Deputy General Manager (SDGM)

E7 -Additional General Manager (AGM)

E8 -General Manager (GM)

E9 -Executive Director (ED)


Promotions

Every employee is eligible for promotion. The criterion for promotion is time bound and

performance/merit based. The promotion is given once the employee completes the

stipulated duration and then based on the performance; promotions are awarded. The list

is usually released twice a year, once during June and other during December

Working Hours

Every individual has to put in a minimum of 48 hours of work per week, 7:30 am to 4:35

pm in all working days except on Saturday (7:30 to 12:30 pm), Sunday is weekly off.

Leaves

Casual Leave (CL)

Earned Leave (EL)

Maternity Leave

Trade Union

Recognized union/s in units will negotiate with union on local and unit level issues.

There can be single or multiple unions in each unit with or without affiliation to any

national trade union organisation.

Plant Council

Plant council is a body comprising of union nominees on the one side and the senior

executives on the other side. They will meet periodically to discuss and sort out

many issues concerning business operations at unit level.

Works Committee


Is a statutory body with 8 members elected and equal number nominated by

management They would discuss working conditions, quality of work life and

recommend solutions to problems, if any.

Canteen Managing Committee

Is an elected body with three members from the workers and equal number nominated

by the management. The committee ensures smooth working of the canteen and

suggests plan of improvement.

HEALTH & SAFETY DEPARTMENT

BHEL safety organization is taking every step to minimize accidents, by taking care and

involving at the stage of planning and designing. Though the frequency rate of accidents

is comparatively low, the management is taking keen interest to reduce the accidents as

far as possible by engineering methods and personnel protective equipments at inevitable

stages.

Safety day is celebrated around March every year and surprise site visit to see whether

the employees are following safety measures.

Organization Chart of Safety Department


SENIOR MANAGER

(Factory Service)

MANAGER (Safety)

Safety Precaution in BHEL – EDN, Bangalore

Towards accident prevention:

Safety committee

Safety steward committee

Safety training for executive supervisor and artisans

Accident investigation reporting systems

Issue of safety equipment

The functions of the safety committee is to

Control the accidental hazards.

Promote safety consciousness among employees.

Communicate to the top management regarding safety aspects.

Safety stewards will be entrusted with the responsibility of continuous watchfulness.

Persuasion and correction of fellow employees to enable safe methods of work being

adopted (Steward Scheme in BHEL since 1988).

Chemical hazard prevention in Electronic Division

Identified areas

Electrolytic Capacitor

Photovoltaic devices

Painting

Effluent treatment plant


SENIOR ENGINEER

EX-FOREMAN

Inflammable material stores.

Hazards

The chemical hazards are corrosive and toxic.

Safety Measures

Exhaust fans are provided at forming and etching areas. Personnel protective

equipments such as hard glass, proof apron and goggles are provided.

Separate soundproof chamber is provided. Exhaust fans and Ear aids are also

provided to minimize sound effects while in operation.

AC Generators

AC generators are used in case of emergency when power supply is cut down.

FACTORY SERVICE DEPARTMENT

FUNCTIONS:

Maintenance services.

Power and transport service.

Maintenance of information technology systems (PC's).

Canteen, gardening, lifts, etc.

Manufacturing tools and fixtures.

Design and fabrication special type of machines.

Operation and maintenance of vehicles.

Maintenance at township.

Transportation Section:


In EDN, there are fork lifters, 3 tractors, 2 trucks and 3 cars. Additional cars for

the moment of Executives will be hired. Maintenance and service of all these vehicles

comes under the purview of this department. BMTC buses are hired for facilitating the

employees to reach factory and back home at the beginning and of each shift. Drivers will

be given identity cards except these; other people are not permitted to drive in the

vehicles into the premises.

Water, Power, Telephone services:

In EDN, water is used in the production and in the daily consumption of the plant for all

purposes including canteen, gardening, drinking purposes. The service section looks after

electrical problems at the plant as well as at the township. Maintenance of Telephone

system is also a part of this service section.

Township:

In Bangalore, there are i69 flats allotted on the basis of seniority. Maintenance of these

flats also comes under this department. Civil maintenance bore well maintenance, sports

club maintenance etc will be looked after by this department.

Civil:

Functions:

Housekeeping.

Civil construction.

Civil maintenance.

Township maintenance.

Horticulture.


Maintenance:

This section will look after mechanical and electrical maintenance. Since this is the

process industry, several special types of machines are used. For the maintenance

department, starting time is receiving the complaint, down is getting the requisition slip

and end time is handing over the machine to production department. There are 2 types of

maintenance viz. preventive and breakdown maintenance.

FINANCE DEPARTMENT

Financial management is that managerial activity which is concerned with the planning

and controlling of the firm’s financial resources. It is the effective and efficient utilization

of financial resources. Financial management in a broad sense provides a conceptual and

analytical framework for financial decision making. Finance function is related to

acquisition of funds, allocation of funds and overall management of the organization.

Financial management is concerned with the procurement and allocation of funds. Main

aim is to use business funds in such a way that the earnings are maximized. Financial

Management provides a framework for selecting a proper course of action and deciding a

viable commercial strategy.

The two main objectives of Financial Management are:-

Profit Maximization

Wealth Maximization


Profit Maximization

Profit earning is the main aim of the business concern. Profit is the measure of efficiency

of the business enterprise it shows the entire position of the business concern. Profit

serves as a protection against risks which cannot be ascertained. Business concern mainly

functions for the very purpose of earning profit.

Wealth Maximization

Wealth maximization means maximizing the net present value (or wealth) of a course of

action. The net present value (or wealth) of a course of action is the difference between

the present value of the business concerns benefits and the present value of its costs. A

financial action which has positive net present value creates wealth and therefore, is

desirable.

Organization structure of Finance Department


Assistant general manager(Finance)

Senior DGM – finance DGM – Indirect tax Manager -establishment & PF

Manager – (costing, PSL & SVC)

Manager – Indirect tax

Manager

Administrative officer (AO)

3 DY. manager

Senior AO

AO

Deputy manager

AO

Finance Department is categorized as follows

a) Books

The books section maintains general ledger. It is also entrusted with passing journal

entries, passed by the various sections of finance. BHEL follows the common code

system for all its units, so that consolidation of accounts will not be a big problem for

them. In order to maintain the uniformity of the codes BHEL follows this system. This is

also concerned with preparation of budgets.

b) Budget

Budget is a written plan of action, used for cost control purpose and it is one of the most

important overall control devices employed by management. It represents the financial

requirements of different sections of the business during a given period to achieve an

estimated profit.

Payroll


Based on the employee grade the Salary, Dearness Allowances (DA), House Rent

Allowances (HRA), City Compensation Allowances (CCA), Reimbursement of Medical

Expenses, and Traveling and Daily Allowances Rule (TA) are allocated based on certain

percentage and the payment is done through Electronic Fund Transfer (EFT) Mode.

c) Costing

The main task of this department is to classify, accumulation assignment and control of

cost. Costing department assists the management in decision making.

Main functions are:-

To prepare the cost estimates.

To look after the capital payments.

Valuation of closing stock of each department.

e) Bills Payables Section:

This section is concerned with the payment of all supply bills, statutory bills, capital

bills and revenue bills.

Supply Bills

Statutory Bills

Capital Bills

Revenue Bills

f) Bills Receivable Section:

The payment amount which has to be received by the customer after the dispatch of

the product is checked by this section. The sales department follows the invoice

raised by commercial department and collects the amount from the customers.

Customers are identified with a unique customer code. Main functions are as follows,


Maintenance of customer accounts.

Follow up after dispatch of the goods.

Terms of payment for purchase are

Letter of credit (L/C) (most preferential)

Advance (D.D)

Cash and delivery (C.O.D)

Site draft (S.D) (if supplier is not familiar)

Pro-forma payment

Service Bills

This section maintains bills for payment of

Factory service

Maintenance (civil & mechanical)

Purchase Finance

Procurement of both indigenous and imports, 300 crores of material is purchased every year

and 50-60% are imports.

Internal Audit

The main functions of internal audit are:


Fault recognition

Suggestions for improvement

Overseas work of book budget

Assisting working level people

Internal audit conducts site audit, once in a year.

INFORMATION TECHNOLOGY DEPARTMENT

BHEL has decided to take up information technology as a business initiative with its

existing expertise in IT and rich domain knowledge in power station engineering,

servicing and allied areas. BHEL can leverage itself to diversify into the new economy

sector of InfoTech and IT enabled services. The company is strengthening its IT linkages

within the organization and is evaluating its approach towards emerging opportunities in

IT, including e-business which is fast transforming the traditional ways of business

transactions.

Organization Structure of IT Department


MATETIAL MANAGEMENT DEPARTMENT

Material Management Structure


Material management

Material planning and control

Purchase section

Indigenous

purchase

Import purchase

Stores

Material Management department plays a vital role in the success of BHEL-Electronics

division. A significant portion of the capital is invested in materials, and well planned and

well designed materials management operations lead to considerable saving in capital

expenditure. Material Management is of great importance to Production, Marketing,

Finance and Engineering department of an enterprise.

Functions of Material Management

Materials Planning.

Procurement of materials required for production.

Storage and store administration.

Translation of the sales projection into long term requirements of materials.

Inspect the raw materials at the time of procurement to minimize the possibility of

finished product being rejected.

Keep updated records of the materials received, issued and unused.

To store materials in order and ensure their quick identification.

Ensure regular supply of materials reduce the chance of any interruption during

production.

Better utilization of labor, capital and equipment.

Minimize the length of the manufacturing cycle.

Purchase of material

Purchase department mainly deals with procurement of material and hence occupies a

vital position in the organization.

Objectives of Purchase Department are

Procure right material.

Procure material in right quantity.

Procure material from the reliable vendor.


Stores Management Functions:

Receive materials, goods and equipments.

Record the receipt of goods.

Correct positioning of all materials in store.

Issue items to the users only on the receipt of authorized stores requisition.

Record receipts and issue of materials.

Coordinate and cooperate with the purchasing, production, planning and control

departments.

Types of stores in BHEL-Electronics Division

Raw Material Stores

Metal Stores.

Oil Stores

General Stores.

PRODUCTION MANAGEMENT DEPARTMENT

The various products produced from BHEL can be broadly classified as-

Control Equipment

Semi-conductor photovoltaic

Energy meters

Tele communication

Defense

AC drive system

DC drive system

Excitation systems


Static starters

Energy Meters:

BHEL Electronics Division's Induction type energy meter range includes single and three

phase versions for both domestic and industrial applications. The unit to its credit has

delivered over 15 million energy meters, a feel unparalleled among various energy meter

manufacturers of India.

The improved designs of the Electronic Energy Meters have additional anti-fraud features

like Phase reversal and Earth loading. The new generation software based Trivector

Meters with Maximum Demand Indication, Differential Tariff, and Time of Day; down

loading are some of the new features being offered to customers.

Industry Industrial

Automation:

BHEL-EDN has the competence to offer Automation System comprising of Distributed

Digital Controls, Programmable Logic Controllers and Process Controllers including

appropriate software. Many such systems have been designed, manufactured and supplied

to steel plants for rolling mills and blast furnace applications.

Non-Conventional Energy Photovoltaic System:

Realizing the tremendous potential of Solar Power as a Non-Conventional Energy

Source, BHEL-EDN started manufacturing Solar Photovoltaic (SPV) Cells and Modules

besides developing complete SPV Systems. A sophisticated facility with a capacity of 2

MW per annum has been set up for manufacture of cells and modules.

The SPV systems are specifically designed keeping in mind the necessity for unattended

operation and ease in maintenance. Some of the major systems in operation are SPV


Power Plants (Stand Alone and Grid Interactive), Solar Power Systems for Rural Radio

Phones, Telecommunications, Railway Signaling and other applications.

Power Automation and Power Electronic System Power Plant

Automation:

Any power plant is a mini industrial cosmos with a variety of control elements with

intricate inter-relationships. BHEL Electronics Division offers a large variety of control

equipment for power stations ranging from simple control systems to single push-button

automation for power plants of any size. Automation systems for controlling steam/water

turbines, boilers and generators employing state-of-the-art Distributed Digital Control

Systems (DDC) concepts are amongst the products that are offered. The DDC systems for

power plants include CRT-based Man-Machine Interface and Computer based

Information Management and Optimization systems.

BHEL-EDN also offers unified DDC solution for the entire power plant comprising of

Boiler, Turbine and Balance of Plant (Bop) bringing the benefit of uniformity in

hardware, software, operation methodology as well as spares inventory to the user.

The SG (Boiler) C&I package, the sub packages offered by BHEL-EDN include Burner

Management Systems (also called FSSS), Secondary Air Damper Control Systems, and

Soot Blower Control Systems, HP Bypass Control Systems and Auxiliary Pre-Reducing

and De-super heating System.

BHEL-EDN manufactures Integrated Control and Instrumentation systems capable of

monitoring & controlling the critical parameters of a steam turbine to a high degree of

accuracy. The Electronic Automation system for Steam Turbine (EAST) is designed for

automatic start up and shut down as well as efficient operation during normal and safe

shut down during abnormal conditions. The complete range of thermal, nuclear, industrial

and combined cycle plants is covered for Steam Turbine controls.


Balance of Plant (Bop) automation comprises of Control, Monitoring and Information

system including regulation controls, coordinated controls, sequential controls, interlocks

& protections, alarm annunciation, operator interface units with large video screen as

well as performance calculation for the entire power plant.

DC Drive Systems:

BHEL-EDN's Thyristorised Digital Converters are used for DC Drives with constant

power or constant torque control. Many such converters are already in service at rolling

mills and process lines in industries like steel, aluminum, rubber, cement, coal and

copper. Converters up to 10,000 a ratings with digital controls have been supplied by

BHEL-EDN.

AC Drive System:

BHEL-EDN's adjustable speed AC Drive System with Load Committed Inverter is a

highly energy efficient system for controlling Synchronous Motors used for flow Control

Applications like Fans, Pumps and Compressors in Power Plants and Industries. Speed

control of squirrel cage Induction motors with GTO (Gate Turn-off) Thyristors is cost

effective, requires low maintenance and finds widespread application in industries.

The digital controls with hot standby control and power channels increase system

availability and make these drives user friendly. A number of systems have been

designed for ID Fans and Boiler Feed Pumps (BFP) for power plants of up to 500 MW

capacities.

Solutions are also available to provide cost effective Digital Drive Controllers for new

and/or existing induction motors employing either GTO or Insulated Gate Bipolar

Transistor (IGBT) devices.

Power Supplies:


BHEL-EDN offers state-of-the-art, digitally controlled, highly efficient low voltage and

high current DC Power Supplies (Typical rating: up to 90KA and 950V DC) with water

cooled Thyristor Rectifiers to Industries like Caustic Soda, Aluminum / Copper smelters

and others. Solutions also exist for high voltage power supplies (Typical rating: up to

100A and 20KV DC) using air-cooled thyristors suitable for broadcasting transmitters,

test plants and many other applications.

BHEL-EDN has also supplied forced Air Cooled Inverters using IGBT devices, suitable

for medium frequency induction heating equipment, for controlled preheating of X20

special alloy tubes for welding and stress relieving at higher temperature (Typical rating:

up to 3 kHz and 120 k\V).

Static Starters:

BHEL-EDN has designed and manufactured special purpose Digital Static Starters for

soft starting of hydro generators and synchronizing with the grid either as a pump or as a

synchronous condenser. The system provides an easy interface with plant C&I and has

protections like over voltage, over current, earth fault etc. Static starters of

18.5MVA/13.8KV and of 3.3KV/1.2MW ratings have been supplied.

Excitation Systems:

BHEL-EDN offers Excitation systems in Synchronous generators for hydro, thermal,

nuclear, co-generation, combined cycle, DG power plants as well as for synchronous

machines in industrial applications. With the ever-growing size and complexities of the

power system network, fast response excitation systems capable of meeting more

stringent specifications are called for to improve system stability and availability. The

state-of-the-art excitation system offered by EDN includes fast acting, fully controlled

semiconductor bridges along with digital controls. Redundant philosophy in power and


control circuits employed ensures high availability and hot repair/replacement

possibilities.

Semiconductor Devices:

BHEL-EDN manufactures Power Thyristor Devices and Diodes of various ratings to

meet the requirement of high power electronic systems used for various applications in

Power, Industry and Transportation systems. While high power thyristor devices are used

in high current rectifiers for Industrial projects, high voltage thyristor devices are used in

HVDC applications. Power semiconductor devices manufactured by EDN have earned a

reputation for high reliability. As testimony to this, the unit has won the prestigious

ELCINA award thrice and has been recognized by the Department of Electronics as a

'Center of Excellence' in this area.

Manufacturing Process:

The marketing section procures orders from customers, through advertisements,

propaganda's and promotional methods. A copy of this order is passed to the commercial

section. The commercial section prepares a manufacturing order on the basis of the

customer specifications. The Engineering section makes a note of these specifications and

tries to design the product. At the same time, a copy of the order is issued to the material

management section so that the required materials can be made available at the stores for

production. Once the products are produced, they need to be tested by the testing section

before being issued or transported to the customer's sites.

BHEL Electronics Division Bangalore

Transmission:

High order to improve the efficiency of power transmission system, high voltage DC

transmission technology was introduced. On an experimental basis, the first project taken

up by BHEL was the 100MW/100KV National HVDC project between Barsoor (Madhya

Pradesh) and Lower Sileru (Andhra Pradesh) with indigenous technology. Based on the

successful completion of the first phase, the second phase taken up to upgrade the system


to 200MW/200KV using state -of- the -art technology. BHEL has also executed

commercial HVDC projects of Rihand - Delhi and Chandrapur - Padghe of rating

1500MW, +/- 500kV each in collaboration with ABB Power System, Sweden.

Static VAR Compensation Systems:

With quality of power supply-gaining prominence both in utilities and industries, BHEL-

EDN offers indigenously developed technology for reactive power management by way

of Series Compensation Systems and Shunt Compensation Systems. A number of

systems have been supplied for both utility and industrial applications for improvement

of voltage, reactive power controls etc. BHEL- EDN manufactures thyristor valves and

controls for the SVC. To cater to the need of LT loads, solid state switched capacitor

systems using Thyristors or Triacs are also offered for improving the power factor,

reducing the reactive power demand.

The Team:

With the advent of the 'knowledge' millennium, BHEL-EDN's team of highly qualified

and experienced professionals is fully geared to face new challenges. Each one of them, a

talented individual performer and a committed team player, is proud of the BHEL-EDN

ethos.

The environment at EDN has a whiff of freshness about it, carrying an exciting mix of

tradition and innovation. Many of them have been trained abroad at the collaborators'

establishments in critical areas like design, production, quality assurance and

commissioning.

PURCHASE DEPARTMENT

This department is headed by the senior DGM. This is the department that has key

responsibility for placing the purchase order (P.O) and procuring the right material.


Purchase Process

The technique of processing the right material from right supplier at a right price can be

termed as the major function of the purchase. The steps carried out in this process of

purchase are:

An initial check if there are any orders placed for similar material. If so then

order placed is amended for the additional required quantity.

In the absence of any such order being placed there is a check for any rate

contract (R.C) with the suppliers for the material intended. If any R.C is found,

the order can be placed immediately

In absence of any such R.C, check is made for any similar order placed in the

past. If there is any order placed and the quantity required is less than three times

and if the number of order placed of the same orders being less than three times, a

repeat order can be placed.

In absence of any such repeat purchases, tender is called for and the purchase

order is released.

STORES DEPARTMENT

This department is headed by the senior DGM. The major responsibility of this

department is to store the material and issue them when requested by the authorized

intender.

STORES OF BHEL-EDN

Maintain assembly store or component store.

PCB stores: mechanical stores and electronic stores.


Raw material stores.

W.I.P stores.

Stores telecom

Semiconductor stores.

Photovoltaic stores.

Energy meter and capacitor stores.

Tool crib stores.

Central tool crib stores.

Industrial Engineering

Industrial Engineering is oriented towards optimum usage of the resource available. It

includes the techniques like work study, time study, method study and PTS etc. Some of

the advantages of Industrial engineering are stated below

In calculating the expected time required to complete a project

In fixing time standard for jobs

In production planning and control

In analysis of man, machine and material flow

In performance appraisal

In computing efficiency of the individual

In estimation of overtime required in completion of any time bound project

QUALITY CONTROL DEPARTMENT

Quality is defined as a Strict and consistent adherence to measurable and

verifiable standards to achieve uniformity of output that satisfies the customer needs .

The main functions of quality service department to do inspection on the receiving goods

from the customer and check the finished goods from the production line to meet the

quality commitment.


http://www.businessdictionary.com/definition/output.html

http://www.businessdictionary.com/definition/uniformity.html

http://www.businessdictionary.com/definition/achieve.html

http://www.businessdictionary.com/definition/standards.html

http://www.businessdictionary.com/definition/consistent.html

The quality service department is divided according to its functions as quality assurance

inward control, meter & capacitors, control equipments & high voltage electric controls,

general quality.

The quality service department has obtained international certificates of ISO

9000:2000, OHSAS 18001:1999, and ISO 14001: 2004.

The quality service department has successfully implemented six sigma in the

PCB sub assembly department and achieved the sigma level of 5.44.

Quality service department maintains a separate component testing labs for

mechanical, electrical, electronics, chemical and instrumental products.

The quality service department also forms the quality policy, plan and audit

maintains the record.

To review the quality service activities, implementation of quality studies and to

form the quality targets plant quality committee is formed with the association of

EN head, quality service head and the representatives from material management,

production manager and finance department.


Quality service

Quality assurance & Control inwards

Meters & Capacitors

CE & High voltage

General Quality assurance

Quality policy

In its quest to world-class BHEL pursue continual improvement in the quality

improvement in the quality of its product service and performance leading to

total customer satisfaction & Business group through dedicated commitment &

team work of employees.

Quality objectives

Competitive edge of product and service by build and improve procurement.

Value addition by reducing the cost of quality

Delivery and response.

Quality f supply by improving the supplier performance.

Capability of human resource by upgrading skills & competence.

Value of the stakeholder.

Quality assurance & Control inwards

This section inspects the incoming material and gives the quality assurance to the

products.

The separate labs to test the components like mechanical, electrical, electronics,

chemical and instruments.

It also checks the instruments like vernier caliper, screw gauge and no go gauge

and calibrates it according to Indian standards.


The vendor evaluation for the implementation of quality standard is also check by

this section.

Meters & Capacitors

This section inspects the process and final inspection of sub components like

energy meters, water meters and capacitors.

The BHEL concentrate more on the process inspection than the final inspection to

rectify the problem once for all.

Control equipments & High voltage

This section inspects the control equipment fabrication and main assembly.

It also inspects the high voltage electrical components used in the control

equipments.

It maintains a separate metrology lab for automations.

General quality assurance

The general quality section assurance looks after the preparation of quality plan,

quality training, quality audit and quality circles.

In the quality plan the quality goals are formed and plant for the achievement of

goals are formed.


The quality circles are the small group of people present in each department and

works for the improvement of the quality in the workplace.

To motivate the quality circles the quality awards are given for the best

performing circles.

The quality plan is also achieved through quality circles.

To check the activities of the quality plan and quality circles the quality audit is

conducted.

In the quality audit the check the documentation and steps taken by the each

department to achieve the quality standards are checked.

This section also conducts the quality training programs to create awareness on

quality among the employee.

SYSTEM TESTING DEPARTMENT


System testing department check the operation of finished goods. It also conducts the

functional test by integrating with other systems and stimulates the control equipments

for control equipments.

System testing receives engineering drawings, circuit diagrams, signal flow diagram from

the engineering department and conducts various tests like continuity test, high voltage

test, and functional test.

Continuity test

In the continuity test the connection of the control equipments and check for

ferules and check the connections with respective ports.

While checking the continuity test the connection between the ports are checked

and the buzzer is given if the continuity is not correct this test avoids the short

circuit in the control equipment.

Another major function of this test is to check the ferule to avoid the

misconnection.

High Voltage Test

In the High voltage test the components are grouped according to voltage like

24v, 110v, 220v etc…

This test is performed to ensure the correct current connection during the

operation of the control equipments.


Functional test

The functional test is also called as energizing the panel. This functional test

involves two activity i.e. routine test and type test or special test.

In the routine test the working of the modules and different components of the

control equipments are checked for outputs by giving inputs.

The routine test also involves the integration of all the hardware. It also logical

testing with the help of software’s for the desired output.

The type test is conducted on the customer request or some special test like

nuclear test etc…

Departmental structure


GM operation

AGM CE production

Sr. DGM PPC

Sr.DGM CE

fabrication

Sr.DGM main

Assembly

AGM System testing

DGM

DGM

DGM

DGM

McKinsey 7-S Framework

The 7-S-Model is better known as McKinsey 7-S. This is because the two persons who

developed this model, Tom Peters and Robert Waterman, have been consultants at

McKinsey & Co at that time. Thy published their 7-S-Model in their article “Structure Is

Not Organization” (1980) and in their books “The Art of Japanese Management” (1981)

and “In Search of Excellence” (1982).

The model starts on the premise that an organization is not just Structure, but consists of

seven elements

Structure:-

The organization structure of BHEL is clear and efficient with which co-ordination

among all the employees is achieved efficient organization structure leads to

specialization of labour.


Strategy:-

Focus on Development of core competences in High-Tech areas.

Cultivate leadership with shared vision at various levels in the organization.

Introduce / implement personnel policies based on performance that would ensure

growth, reward, recognition, motivation.

System:-

BHEL has adopted new technology in production department.

BHEL is raising the required funds by selling the products.

The performance appraisals system should take care a systematic performance

planning and review.

The new performance appraisals system based on work planning and

commitment.

Reward for an individuals who innovatively and creatively makes exemplary

contributions in the key thrust areas of the company that would lead to its

achieving overall excellence.

Staff:-

BHEL has earned solid reputation in India as well as in abroad, hence the

employees in BHEL has got a good recognition in the society.

BHEL provides good fringe benefits, performance based incentives to the

employees.

Efficient and skilled personnel’s are employed in all the levels of BHEL.


Styles:-

The BHEL is adopting styles of management, because it has to follow the policies

and the procedure framed by government

Skills:-

The key personnel in BHEL have communicational skills, leadership qualities,

which help them to achieve their organizational goals.

Skilled personnel posses technical skills which help them to increase production

capacity.

The key personnel is having the knowledge of various discipline like Technology,

Engineering management.

Shared value:-

CUSTOMER SATISFACTION

We are dedicated to building a relationship with our customers where we become

partners in fulfilling their mission. We strive to understand our customer’s needs and to

deliver products and services that fulfill and exceed all their requirements.

COMMITMENT TO TOTAL QUALITY

We are committed to continuous improvement of all our activities. We will supply

products and services that conform to highest standards of design, manufacture,

reliability, maintainability and fitness for use as desired by our customers.


COST AND TIME CONSCIOUSNESS

We believe that our success depends on our ability to continually reduce the cost and

shorten the delivery period of our products and services. We will achieve this by

eliminating waste in all activities and continuously improving all processes in every area

of our work.

INNOVATION AND CREATIVITY

We believe in striving for improvement in every activity involved in our business by

pursuing and encouraging risk-taking, experimentation and learning at all levels within

the company with a view to achieving excellence and competitiveness.

TRUST AND TEAM SPIRIT

We believe in achieving harmony in work life through mutual trust, transparency, co-

operation, and a sense of belonging. We will strive for building empowered teams to

work towards achieving organizational goals

RESPECT FOR THE INDIVIDUAL

We value our people. We will treat each other with dignity and respect and strive

for individual growth and realization of everyone's full potential.


CHAPTER -6

SWOT ANALYSIS

STRENGTH

BHEL aims at achieving and sustaining product excellence in friendly manner.

The main assembly shops, HVDC test laboratory and other manufacturing shops

are equipped with the artistic floorings and air shower systems thus providing the

environment necessary for reliable manufacturing and testing operations.

The fabrication shop is equipped with CNC machines for quicker and faster

transformation of sheet metals into cabinets for assembly.

ISO 9001 Certificate conferred by the bureau varies Quality information i.e. BVQ

(UK) on EDN has strengthened BHEL in the national and International market.


All electronic test and measuring equipments are calibrated regularly at the unit’s

well-equipped instruments calibration laboratory.

BHEL is India’s leading manufacturer of power equipment.

It has diversified into all vital sectors of the industry, reaching its benefits

of energy to every corner of the country.

It has very good product mix that is place, product, price, promotion.

It has an effective human resource management.

Good work culture, job security, and high employment.

Quality products and services.

A customer focused company that firmly believes in being a friend for life.

Continuous improvement in production rates especially in Control Equipment,

which is the major contributor of profits.

WEAKNESS

BHEL – EDN fails in the having effective advertisement strategy.

It believes in waiting for customers instead of marketing itself and thus the

customers are less in number.

BHEL suffers from the lack of diverse product line.

TQM policy is not adopted which hinders the continual check on Quality.

BHEL is a public sector company. The efficiency & the commitment of the

workers are not checked effectively, because of which the workers can take undue

advantage.

As there are no fresh recruitments since 1985, there is no chance for the new

talent, new ideas & new blood flowing into the organization.

BHEL is a very huge organization, which proves as a constraint in effective

management.

OPPORTUNITIES

BHEL can cater to the customers looking for EPC/ Turnkey capability

BHEL can make use of International Financing.


BHEL can practice SCADA systems for Energy Management and control.

BHEL can develop as a tool system supplier for MRTS and Inland water

Transportation projects.

BHEL is India’s leading manufacturer of power equipment.

It has diversified into all vital sectors of the industry, reaching its benefits

of energy to every corner of the country.

It has very good product mix that is place, product, price, promotion.

It has an effective human resource management.

Good work culture, job security, and high employment.

Quality products and services.

A customer focused company that firmly believes in being a friend for life.

Continuous improvement in production rates especially in Control Equipment,

which is the major contributor of profits.

THREATS

Collaborations are increasingly restricting export territories under license

agreements in order to protect their market share in territories outside India,

particularly where BHEL has built up references and strengths.

Since most of the projects in the industry are being contemplated on BOOT basis,

various issues viz. business model of the project, revenue collection, Operation

and maintenance etc would need to be suitably addressed to gain in the business.

Railways have indicated 3% growth in tenth plan as against 6% growth during the

eleventh plan, which result in scanty order flow for electric locos and dip in

demand for electrics for locos.

BHEL well-being is dependent on the industrial wealth of the country and power

sector. Any disruption in the reform process of the power sector is likely to

negatively impact its performance.


VISION

A World-Class Engineering Enterprise Committed to Enhancing Stakeholder Value.


MISSION

To be an Indian multinational Engineering Enterprise Providing total business solutions

through quality products, systems and services in the fields of energy, industry,

transportation, infrastructure and other potential areas.

VALUES

Meeting commitments made to external and internal customers foster learning, creativity

and speed of response respect for dignity and potential of individual’s loyalty and pride in

the company team playing zeal to excel integrity and fairness in all matters.

Meeting commitments made to external and internal customers.

Foster learning, creativity and speed of response.

Respect for dignity and potential of individuals.

Loyalty and pride in the company.

Team playing.

Zeal to excel.

Integrity and fairness in all matters.

Objective

Competitive edge of product / service by building and improving key processes.

Value Addition by reducing Cost of Quality.

Delivery & Responses.

Quality of Supplies by improving supplier performance.

Capability of human resources by upgrading skill and competence.

The objectives of the present study are to obtain a true insight into the financial

and operational performance of BHEL, Hyderabad, using Budgetary Control as

the tool.

To offer suggestions for the improvement of financial performance.


QUALITY POLICY

Towards meeting its Quality Policy, BHEL is using the vehicle of Quality Management

Systems, which are certified to ISO 9001:2000 series of Standards by Internationally

acclaimed certifying agency, BVQI. Corporate Quality and Unit level Quality structure

enables requisite planning, control and implementation of Company-wide Quality Policy

and Objectives, which are linked to the Company's, Vision statement.


CHAPTER-7

FINDINGS

Recruitment has been stopped in BHEL-EDN since 1985 and is being done only

in some selected areas.

BHEL-EDN does not approach the customer instead it waits for the customer to

come to it since its products are priced higher than other players in the field so it

thinks that those who can afford its products will automatically approach it.

Because of computerization there is cost reduction in the form of reduction in

paper work and also quickness of action.

BHEL is being showing consistent growth prospective.

BHEL-EDN is managing its Human Resources and marketing very effectively by

conducting various types of training and other sessions.

It has centralized many functions that help of better control and coordination.

BHEL – EDN has a motivated work force.

EDN is able to maintain good relation. There are no lookouts or strikes for a very

long period.

Products in BHEL are tailor made i.e. they are produced as and when demanded

by the customer.

BHEL is taking steps towards TQM.


CHAPTER-8

SUGGESTIONS & RECOMMENDATION

Very important of all is the marketing department function that is it has to do good

advertisement and build brand awareness in the market.

Job rotation, job enlargement, job enrichment needs to be done frequently in EDN,

which would motivate an employee to do better.

As BHEL faces a tough competition from the Private firms it must formulate better

policies that attract customers.

In order to survive and to be a leader BHEL needs to come out new products

continuously and increase its product line.

It needs young upgraded work force than an older force so it needs to replace them

gradually as time permits.

It needs to also eliminate the excess work force.

Though strictly mentioned about the safety adherence the employee’s neglect the

same, workers should be advised to use the safety kit.

Finished goods are packed and placed in the open area, thus, storage facility to be

improved.

Promotion to be given based on work efficiency.

Provide neat and clean rest rooms nearby to HRD department.

Technology in this regard is available with BHEL while ABL would be able to

offer the same with back up from their collaborators.


CHAPTER-9

LEARNING EXPERIENCE

I enhanced my knowledge by working in Bharat Heavy Electricals Limited. I learned

many new aspects which I was unaware. I learned the functions of the company in

different areas of production. The interaction with company’s employees and staff has me

an insight and firsthand experience of the industrial scenario in the competitive

environment of the company.

In the beginning I was given a brief explanation on the number of departments and their

respective heads. In the subsequent weeks I went to different departments and was able to

understand the importance of each department and their contribution towards the

achievement of the company’s objective. I also learned how the company always tries to

feel the pulse of the customers, as they are the purpose of the business.

The atmosphere was so friendly and co-operative that I did not find any tinge of difficulty

the whole training period of four weeks which have me a great deal of information and

knowledge.


CHAPTER-10

CONCLUSION

Public sector units will have to resort to quality improvement techniques and get more

interested in what the customer wants rather than what the Company can offer in order to

retain their customer base and get new customers.

To remain competitive and meet customers’ expectations, BHEL lays great emphasis on

the continuous up gradation of products. BHEL’s commitment to advancement of

technology is reflected in its involvement in the development of futuristic technologies

like fuel cells and super conducting generators. BHEL’s investment in R&D is amongst

the largest in the corporate sector in India.

The electronics division of Bhel was formed in 1976 growing from a merger turnover of

RS 3 crore in 1976-77 to 500 Crores approximately in 2000-2001; BHEL EDN has

entered a new phase of growth. Its quick progress was aided by the collaborations with

international leaders in the field of power and control electronics.

Looking from its commanding height, BHEL-EDN sees exciting things happening

Stoday in the field of automation and power electronics and like any young adventure, it

is eager and ready to cover new terrain.


organisation study

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