QUALITY CIRCLES AT BHEL QUALITY CIRCLES AT BHEL

A PROJECT REPORT ON

QUALITY CIRCLES AT BHEL

A PROJECT REPORT ON

QUALITY CIRCLES AT BHEL

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CONTENTS

CHAPTER-I PAGE. NO.

INTRODUCTION 01-33NEED FOR THE STUDYSCOPE OF THE STUDYOBJECTIVES OF THE STUDYRESEARCH METHODOLOGYLIMITATIONS OF THE STUDY

CHAPTER-II

REVIEW OF LITERATURE 34-41

CHAPTER-III

COMPANY PROFILE 42-55

CHAPTER-IV

DATA ANALYSIS AND INTERPRETATION 56-71

CHAPTER-V

FINDINGS, CONCLUSIONS, SUGGESTIONS 72-74

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BIBILIOGRAPHYAPPENDICES

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CHAPTER-IINTRODUCTION

1.0 INTRODUCTION:

Organization development is an effort (1) Planned (2)

Organization wide and (3) managed from the top, to (4)

Increase Organization effectiveness and health through (5)

Planned Interventions in the organization’s “process” using

behavioral-science knowledge.

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-Richard Beckhard

“Organizational Development requires a plan approach to

change based on meeting the needs of both the people in the

organization”

-Kilion &Harrrison(1990)

Due to globalization and redefining in the field of

information Technology, the advancement and applicability of

Organizational Development has changed. Luckily, most of the

organizations are adopting various kinds of

organizational changes which are inevitable to survive in

today’s competitive environment. In this regard, Employee

Involvement Interventions is adopted to improve the

responsiveness and progress of the members of the

organization which directly improves organization’s

effectiveness and productivity.

OD is an effort planned organization wide, managed from the

top, through planned intervention, using processes of

behavioral science

1.1 organizational development process:

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The process, it takes minimum of one year and sometimes

continues indefinitely. There are different approaches to OD

process but the typical process consists of seven steps,

viz., initial diagnosis, data collection, data feedback and

confrontation, action planning and problem solving, team

building, inter group development and evaluation and follow”

up.

If executives recognize that there are inadequacies within

organization which can be corrected by OD activities, it is

necessary to find out the professional and competent people

within the organization to plan and execute OD activities.

If competent people are not available within the

organization the services activities are to be taken. The

consultants adopt various methods including interviews,

questionnaires, direct observation, analysis of documents

and reports for diagnosing the problem.

Survey method is used to collect the data and information

for determining organizational climate and identifying the

behavioral problems.

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Data collected are analyzed and reviewed by various work

groups formed from this purpose in order to mediate in the

areas of disagreement or confrontation of ideas or opinions

and to establish priorities.

The interventions are the planned activities that are

introduced into the system to accomplish desired changes and

improvements. At this stage the suitable interventions are

to be selected and designed.

1.2 Implementation of intervention:

The selected intervention should be implemented.

Intervention may take the form of workshops, feedback of

data to the participants, group discussions, written

exercises, on-the-job activities, redesign of control system

etc. Interventions are to be implemented steadily as the

process is not a one-short, quick cure for organizational

malady. But it achieves real and lasting change in the

attitudes and behavior of employees.

Groups prepare recommendations and specific action planning

to solve the specific and identified problems by using data

collected.

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The consultants encourage the employees throughout the

process to form into groups and teams by explaining the

advantages of the teams in the OD process, by arranging

joint meetings with the managers, subordinates etc.

The consultants encourage the inter group meetings,

interaction etc., after the formation of groups/teams.

The organization finally has to evaluate the OD programs,

find out their utility, and develop the programs further for

correcting the deviations and/or improved results. The

consultants help the organization in this respect. All the

steps in the OD processes should be followed by the

organization in order to derive full range of OD benefits.

The following a few of most common OD Interventions, that

most of the companies practice:

1.3 Organizational interventions areI. Survey Feed back

II. Quality Circles

III. Process Consultation

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IV. Sensitivity training

V. The Managerial grid

VI. Goal setting and Planning

VII. Team building and management by objectives

VIII. Job enrichment, change in organizational

structure and participative management and, ISO, TQM

1.4 QUALITY CIRCLES

DEFINITION:

Quality Circle is a small group of 6 to 8 employees doing

similar work who voluntarily meet together on a regular

basis to identify improvements in their respective work

areas using proven techniques for analyzing and solving work

related problems coming in the way of achieving and

sustaining excellence leading to mutual up liftment of

employees as well as the organization.

It is "a way of capturing the creative and innovative power

that lies within the work force".

1.5 HISTORY OF THE QUALITY CIRCLES:

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The history of Quality Circles cannot be discussed with- out

discussing the country of its Origin .The success of any

concept or philosophy gains conviction and spreads only when

it was practiced sincerely .The Japanese have not merely

evolved a concept but practiced it with sincerity of purpose

bringing forth amazing results .This has drawn the attention

of the nation the world over and they have found great

potential in involving the people by 1947: General

Douglas McArthur requested US Govt. to send experts to help

Japanese rejuvenate their industries.Dr.Edward Deming was

sent.

1949: An Overseas Technical Research Committee was organized

by the Union of Japanese Scientists Engineers (JUSE)

1949: JUSE organized a seminar on “SQC”

1949: JUSE organized a seminar “Quality Control-Basic

Course”

1950: JUSE published a magazine “SQC”

1950: Dr Deming invited to eight day Quality Control seminar

organized by JUSE.

1951: Deming prize instituted.

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1954: Dr Joseph Juran invited to Quality Control Management

seminar organized by JUSE.

1956: Japan’s radio started broadcasting a Quality Control

Course organized by JUSE.

1960: Japanese Govt. declared November as Quality Month and

Q-flag was adopted.

Quality Control Circles (Japan)

1962: First QC Circles was registered with Circle Head

Quarters

1962: First annual QC Conference for Foremen was held

1964: Regional chapters of QC were organized in four

different districts

1966: Dr.Juran observed QC Circles activities

1966: Special QC Circle session was organized at the

10th conference of European Organization for Quality Control

held in Stockholm, Sedan

1967: Number of registered QC Circles grew to 10000

1968: JUSE dispatched the first QC Circle Study Team

overseas

1969: Registered Circles grew t 20000

1969: 100th QC Circle Conference was held in Tokyo

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1970: Registered Circles grew to 30000

1971: JUSE organized the first QC Circle seminar

1971: 200thQC conference was held

1971: Registered QC Circles grew t 40000

1971: First National QC Circle Conference was held in Tokyo

1972: Regional Circles grew to 50,000

1973: 300th QC Circle Conference was held

1974: Registered circles grew to 60,000

1974: 400th QC Circle conference as held

1975: Registered Circes grew to 70,000.500th Conference held

1977: Registered Circles grew to 80,000.700th Conference was

held

1978: Registered Circles grew t 90,000

1978: First international QC Circles Convention was held

1979: 800th QC Circles Conference was held

1979: Registered QC Circles Conference numbered 1000000

1980: 900th Conference was held

1981: International QC Circles Convention was held

1985: Third International QC Circles Convention was held

1988: More than one million Circles with over ten million

members

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QUALITY CIRCLES (OTHER THAN JAPAN)

1974: Lockheed Company, USA Started Quality Circles movement

1977: International Association of Quality Circles (IACC)

was formed in USA

1980:230 Companies in USA has Quality Circles

1983: There were more than 500,000 known Quality active in

the world

QUALITY CIRCLES (INDIA)

1980: BHEL, Hyderabad first in India to start Quality

Circles

1982: Quality Circle Forum of India (QCFI) was founded

1983: Tata Motors (formerly Telco) started Circles by 1985

they had more than Circles

1985: BHEL had 1411 Circles covering around 13362 members

1.6 QUALITY CIRCLES IN INDIA

In India, Quality Circles movement was introduced in BHEL in

January1981, after preparing the ground in 1980.Its success

in a large public enterprise like BHEL having 73000

employees naturally drew the attention of many organizations

in the country and it triggered off the spread of the

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movement in the country .BHEL kept its door open in sharing

its experiences and organizing National Seminars in

association with other National Bodies and thus the Q.C

movement started catching up.

FORMAL AND INFORMAL GROUPS

Formal Groups

Family.

Organization.

Departments.

Informal Groups

Employees meet near water cooler and gossip.

Five salesmen from marketing department meet once a

month for lunch to discuss mutual concerns and to seek

relief from tedious aspects of their job.

Four computer programmers form a jogging club that

meets three days per week at lunch time to run two

miles.

All employees of a section meet and discuss how to

improve and beautify office layouts.

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Seven workers of a production shop floor meet once a

week to solve their technical problems.

Maintenance department staff meets regularly to

maintain machines in a better way.

1.7 WHAT IS QUALITY CIRCLE (QC)?

Quality Circles are (informal) groups of employees who

voluntarily meet together on a regular basis to identify,

define, analyze and solve work related problems.

Usually the members of a particular team (quality circle)

should be from the same work area or who do similar work so

that the problems they select will be familiar to all of

them. In addition, interdepartmental or cross functional

quality circles may also be formed.

An ideal size of quality circle is seven to eight members.

But the number of members in a quality circle can vary.

OTHER NAMES OF QUALITY CIRCLES

Small Groups

Action Circles

Excellence Circles

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Human Resources Circles

Productivity Circles

1.8 STRUCTURE OF QUALITY CIRCLES

1.9 Quality Circle Meetings

Meetings are important part of quality circle's

working.

Meetings are attended by all the members of the

quality circle.

In general, meetings take place once a week or

once in a fortnight. Each meeting lasts for approximately one hour, though

variations are possible.

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Apart from the frequency of the meetings, what is

important is the regularity of the meetings.

1.10 What takes place during quality circle meetings?

Any of the several activities may occur during a meeting

such as:

Identifying a theme or a problem to work on.

Getting training as required to enable members to

analyze problems.

Analyzing problem(s).

Preparing recommendations for implementing solution(s).

Follow up of implementation of suggestions.

Prepare for a presentation to the management.

1.11 Pitfalls and problems

Lack of faith in and support to Quality Circle

activities among management personnel

Lack of interest or incompetence of leaders/facilitator

Apathy, fear and misunderstanding among middle level

executives

Delay or non-implementation of Circle recommendations

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Irregularity of Quality Circle activities

Lack of or non-participation by some members in the

Circle activities

1.12 QUALITY CIRCLES IN BHELTo facilitate the employees of grass root level to involve

in improvement activities and take-up problems related to

their respective work area, analyze and solve them in a

systematic way to enable self development & mutual

development of Quality circle Team members.

PROBLEM SOLVING TECHNIQUES:

Quality commonly uses certain basics techniques to identify

analyze and resolve problems they are:

1) Brain storming

2) Data collection

3) Stratification

4) Pareto analysis

5) Cause and Effective diagram

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6) Histogram

7) Scatter diagram

8) Graphs

These techniques through simple, but are very powerful ones

and they help they quality circles investigation the case

for their work related problems and find solutions in

scientific way.

1.BRAIN STROMING:

Stimulating generation of ideas in a group is done through

brain storming, which more effective then is trying to

generate ideas alone brain storming helps to realize the

creative power of the group. It is also helps effective

group participation. Its effectiveness would increase with

the skill of application by the leader.

Brain storming generally usually three stages by quality

circles.

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1. While listing out the problem,

2. While listing out the probable causes influencing

the effect,

3. While listing out the suggestions /recommendations,

Guidelines for brainstorming:

Each member, by rotating, is asked for ideas (this continues

unit all ideas are exhausted), only one idea is offered by

individual per turn,

Member having no idea, just says ‘Pass’

No idea should be treated as stupid (criticizing or

ridiculing any idea would in habit free flow of ideas

Rigid formality may be avoided good natured humor would

enthuse members to open up freely,

Leader should help in summarizing an idea and guide members

in clarity of expression,

No evaluation of ideas is done during brain storming,

A black-board or a large sheet of paper could be used for

listing out ideas.

Brain storming technique can be fruitfully used to identify

problems effecting the work area; factors which help prevent

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potential problem causes responsible for problems, solutions

to problems to etc.

2. DATA COLLECTION:

Data is nothing but collection of act in terms of figures,

which gives a clear picture of any work situation allows for

comparison. data collection forms the first step in

statistical analysis of a problem. it would also form a

sound basis for decision making and corrective action. The

analysis and solution would depends on the correctness and

accuracy of data must be related to the problem under review

Types of data

Generally data can be of two types one variable i.e. which

is measurable, eg.length, weight, time, etc, and the other

attribute .i.e. which is countable data, is a example:

smooth running of a machine small etc,(attribute).

Source of data:

There are two sources f data, past data(previous record,

previous feedback) and live data (current observations).

Past data:

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In many cases the required data will be ready available with

some agency or the recorded through a feedback system. The

data so available is termed as “Past data”. The past data

helps to have a preliminary study and to understand the

causes of the problem.

Live Data:

Where such a recorded data is not available we have to

systematically collect data through observation over a

period of time and this is termed as “Live data”.

Collection of data:

Before the start of the data collection, one should be clear

in his mind about the parameters or characteristics and

their periodicity for which data is to collected. For easier

collection of data, a Pre-designed checklist/format/ check

sheet or any designed format as per the requirement could be

used. This would simplify the process of analysis.

Data collection format:

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SI. No

Name of the machine

Type of operation

No of components made Any

special ReminderAccepted Rejected

Vertical Boring Bring

Horizontal Lathe Turning

Coil Winding Final Taping

Grinding Final Grinding

Cutting Length Cutting

Analysis of data

After the data is collected, it is analyzed and information

is extracted by applying statistical method. Decision making

or further course of action should be based on analyzed

data.

3. STRATIFICATION:

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The technique of data segregation based on segregated

element is called stratification data collected should be

properly classified for giving meaningful and correct

inference.

The stratification of data is nothing but segregation of are

groping the data. machine wise, operator wise, shift wise

etc,. for identifying the influencing the factors

Material Base:

data is stratified n the basis of the supplier of the

materials, delivery lot of the materials, preliminary

process etc, by this the effects of the materials have on

the quality of the final product.

Quality Base:

Data is stratified by kind’s f products specification etc.

if phenomenon inherent to a special group of product can

thus be traced.

Work Base:

Stratification on the basis of worker is often very effective.

Time base:

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Data is stratified by the seasons, day-and-night,

atmospheric conditions such as temperature, humidity and

physiological conditions of the workers differ from time to

time. the influence of these elements on quality is

sometimes founded by time based stratification .

Surrounding conditions:

The quality of product may be influenced by such surrounding

conditions as weather, productions schedules, tightness r

slowness of the market etc.

Processing:

Element such as production equipment, measuring instrument,

manufacturing methods etc. There are more stratification

bases other than the listed above.

4. PARETO ANALYSIS:

Pareto was an Italian economist who discovered a universal

relationship between value and quantity and he used this

technique for assessing uneven distribution of wealth.

Pareto analysis helps in the identification of “the vital

few trivial many” at a glance hen projected, using the

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column graph named after Pareto diagrams are frequently used

to select the few important problems out of many.

What is Pareto Diagram:

Pareto diagram is a column graph, drawn after datacollection for the purpose of:-

a. Differentiating the major factors (vital) thatcontributes most to the unsatisfactory situation fromother minor ones (trivial).

b. Trackling the major factors responsible for anyproblem.

How to prepare Pareto diagram:

Stratify the problem points according to purpose (by causes,

by phenomena, by equipment) and represent them numerically,

Preferably data should be expressed in monetary values

rather than quantity, counts or percentage,

Select a data period proper for the purpose,

Arrange the stratified items in descending order of value

and bar chart ,in descending order of value and draw a

bar chart,(on a graph paper)

PARETO CHART

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Simple example of a Pareto chart using hypothetical data

showing the relative frequency of reasons for arriving late

at work.

A Pareto chart is a special type of bar chart where the

values being plotted are arranged in descending order. The

graph is accompanied by a line graph which shows the

cumulative totals of each category, left to right. The chart

is named after Vilfredo Pareto, and its use in quality

assurance was popularized by Joseph M. Juran and Kaoru

Ishikawa.

Typically on the left vertical axis is frequency of

occurrence, but it can alternatively represent cost or other

important unit of measure. The right vertical axis is the

cumulative percentage of the total number of occurrences,

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total cost, or total of the particular unit of measure. The

purpose is to highlight the most important among a

(typically large) set of factors. In quality control, the

Pareto chart often represents the most common sources of

defects, the highest occurring type of defect, or the most

frequent reasons for customer complaints, etc.

The Pareto chart was developed to illustrate the 80-20 Rule

that 80 percent of the problems stem from 20 percent of the

various causes.

5).CAUSE& EFFECTIVE DIAGRAM

Ishikawa diagram Ishikawa diagram, in fishbone shape, showing factors of men,

machines, milieu (workplace), materials, methods,

measurement, all affecting the overall problem. Smaller

arrows connect the sub-causes to major causes.

The Ishikawa diagram (or fishbone diagram or also cause-and-

effect diagram) are diagrams, that shows the causes of a

certain event. A common use of the Ishikawa diagram is in

product design, to identify potential factors causing an

overall effect.

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OverviewIshikawa diagrams were proposed by Kaoru Ishikawa in the

1960s, who pioneered quality management processes in the

Kawasaki shipyards, and in the process became one of the

founding fathers of modern management.

It was first used in the 1960s, and is considered one of the

seven basic tools of quality management, along with the

histogram, Pareto chart, check sheet, control chart,

flowchart, and scatter diagram. See Quality Management

Glossary. It is known as a fishbone diagram because of its

shape, similar to the side view of a fish skeleton.

Mazda Motors famously used an Ishikawa diagram in the

development of the Miata sports car, where the required

result was "Jinba Ittai" or "Horse and Rider as One". The

main causes included such aspects as "touch" and "braking"

with the lesser causes including highly granular factors

such as "50/50 weight distribution" and "able to rest elbow

on top of driver's door". Every factor identified in the

diagram was included in the final design.

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CausesCauses in the diagram are often based on a certain set of

causes, such as the 6 M's, 8 P's or 4 S's, described below.

Cause-and-effect diagrams can reveal key relationships among

various variables, and the possible causes provide

additional insight into process behavior.

Causes in a typical diagram are normally grouped into

categories, the main ones of which are:

The 6 m's Machine, Method, Materials, Maintenance, Man and Mother

Nature (Environment) (recommended for the manufacturing

industry).

Note: a more modern selection of categories used in

manufacturing includes Equipment, Process, People,

Materials, Environment, and Management.

The 8 p's Price, Promotion, People, Processes, Place/Plant, Policies,

Procedures, and Product (or Service) (recommended for the

administration and service industries).

THE 4 S'S Surroundings, Suppliers, Systems, Skills (recommended for

the service industry).

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Causes should be derived from brainstorming sessions. Then

causes should be sorted through affinity-grouping to collect

similar ideas together. These groups should then be labeled

as categories of the fishbone. They will typically be one of

the traditional categories mentioned above but may be

something unique to your application of this tool. Causes

should be specific, measurable, and controllable. Appearance

A generic Ishikawa diagram showing general (red) and more

refined (blue) causes for an event.

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Most Ishikawa diagrams have a box at the right hand side,

where the effect to be examined is written. The main body of

the diagram is a horizontal lines from which stem the

general causes, represented as "bones". These are drawn

towards the left-hand side of the paper and are each labeled

with the causes to be investigated often brainstormed

beforehand and based on the major causes listed above.

Off each of the large bones there may be smaller bones

highlighting more specific aspects of a certain cause, and

sometimes there may be a third level of bones or more. These

can be found using the '5 Whys' technique. When the most

probable causes have been identified, they are written in

the box along with the original effect. The more populated

bones generally outline more influential factors, with the

opposite applying to bones with fewer "branches". Further

analysis of the diagram can be achieved with a Pareto chart.

6).HISTOGRAM:

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In statistics, a histogram is a graphical display of

tabulated frequencies, shown as bars. It shows what

proportion of cases fall into each of several categories.

The categories are usually specified as non-overlapping

intervals of some variable. The categories (bars) must be

adjacent. The intervals (or bands) should ideally be of the

same size.

Histograms are used to plot density. The total area of a

histogram always equals 1. If the length of the intervals on

the x-axis is all 1, then a histogram is identical to a

relative frequency plot.

The word histogram is derived from Greek: histos 'anything

set upright' (as the masts of a ship, the bar of a loom, or

the vertical bars of a histogram); gramma 'drawing, record,

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and writing’. A generalization of the histogram is kernel

smoothing techniques. This will construct a very smooth

probability density function from the supplied data.

ExamplesAs an example we consider data collected by the U.S. Census

Bureau on time to travel to work (2000 census, [1], Table

2). The census found that there were 124 million people who

work outside of their homes. This rounding is a common

phenomenon when collecting data from people.

In other words a histogram represents a frequency

distribution by means of rectangles whose widths represent

class intervals and whose areas are proportional to the

corresponding frequencies. They only place the bars together

to make it easier to compare data.

Check sheet

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The check sheet is a simple document that is used for

collecting data in real-time and at the location where the

data is generated. The document is typically a blank form

that is designed for the quick, easy, and efficient

recording of the desired information, which can be either

quantitative or qualitative. When the information is

quantitative, the check sheet is sometimes called a tally

sheet.

A defining characteristic of a check sheet is that data is

recorded by making marks ("checks") on it. A typical check

sheet is divided into regions, and marks made in different

regions have different significance. Data is read by

observing the location and number of marks on the sheet. 5

Basic types of Check Sheets:

Classification: A trait such as a defect or failure mode must be classified

into a category.

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Location: The physical location of a trait is indicated on a picture

of a part or item being evaluated.

Frequency: The presence or absence of a trait or combination of traits

is indicated. Also number of occurrences of a trait on a

part can be indicated.

Measurement Scale: A measurement scale is divided into intervals, and

measurements are indicated by checking an appropriate

interval.

Check List:

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The items to be performed for a task are listed so that, as

each is accomplished, it can be indicated as having been

completed.

7).CONTROL CHARTThe control chart, also known as the Stewart chart or

process-behavior chart, in statistical process control is a

tool used to determine whether a manufacturing or business

process is in a state of statistical control or not.

Overview

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If the chart indicates that the process is currently

under control then it can be used with confidence to predict

the future performance of the process. If the chart

indicates that the process being monitored is not in

control, the pattern it reveals can help determine the

source of variation to be eliminated to bring the process

back into control. A control chart is a specific kind of run

chart that allows significant change to be differentiated

from the natural variability of the process.

This is a key to effective process control and improvement.

On a practical level the control chart can be seen as part

of an objective disciplined approach that facilitates the

decision as to whether process performance warrants

attention or not.

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Types of Control charts: A Control chart form Varies

According to Kind of data it contains .For variable

data the following charts are used

1. P-chart=Fraction defective,

2. np-chart=No. of defectives,

3. c-chart=No. of defects.

Here the quality circles are coordination by

the quality assurance in BHEL, Hyderabad.

1.13 Quality assurance co-ordination activities:

a) Formation of Quality Circles & Registration

b) Re-organization of circles (based on the need)

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c) Maintaining data base of circles (Membership data)

d) Providing necessary inputs to circles like arranging

training, Meeting register, QC related books,

formats etc.,

e) Maintaining performance record of Quality Circles(

SIPs : Small Improvement Projects, MMPs :Middle

Management Presentations)

f) Keeping records of active circles (Active circles

shall have Minimum of24 Meetings ,2 Case studies, &

one Middle Management Presentation made in a

calendar year)

g) Conducting Annual Unit Quality Circle Convention

(AUQCC).

h) Nomination for External Conventions (Facilitating

QCs to participating in external Conventions)

i) Republic day, EDs Rolling shield for best performing

Quality circle by Evaluating the case studies and

performance of the previous year.

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j) Procurement and performance of mementoes to active

Circles.

k) Reporting the performance of Quality circles to

corporate Quality from time to time.

l) Facilitate Quality Circle teams to participate in

International Conventions as per corporate guide

lines.

1.14 Formation of new circles:

Max 5 members Minimum 4 employees (worker category,

supervisor category) working at a particular function /area

can form Quality Circles(QC).The Quality Circles also have

to select an Executive Guide(preferably from their work

centre).

The proposed Team Members shall fill up the registration

form(Format No : QA/QCC-001) available with a QA-Quality

Circles coordination centre. Members shall give consent by

signing on the form. After obtaining the signatures of area

Co-ordinator and facilitator f the concerned work

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area/product/service group, form to be submitted to Quality

circle coordination (QA).

QA shall Register the Quality Circle and allocate “Quality

circle Number” and issue meeting Register, copies of

“handbook n Quality circles” to the newly formed Quality

Circles All the New Quality circles formed shall be

encouraged with a welcome Memento to each member f the team

(including Executive Guide)

1.15 Re-organization of quality circles:

If the circle strength is reduced due to retirement or

transfer of team members or otherwise, shall fill in the

Form (Format No: QA/QCC-001) with revised Team and indicate

“Re-organization of Quality Circles” with the consent of

members and with the signature of area Co-ordinator and

facilitator of concerned work area/Product/Service Group and

submit to Quality Circle Co-ordination (QA)

Quality Circle Coordination shall update the data base

accordingly.

Maintaining performance record of Quality Circles (Small

problems solved, MMPs (Middle Management Presentation).MMP

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Format No: QA/QCC-04, Rev-00and SIP Format No: QA/QCC-03,

Rev: 00

Based on the Submitted documents (Filled in signed SIP

booklets &MMP Booklets) QA shall update the data on problems

solved by teams. Solved problems also can registered as

IMPRESS project by respective Quality Circle Team.

Keeping Records of Active Circles (Min.24 Meetings I a year,

2 case studies (SIPs) &ne middle management Presentation in

a calendar year). QA shall prepare the list of active

circles for calendar year based on SIPs and MMPs data

received from Teams.

1.16 Annual unit quality circle convention:

The QA shall organize Annual Unit Quality Circle convention

to provide a platform to present the case studies by Quality

Circles. The case studies shall be evaluated by external

Judges and winning Quality Circles Teams shall be awarded.

The Category for participation are: (a) Manufacturing (b)

Support Services (c) Manufacturing-New Circle (d) Support

Services-New Circle.

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Qualification for a New Circle is “First time participation

in the Annual Unit Quality Circle convention” and “Should

have formed in the past calendar years”

1.17 Key activities of quality circlescoordination:

Quality Assurance is the coordination agency for promoting,

monitoring the quality circles in the unit.

To encourage the formation of QC Circles by potential

members

To organize 2 day training program for all Newly joined

members and also to organize refresher program to existing

members.

1. All the Ne Members shall be given a 2 day class room

training on simple problem solving Tools, Presentation

techniques.

2. As per training need identified by area co-ordinator,

one day refresher programs shall be organized to

members of Existing Circles.

3. Organizing appreciation programs t area coordinators,

Facilitators.

44

4. Training Shall be planned based on the requirement as

at pint 4 above, and get incorporated in HRDC

Calendar.

5. In addition to HRDC Calendar programs, need based

programs shall be organize with due approvals.

To organize to review of Quality Circles functioning by

verifying meeting registers, collecting Small Improvement

Project (SIPs), facilitating Middle management Presentations

(MMPs) at function/shop level.

To plan to conducting steering committee meetings (twice a

year)t discuss the status of Quality circles movements and

achievements and obtain directions for improvement.

Members of Steering committee: All GMs and DRO of unit.

ED is the chairman and Head/QS will be the convener.

Measurement parameters for Quality circles are:

1).No. of Circles formed

2).No. of dormant circles made active

3).No. of Awards on in external conventions

(Prizes in IUQCC, CCQC, NCQC, ICQCC, APPC, CII etc.,)

4).No. of Training imparted-No of Man days

45

To plan the budget and obtain financial concurrence towards

“Delegation fee” for Quality Circles participation in

External conventions, and for organizing AUQCC for the year.

To plan, get approved for the procurement of mementos for

distribution to eligible quality circles as per norms.

To plan the budget and obtain financial concurrence

towards inter unit Quality Circle Convention f BHEL (On

rotation of Major Units of BHEL,BHEL Hyderabad may have to

host once in 5 years)

1.18 Roles and responsibilities of quality circle

members

Quality Circle: Circle consist of Leader, Dy.Leader,

4members (Total QC Team members=6) from working class

(workers &Supervisors) and an Executives will be an

Executive guide from work area of team

Leader: Quality circle leader organizes and conducts

quality circle meetings /activities as per schedule and

records meeting notes in the meeting register. Leads the

team in all activities.

46

Dy.Leader: In the absence of leader, Dy.Leader will take

over as leader role.

Members: All members including leader, Dy.Leader are equal

in sharing, discussing problems, coming out with solutions

and implementations of solution for the problem with the

consent of concerned work centre in-charge. Through the

Quality Circles are voluntary, they have responsibility of

functioning with in a frame work of rules of company for the

improvement.

Executive Guide: The person chosen to guide the team

possessing-work area job knowledge, Basic SQC skills and PPT

skills. Executive Guide shall support the circle in

implementation of solution, providing technical inputs,

preparation of presentation etc.

Area Coordinator: The person nominated by the respective

product/service GM to act as a link between Quality

Assurance & Quality Circle of the product/Functional area.

The area coordinator will liaisons with work centre in-

charge of concerned circles and provide facility for

conducting weekly meetings.

47

Facilitator: Facilitator shall be nominated by concerned

product/Service GM. He/She coordinates the several quality

circles through the circle leaders. the facilitator shall

provide resources for model making, trail implementation of

solutions fund by Quality circle team. Encouraging the

Quality circles for greater involvement. The vetting of

gains of the projects shall be done by work centre in-charge

&Facilitator.

Steering committee: Steering Committee consists of Unit

head as Chairman, all product& Service GMs& DROs as members

and head of Quality Assurance shall be the convener for

committee meetings.

1.19 Terms of reference for steering

Committee are:

• To set goals and objectives for the Movement of Quality

Circles.

• To formulate/revise the policies for development of the

Quality Circles

• Approve the guide lines for measuring the effectiveness

of Quality Circles

48

• Review the Performance and progress of Quality Circles

periodically

• To provide all support and encouragement to Quality

Circle movement in the organization

• Recommend for monetary benefits for nurturing the

Quality Circles &Encouraging the Best performing

Quality Circles.

QA-Quality Circle coordination shall organize Steering

Committee meeting periodically (once in a Quarter)

1.20 NEED FOR THE STUDY Self development.

Promotes leadership qualities among participants.

Recognition.

Achievement satisfaction.

Promotes group/team working.

49

Promotes continuous improvement in products and

services.

1.21 SCOPE OF THE STUDY Facilitating all the eligible employees of BHEL,

Hyderabad to participate in the Quality Circle movement.

Though, the participation by workers in Quality Circles is

voluntary, the role of QA is to encourage the formation of

Quality Circles and to nurture them to take up improvement

activities /solving the problem in their respective

functions. Providing platform for presenting the Improvement

made.

BHEL Hyderabad initiated the first five quality circles

in the country on 5th January 1981. 3 circles were started in

manufacturing area and two circles in materials management

function of pump shop. this five circles presented their

case studies within three months i.e. on 20th march1981in

the presence of sri.M.R.Naidu,the then executive director

one of the circles made a presentation on “ work place

improvement”

50

BHEL, Hyderabad facilitated starting of Quality circles in

other sister units in 1981

BHEL, Hyderabad played a key roll in organizing first inter

unit Quality circle convention at R&D, in august 1981.

First annual unit Quality circle convention was held in

august 1985.

BHEL, Hyderabad as adjudged as the “Best organization for

promoting Quality circles” for seven consecutive years from

Andhra Pradesh productivity council (1997-2003).

“Best organization for promoting quality circles” from QCFI

from 2003 onwards

BHEL, Hyderabad initiated student quality circles first time

in schools of township.

BHEL, Hyderabad circles participated in international

Quality circles conventions held at Bangkok (2004), Bali

(2006-Silvel medal) Beijing (2007-Gold medal) and Singapore

(2008)

1.22 OBJECTIVES OF THE STUDY

51

1. Create problem solving capability, Improve

communication, Promote leadership qualities & personal

development.

2. Improve morale through closer identity of employee

objectives with organization's objectives, Enhance

quality, and awareness for cleanliness &Reduce errors.

3. Build an attitude of problem prevention, Job

involvement, harmonious relationship between supervisor

and worker.

4. Improve productivity, Reduce downtime of machines and

equipment &Increase employee motivation

RESEARCH METHOLOGY

As the organization identified human resource as their

asset, taking care of them is very important to make them

motivate for the achievement of the goal. How welfare

activities to be structured so that it should be up to the

satisfactory level of the employees is very critical.

Quality Circles are to know the Quality circle activities

and hoe it is practiced, and to know whether the employees

are aware of it and availing the benefits.

52

The main objective of Quality Circles is “self” and mutual

development, cohesive team work and engaged in continuous

improvement activities, thus improving their quality of work

life”.

METHODOLOGY:

The methodology used in this project has been that of

unstructured interview of the guide, which has facilitated

the extractions of information. Although there has been a

structured questionnaire to capture the information.

DATA COLLECTION

Primary dataCollected through responses of employees related to the

topic with the help of the structure questionnaire.

Secondary dataCollected through Broachers’ news magazines, Hand Books,

corporate journals and apex manuals, web sites.

SELECTION OF THE MEASUREMENT TECHNIQUE

1. Fully aware 2.Aware 3.only basics

4.Not aware

5 Frequently 6.Sometimes 7.rarely

8.Never

53

9 Fully agree 10.To some extent 11.satisfied

12. Fully satisfied 13strongly disagree 14.Important

15. Very important

SAMPLINGPopulation – employees of BHEL, Hyderabad

Sample size – 100 employees from all categories.

ANALYTICAL APPROACHThe assumption has been carried out with the help of chi –

square method, presuming hypothesis for each question. Pie

chart representation shows the percentage responses received

from the questionnaire.

ASSUMPTIONSThe study assumes that the information revealed by the

respondents is authentic and not misleading.

1.23 LIMITATIONS OF THE STUDY

The experimenters had no control over the extent to

which managerial support of the QC programs differed in the

work groups and organizations under the study

As the Quality Training was provided by the base of QC

Facilitator, the experimenters had no control over any

54

differences in training emphasis and/or technique to which

the various QC were exposed.

Non-attitudinal measures of QC outcomes (such as number

of problem solutions suggested or implemented) were not

investigated.

55

CHAPTER-IIREVIEW OF LITERATURE

56

2.0 LITERATURE REVIEW

Quality Circles (QC), participative decision making (with

selected consideration of the broader area of decision

making in organization), Job Involvement, communication

climate and job satisfaction,

Literature concerning participating decision making,

decision making, job involvement, communication climate and

job satisfaction is reviewed because this study seeks to

determine whether QC membership results many changes with

respect to these work attitudes (as measured by the AFIT

survey of the work attitude). Each of the above listed

topics is reviewed separately.

Quality circles research:

Few studies have attempted to evaluate the attitudinal or

behavioral outcomes associated with participation in a QC

program. Also, there is a severe shortage of research

57

involving quantitative assessments of factors which are

considered necessary for success. It is with a discussion of

the suggested “basic elements” necessary for a successful QC

program that this review of the literature will begin.

The most notable listing of significant factors related to

QC success arises from the results of a survey administered

to 50 QC experts attending the third annual conference of

the International Association of Quality Circles

(Stevens&Moore, 1981).Ranked according to frequency of

mention, these factors are:

1. Management acceptance/support/understanding

2. Training for the circle leader(s) and facilitator(s)

3. Voluntary participation

4. A. “people-building” managerial philosophy

5. Allowance of sufficient time for assessment of results

and return on investment

6. Open channels of communication with upper management

7. A “team effort” approach to problem solving

8. Team member and management participation

9. Recognition

58

10. Confining circle activities to work-related

problems

Stevens and Moore believe that the presence of each of the

above 10 factors is crucial for the survival of a QC

program.

Metz (1980) and Cole ((1980) have warned that failure

to include and /or educate middle management personnel when

QC programs are initiated can lead to oppositional when QC

programs are initiated can lead to oppositional and

obstructional attitudes and behaviors on the part of

supervisors. these attitudes and behaviors stem from the

belief the circle activities are an infringement on their

( the supervisors’) own job responsibilities and/or QC

suggestions are a reflection of their own inadequate job

performance (and hence represent a threat to their job

security) Burck (1981) points to the importance of a

trusting relationship between management and employees as a

necessary ingredient for QC success. Cole (1980b) further

emphasizes the importance of financial incentives and

recognition as additional motivators for QC members.

59

These impressions of QC experts concerning the

necessary ingredients for QC success all assume that QC

programs indeed result in improvements related to the

increased organizational effectiveness. However, given the

lack of research on the subject even this most basic of

assumptions cannot be made. Despite the assertion by Rieker

and Sullivan (1981) that assessing QC effectiveness may

cannot be possible or cost effective in the near term

because of the difficulty in isolating the effects of one

relatively small component of an integrated organizational

structure, research must be conducted in to the area if the

QC concept is to be anything more than merely a passing fad

(Ouchi, 1981)

Only four studies QC outcomes presently appear in the

literature. The first, an uncontrolled field experiment

conducted by general dynamic Pomona Division (Hunt, 1981)

reports the results of a six month pilot program, the

purpose of which was to provide information for management

as an aid for the evaluation of the long range potential of

QC’s within the firm. Several morale, motivation and

60

performance criteria were monitored with “before” and

“after” comparisons made for Quality Circle members and

other employees. No mention was made of controls for

possible differences between members of the QC group and the

“other employees” comparison group; nor were there

indications of controls made for changing group composition.

Though the author noted that Quality circle members

demonstrated superior performance on measures of product

Quality, error reduction job involvement and problem-solving

capabilities when contrasted with other employees, these

conclusions must be viewed with caution due to the

limitations of the experimental design. Results of this

study therefore should not be generalized to other

organizations. The value of the experiment is that it

demonstrates an interest by management in empirically

evaluating QC success before organization-wide adoption of

the QC concept.

In noting the need for QC program evolution, Donovan and Van

Horn (1980) have provided the following suggestions:

61

1. Measuring of “multiple levels which includes

objective measures of productivity and quality (such as

hours/unit and defects/.unit) and assessment which provide

an overview of program coats.

2. Effective research tools including surveys and

questionnaires which provide information concerning job and

climate variables related to high productivity and

satisfaction.

3. Adequate research. Designs providing pre-and post

circle implementation comparisons and, where possible,

control group of baseline information.

The authors conducted five independent studies of QC

effectiveness at Honeywell, Inc. upon which they concluded

that the intervention was responsible for dramatic

performance and efficiency improvements. However, due to

significant flaws in study design, it is impossible to

assess the true impact of the circles. No controls for the

changing memberships of the QC and control groups were

incorporated into the study. Further, the authors made no

specific mention of the composition of the various circle

and control groups if circles membership was voluntary; it

62

was likely that the circle member exhibited differences of

personality and motivation which distinguished them from

those who chose not to participate. If the composition of

the QC group was not a representative sample of employees

performing similar work at Honeywell, Inc., then no

generalization of the study result can be made which will

apply to others organizational employee groups. On the other

hand, if existing work groups were designated as QC groups

and controls , group equivalence is not assured through

randomization through pretests were administrated to both QC

and control groups; no mantion was made as to whether

pretest observations were used to develop correction factors

to be used to compensate for pre-existing group differences.

Tortorich at all (1981) developed a method of QC evaluation

at Martin Marietta Corporation Michoud Assembly division

which avoid some of the pitfalls discussed above .the

following three categories of effectiveness measures were

developed for internal use by managers, program

administrators’, facilitators and the circles themselves.

1. Program measures are obtained which are direct measures of

QC growth and efficiency and include assessments of the

63

number of supervisors and management personnel completing

circle leadership training, the number of employees

completing circle training, the number of circles formed,

the average circle membership size, success rate, the ratio

of trained employees volunteering for circle activity, the

number and rate of presentations made by circles to

management, the percentage of approved proposals , and the

direct cost savings. Resulting from circles activities.

2. Personnel outcomes are asses; these are defined as the

effect of QCs on employees’ attitudes concerning their job

situation as measured by various attitude questionnaires.

3. Organizational outcomes are also evaluated Organizational

outcomes are the effects of QCs on such cost related

criteria as performance rates, defect rates, scrap rates,

attrition rates, lost time, grievance rates and accident

rates.

Depending on need, assessment information is calculated

monthly or at six-month intervals. The former approach is

use to identified and quickly respond to problems or to

provide managers with summery information about circle

related variables. Six month data interval is use to

64

contrast the personal and organizational outcomes of QC

Groups members with those of non-circle employees. The

effectiveness of the QC programs is also analyzed in terms

of individual changes on measure of personal and

organizational outcomes which are attributed to the effects

of circle membership or non membership. To performed this

analysis, performance data for each circle member is

analyzed in six-month intervals using the data of entry into

the circle as the point of reference. Hence, data collected

six-months prior to entry in to a QC group is compared with

data collected six months following initial circle

membership. A similar analysis is conducted on performance.

Information collected on employees not joining circles

within the same time frame under study for circle members.

Therefore, for both circle and non circles employees, data

are collected for staggered, but identical, time intervals

thud controlling for the fact that circle members join and

resign QC group at difference times during the life of the

program. Circles effectiveness can then be analyzed by

calculating the difference with in circles members’ six-

months before and six-months after entry in to the QC

65

program while concurrently performing a similar analysis of

non circle members over the identical six months intervals.

Group and individual comparisons can then be made.

Summary data is presented in Tortorich et al paper through

rigorous statistical analysis is not included, between 90 to

100% of the suggestions offered to management by the QC

groups in the areas of Quality improvement, cost reduction,

tooling and training were approved over the January, 1980 to

june,1981 time period.

Employee attitudes, as measured by a survey, were assessed

When the work attitudes of those who had participated in QC

activity for at least six-months were concurrently compared

with the work attitudes of untrained QC members,the formed

were found by Tortorich et al. to demonstrate a number of

more positive work attitudes. For the year 1980, significant

differences (P=.05) were found between the comparisons

groups for the following job related attitudes: employee

supervisor relations, satisfaction which supervisor,

employee influence, internal motivation, job satisfaction,

66

team climate, growth satisfaction and job performance. In

short, the results suggested that QC groups can provide

potentially help full inputs to the managerial decision

making process as well as promote improved employee work

attitudes.

The most rigorous evaluation of QC outcomes in the

literature is reported by Steel, Lloyd, Ovalle and Hendrix

(1982) and Steel, Ovalle and Lloyd (1982). The

organizational assessment package (OAP), a survey

questionnaire consisting of 109 items (rating scales) and 24

factors, was administered to all members of a base civil

engineering division at a Department of Defense installation

shortly before a QC program was initiated in December, 1980.

Employees of 14 departments were trained in QC techniques

and then offered the opportunity to participate in one of

several QC groups. Members of an additional 37 Departments

from the same division were provided no direct exposure to

67

the Qc program and served as the control group for this

study. There were no controls for changing group membership

this is a serious methodological limitation but one which

difficult to incorporate in field study research.

Considerable fluctuations in the demographic measures during

the six-to-nine month’s interval between administrations of

the preset measures suggest changes in the composition of

treatment groups during the course of this experiment the

absence of controls for changing group membership such as

those employed by Tortorich et al.(1981) are likely to limit

the interpretability of findings for any study where QC and

control groups are characterized by high mortality of

subjects.

Utilization of intact work group as experimental (QC) and

control subjects necessitated the use of the non equivalent

control group design (Campbell & Stanley, 1963). This quasi-

experimental design is characterized by taking preset of

both experimental and control groups before the intervention

is initiated A statistical correction adjusting for pretest

differences was then made group differences on the posttest

were evaluated in order to compensate for pre-existing group

68

differences. The data were analyzed employing stepwise

hierarchical regression analysis with the result that no

significant increases in R2 were observed for the 23 OAP

attitudinal measures. This suggests that QC participation

did not significance impact employee work attitude through

the authors’ state that the following methodological

limitations severely impacted study results:

1. Because QC groups were formed at staggered intervals,

some did not have enough time to reach maturity prior to

post test data collection. Three of the six QC groups

functioned for less than one month when post test data

was collected.

2. Experimental mortality (discussed above)

3. Several significant demographic differences existed

between the treatment and control groups at the study’s

outset.

4. Behavioral and group effectiveness outcomes of QC

participation were not measured.

5. The sample size was small: the treatment condition

contained only 14 functional work units, enhancing the

likelihood of Type II errors.

69

The interpretability and generalized of findings are

restricted by these limitations, yet this study is important

from a historical perspective. It is the first research

reported by these limitations, yet this study is important

from a historical perspective. It is the first research

reported in the QC literature that assesses attitudinal

outcomes of QC activity while employing an experimental

design that incorporates control group comparisons and

statistical control for non Equivalent of matched groups.

Whereas research regarding the outcomes associated with the

QC approach to employee participation in decision making is

quite in both its scope and methodology, much work has been

coming the more general area of participative decision

making. It is to the body of Literature addressing this

topic that we now turn.

70

CHAPTER-IIICOMPANY PROFILE

71

COMPANY PROFILE

BHEL (Bharat Heavy Electricals Limited) is the largest

engineering and manufacturing enterprise in India in the

energy-related/infrastructure sector.

2.1 Manufacturing

• Establishments in the Manufacturing sector are often

described as plants, factories, or mills and

characteristically use power-driven machines and

materials-handling equipment.

• Manufacturing establishments may process materials or may

contract with other establishments to process their

materials for them. Both types of establishments are

included in manufacturing.

• BHEL was founded in 1950s.Its operations are organized

around three business sectors:

• Power.

• Industry-including Transmission, Transportation, and

Telecommunication & Renewable Energy.

• Overseas Business.

72

2.2 Industry

• BHEL has also emerged as a major supplier of controls and

instrumentation systems especially distributed digital

control systems for industries, and simulators for various

applications.

• BHEL is supplying X'mas tree valves and well heads up to a

rating of 10,000 psi to ONGC and Oil India. It can also

supply on-shore drilling rigs, sub-sea well heads, super

deep drilling rigs, desert rigs and heli-rigs.

2.3 Transmission• BHEL supplies a wide range of transmission products and

systems of up to 400 kV class. Those include: high-voltage

power and distribution transformers, instrument

transformers, dry-type transformers, SF6 switchgear,

capacitors and ceramic insulators.

• Equipment for high-voltage direct current (HVDC) systems

are also supplied, for economic transmission of bulk power

over long distances. Series and shunt compensation systems

are also manufactured to minimize transmission losses.

73

• BHEL has developed and commercialized the country’s first

indigenous 36 kV Gas Insulated Substation and has also

developed 145 kV Gas Insulated Substation (GIS) which has

undergone successful testing at CESI, Italy.

• BHEL has also established its capability in the area of

Flexible AC Transmission systems (FACTS).

2.4 Transportation

• Most of the trains of the Indian Railways are equipped

with BHELs traction and traction control equipment.

• India's first underground metro at Calcutta runs on

drives and controls supplied by BHEL.

• The Company has developed and supplied broad gauge 3900 HP

AC locomotives, 5000/4600 HP AC/DC locomotives, diesel

shunting locomotives of up to 2600 HP, battery powered

road vehicles, including electrics & control electronics.

• BHEL has acquired the technology for 6000 HP 3-phase AC

Locos and started manufacturing the electrics & controls

as well as those for 3-phase AC EMUs, Diesel EMUs and OHE

cars.

74

2.5 Telecommunication• BHEL manufactures telecom switching equipment based on C-

DOT technology, the major products being MAX-XL of up to

40,000 lines capacity and Single Base Module RAX for rural

applications.

2.6 Renewable Energy• Technologies have been developed and commercialized for

exploiting non-conventional and renewable sources of

energy.

• These include photovoltaic cells and modules, solar

lanterns, grid-interactive PV Power Plants and solar

heating systems.

• BHEL has emerged as a major manufacturer of wind electric

generators of up to 250 kW unit size. The Company has set

up its own wind farms of 3000 kW capacity (12x250 kW) at

Ramgiri (A.P.) and another of 4000 kW capacity (16x250 kW)

at Kadavakkallu (A.P.).

• Today, BHEL has a wide-spread network comprising 14

manufacturing divisions, 8 service centers, 4 power sector

regional centers, 18 regional offices, and a large number

of project sites spread all over India and abroad.

75

• This enables BHEL to have a strong customer orientation,

to be sensitive to his needs and respond quickly to the

changes in the market.

• It manufactures over 180 products under 30 major product

groups and caters to sectors including power generation

and transmission, transportation, and renewable energy,

among others.

2.7 Profits and losses of BHEL

• The company recorded revenues of INR331, 544.8 million

($6,962.4 million) during the financial year ended March

2010 (FY2010), an increase of 25.2% over FY2009.

• The operating profit of the company was INR55, 957.7

million ($1,175.1 million) during FY2010, a decrease of

8.3% compared to FY2009.

• The net profit was INR43, 269.2 million ($908.7 million)

in FY2010, an increase of 38.9% over FY2009.

76

• Bharat Heavy Electricals Limited (BHEL) - SWOT Analysis

examines the company's key business structure and

operations, history and products, and provides summary

analysis of its key revenue lines and strategy.

2.8 Strengths

• The company has 180 products under 30 major product groups

that cater to the needs of the core sector like power,

industry, transmission, transportation, defense,

telecommunications and oil business.

• BHEL's ability to acquire modern technology and make it

suitable to Indian conditions has been an exceptional

strength of the company.

• Strong relationship with NTPC is strength as NTPC is

planning a capacity expansion of Rs. 52 bn and based on

the past, 85% of NTPC projects have been bagged by BHEL.

The company also enjoys purchase price preference.

• Huge investment in R&D.

• Merger & Acquisition – The Company has taken over the

Management & Control of Bharat Pumps & Compressors Ltd and

77

completely taken over M/s- Bharat Heavy Plate & Vessels

Ltd.

2.9 Opportunities

• The power sector reforms are expected to pick up in the

near future in India, which would directly benefit BHEL.

• Increase in defense budget will increase the top line for

the company.

• NTPC is planning additional capacities to the tune of

2,800 MW, at a cost of Rs 52 bn.

• BHEL could benefit a lot as it has happened in the past

that significant portion of the project of NTPC is handled

by BHEL. Nearly 85% of the NTPC projects were assigned to

BHEL only.

• Huge order for setting up of nuclear power plant

2.10 Competitors of BHEL

L&T

SUZLON

BEML

78

BGR ENERGY

AIA ENGINEERING

ALFA LAVAL

PRAJ INDUSTRIES

SANGHVL MOTORS

WALCHAND NAGAR

VISION

A World-class Engineering Enterprise Committed to enhancing

Stakeholder Value.

MISSIONTo 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

BHEL has been a pioneer in the area of Human Resource

Development, being the first Public Sector Undertaking of

its kind, in India, to have setup an extensive HRD

79

infrastructure as way back as the early sixties. Human

Resource Development Centre (HRDC) of BHEL R.C.Puram,

Hyderabad occupies a significant place not only among other

HRDCs of BHEL but also as an important Training and

Development Centre in the twin cities of Hyderabad [Andhra

Pradesh].

VALUES  Zeal to Excel and Zest for Change

Integrity and Fairness in all Matters

Respect for Dignity and Potential of Individuals

Strict Adherence to Commitments

Ensure Speed of Response

Foster learning, Creativity and Team-Work

Loyalty and Pride in the Company

OVERVIEW OF BHEL

80

Established in the mid fifties, Bharat Heavy

Electricals Limited-BHEL, has today emerged as the largest

engineering and manufacturing enterprise of its kind in

India and ranks amongst the top ten power generation

equipment manufacturers in the world. BHEL has diversified

its product base over the years and today caters to the

needs of almost all the key sectors of the economy. In

addition to the power generation equipment, BHEL products

cater to a wide spectrum of customers encompassing various

fields of operation, like Fertilizers & Petrochemicals,

Refineries, Oil Exploration and production, steel and

metals, cement, sugar and paper plants, transportation and

non-conventional energy sources etc.

With a massive network of 14 manufacturing Units

located at various important centers all over India, BHEL

manufactures almost all critical high technology products

required for power sector like Gas Turbines, Steam Turbines,

Turbo generators, Boilers, Pumps and Heat exchangers,

Pulverizes and electrical switch gears.

81

With strategic alliances and technological

collaborations with world leaders for its products, BHEL's

technological strength is today on par with the best in the

world.

The BHEL, which set up it’s first in Bhopal was

established in the year 1956. It is the first and largest

industrial undertaking in the country manufacturing power

equipment. It has now 4 Regional Centers, 8 Service

Centers and 18 Regional Offices. The corporate head-

quarters is located in New Delhi. In the early sixties

three major plants were set up at Haridwar, Hyderabad and

Tiruchirapalli. It’s products cover a wide range like

power, transmission, industry, transportation, oil and gas,

telecommunication etc., besides non-conventional energy

systems. The other areas covered by the BHEL includes

defense and civil aviation. It’s services extend from

Project Feasibility Studies to after sales service including

undertaking turn-key projects. It’s credibility and standing

in the industrial scene of the country is evident from the

report of the World Bank as the Indian Public Sector wherein

it is described as “ One of the most efficient enterprises

82

in the industrial sector, at par with international

standards of efficiency. BHEL has acquired the ISO-9000

Certification for most of its operations”.

According to the organization’s vision 2002, it aims to

become a world class, innovative, competitive and profitable

engineering enterprise providing total business solutions.

It’s declared mission is to acquired the status of leading

engineering enterprise providing quality products, systems

and services in the field of energy, transportation,

industry, infra-structure and other areas covered by the

electricity industry.

The value system of the organization envisages meeting

commitments to customers, both internal and external, faster

learning experiences and creativity among the work force,

maintain the dignity of the individuals working in the

organization as well as customers and outsiders, promote

loyalty and a sense of pride among the workers, encourage

team spirit, create a zeal to excel and follow a policy of

fairness among all those with whom it deals.

The leadership styles in the organization are oriented

towards fostering and sustaining organizational values,

83

empowering everyone with responsibility but ensuring

accountability at all levels. The leadership styles include

a vision, courage, credibility, versatility with due

importance given to recognition of merit, acting on feedback

from the lower levels and counseling those who need it,

adopt a system of information sharing and consultation. In

short, it would like to project itself as a role model for

others.

The organizational objectives of BHEL has been carefully and

judiciously formulated to ensure study growth in the current

global environment of competition, secure a reasonable and

adequate return on the capital invested, ensure a high

degree customer satisfaction, to motivate it’s employees for

performance of improvement and aim as a career growth within

the organization to achieve technological up gradation and

to fulfill the expectations of it’s share holders, customers

and the BHEL manufactures wide range of transmission

equipment such as transformers, reactors, switches, control

relay panel, insulators, capacitors, instrument transformer

sets etc. It has developed capability to provide a wide

84

variety of electrical, electronic and mechanical equipment

for industrial requirements particularly fertilizers,

petrochemicals, coal mining etc. It’s role in the

transportation sector as today over 60% of the Indian

Railways is equipped with the traction equipment

manufactured by the BHEL. It’s investment in the

development of oil and gas industry in the country, both on

shore and off shore is considerable. Its entry into the

telecommunication industry has given India an Electronic

Private Automatic Branch Exchange (EPABX) system, the Rural

Automatic Exchange (RAX) based on indigenous technology from

C-Dot. The latest digital switching used in these exchanges

and their network capability opens up endless possibilities.

BHEL’s engineering and R&D efforts are focused on

improving the quality of it’s products, upgrading the

existing technologies, accelerating the process of

indigenization and diversifying its products.

It is a matter of pride to the country that BHEL’s

products and services are used in over 50 countries all over

the world. It caters to export orders ranging from

individual specified products to complete power stations.

85

BHEL’s future plans include up gradation of its product

engineering manufacturing technology through induction of

the state of the art technologies and absorption of knowhow

and know why its collaborators form.

BHEL’s strength lies in its dedicated work force, of about

63,000 employees who undergo entry and on the job training

to promote appropriate work culture through participatory

management techniques to meet the challenges of the current

millennium.

BHEL - Hyderabad (Ramachandrapuram) Unit:

BHEL’s Ramachandrapuram Unit located in the out skirts of

Hyderabad city was established in the early sixties to

“bring power to the people”. The products of the unit

include TG sets up to 200 mw, industrial TG sets, gas

turbines, turbo-compressor systems, heat exchangers, switch

gears etc. Around 7000 employees work in the Hyderabad unit

of whom about 1500 are executives, 1200 supervisors and 4300

others.

As a member of the prestigious 'BHEL family', BHEL-Hyderabad

has earned a reputation as one of its most important

86

manufacturing units, contributing its lion's share in BHEL

Corporation's overall business operations.

The Hyderabad unit was set up in 1963 and started its

operations with manufacture of Turbo-generator sets and

auxiliaries for 60 and 110 MW thermal utility sets. Over the

years it has increased its capacity range and diversified

its operations to many other areas. Today, a wide range of

products are manufactured in this unit, catering to the

needs of variety of industries like Fertilizers & Chemicals,

Petrochemicals & Refineries, Paper, sugar, steel, etc.

BHEL-Hyderabad unit has collaborations with world

renowned MNCs like M/S General Electric, USA, M/S Siemens,

Germany, M/S Nuovo Pignone, etc BHEL is the largest

engineering and manufacturing enterprise in India in the

energy-related/infrastructure sector, today. BHEL was

established more than 40 years ago, ushering in the

indigenous Heavy Electrical Equipment industry in India - a

dream that has been more than realized with a well-

recognized track record of performance. The company has been

earning profits continuously since 1971-72 and paying

dividends since 1976-77.

87

BHEL manufactures over 180 products under 30 major

product groups and caters to core sectors of the Indian

Economy viz., Power Generation & Transmission, Industry,

Transportation, Telecommunication, Renewable Energy, etc.

The wide network of BHEL's 14 manufacturing divisions, four

Power Sector regional centre’s, over 100 project sites,

eight service centers and 18 regional offices, enables the

Company to promptly serve its customers and provide them

with suitable products, systems and services -- efficiently

and at competitive prices. The high level of quality &

reliability of its products is due to the emphasis on

design, engineering and manufacturing to international

standards by acquiring and adapting some of the best

technologies from leading companies in the world, together

with technologies developed in its own R&D centers

Product Profile:

• Gas turbines • Heat Exchangers • Steam

turbines

• Pumps • Pulverizes • Turbo

generators

88

• Compressors • Switch Gears • Gear

Boxes

• Oil Rigs • Project Engineering

BHEL HRDCBHEL has been a pioneer in the area of Human Resource

Development, being the first Public Sector Undertaking of

its kind, in India, to have setup an extensive HRD

infrastructure as way back as the early sixties. Human

Resource Development Centre (HRDC) of BHEL R.C.Puram,

Hyderabad occupies a significant place not only among other

HRDCs of BHEL but also as an important Training and

Development Centre in the twin cities of Hyderabad [Andhra

Pradesh].

Since its inauguration (earlier known as Technical

Training School) on 8th July 1963 by Sri K.Kamaraj, the then

Chief Minister, Madras, today's HRDC, R C Puram, Hyderabad

has come a long way, bagging the prestigious Golden Peacock

National Training Award .

We organize and conduct different kinds of Training and

Development programs for our employees, customers,

suppliers, and others. The spirit at our HRDC is continuous

89

learning and "the learning" which move towards focussed

Individual and Organizational Growth.

BHEL’s Human Resource Development Institute endeavors to –

BHEL has a Human Resource Development Center the provision

of knowledge, skills and appropriate attitudes among it’s

work force. They are trained through General Management,

Behavioural, Safety, Computer, Customer and other general

programmes. Besides, the center provides opportunities for

training students from the universities and colleges to do

their project work in fulfillment of their academic

requirement.

(i) Help formulate Human Resource Development Policies

to meet the present and future needs of the

organization as well as promote an organizational

culture emphasizing team work.

(ii) Integrate and co-ordinate Human Resource

Development activities of various units to provide

necessary corporate guidelines required from time

to time.

90

(iii) Help the executives to improve their managerial

effectiveness to take up new responsibility and

face the current and future challenges.

(iv) Strengthen organization’s value system.

(v) Collaborate with academic institutions and

professional bodies of repute both in and out side

India for knowledge sharing.

It’s track record can boast of continuous profits from 1971

and paying dividends from 1976.

BHEL has installed equipment for over 62000 mw of power

generation for utilities, captive and industrial users.

Supplied 2,00,000 MVA Transformer capacity and sustained

equipment operating in transmission and distribution network

up to 400 kv – AC and DC. Supplied over 25,000 motors with

drive control system to power projects, petrochemicals,

refineries, steel, aluminum, fertilizers, cement plants,

etc. Supplied traction electrics and AC/DC locos to power

over 17000 km railway networks. Supplied over one million

valves to power plants and other industries.

The capital employed rose from Rs.23,707 millions in 1995-

96 to Rs.35,985 millions in 1999-2000. The value of sales

91

increased from Rs.48,335 millions to Rs.66,340 millions

during the same period. Thus, while the capital employed

rose by about 52% the sales rose by only 31%. The Company’s

profit was Rs.5, 994 millions after tax in 1999-2000 while

it was only Rs.3, 502 millions in 1995-96 thus registering

an increase of over 70% (71%). In 2000-01 the company’s

after tax was Rs. 3,126 millions. It will be seen that the

profits of the company declined 2000-01 compared what it

earned in 1995-96 and 1999-2000.

These in brief study of BHEL an electrical industry of

international repute and a bright jewel among the public

sector undertakings in the country.

BHEL - OVERSEAS BUSINESS

BHEL, Ranking among the major power plant equipment

suppliers in the world, is one of the largest exporters of

engineering products and services from India. Over the

years, BHEL has established its reference in around 60

countries of the world, ranging from the united state in the

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west to new Zealand In the far east. BHEL’s exports range

cover individual product to complete power stations, turnkey

contracts for power plants, EPC contracts, HV/EHV

substations, O&M services for familiar technologies,

specialized after- market service like residual life

assessment (RLA) studies and retrofitting, refurbishing and

overhauling, and supplies to manufacturers and EPC

contractors.

BHEL has assimilated and updated / adopted the state-of-the-

art technologies in the power and industrial equipment

sectors acquired from world leaders. BHEL has successfully

undertaken turnkey projects on its own and possesses the

requisite flexibility to interface and compliment

international companies for large projects, and has

exhibited adaptability by manufacturing and supplying

intermediate products to the design of other manufacturer

and original equipment manufacturers (OEMs)

The success in the area of rehabilitation and life

extension of power projects has established BHEL as a

reliable alternative to the OEMs for such power plants.

93

CHAPTER-IVDATA ANALYSIS AND INTERPRETATION

94

Q.1 Since how many years have you been working with this organization?

S. No OpinionNo. of

respondents

Percentage

1 0-5 Years 28 28

2 5-10 Years 47 47

3 10-15Years 14 14

4 More than15 Years 11 11

Total 100 100

95

INFERENCE:1. 0-5 Years (28%)

2. 5-10 Years (47%)

3. 10-15 Years (14%)

4. More than 15 Years (11%)

Q.2 Are you aware of Quality Circles?

S. No OpinionNo. of

respondents

Percentage

1 Fully Aware 44 44

2 Partiallyaware 31 31

3 only basics 21 21

4 Not aware 4 4

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Total 100 100

INTERPRETATION:

Most of the employees are aware of the Quality Circles.

Q.3 Do you involve in Quality circles teams working in your work area?

S. No OpinionNo. of

respondents

Percentage

1 Frequently 28 28

2 Some times 47 47

97

3 Rarely 14 14

4 Never 11 11

Total 100 100

INTERPRETATION:

The Majority of the respondents i.e. 47% agree and only 11%

disagree with the statement

Q4. Are you a member of any Quality Circle?

98

S. No OpinionNo. of

respondents

Percentage

1 Yes 67 67

2 No 33 33

Total 100 100

INTERPRETATION:

Most of the employees are having membership in “Quality Circles”

99

Q.5 What is the main purpose of Quality Circles in your Organization?

S.No Opinion

No. ofrespondent

s

Percentage

1 Improvement inHuman Relations 1 1

2 Promotion ofWork Culture 2 2

3 Develop TeamWork 19 19

4 ImproveProductivity 13 13

5Enhance Problem

SolvingCapacity

12 12

6 All of theAbove 53 53

Total 100 100

100

INTERPRETATION:

The majority of the respondents’ i.e. 53% agree and only1%

of respondent wants to make some improvement in human

relations.

Q.6 Do you think quality circle develops a participative environment in the Organization?

S. No OpinionNo. of

respondents

Percentage

1 Fullyagree 55 55

2 To Someextent 38 38

3 Does not 4 4

4 Not aware 3 3

Total 100 100

101

INTERPRETATION:

Regarding feedback 55% of the employees are fully agree

where as 3% of the employees are not aware of quality

circles.

Q.7 Do you think that quality circles team can solve the problems of your work area?

S. No OpinionNo. of

respondents

Percentage

1 Fullyagree 39 39

2 To Someextent 55 55

3 Never 6 6

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Total 100 100

INTERPRATATION:

Most of the employees are agree to take active part in

quality circles team to solve the problems in that work area

Q.8 Do you think that Quality Circles are helpful in Cost Reduction?

S. No OpinionNo. of

respondents

Percentage

1 Fully 59 59

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agree

2 To Someextent 37 37

3 Never 4 4

Total 100 100

INTERPRETATION:

Out of 100 employees 59% of the employees are agree to

belive Quality Circles are helpful in Cost Reduction.

Q.9 Do you think that Quality Circles are helpful in increasing Productivity?

104

S. No OpinionNo. of

respondents

Percentage

1 Yes 66 65

2 To Someextent 32 32

3 Never 2 2

Total 100 100

INTERPRETATION:

Out of the 100 employees 66% percent of the employees are

agree to declare Quality Circles are helpful in increasing

Productivity

105

Q10. Do you think that Quality Circles are helpful in

building a Positive

Work Culture?

S. No OpinionNo. of

respondents

Percentage

1 Yes 70 70

2 To Someextent 28 28

3 Never 2 2

Total 100 100

106

INTERPRETATION:

Regarding feed back 70% of the employees are satisfied

whereas 2% of the employees are not satisfied with this

statement.

Q11. Does the management keep track on the activities of Quality Circles?

S. No OpinionNo. of

respondents

Percentage

1 Yes 56 56

2 To Someextent 41 41

3 Never 1 1

Total 100 100

107

INTERPRETATION:

Out of 100 employees 56% of the employees are agree to say

the management keep track on the activities of Quality

Circles

Q12. Are you satisfied with the Quality Circle Movement in

your

organization?

S. No OpinionNo. of

respondents

Percentage

1 Highlysatisfied 25 25

108

2 Satisfied 70 70

3 dissatisfied 5 5

Total 100 100

INTERPRETATION:

Out of 100 employees are 70 % of the employees are Satisfied

with the Quality Circle Movement in BHEL, Hyderabad.

Q13. Rate the statement “Top Management is interested in

motivating the

employees through Quality Circles”

109

S. No OpinionNo. of

respondents

Percentage

1 Stronglyagree 22 22

2 Agree 61 61

3 Disagree 14 14

Can't say 3 3

Total 100 100

INTERPRETATION:

The majority of respondents i.e 61%agree and only 3%of the

employees are not able to satisfied with this statement.

110

Q14. Do you think” quality circles” are important for the

growth of the

company?

S. No OpinionNo. of

respondents

Percentage

1 Veryimportant 45 45

2 Important 51 51

3 Notimportant 2 2

4 Can't say 2 2

Total 100 100

INTERPRETATION:

111

The majority of respondents i.e 51% agree and only 2%of the

employees are not able to satisfied with this statement.

Q15. Rate the statement “Top Management Rewards the Quality

Circle

Members for their Achievements”

S. No OpinionNo. of

respondents

Percentage

1 Stronglyagree 28 28

2 Agree 66 66

3 Disagree 2 2

4 Can't say 4 4

Total 100 100

112

INTERPRETATIONS:

Out of the 100 employees 66% of the employees are agree and

28% of the employees are strongly agree to say “Top

Management Rewards the Quality Circle Members for their

Achievements”

Q16. Do you think involvement in Quality Circles is un-

productive or waste

of time?

S. No OpinionNo. of

respondents

Percentage

1 Stronglyagree 0 0

2 Agree 4 4

113

3 Disagree 91 91

4 Can't say 5 5

Total 100 100

INTERPRETATION:

The majority of the respondents’ i.e.91% disagree and only

4% of the respondents agree with this statement.

114

CHAPTER-VFINDINGS, CONCLUSIONS, SUGGESTIONS

115

FINDINGS

• Most of the employees are aware of the Quality Circles.

• Most of the employees are interested to make use of the

Quality Circles

• Most of the employees are think quality circles team will

solve the problems in that work area

• Out of 100 employees 59% of the employees are fullyagree

&37% of the employees are To some extent to say Quality

Circles are helpful in Cost Reduction.

• Out of 100 employees 70% percentage of the employees

agree, Quality Circles are helpful in building a Positive

Work Culture

• Out of 100 employees 56% of the employees are fully agree

&41% of the employees are think To some extent to say the

management keep track on the activities of Quality Circles

• Out of 100 employees are 70percentage of the employees

Satisfied &25% of the employees are highly satisfied with

the Quality Circle Movement in BHEL, Hyderabad.

• Most of the emplyees think “Top Management is interested

in motivating the employees through Quality Circles”.

116

• Out of the 100% employees 51% of them think quality

circles” are useful for the growth of the company.

• Out of the 100 employees 66% of them agree the Top

Management Rewards the Quality Circle Members for their

Achievements

CONCLUSION

It would be a great service to the cause of Quality

Circles.

Helps develop ability to work in teams and appreciate

other’s point of view

If all those who are interested in the healthy

propagation of the philosophy in the country take every

opportunity to stress “What Quality Circles are not?,

as enumerated above, because there are quite a few

instances

117

Where Quality Circles failed to “take off” due to such

misconceptions prevailing in the minds of the

Management personnel

Hence it can be safely concluded that no progressive

organization can afford to ignore the concept of

quality circles.

Quality Circles are not limited to manufacturing firms

only.

Quality Circles are relevant for factories, firms,

schools, hospitals, universities, research institutes,

banks, government offices etc.

118

SUGGESTIONS Conducting the motivational classes every month last

week

It is very important to provide the opportunity to the

employees of the organization to express their ideas or

whatever they want to express

Management should give the importance to mental

relaxation &social cultural development of an employees

who strives hard for the company

Reward or Praise/appreciation works as magic for an

individual and motivates them for work.

Role clarity of each position should be defined and

based on that individuals can plan their work

accordingly.

Self-potential system should be encouraged

There are regular review  and comparison of current &

past performance to detect gradual deterioration in the

strategy

Proper cooperation should be necessary  in the company

119

BIBILIOGRAPHY

120

BIBLOGRAPHY

Text Books

1. K.Aswathappa (1997), “Human Resources and Personnel

management” Tata McGraw-Hill publishing Company Ltd, New

Delhi-110001

2. John M.Ivancevich (2003), “Human Resources and Personnel

management” Tata McGraw-Hill publishing Company Ltd, New

Delhi-110001

121

3. C.R.Kothari (2001) “Research Methodology” of wishwa

prakashan Publishing,Chennai-17,Edition

4. C.B. Mamoria and S.V.Gankar (2001), Personnel Management

Text &Cases”,Himalaya Publishing houses Mumbai, XXI

Edition.

5. R.S.N,Pillai and V.Bhavathi(1998), “Statistics” of Sultan

Chand and sons,New Delhi,pp.132-141,II Edition.

6. Management of change -Palmer,Dunford,Akin

Journals & articles:

1. HRM REVIEW by IUP Publication

2. Quality circles guide by BHEL

3. Quality circles Handbook by BHEL

Websites:

www.citehr.com

www.managementparadise.cm

www.scribd.com

www.wikipidia.com

www.qualityof worklife.com

122

ANNEXURE

123

Questionnaire

Q1. Since how many years have you been working with this

organization?

A) 0-5 Year B) 5-10 Years C) 10 to 15 Years D)

More than 15 Years

Q2. Are you aware of Quality Circles?

A) Fully aware B) Partially aware C) Only Basics

D) Not aware

Q3. Do you involve in Quality Circle teams working in your

work area

A) Frequently B) Sometimes C) Rarely

D) Never

Q4. Are you a member of any Quality Circle?

A) Yes B) No

124

Q5. What is the main purpose of Quality Circles in your

Organization?

A) Improvement in Human Relations B) Promotion

of Work Culture

C) Develop Team Work D)

Improve Productivity

E) Enhance Problem Solving Capacity F) All of

the Above

Q6. Do you think quality circle develops a participative

environment in the organization?

A) Fully Agree B) To some extent C) Does not D)

Not aware

Q7. Do you think that quality circles team can solve the

problems of your work area?

A) Fully B) To some extent C) Never

125

Q8. Do you think that Quality Circles are helpful in Cost

Reduction?

A) Yes B) To some extent

C)Never

Q9. Do you think that Quality Circles are helpful in

increasing Productivity?

A) Yes B) To some extent C)

Never

Q10. Do you think that Quality Circles are helpful in

building a Positive Work Culture?

A) Yes B) To some extent C) Never

Q11. Does the management keep track on the activities of

Quality Circles ?

A) Yes B) to some extent C) Never

Q12. Are you satisfied with the Quality Circle Movement in

your organization?

126

A) Highly-Satisfied B)Satisfied

C)Dissatisfied

Q13. Rate the statement “Top Management is interested in

motivating the employees through Quality Circles”

A) Strongly Agree B) Agree C) Disagree D)

Can’t say

Q14. Do you think” quality circles” are important for the

growth of the Company?

A) Very Important B) Important C) Not

Important D) Can’t say

Q15. Rate the statement “Top Management Rewards the Quality

Circle Members for their Achievements”

A) Strongly Agree B) Agree C) Disagree D)

Can’t say

Q16. Do you think involvement in Quality Circles is un-

productive or waste of time?

A) Strongly Agree B) Agree C) Disagree D)

Can’t say

127

128