INTRODUCTION ABOUT THE SUBJECT An organization is a group of people bound together in formal relationships to achieve organization as an entity and other refers to organization as a process. Organization exits in all important phases of man life. A man is born in an organization (hospitals), he is educated in an organization (schools, colleges and universities) he also satisfies the various security and egoistic need through organization. There are three common characteristics in each of these organizations, they are 1).They are made up of people. 2).They all have a distinct purpose of goal to achieve, 3).There is a degree of formality in each organization that results in definition of imitation of the behavior of its members. 1
B.B.M PROJECT - A study on the working capital management in BHARAT ELECTRONICS LIMITED company. at the city of bangalore. project is draw to understand the working capital utilization and management at BEL company.
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INTRODUCTION
ABOUT THE SUBJECT
An organization is a group of people bound together in formal
relationships to achieve organization as an entity and other refers to
organization as a process.
Organization exits in all important phases of man life. A man is born
in an organization (hospitals), he is educated in an organization
(schools, colleges and universities) he also satisfies the various security
and egoistic need through organization.
There are three common characteristics in each of these organizations,
they are
1).They are made up of people.
2).They all have a distinct purpose of goal to achieve,
3).There is a degree of formality in each organization that results in
definition
of imitation of the behavior of its members.
The second meaning of the organization is that it is a process of
structure of arranging the parts of which the organizing has an entity is
composed. Organization is the process of defining and grouping the
activities of the enterprises and establishing the authority relationship
among them.
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1. INDUSTY PROFILE
1.1 ORIGIN, GROWTH AND DEVELOPMENT OF THE INDUSTRY
Since the product of BHEL-EPD is the porcelain insulator, it is necessary to see the
origin of the porcelain and then the origin of the ceramic insulators and non ceramic
insulators. The ceramic or porcelain insulators were introduced in 1830s. Porcelain
saw very minimal use for either telephone or telegraph after the development of thread
less glass insulators. Glass tended to be cheaper than quality porcelain, and was
deemed as it was thought that clear glass would discourage insects from building nests
under the insulators reducing their effectiveness. This all would change with the
proliferation of electricity.
1.1.1 Development of ceramic insulators:
Today, after more than 100 years of electric power transmission, wet process porcelain
insulators are still the most widely used form of electrical insulation. Their
development stems from the pin-type insulators that were in use on communication
lines. In the first designs for power transmission, the commissioning of the
communication pin-type insulators was increased to prevent electrical puncture and the
diameter of the shed was made larger for increased leakage distance.
1.1.2 Development of Non ceramic insulators:
In the late 1950s, the development of line insulators with reduced weight and improved
electrical and mechanical characteristics, relative to conventional ceramic string
insulators, was considered a prerequisite to 1000kV transmission line. Although
interest in 1000kV transmission gradually faded, interest in the light weight insulator
continued so much so that the first non ceramic insulator was introduced by General
Electric in 1959. However, that early Gepol insulator, despite its promise, experienced
severe tracking and erosion failures that were related to the epoxy sheds.
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The few types of insulators that are being manufactured in India are:
Disc Insulators : Disc insulators are mainly used for transmission and distribution.
These insulators used in the form of string by connecting (coupling) number of
insulators one into another. The strings can either be in vertical position
(suspension string) or in horizontal position (tension string). The number of
insulators to be used for various strings depends upon the kV rating of the system.
Pin Insulators : Pin insulators are used for over head power lines insulation
(transmission and distribution lines) from 1.1kV to 33kV. Pin insulators are of
rigid type and mounted on the cross arm of the pole. The conductor is rigidly fixed
on to neck (or to the top grove) of the insulator by means of tie wire. The insulator
are first fitted with rigid pins by means of thread and then mounted on to the cross
arm. The thread dimensions of pin insulator are internationally standardized for the
purpose of interchangeability. Pin insulator of 1.1kV range employ porcelain
threads and 11kV to 33kV pin insulator employ zinc thimbles which are assembled
inside the porcelain part.
Post Insulators: Post insulators are of rigid type and used in supporting bus bars,
isolator assemblies and other energized equipments in a substation.
Hollow Insulators: Hollow insulators are used in apparatus. Whenever an
energized conductor has to enter through a wall of a transformer tank, a ‘bushing
‘housed in a hollow porcelain sleeve is used. Whenever a coupling capacitor on the
winding of a potential transformer or a current transformer is to be housed in a
weather casing, a hollow porcelain sleeve is used. Whenever an insulated oil tan of
a circuit breaker is to be covered a hollow porcelain sleeve used.
Solid Core Insulator : Solid core insulators are of various types-Stay arm
insulators, bracket insulators, 9-tonne insulator, Post (pedestal) insulators,
Sectioning insulators, Operating insulators, Panto–mounting insulators, Roof line
insulators-solid core insulators for railways.
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2. COMPANY PROFILE
2.1 Origin of the Organization:
BHEL came into existence in November 1964. At first, a plant was setup at Bhopal and
that was the genius of heavy electrical equipment in India. BHEL is today the largest
engineering and manufacturing enterprise of its kind in India with a record of
accomplishment performance. Right from 1971-72 this organization is making profit.
In BHEL 67.72% of shares is held by the Government of India and 32-28% is held by
financial institutions, foreign institutional investors and employee. BHEL is paying
dividend since 1976-77.
Heavy Electrical (India) Ltd was setup in Bhopal in August 1956 with a view to reach
self-sufficiency in industrial products and power equipment vital for the
industrialization of the country. To meet the total demand of heavy electrical
equipment, BHEL came into being in November 1964.
2.2 BHEL- The Organization Setup:
BHARAT HEAVY ELECTRICALS LIMITED (BHEL) is the largest engineering and
manufacturing in the field of heavy electrical in India and one of the leading power
plant equipment manufactures in the world. BHEL has presence in core sector like
power, industry, transportation, oil and gas, telecommunications, defense and non-
conventional energy sources from “concept to commissioning”. BHEL has 14
manufacturing plants and 150 project sites countrywide and abroad. Its products and
systems have been exported to over 52 countries worldwide. Set up primarily to create
self sufficiency in the field of power generation, the first plant of what is today known
as BHEL was established in 1956 at Bhopal and was genesis of the heavy electrical
equipment industry in India with a well recognized track record of performance,
making profit continuously since 1971-72.
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It achieved a sales target of Rs. 6,471 corers with a profit of Rs.1, 022 corers in 1997-98.
BHEL an ISO 9001-2000 accreditation is now embarking upon Total Quality
Management for its operation.
BHEL has continuously paid dividends to the government. BHEL also received
“Excellent” rating for 9 years consecutively. Government of India and has conferred
the status of a “Navaratna Company”. Another 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, buildings and running of schools, free medical
camps, providing employment facilities for widows, handicapped persons etc.
2.3 The company is accredited with following internationally acclaimed standards:
2.3.1 Quality Policy of BHEL
“In its quest to be World-class, BHEL pursues Continual Improvement in the
Quality of its Products, Services and Performance leading to Total Customer
Satisfaction and Business Growth through dedication, commitment and team
work of all employees.”
2.3.2 Environment Policy
In its endeavor to adopt and implement the environment policy enunciated as
follows, “To strive to be and environmental friendly company in its Activities,
Products and services through:
Compliance with applicable Environmental Legislation\Regulation
Continual improvement in Environmental Management Systems to protect our
natural environmental and control pollution.
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Promotion of activities of conservation of resources by Environmental
Management
Enhancement of Environmental awareness amongst our employees, customers
and suppliers
2.3.3 Occupational Health and Safety Policy
BHEL is committed to provide safe and healthy working environment to all
employees as an integral part of business performance through:
Setting objectives and targets to eliminate/ control/ minimize risks due to
occupational and safety hazards
Appropriate structural training of employees on occupational health and safety
aspects
Periodic review of occupational and safety hazards management system to ensure
its continuing suitability, adequacy and effectiveness
Communication of occupational and safety hazards policy to all employees and
interested parties”.
Compliance to applicable Legislation and Regulations
2.4 Major manufacturing plants and their products:
TP, Jhansi: power transformers (less then 220 kV), freight low transformers, ESP
Transformers, AC Locos, Diesel Electric shutters, etc.
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HPEP, HYDERABAD: Thermal set (above 200 up to 500 MW), gas nuclear
Generators (235 MW), Hydro sets, industrial machines, control
panels, light trainer aircraft, gas turbines, defense equipment.
CEEP, HARDWAR: Casting and forging for thermal/hydro sets, motors, defense, etc.
Special facilities like 900 t press forging, electric arc furnaces for
melting steel etc.
HPBP, TRICHY: Utility and industrial boilers, valves, nuclear steam generators, well
SSTP, TRICHY: Seamless steel tubes.
EDN, BANGALORE: Variable speed devices, programmable logic and digital
Controller, power devices, meters, photo voltaic / solar panels,
EPABX, HVDC systems, process simulators etc.
EPD, BANGALORE: Disc, Slid core, Bushing, Pin and Post Insulators, Ceramics liners,
Wear resistant ceramic and Honey comb.
IP, JAGDISHPUR: Disc Insulators, Ceramics Liners.
JVC, GOINDWAL: Industrial valves.
CEP, RUDRAPUR: Wind mills, solar water heaters and Solid lanterns.
ESD, BANGALORE: Telecom products and simulators.
2.5 CUSTOMER PROFILE
2.5.1 for Disc Insulators
Karnataka Power Transmission Corporation
Tamilnadu State Electricity Board
Maharashtra State Electricity Board
Punjab State Electricity Board
Andhra Pradesh State Electricity Board
Rajasthan State Electricity Board
Uttar Pradesh State Electricity Board
Kerala State Electricity Board
Meghalaya State Electricity Board
Delhi Electricity Board
Domodar Valley Corporation
Bhakara management independent power production.
2.5.2 for Solid Core Insulators
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Indian railways and Countries like: Sri Lanka, Nepal, Japan, Bhutan,
Australia, New Zealand, Malaysia, Thailand, Turkey, Iran etc.
2.5.3 For Hollow Insulators
ABB, Siemens, Sister units, Switch gear manufactures and Electrical
equipment manufactures
2.6 Ownership Pattern:
As for as ownership of Bharat Heavy Electricals Limited is concerned 67.72% of
Equity is held by the Government of India and 32.28% is held by financial institutions
and employees of Bharat Heavy Electricals Ltd., Today Bharat Heavy Electricals Ltd.,
Manufactures 180 varieties of products under 30 major production groups. It has built
an enviable reputation for high quality and reliability of its equipment.
2.7 Achievement/ Award:
BHEL (EPD) which is one among the Navarathnas is best owed with so much of
awards and achievements since from inception. There are various awards which the
company was nominated not only with in the country but also from foreign nations
which will add feathers to it name & fame.
The following are the awards which are mentioned below as follows:
Management and the workers in accident prevention programmes.
National Safety Award-1990
National Safety Award-1991
National Safety Award-1993
National Safety Award-1994
National Safety Award-1995
National Safety Award-1996
National Safety Award-1997
National Safety Award-1998
National Safety Award-1999
National Safety Award-2000
National Safety Award-2004
2.8 Vision:
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“A World-Class Engineering Enterprise Committed to Enhancing Stakeholder Value”
2.9 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.
2.10 Values:
Meeting commitments made to external and internal customers.
Faster learning, creativity and speed of response
Respect of dignity and potential of individuals
Loyalty and pride in the company
Team playing
Zeal to excel with integrity and fairness in all matters
2.11 Company’s Objectives
2.11.1 Business Mission:
To maintain a leading position as suppliers of quality equipment, system and
services in the field of conversion, transmission, utilization and conservation of
energy for application in the areas of electric power, transportation, oil gas
exploration and industries. Utilize companies’ capabilities and resources to
expand business into allied areas and other priority sectors of the economy like
defense, communication and electronics.
2.11.2 Growth:
To ensure a steady growth in business so as to fulfill national expectations from
BHEL and expand international operations.
2.11.3 Profitability:
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To provide a reasonable and adequate return on capital employed, primarily
through improvements in operational efficiency, capacity utilization and
productivity and generate adequate internal resources to finance the company’s
growth.
2.11.4 Customer Focus:
To build a high level of customer confidence by providing increased value for his
money through international standards of product quality, performance and
superior customer services.
2.11.5 People Orientation:
To enable each employee to achieve his potential, improve his capabilities,
perceive his role and responsibilities and participate and contribute positively to
the growth and success of the company, to invest on human resources
continuously and to be available to their needs.
2.15.6 Technology:
To achieve technological excellence in operation by development of indigenous
technologies and efficient absorption and adaptation of imported technologies to
suit business needs priorities, and provides a competitive advantage to the
company.
3. PRODUCT PROFILE
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BHEL-EPD India’s leading manufacture of High – Tension porcelain Insulators, a class
by themselves – acknowledge by internationally reputed laboratories of CESI (Italy),
KEMA (Holland), Dolton (UK), and IISc (Indian). BHEL disc insulators are known for
their reliability more than 10 million insulators are in service in India and abroad.
3.1 Product range of BHEL-EPD includes:
High – Tension porcelain Insulators for transmission and distribution lines from
11Kv to 800Kv with a wide range of 70kN to 300kN in standard, semi-fog, fog,
anti-fog varieties.
Hollow Insulators for Power Transformers, Instrument transformers, Electrostatic
Precipitators, Circuit Breakers of Conventional and Gas Insulated Types.
Post Insulators for support for bus bars, switches and isolators from 11kv to
220kv.
Wear-resistant High Alumina Ceramic Lining Material for power, steel, cement
and mining industries, as well as a wide range of industrial ceramics.
Catalytic converter for two and four wheeler vehicles.
3.1.1 SOLID CORE INSULATORS:
3.1.2 HOLLOW INSULATORS
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Application: In power transformers, instrument transformers electrostatic precipitators, Circuit breakers of conventional and gas insulated types.
3.1.3 CAP AND PIN TYPE POST INSULATORS
Application: As bus supports in substations for switches and isolators from 11 to 220kV.
3.1.4 DISC INSULATORS
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CANTILEVER STRENGTH from 920 kg for 11 Kv up to 400 kg for 220 Kv
CREEPAGE DISTANCE from 330 mm for 11 Kv up to6150 mm for 220 Kv
APPLICATIONSAS BUS SUPPORTS IN SUB STATIONS FOR SWITCHES & ISOLATORS FROM 11 Kv to 220 KV
Application: Transmission lines for 11 KN to 800 kn. [AC&DC] and substation
3.1.5 HYBRID INSULATOR
A hybrid insulator consists of a porcelain core fitted with weather resistant polymeric shed. This design offers better performance under pollution is light in weight can withstand flames/ arcs offers resistance to chemicals and UV radiation and in vandal proof.
5. ORGANISATIONAL STRUCTURE
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HYBRID INSULATOR CONSISTS OF A PORCELAIN CORE FITTED WITH WEATHER RESISTANT POLYMERIC SHEDS.
THE DESIGN OFFERS BETTER PERFORMANCE UNDER POLLUTION.
LIGHT IN WEIGHT
CAN WITHSTAND FLAMES/ ARCS, CHEMICALS, ULTRAVIOLET RADIATION
RATINGS 70 KN to 300 KN e ms
CREEPAGE DISTANCE 280MM TO 540 MM
COUPLING DESIGNATION 16mm, 20mm, 24mm
APPLICATION in TRANSMISSION LINE
FROM 11 Kv to 800 Kv
BOTHE A C AND D C APPLICATIONS
In BHEL-EPD activities are grouped into different functional units. Each major function
of the enterprise is grouped into different department. This can also be studied as a
separate function. Departmentation based on functions is a simple form of organizing the
activities. Specialization of department promotes the excellence in performance. It leads
to improve planning and control of key functions and ensure economy.
The various departments in BHEL-EPD are:-
Production
Finance
Human resource & Human resource Development Center
Communication and Public relations
Marketing
Commercial
Information Technology
Management Services
Material Management
Quality
Safety/HSE
Engineering
Security and Vigilance
Works Engineering/ project /IE
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Organization Structure of BHEL-EPD
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GENERAL MANAGER EPD
INSULATOR OPERATIONS
MATERIAL MANAGEMENT
PROJECT & CATELYTIC
INSULATOR ENGINEERING
KILN & SOLID CORE INSULATOR
CERAMIC LAB & DEVELOPMENT
HOLLOW & SOLID CORE INSULATOR
ASSEMBLY & TESTING
CATELYTIC CONVERTER
HRM
COMMN. & PUBLIC RELATION
FINANCE DEPT
CERALIN & INDUSTRIAL CERAMIC
HRD
COMMERCIAL DEPT.
WEX PROJECTS DEPT.
WEX
MS & EDP
QUALITY DEPT.
6. PRODUCTION DEPARTMENT
Production department in any industry performs the functions of converting raw materials into
finished products. The manufacturing of goods requires a predetermined plan so that available
recourses of company are used to optimum level and more wastage is reduced to the greater
extent.
BHEL-EPD is today a leading manufacturer of high tension electro porcelain insulators with
an experience of over 70 decades. EPD’s product range includes disc insulators, post
insulators, solid core insulators and hallow insulators in insulators category. Apart from these
they manufacture ceralin tiles like curved plain tiles, curved weld on tiles, flat plain tiles, and
flat weld on tiles.
6.1 MANUFACTURING PROCESS:
The raw materials required for manufacturing the insulators are: Quartz, Feldspar,
For any organization to carryout its sale activity efficiently and more effectively what
they need is a good marketing department. Marketing department deals with the all the
activities carried out by BHEL-CBU. In the field of ceramic components BHEL has a
good stand in the country and its sales are more. The duty of marketing department is to
maintain all these records. For doing so there are 8 employees, in which 5 employees
deals with the disc insulators, 1 employee deals with the exerts of these insulators, 1
employee deals with other type of insulators and other employee takes care of other
ceramic products.
The activities carried out by marketing department are:
Enquiry from the customer
Acknowledge to that enquiry
Offer-quoting of tender
Negotiation
Order
Internal order allocation
Market Exploration
Order Booking
Bidding
Preparing the Annual Budget
Projections
Billing, Invoice and Dispatch
In enquiry there will be a qualifying requirement, which specifies certain condition for
any company to qualify for the offer that is capacity, assets involved etc, enquiry consists
of both commercial as well as the technical requirement terms.
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Enquiry will go to engineering department for recommendation and approval of the
technical specification. If the engineering department thinks it is not possible to
manufacture according to that specification then marketing department will exchange a
word of mouth with the customers regarding issue and comes to a conclusion.
After the order is accepted the production is carried out according to the desired
specification. After production is over the company calls the customers for the inspection,
which may be conducted by the customers representatives or they may insist for the
company to go for internal inspection or they may send third party for the inspection.
After the inspection is over and if the product is found to be according to the required
norms then the customers will give the packing and dispatch instruction according to
which the company should go for the dispatch of the materials.
Once the dispatches of the products are sent according to their requirements then the
marketing department will follow up the payment if it is fewer amounts. If the amount is
more finance department will follow up. The marketing department also will keep in
touch with the customer to maintain good rapport.
11.1 Marketing Strategies:
This section provides broad overview of the plan for achieving the marketing
objectives, and ultimately, the organizational goals. Marketing strategy focuses on
defining a target market and developing a marketing mix to gain long run competitive
advantages. Marketing strategy guides the firm’s direction in relationships between
customers and competitors.
11.1.2 Pricing Policy
In BHEL, they are different pricing policy in the market, they are
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Penetration Price: it is intended to help the product penetrate into market to hold a
position. This can be done only by adopting low price in the initial stage or till such
time the product is finally accepted by the customers. This is done to capture the
market.
Hot and Cold Pricing: in this, the pricing is fixed on the basis of quality ordered
i.e., higher the quality ordered, lower will be price fixed, whereas less the quality
ordered then high price is charged.
Follow Leader: in this, the pricing is fixed by following to the leaders in the
market.
Skimming the Price: it involves setting a very high price initially and reduces the
price, gradually as competitors enter the market. Usually this method of pricing is
used while introducing a new product into the market.
Promotion Tools: promotion consists of those activities that are designed to bring
a company’s goods and services to the favorable attention of customers.
11.1.3 In BHEL, there main promotional tools are:
Seminar
Presentation
They promote their product by conducting seminars and presentation through video-
conferencing.
11.1.4 Customer Satisfaction Level:
Customer is the central point and all the marketing activities revolve around him.
Manufacturer produces what the customer wants. Consumers behave in a particular
manner as directed by his inner motive. The marketers to study and analyze the
consumer behavior in order to sell and improve the product.
In BHEL, they conduct a customer perception survey, which reveal the satisfaction
level of the customer.
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12.1.5 Global Market:
Global market means doing business globally, BHEL as entered the global market
and they market their products through trade and merchants exporters.
Figure: Global Market of BHEL
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FLOW CHART OF MARKETING DEPARTMENT
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Offer Submission
Tender Opening
Negotiation
Order Placement
Scrutiny
Clarification
Acceptance Allocation ofOrder
By Customer
Conditional
By Marketing Scrutiny
Commercial offer
Price Delivery & Schedule
Cost Estimate from Finance
Shop Loading
Technical Offer
Complete the Offer
Either by Marketing/ Engineer
By Marketing
Tender Notification
Procurement of Tender
Enquiry Negotiation
Enquiry Forwarding to Engineer for technical offer
Organizational Chart of Marketing Department
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Marketing & Planning Head (E7)
Marketing Ceralin & New Products Section (E6)
Ceralin Insulators, Exports & New
Products Section (E3)
Marketing Insulator Section (E6)
Exports & TBG Section
(E2)
(E2)Disc, Solid
Core & Composite
(E2)Disc, Solid
Core & Composite
13. Commercial Department
This department deals with the customers and suppliers and therefore it is rightly called as heart
of the organisation. It helps in getting orders from different customers. The main function of this
department is customer satisfaction. It aims at providing good quality product at reasonable
prices and dispatches them within a specified period. This department also takes care of its
suppliers from whom raw materials required for production are supplied and ensure them prompt
payment. The section is responsible for execution of orders secured for insulators manufactured
in the unit.
Functions of Commercial Department
Contract review
Issue of work order
Preparation of turn over plans, Based on internal orders and shop floor capacity, turnover
plans is prepared.
Every month flow up has to be done
Periodical monitoring (weekly) that is monitoring the achievement and comparing that
whether they are doing as per schedule
Billing invoice and dispatch: This department issues dispatch and billing instructions,
based on the above instructions, invoices will be prepared
Packing of insulators
Customer’s complaint
Dispatch and invoice
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Organizational Chart of Commercial Department
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Head Commercial (E6)
Bushing Packing & Dispatch (E3)
Ceralin & INDL Ceramics (E3)
Disc, Post &Pin, Solid Core, Line Hardware
(E5)
TBG & Exports(E2)
Disc, Post, Composite, Non TBG
(E4) Note:
INDL => Industrial
TBG => Transmission Business Group
14. Material Management Department
The material management department functions within the framework of quality assurance
manual provided by the quality department and purchase policy laid down by thee corporate
office (situated at New Delhi). The main functions of this department is to procure the material
require with available funds.
The responsibilities of the material management department are:
Selection and qualification of vendors.
To ensure that the required quality are purchased.
Plan, store and provide requisite material components to suit schedule.
To provide safe working environment.
Import management.
14.1 Functions of material management are as follows:
Material planning, activity and budgeting
To organize for keeping an appropriate stock so as to feed the production
uninterruptedly.
To register the purchase indent before reaching various groups in purchase section.
Identify direct material requirement for the succeeding financial year based on sales
forecast.
Preparation of material budget taking into account the price allocation.
Identify the requirement of direct material, consumables, material based on pervious
requirement and consultation with various departments.
The entire revenue budget is working out taking the prevailing price and anticipation
escalation in consideration. This is worked out at the unit level.
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14.2 Purchase Activity:
This section mainly deals with procurement of material at the right time, from the right
place, at the right price and makes it available to the right department.
In case of purchase of capital item, the concerned department is to make a project report
specifying the requirement and send it to the corporate office. On studying the report, the
corporate office decides whether to purchase the item or not. Once the sanction to
purchase the item is received, immediately specification are given and tender are invited
from each tender, L1 is selected.(L1 = first tenderer)
Tender system has been adopted to produce material at competitive rate. The kind of
tender in vogue are:
14.2.1 Open Tender: Such tender restored when adequate number of approved
vendors are not listed. On known source shall be addresses to the enquirer.
14.2.2 Limited Tender: Limited tender shall be addressed to a few handful
vendors. The vendors are already identified to supply the material.
14.2.3 Single Tender: Single tender is invited from a particular vendor. Single
response to an open tender or limited tender shall be treated as Single tender.
The unit procures the materials from its sister unit also, when and where there are
requirements, and materials are available in excess on either side.
14.3 Store Department:
Goods are received into the store after inspection and they are held and issued into
production as and when required. The stores department renders service mainly to the
production and finance department.
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14.3.1 In EPD the stores department are divided into 3 sections:
Metal parts stores
Oil stores
General Stores
14.3.2 Functions of the Stores department:
To ensure steady supply of material to the required department.
To keep proper account of material in its custody so that the capital of the company is
properly utilized.
To preserve the material in custody from deterioration, loss or pilferage.
To keep inventory to the minimum and to ensure that non-moving items are speedily
disposed. This ultimately results in reduction of inventory carrying cost.
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Organizational Chart of Material Management Department
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MM Head (E7)
Procurement Disc, MP, Packing Ceralin, Stores,
Sub-Contract, SAP,ISO-System (E5)
Maintenance Capital, Medical,
DGFT (E3)
Tender Cell, RM, INDL, Metals (E3)
Ceralin MP, Packing & Disc MP (E3)
Non-Disc MP, Line, Hardware (E2)
Stores & Scrap (E3)
MP Stores, Sub-Contracting (E3)
Note:
RM => Raw Material INDL => IndustrialDGFT => Director General of Foreign Trade MP => Metal Parts
SAP => System Application Product Data Processing ISO => International Standard Organisation
15. INFORMATION TECHNOLOGY DEPARTMENT
Since the IT sector has been introduced to the world it has become a key part in the day to day
functioning of the organisation. Systems Department in BHEL-EPD provides service to
production and other department in turn which helps in network infrastructure, mail transaction
and virtual private networks to connect other units and provides on-the-job training to
employees.
15.1 The different functions carried out by IT are:-
Collection of data from various departments & preparation of ceramic production report
All servers hardware/software planning.
Consumables
Antivirus and hardware related issues
PC& printer maintenance coordination
Stationery & consumables
Stock position maintenance including indenting
General office administration & other miscellaneous work
Intranet site development
Website development
Network server & backup
SAP BASIS administration
ERP issues coordination
The company implemented SAP in the year 2004. SAP stands for “Systems Applications and
Products in Data Processing”. Since then the units function has gradually changed from
traditional way of working to the usage of the systems. The implementation of SAP using given
resources in various levels and in different departments has made the functioning smooth, since
IT maintains the systems around the clock.
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GM / EPD
SDGM / FINANCE & IT
Engineer / IT
SAP BASIS ADMINALL SERVERS HARDWARE/SOFTWARE PLNGVPN & LEASED LINES NETWORKINGCONSUMABLESANTIVIRUSH/W RELATED ISSUES
AOS / ITPC & PRINTER MAINTENANCE COORDINATIONSTATIONERY & CONSUMABLESSTOCK POSITION MAINTENANCE INCLUDING INDENTING GENERAL OFFICE ADMINISTRATION & OTHER MISC WORK AMC RENEWALS
Sr. IT Operator / IT
(COLLECTION OF DATA FROM VARIOUS DEPARTMENTS & PREPARATION OF CERAMIC PRODUCTION REPORT)
Sr. IT Operator / IT
(COLLECTION OF DATA FROM VARIOUS DEPARTMENTS & PREPARATION OF CERAMIC PRODUCTION REPORT)
Sr. ENGINEER / IT
SAP BASIS ADMINISTRATIONSAP ABAP DEVELOPMENT ERP ISSUES COORDINATION INTRANET SITE DEVELOPMENTWEBSITE DEVELOPMENTNETWORK SERVER & BACKUP
INFORMATION TECHNOLOGY DEPARTMENT
16. QUALITY DEPARTMENT
Quality refers to meet and anticipate customer’s requirements, stated or implied at a given
time and over a period of time and at a price the customer can afford and is willing to pay.
Introducing new and better products into the market faster than competitor and continuously
bringing down the cost of manufacturing.
A quality assurance programme taking into account the requirements of this part can be
used, after agreement between the purchaser and the manufacturer, to verify the quality of the
insulators during the manufacturing process.
In the production operation, the quality department will check for product characteristics
after suitering operation. It is only after the kiln operation the quality department verifies the
conference of the product to customer requirement. Once the product is fully manufactured
and tested by the production in charge, it will be inspected and product is accepted for
dispatch to customers.
16.1 Various Functions Carried by Quality Department:
16.1.1 Verifying the Compliance of Raw Materials: All incoming products and raw
materials are inspected prior to the release to the production or for further processing. Items
received from suppliers or sub-contractors of EPD at stores are released for production either
based on verification of supplier’s inspection/test reports or after test/inspections by quality
department. Goods delivered are inspected and segregated based on the decision there of as
to acceptance/rejection and identified by tags, paint, markings or display of boards. Rejected
goods are segregated and suitably identified as non – conforming. Quality control reports of
acceptance/rejection are maintained for all items.
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17.1 Facilitating with Customers for Inspection:
The customer satisfaction is prime objective of the organisation. There will be
certain situations when customers want to conduct certain tests on their own for
their satisfaction regarding quality of product. This department helps the customer
to carry out this operation insight or at BHEL-EPD itself as mentioned in the
contract.
17.2 Quality Circle:
The organization with a commitment to participative management or interested in
exploring its possibilities as means of realizing its productivity and quality goals, the
quality circle process can be a valuable tool. Quality circles themselves are relatively
simple. A circle consists of small group of people within the company who do similar kinds
of work. This group meets on a regular basis that is once in a week to identify, analyze and
solve problems in its member work area.
As a problem solving forum the Quality circle is to select problems within the member’s
work area to study and solve. In the early stages of circles life time it is important that
member’s relatively easy problem to solve. Quality circles are not permitted to work on
problems whose causes are outside of their area of responsibility.
Field non-conformance handling & processing (MDR/SAR/CAR/SDR)
Corrective and preventive actions
Implementing special contract requirements-contract review
Design control-review, verification and validation
Vendor/Subcontractor management
Customer complaint handling, Control of inspection, measuring and test equipment.
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17.3.2 Impacting on Business:
Improvement projects
Evaluation of process capability
Quality audits and management reviews
Collaboration technology implementation
Document and record control
17.4 Total Quality Management:
The company is implementing TQM i.e. total quality management since 2001. TQM can
be descried as “Management approach of an organisation, centered on quality, based on
the participation of all its members and aiming at long-term success through customer
satisfaction and benefits to all members of the organisation and to society”.
The company has chosen to adopt the European Quality Award Model for TQM-
activities.
17.4.1 Basically developed on 9 criteria such as:
Leadership
Policy & Strategy
People Management
Resources
Processes
People Satisfaction
Customer Satisfaction
Impact on Society and Business Result
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18. ENGINEERING DEPARTMENT
This department outlays designs, drawing and sketches required by the production
department and keeps track of recent changes in the technology thereby diversifying the
product produced by the organization in the modern era of computation.
18.1 Engineering Department Consists of:
Ceralin Engineering
Insulator Engineering
18.2 The Main Functions of the Engineering Department are:
Design of product
Type testing
Technical offers
18.3 Design of Product:
A design is a sketch or a plan in outline, together with details regarding the type of
materials to be used, the method of manufacture, the shape of various parts and
their function.
18.4 Type Testing:
Here the design, outline is coordinated with the specific requirements of the
customer needs.
18.5 Technical Offer:
Maintenance of the drawing
Shop floor coordination
Shrinkage follow-ups and immediately corrective active actions are taken.
Once the work order is been issued, manufacturer information is prepared.
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Organizational Chart of Insulator Engineering Department
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Insulator Engg. Head (E7)
Section In charge (E5) (Insulator Engineering)
Testing In charge (E3)Special Articles (E2)STD Articles (E4)
Asst. Testing (E1)
Note:
STD => Standard
19. SECURITY AND VIGILANCE DEPARTMENT
19.1 Security:
Security is safeguarding the property of the organization against any malpractices. The
security department ensures that the workers arrive at the right time to the premises and
the entry of trespassers into the premises is checked. The visitors and suppliers etc., has
to seek permission of the security before entering the premises and are given pass to
enter into premises.
19.1.1 Functions:
To collect information for effective performance.
Preventive Vigilance.
Punitive or taking stern actions erring employees
Reformative/ educating the employees.
Monitor the guidelines.
19.1.2 The procedures followed are:
19.1.2.1 Men Movements: It is an Access Control System which records in and out time,
purpose of all employees. The kinds of passes are:
Personal pass – in Red colour
Official pass (on duty pass) – in Yellow colour.
Supervisors and Heads have different pass.
19.1.1.2 Material Pass:
It checks the purchase order numbers, references. Any doubts regarding Materials
are referred to a concerned department and then entered into the log book & then
materials are allowed inside the factory.100% checking is done.
Any materials rejected will be sent back with Returnable Gate Pass (RPG). For this
returnable follow log book is maintained and the material rejected are sent back.
Totally rejected materials are sent with Non-Returnable Gate Pass (NRGP).
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19.1.1.3 Excise Goods Pass: For protection of production with proper security and check
books.
19.2 Vigilance:
Vigilance department investigates any illegal acts done within the organization. All
government sectors should have Central Vigilance Commissioner. Vigilance has no
boundary for itself. It starts with departmental procedures and files and specific
purchase policy. All executives are bound to follow the policy. Works instructions are
provided to all departments.
19.2.1 The main functions of the department are as follows:
To collect source of information.
To undertake preventive vigilance that is surprise check, random check etc.
Constructive vigilance for executives, supervisors.
Punitive actions to be provided wherever necessary.
Reformative action also provided.
Causes of Corruption and Measures to Eradicate
19.2.2 Preventive Vigilance Activities in BHEL-EPD
Lecture on Moral Ethics
Routine checks
Surprise checks
Scrutiny of Purchase/Contract files
Scrutiny of Annual Property Returns
Scrutiny of Personal files
Suggestions or Feedback
Follow up of Job rotation
Every year 31 st October to 5 th November vigilance week is celebrates. During this week,
various training programs, seminars and other activities are conducted for the employees.
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Mckinsey’s 7s frame work with reference to organization
The entire profile of the organization is in accordance with Mckinsey’s 7s models: Here are seven basic dimensions, which represent the core of managerial activities. These are the layers which executes use to influence complex and large organizations. Obviously, there was a concerted effort on the originator of the model to coin the managerial variables with words beginning with the letter S so as to increase the communication power of the model.
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Shared values
System Strategy
Structure
Skill
Style
Staff
The model starts on that an organization is not just structure but consist of seven elements.
Structure:-The design of the organization structure is critical task of the management of an organization. Organization structures perform four major functions.
1. It reduces internal uncertainty arising out of variable unpredictable, random human behavior within the organization through control mechanisms.
2. It reduces external uncertainty through forecasting, research and planning in the organization.
3. It undertakes a wide variety of activities through devices such as division of labour, dapartmentation, specialization and delegation of authority.
4. It enables the organization to keep its activities coordinated and to have focus in midst of diversity in the pursuit of its objectives.
Skills: - the employees at BHEL possess a highly qualified technical engineering, communication and problem solving managerial skills. For the employees both on the job and
off the job training is given: Artisans Coaching by senior or senior technicians.
Internal faculty or experts give lectures based on any topic of there expertise.
Supervisors Internal faculty or experts give lectures based on any topic of there expertise.
Executives Internal faculty or experts give lectures based on any topic of there expertise.
Off the job training:-Artisans Visit to other industries for the purpose of learning.
Seminar conducted in other places.Supervisors Visit to other industries for the purpose of learning.
Seminar conducted in other places.Executives Executives are sent abroad to learn about new technologies and
participation in seminars and conferences.
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Style: - the style of an organization according to Mckinsey frame work becomes evident through the patterns of actions taken by members of the top management team over a period of time. BHEL being a PSU there no opportunity for grievances while making decisions regarding any problem on project. Here employees i.e. artisans are consulted for the ideas view points regarding any problems. Here there is no autocratic style of leadership. BHEL believes in participative style of decision generated is favorable to everyone and it could be one of the best.
Strategy: - strategy refers to the determination of purpose and the basic long term objective of an enterprise and the adoption of course of action and the allocation of the resources necessary to these aims.
Pricing strategy:
Pricing of the insulator product is market driven. In ranges where insulators are in direct competition pricing strategy are evolved with the objective of ensuring retention of market in key ranges and preventing overseas bidders from capturing domestic market. BHEL also adopts de marketing strategies with the confidence of its clients and assuring on delivery levels and reasonable prices. In the view of the dynamics situation the market strategies are made to suit the environment prevailing.
Systems: - BHEL is an organization which is systematic in doing its day to day work. This is evident from the facts. BHEL has well managed HR department systems and management information system.
System followed in HR department:- Performance evaluation method:- every authority maintains an annual confidential
report of all his subordinates with the performances recorded very often. It is kept highly confidential and is available only to the senior authority and the personal department. During the time of performance appraisal, the various positive and negative factors discussed by HODs. Appraisal’s for executives in BHEL EPD is known as moving ahead through performance. it is a self appraisal and it is online.
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Staff: - Human resource for the organization is vital and assuring that they have the potential to contribute to the achievement of the organization goal. BHEL generally prefers to have highly qualified engineers and dedicated management professionals in case of staffing process at BHEL. Every executives, supervisors, workers need to be technically sound.
Executive E1 Engineers or MBA’s Executive E2 Senior engineer Executive E3 Deputy manager Executive E4 Manager Executive E5 Senior manager Executive E6 Deputy Senior managerExecutive E7 Additional general manager Executive E8 general managerExecutive E9 Executive director
Shared values:-1. Integrity and fairness in all matters: - we must conduct our business fairly with
honestly and transparency. Everything we do must stand with public scrutiny. It shows transparency in its deal and there is no chance for misappropriation and while issuing the tender a person who quotes lowest and specification which matches company’s technical specification will be placed an order. BHEL shall prepare and maintain accounts fairly and accurately in accordance with the accounting and financial standards and the books of accounts are kept open or public scrutiny.
2. Respect for dignity and potential of individuals: - we must be caring. Show respect and humanity for our colleagues and customers around the world and always work for the benefits of our nation
3. Ensures speed of response: - if a client asks for any information regard products of the company. No individual can make organization to succeed but what required is group effort, any discussion to be taken regarding particular problem each and every employee will be consulted through their heads of department.
4. Loyalty and pride in the company:- each and every employee in the organization will be loyal to his organization and they are proud of their organization.
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21. SWOT ANALYSIS
21.1 Strengths:
The greatest strength of BHEL-EPD is its highly skilled and committed employees.
Company following ethical and transparent business practices.
BHEL has acquired Quality certification namely ISO 9001, ISO 14001 and ISO
18001.
Organisation is decentralized which encourages employees’ participation.
Good industrial relations.
Ability to raise funds.
21.2 Weaknesses:
Excess labour force, majority of the profit will be given in the form of salary, bonus,
allowances etc.
More causal labours than permanent labours.
Government intervention is more in strategies design making which create difficulties
to under take business decisions
100% employee participation is not adopted
21.3 Opportunities:
The company must give more emphasis on team building and quality circle for better
performance and results.
Increase profit margin through automation of work.
Increase in market share by expanding business through globally.
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21.4 Threats:
Competition from private manufacturers. JAYASHREE INDUSTRIES-KOLKOTTA
MODERN INSULATORS LIMITED-RAJASTHAN
W.S.INDUSTRIES-CHENNAI
SARAVANA INDUSTRIES- KUDALORE
IECE INDUSTRIES-BHOPAL
LAXMI INSULATORS
Pay scale of lower level employees can bring unrest and turnovers, which may affect
the work in progress.
Stiff prices competition for insulators.
Competition from its own sister units.
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22. LEARNING EXPERIENCE AND SUGGESTIONS
Company should improve the facilities of crèche, as most of the employees are uncertain
about these facilities.
It is also suggested that company should provide better rest rooms.
Although the company provides welfare facilities to the employees for their betterment, the
management should take certain measures to improve the welfare facilities. And the
satisfaction leads to better performance.
Proper rules have to be followed in recruiting contract labors as this contract labours after
some period may convert into permanent labours.
A suggestion box can be maintained by the HR department which helps the employees to
give their suggestions.
Provide signboards within the factory premises to facilitate easy identification of the
department.
Conduct seminars on communication, so that employees can improve their communication
skills.
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Increase market share in existing and new products.
Entering new country for business
25. BIBLIOGRAPHY
BOOKS:
Personnel Manual of various Departments
Porcelain Insulators & how they grew by Brent Mills