Beml

BEML limited.
v A PROJECT REPORT ON
ORGANIZATION STUDY
CONDUCTED AT BEML LTD BANGALORE COMPLEX, BANGALORE
THIS REPORT IS SUBMITTED AS FIRST HAND KNOWLEDGE OF THE ORGANIZATION BEFORE THE COMENCEMENT OF THE COURSE OF
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY: VENKATA SURESH KUMAR UNDER THE GUIDANCE OF INTERNAL GUIDE Prof. SHIVALINGA PRASAND (KRISTU JAYANTI COLLEGE) EXTERNAL GUIDE Mr. SYED SHOAIBUDDIN KZ (HR-BEML LTD.)
Kristu Jayanti College
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BEML limited.
DECLARATION
I hereby declare that the in-plant training entitled The organization study in BEML submitted to KRISTU JAYANTI COLLEGE as first- hand knowledge about the organization in the beginning of my course is a record of my original hard work.
I further declare that this report has not been submitted to any other university or institution for the award of any degree.
Date: Place:
(VENKATA SURESH KUMAR)
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BEML limited.
ACKNOWLEDGEMENT
This project is a product of the valuable insights, facts and experience I had with various people. The experience was more than what was visualised. Its my pleasure to express my deep sense of gratitude to Mr. GANGADHAR (Asst. General Manager) and Mr. SYED SHOAIBUDDIN KZ (HR DEPARTMENT) for permitting me to undergo an in plant training in their esteemed organization & being my external guide. I thank them for their co-operation & valuable suggestions throughout the period of in-plant training. And also I am grateful to the entire staff and professionals of BHARAT EARTH MOVERS LIMITED.(BEML) BANGALORE, for their guidance and constructive co-operation in completion of this project.
I also extend my sincere thanks to Prof. SHIVALINGA PRASAD my mentor in KRISTU JAYANTI COLLEGE for being my internal guide & for his guidance and support. Without his support and guidance it would have been impossible for me to complete this study. I am extremely grateful and thankful to him for the brilliant guidance in this endeavour.
It is a sin on my part if I forgot to convey heartful thanks to my parents for their support, encouragement & help without which this report could not have been successfully completed.
Finally, it is my bound duty to thanks all my friends who have helped me directly or indirectly for the smooth completion of this report.
Place: Bangalore Date:
(VENKATA SURESH KUMAR)

Kristu Jayanti College Page 3
BEML limited.
TABLE OF CONTENTS
CHAPTER NO. 1. 2. 3. 4.
PARTICULARS
Introduction Research Design Industrial Profile Company Profile Overview Background & Inception of company Nature of Business carried 1.Construction & mining 2.Defence & Civial aviation 3.Metro & Railway Company vision Company mission Company objectives Quality policy Product profile Area of operation
PAGE NUMBERS
5.
Ownership Pattern Share holding pattern Competitors of BEML Products and Collaboration Bankers
6.
Infrastructure Facilities
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BEML limited.
7. 8. 9. 10. 11. 12.
Other Complex Achievements and Awards EHS policy Organization Chart Work chart Various Departments Financial Department HR Department Marketing Department Material Department Production Department R&D Department Maintenance Department Quality Department Safety Engineering Dept. Trade Union
13. 14. 15. 16. 17. 18.
Security & Vigilance Dept. SWOT Analysis Findings & Suggestions Conclusion Learning Experiences Bibliography
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BEML limited.
INTRODUCTION
Organization is the process of dividing and combining efforts of working group of making such joint efforts more productive, effective and fruitful organization allocates duties to managerial staff. Organization is the group of people who are co-operating under the direction leadership for the accomplishment of a common end. CHARACTERISTICS OF ORGANIZATION: It is a group of individuals, which may be small or large. It refers to the structure of duties and responsibilities. The group in the organization work under the direction of executives leadership. It consists of directing authorities, which controls the collective efforts of the group. There are two form of organization: Formal organization. Informal organization.
FORMAL ORGANIZATION: It is the type where responsibility rights and authority are clearly defined procedure is laid down; methods are evolved, discussed and put before the personnel in clear terms.
INFORMAL ORGANIZATION: In this nothing is clearly laid down. It is a developing process, which develops on the basis of work performance and mutual relationship between personnels jobs, duties and authority.
OBJECTIVES OF THE ORGANIZATION: To serve society. To administer economy in production organization and systems.
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BEML limited. As a student of management education, study of business organization provides one with an opportunity to correlate practice with theory. It also enables to get the required insight into processes and functioning of managing an organization with this as the primary objective in mind the study was undertaken at BEML Ltd.
BENEFITS OF THE STUDY: PRACTICAL KNOWELEDGE: Practical study of the organization revels the knowledge regarding various aspects of the company such as planning, organizing, staffing and controlling etc. PRESENTATION SKILLS: The project study helps in improvising the presentation skills and communication skills of a student. INDUSTRIAL EXPOSER: The project study also helps in getting knowledge regarding functional activities of various department of the organization such as marketing, finance, human resource, production etc.
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BEML limited.
RESEARCH DESIGN TITLE OF THE STUDY:

A detailed study of the organization structure of BEML
SCOPE OF THE STUDY:

This study is an attempt to study the organization as a whole and to study the different department in detail so that I get a detailed knowledge about the organization from different angle and to study the functions of the different department which constitute the organization so as to suggest effective measures such that organization achieves its objectives. The study focuses on the department and their functions and the methods to improve the organization; hence this study provides a wide scope for the students to gain an insight into the practice aspects of the working of an organization and thus increases managerial skills.
OBJECTIVES OF STUDY To understand the various departments procedure in the company. To gain insight into the new trends in the management of the company. To study methodologies used by the organization to compete with others. To study on SWOT analysis. SCOPE OF DATA:
PRIMARY DATA The report has been framed out of the primary data source. It basically deals with the inspection done by me with the management and supervision of various departments. SECONDARY DATA The data was collected through website, company profile, broachers, journals, reference to previous studied, report, reference books etc.
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BEML limited.
LIMITATIONS OF THE STUDY

Limited time provided for the study. As BEML, is into manufacturing products for the Ministry of Defence, certain areas of the organization were restricted and some information about the organization was disclosed.
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BEML limited.
INDUSTRIAL PROFILE
BEML is a public limited company, which was incorporated by the Government of India in May 1964. It was placed under the administration control of the Indian Ministry of Defence (DPSU); for the purpose of manufacturing earth moving equipments to catch the needs of the Defence ministry. BEML commenced its operation in 1965 with the transfer of rail coach division of the HINDUSTAN AIRCRAFT LIMITED (HIDUSTAN AERONAUTICS LIMITED) at Bangalore. Todays BEML one of the premier ISO 9001-2000 certified company in India and the second largest manufacturing of earth moving equipments in Asia BEML has been the manufacturing of integrated rail coaches for postal vans, luggages etc. which are built to hi-tech standards incorporating anti-telescope framework as measures of safety to passengers. The company diversified its operations and offers products for various sectors of economy such as coal, mining, steel, limestone, power, irrigation, construction, road building, aviation, defence, metro and railway. The major products of BEML are in Mining and Construction, Defence and Rail &Metro industries. In addition to that the company has involved in three service area namely technology division for providing engineering solution to the customers in the company as well as aboard, trading division for dealing non company products and commodities and international business division for export activities. The company is planning to diversity its operation to many other sectors of the economy of the country.
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BEML limited.
COMPANY PROFILE
Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its corporate offices at Bangalore and commenced operation from 1st January 1965, the production units of the company are located at Bangalore, Kolar Gold Field and Mysore in Karnataka and Pallakad in Kerala. The company is engaged in the production of rail coaches, rail bus and Direct Current Electrical Multipurpose Unit for Indian Railways, heavy duty trucks/its variants, crash fire tenders, heavy recover vehicles, PMS bridges and earth moving equipments and aggregate for Defence. Other major customers of BEML are Coal India Limited, Naively Lignite Corporation, Associated Cement Company, Steel Authority of India Limited and the National Hydro Electric Thermal Power Corporation.
BEML is a premier ISO 9000 company in India and the second largest manufacture of earth moving equipment in Asia. A three-decade-old multi-location and multi-product company, BEML has vital application in diverse sector of economy such as coal, mining, steel, cement, powder, irrigation, construction and road building and railway. It has expanded its product range to cover high-quality hydraulics, heavy duty diesel engines, welding robots and undertaking of heavy fabrication jobs.
A public sector undertaking, BEML commands 70% market share in domestic earth mover industry. Nearly 40% of its quality has divested to financially institution and public. BEML has its corporate headquarters and central marketing division at Bangalore.
BEML manufactures wide range of products to meet the needs of mining, construction, power, irrigation, fertilizer, cement, steel and rail sector. The earth moving equipment includes bulldozers, dump trucks, hydraulic, excavators, and wheel loaders, rope shovels, walking draglines, motor graders and scrapers.
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BEML limited. BEML has recently introduced road headers and slide discharge loaders for underground mining application. Railway products include integral rail coaches, electrical multiple units, rail buses, track laying equipments and overhead equipment inspection cars.
BEML manufactures heavy duty trucks and trailers and hydraulic aggregates for transportation sector. The company also manufactures high power diesel engines and heavy duty hydraulic aggregates to meet specific customer requirements. The company plans to diversify into varied activities including underground mining equipment, underground for petro-products, leasing and financial services and jointventures abroad.
BEML is rated as the first amongst the fastest growing construction equipment in India. It is today leading the infrastructure revolution in the country with successful foray into hi-tech metro trains. Beings a multi-technology, multi-unit and multi-location company, BEML offers high quality products for diverse sector of the economy such as coal, mining, steel, cement, powder, irrigation, construction, road building. Defence, Metro and Railways. It has come to the forefront of heavy engineering industry with a track record of growth and profit in the last for decades.
With increased focus on quality, safety and productivity, BEML is evolving new technologies and aiming at value-addition in all its process and products. The companys manufacturing facilities are certified under ISO 9000-2000 series. Its strategic alliances with global partners have ensured a continuous flow of state-of-art technologies and gain international competence. With impetus on market driven R&D, BEML has rolled out several innovative products.
The company is established R&D centre of excellence for metro technology to match world-class standards with grants received from planning commission, government of India. BEMLs nationwide network of sales offices enables buyer with ready access to its wide range of products and services.
BEML limited.
Its service centre, repair shops and parts depots total equipment care and availability of machines through prompt after sales-service. Today BEML brand of products are popular in over30 countries across the world in Asia, Africa, Europe, Middle-East and Latin America. The company is in the process of opening overseas offices at Singapore and China.
BACK GROUND AND INCEPTION OF COMPANY

BEML is a PSU (Public Sector Undertaking) under the effective administration of Ministry of Defence (department of Defence supply). The organization was setup in the late 40s as part of HAL now know as HINDUSTAN AERONATICS LIMITED to manufacture rail coaches. It gradually diversified earth moving equipment in 1964. The company was incorporated in the first five year plan when India was very weak economically. The main objective of setting up the organization was to manufacture heavy earth moving equipment. Rail coaches heavy duty trucks, trucks-laying equipment etc.
NATURE OF BUSINESS
BEML is equipment in production equipment for the industries such as construction and mining, Defence aviation and the Metro and Railway sector. CONSTRUCTION AND MINING For development in surface mining projects, BEML produces machines such as electric shovels, hydraulic excavation, bulldozers, wheel loaders, wheel dozer, dump trucks, motor grades, pipelines and tyre handlers. Besides, giants walking draggling for cost effective operations in the open cost mines are manufactured. BEML has diversified into underground mining with products such as side discharge loader, load haul dumper, winch winder, randy car and skip etc. BEML has an active fleet of machines to take up works related to road construction, infrastructure, development, port handling, tuning boring and petroleum projects.
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BEML limited. The company is floating a joint venture soon to take up contract mining and maintenance of mining equipments. DEFENCE AND CIVIAL AVIATION BEMLs multi-role vehicle and transportation trailers have found total acceptance with arms forces. The company has started manufacturing the entire range of value added TATRA vehicles. Which are robust and suitable for all terrain operation including bridges layer field artillery, tractor, medium/heavy recovery vehicles and pontoon mainstream bridge system, BEML also supplies engineering mine ploughs, armoured recovery vehicles and weapon loading equipment. For the civil aviation sector, BEML offers passenger Aerobridges, crash fire tender and aircraft towing tractor. METRO & RAILWAY SECTOR BEML is today geared up for manufacturing and supply of high-tech stainless steel metro to upcoming urban infrastructure projects in various cities Other products supplied for Indian railways include integral rail coaches, overhead inspection cars, track laying equipment broad gauge rail bus, treasury vans and spoil disposal vans. It also offers electric multiple units for development in suburban services. The company also manufacture heavy duty diesel engines, diesel generators sets and hydraulic aggregates. BEML has entered into alliance with international partners for several new products which includes multi utility armed vehicles, mine laying vehicles, long wall mining system, tunnelling equipment, mine protected vehicles, surface miners etc.
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BEML limited.
COMPANY VISION
The vision is to achieve a turnover of $ 1.15 billion (Rs.5000 crores) by 201314, which translates into a compounded growth rate of 12%. The management has refused this vision into 1000 employees and will grow across all three divisions: mining and construction segment, we see a 15-20% growth rate will be between 8% and 100%. At that moment 2/3th of our top line and bottom line is contributed by mining and construction. BEML has earned a modest profit of 100 million in the rail business: they have now achieved a critical mass and hence likely to enhance contribution to the bottom line. Build total self-reliance in earthmover and related technology. Adapt technology to suit national requirement particularly in vital sector such as construction, mining, irrigation, railway, transportation and automation. Update current products for higher performance and reliability Generate know- why through applied research Design and develop products in identified technology areas. Set up test facilities for evaluation of performance and reliability of vehicles and system.
COMPANY MISSION
To achieve and retain a dominant position in the manufacture and supply of earthmoving, mining, construction, railway and Defence equipment by establishing high standards of quality, capability and reliability. To pursue state-of-the-art and environment friendly technologies as well as develop cost effective and value-added products. To be competitive, responsive and continuously improve services so as to ensure total customer satisfaction. To grow into global company guided by a keen sense of vision and business ethics as well as to maximise earnings. To conserve energy and eliminate waste through optimum utilization of men, money, materials and machinery.
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BEML limited.
COMPANY OBJECTIVES
To maintain a dominant position in design, development, manufacture and marketing of Defence, Earthmoving and Construction and Rail & Metro equipment. To diversify and grow. To provide total engineering solution to its customer. To internationalised operation by enhancing exports. To maintain state-of-art technology for all products. Re-orientation of the business operation to match the present scenario. Continues building of skills and competencies to bring about executive effectiveness for management succession.
QUALITY POLICY
QUALITY IS THE HALLMARK OF EXCELLENCE At BEML, a corporate quality policy emphasizing total quality management ensures the quality system adopted companywide to meet stringent standards and requisite performance criteria. A separate quality spearheads the thrust towards total quality. All manufacturing units in the company are under ISO 9000-2000 certification. BEML equipment works in hospitality terrain under gruelling operation condition. In order to ensure optimum performance of equipment each product is tested in working condition. In order to ensure optimum performance equipment each product is tested in working conditions in the companys own track and fields. Vendor assessment and development is a key component of the companys strategy for achieving total quality. Experience professional work with vendors to improve directions to the quality improvement activities. To offer products and services to the satisfaction of customers and strive to upgrade quality continuously is the quality adopted in BEML.
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BEML limited.
PRODUCT PROFILE:
BEML products that are Machine that build the nation find their application in core sector of economy in the country viz, mining, agriculture, energy, irrigation, cement, steel, construction, rail and road transport apart from Defence. The company has three ranges of products like earth moving equipments Defence products and railways products. The earth moving equipments include bulldozers, dump trucks, hydraulic excavators, wheel loaders, wheel dozers, tyre handlers, pipe layers, rope sholves, draglines, motor grades, scrapers, water sprinklers, aircraft towing tractors and backhoe loader. BEML has recently introduced road headers and side discharge loaders for underground mining application, tracking laying equipment, inspection cars. BEML manufactures heavy duty trucks and trailers and hydraulic aggregates for transportation sector. A part from this, BEML also radio controls disaster management equipment in case of emergency.
BEML PRODUCTS:
Mining Machines. Electric shovels. Bulldozers. Wheel dozers. Dump trucks. Motor graders. Pipe layer & tyre handler. Giant walking draggling for cost item. DEFENCE EQUIPMENTS BEML-TATRA T815 VVNC8*8 vehicle. BEML-TATRA T815 VVL8*8 vehicle. BEML-TATRA T815 VVTI8*8-Tank Transportation. BEML-TATRA T815 VVNC6*6 High Mobility Vehicle. BEML-TATRA T815 VVNC6*6 Field Artillery Tractor. BEML-TATRA T815 VI4*4 High Mobility Vehicle.
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BEML limited. PRITHVI missile launcher. OXIDISER carrier. WA RDHEAD carrier. FUEL carrier vehicles. MISSILE Transport. 10T mobile crane. Ammunition Loader. Pontoon Bridge set. Pontoon Truck. Truck Mounted crane. Pavement Laying Truck. Dolly. Light Recovery vehicle. Armoured Recovery vehicle. Backhoe loader transport.
RAILWAYS: Passenger coaches. DC electrical multiple units (DC-EMUS). AC electrical multiple units (AC-EMUS). Track laying equipment. Rail bus. Spoil disposal units (SDU) Treasury vans. Mill rail coaches. Metro cars. OHE cars.
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BEML limited. DESIEL ENGINES: 100-1000hp engines for contribution and mining equipment. Irrigation pumps. Marine vessel engines. Compressors.
ROAD CONSTRUCTION EQUIPMENT: Batching and mining plans. Vibrating compactors. Pneumatic-tried rollers.
DIASTER MANAGEMENT EQUIPMENT: Radio-controls dozers. Hydraulic excavators with demolition attachment.
ENERGY: Diesel genets-230, 360, 550KVP. INDUSTRIAL AND AUTOMATION: Industrial welding robots, Machine tending robots.
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BEML limited.
PRODUCT MANUFACTURE IN BEML: RAILWAY TRANSPORTATION EQUIPMENT
DEFENCE EQUIPMENT
MINING EQUIPMENT
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AREA OPERATION:
BEML being a public sector undertaking operates well in the global market also. The companys international divisions are involved in large trading as well as counter trade in countries worldwide covering Asia and Middle East besides entering into European market through UK, Italy and Greece. The company commenced its overseas operations in 1969-70 and has exposed earth moving equipments, rail coaches and spare parts valued at several million US$ to countries all over the world. As a recognized export house, BEML has expanded operation to include export of engineering goods, Defence items commodities and undertaking of project management and turnkey contracts. Despite the pressure of highly competitive market for heavy construction and mining equipment, BEMLs Export is attributed to good quality equipment and very efficient after sales services. Fully satisfied with the BEMLs services, customers in several countries have been placing repeat orders for the companys equipment. The company is looking at global market for future growth several countries have been identified for making a foray. In keeping with this, the export target for the year 2009-2010 has been fixed at over Rs 500 crores which are stiff considering the strong foothold of competition in the world market. Exports were made to countries like Syria, Tunisia, South Africa, Afghanistan, Bhutan, Abu Dhabi, Jordan, Bangladesh and Suriname in Latin America.
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BEML limited.
OWNERSHIP PATTERN: SHARE HOLDING PATTERN: CATEGORY 2007-08 No. of % to Shares Equity 22500000 2008-09 No. of % to Shares Equity 2009-10* No. of % to Shares Equity 54.03
Promoters The President of India Institutional Investors Mutual Funds and UTI Banks / Financial Institutions / Insurance Companies FIIs Others Private Corporate Indian Public NRIs / OCBs Any Others Trusts Total
54.03 22500000
54.03 22500000
6001284 2491994
14.41 5.98
6411006 4204844
15.39 10.10
5597860 4081333
13.44 9.80
6663993 1239445 2472636 237526 37622
16.00 2.98 5.94 0.577 0.09
4138975 1290640 2781043 229383 88609
9.94 3.10 6.68 0.55 0.21
5615855 1141449 2474380 218052 15571
13.49 2.74 5.94 0.53 0.03
41644500 100.00 41644500 100.00 41644500 100.00
COMPETITORS OF BEML Railways Integral coach factory permbur, RCF at
Karputhala Bull dozer Excavators Dumpers Caterpillar (Hindustan Motors) L&T, Escort, TATA Hindustan Motors, Volvo, TATA, TELCO, Ashok Leyland
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BEML limited.
PRODUCT AND THEIR COLLABRATION PRODUCTS 210M Dump Truck COLLABORATION KOMATSU Mining System, USA 445E Truck Walking Draglines 182cm Shovel Heavy Duty trucks for Defence METRO Railway Diesel Engine ROTEM, SOUTH KOREA KOMATSU, JAPAN TATRA SIPOX 10cu.m Rope Electrical Dump KOMATSU Mining System, USA BUCRYUS International, USA BUCRYUS International, USA
BANKERS SBI CANARA BANK SBM (STATE BANK OF MYSORE) PUNJAB NATIONAL BANK BANK OF INDIA STATE BANK OF BIKANER & JAIPUR CENTRAL BANK OF INDIA
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BEML limited.
INFRASTRUCTURE FACILITIES: BHARAT EARTH MOVERS LIMITED

Name of the company BHARAT EARTH MOVERS LIMITED
Registered office
BEML SOUDHA CORPORATE OFFICE NO-23/14TH MAIN S.R. NAGAR BANGALORE-560027
Group
PUBLIC SECTOR UNDERTAKING
Activity
MANUFACTURING OF EARTH MOVING EQUIPMENTS, RAIL COACHES, DEFENCE AUTOMOTIVE VEHICLE
Date of Establishment
JAN 1 1965
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BEML limited. OTHER COMPLEX KGF COMPLEX (KOLAR GOLD FIELD) Kolar Gold Field, located from Bangalore, spread over an area of 1850 acres; BEML has established an extensive manufacturing base. A skilled work force of over 7400 turnout state of the art bulldozer, hydraulic excavator, wheel force of over 7400 turnover state of the art bulldozer, hydraulic excavator, wheel loaders, rope shoves & walking draglines for mining & construction industry . Sophisticated CNC machines & latest technology welding equipment have been installed.
MYSORE COMPLEX The biggest dump truck factory in India is located at BEMLs Mysore Complex. This unit is located about 180kms from Bangalore & occupies about 178 acres of land, having a work force of about 2500 employees.
PALLAKKAD COMPLEX On 16th May 2010, BEML added one more feather to its cap by inaugurating its Manufacturing plant at Palakkad in Kerala, especially for Manufacturing of Rail coaches, Wagon & Defence products.
AREA OF OPERATION BEML has 3 international offices, 10 regional offices & 15 District offices & it also have 4 activity centre.
INTERNATIONAL OFFICES CHINA- BEML LTD shanghai representative office, shanghai MALAYSIA- BEML (MALAYSIA) SNDBHD, johar bharu, MALAYSIA BRAZIL- BEML BRAZIL, state of espirito santo BRAZIL
GLOBAL OFFICE MOROCCO CHINA SINGAPOR

BEML limited. ASSEMBLY PLANT BRAZIL GLOBAL PARTS WAREHOUSE MALAYSIA REGIONAL OFFICE Bilaspur Chennai Hyderabad Kolkata Mumbai Nagpur New Delhi Ranchi Sambalpur Singrauti District office Ahmedabad Asansol Bhili Bhubaneswar Chandrapur Guwathi Jammu Madurai Naively Pan Jim Udaipur ACTIVITY CENTRE: Ongole Kanti Hospet Bangalore
BEML limited. THE COMPANY SHARES The Bangalore stock exchange limited, Bangalore BEML The Bombay stock exchange limited, Mumbai The National stock exchange of India limited, Mumbai BEML
ACHIVEMENTS AND AWARDS CMD received the 'SCOPE Award for Excellence and Outstanding Contribution to the Public Sector Management - Medium PSE Category D' for the year 2006-07 CMD received Raksha Mantri's Award for 'BEST DEFENCE PSU' for the year 2007-08 CMD received the 'BEST PSU AWARD' instituted by India's leading B School, Indian Institute of Planning & Management held at Bangalore on 25th March 2009 Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star Performer as a Large Enterprise for its outstanding contribution to Engineering Export held at Trivandrum on 11th February 2009 CMD received the 'Raksha Mantri's Award for Excellence' for 'Best Performance in Exports' held at New Delhi on 7th November 2008 CMD received the 'ROTARIAN AWARD' of Vocational Excellence in their District Conference held at Bangalore on 9th February 2008 CMD received the 'BEST CEO AWARD' from Mr. SK Sharma, National President , Indian Institute of Materials Management (IIMM) on 30th November 2007 at Chandigarh Conferred Star Performer Award by Engineering Export Promotion Council, Southern Region on 24th November 2007 Award for Excellence in Technology and Innovation from Confederation of Indian Industries (CII) Rated AAA by ICRA in January 2007 Received 'Golden Peacock Award for Innovation Management' from Institute of Directors on 14th January 2007
BEML limited. Ranked 4th Best Wealth Creator among 21 Best Wealth Creators of India and the 1st among PSUs (US$ 1 in 2002 has appreciated to US$ 62.64 in 2007) by Dalal Street Magazine Conferred Mini Ratna Category-1 Status by Ministry of Defence, Govt. of India during August 2006 Received Golden Export Award from Government of Karnataka, India during August 2006 Received Enterprise Excellence Award from Indian Institute of Industrial Engineers during May 2006 Received Excellent MoU rating in 2005-06 Award for Outstanding Export Performance from Engineering Export Promotion Council (EEPC) during February 2005 Award for The Largest and Most Profitable Construction Equipment Company - 1st Rank from Construction World - NICMAR 2007 Awarded UDYOG RATAN AWARD (Gold Trophy) Economic Studies, New Delhi, during October 2004 Received Niryat Shree Gold Trophy from Federation of Indian Export Organisations for its outstanding export performance in Export House/Non SSI category for the financial year 2000-01 National Award for Import Substitution for Crawler Mounted Shovels (2 to 2.5 bucket Cu., M. Capacity) by Institute of
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BEML limited. EHS POLICY
ENVIRO NMENT
HEALTH
SAFETY POLICY
We at BEML manufactures of equipment for construction & mining & metro & defence are decided to protect & conserve the environment by minimizing the adverse impact of the process, product & services on the environment.
OBJECTIVES As part EHS policy we shall continually strive & are committed to: Provide health & safe environment to all employees & interested parties. Comply with all applicable legal & regulatory requirements. Conserve natural resources & initiate & achieve energy saving. Minimize process waste, promote recovery, reuse & recycling of material & develop eco-friendly waste disposal system. Improve to minimize environment health & safety hazards & hazardous process. Train & build awareness among all our employees of EHS issues on a continuous basis. Communicate EHS policy to all employees, stake holder, investors & other.
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BEML limited.
BOARD OF DIRECTORS Sri V RS Natarajan Chairman & Managing Director
FUNCTIONAL DIRECTORS Sri V Mohan Director (Defence)
Shri M.Poongavanam Director (Mining & Construction)
Shri P Dwarakanth Director (Metro&Rail)
Shri M Pitchaih Director (Finance)
Shri M Nellaiappan Director (HR)
OFFICIAL DIRECTORS Shri Satyajeet Rajan Jt.Secretary (Exports), Ministry of Defence
Shri P.K Mishra Addl Financial Advisor & Jt. Secretary, Ministry of Defence (Finance)
INDEPENDENT DIRECTORS Sri J P Singh, IAS (Retd) Sri M B N Rao Sri J P Batra
BEML limited.
ORGANIZATIONAL CHART CMD BEML
DIRECTOR FINANCE
DIRETOR PRODUCTION
DIRECTOR MARKETING GG
DIRECTOR HR
DIRECTOR R&D
EXECUTIVE DIRECTOR BANGALORE COMPLEX
GENERAL MANAGER DEPUTY GENERAL MANAGER ASST. GENERAL MANAGER SENIOR MANAGER
ASST. MANAGER
OFFICER
WORKER
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BEML limited. WORK FLOW MODEL ORDER
MARKETING
CORPORATE PLANNING DESIGN & DRAWING PLANNING DEPARTMENT PURCHASE
STORE
RAIL COACH
DEFENCE
MANUFACTURING SHOP
TATRA
TRAILER
PMS
SUB-ASSEMBLY MGF-SHOP FINISHING SUBASSEMBL Y SUBASSEMBL Y SUBASSEMBL Y MGF-SHOP MGF-SHOP
EJECTOR & AIR CLEANER
ROLL OUT
DELIVERY
ROLL OUT
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BEML limited.
VARIOUS DEPARTMENTS
FINANCE DEPARTMENT HIERARCHY OF FINANCE DEPARTMENT
CHEIF GENERAL MANAGER BANGALORE COMPLEX
DGM
MANGER INTERNAL AUDIT
MANAGER COSTING
MANAGER MAT A/C
MANAGER BILLS RECEIVABLE
GENERAL MANAGER
MANAGER BOOK KEEPING
SR.MANAGER BILLS PAYABLE
OFFICER CHEQUE SYSTEM
ASST. MANAGER PURCHASE SCRUTINY
ASST.MANAGER PAY ROLL
ASST. MANAGER PROVIDENT FUND
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BEML limited. INTRODUCTION It is a management activity, concerned with the planning and controlling of firms financial resources. Great interest to the academicians & the practicing managers are interested in the subject because among the crucial decision of the firm are those related finance. The working capital requirement was from the internal
resources and cash credit facilities from banks. The company capital structure consists of only equity & there is number department. There are eleven sub section working under finance department Pay roll Bills payable Bills receivable Cash office Provided fund office Costing and Budgeting department Purchase scrutiny Material account Book keeping System appraisal (Audit) 1. PAY ROLL The main function of payroll covers the following: Placement of time punching cards in time card racks for recording attendance. Receipt of approved leave application, O.T, authorization, attendance sheets, employees gate passes etc. Maintenance of leave records and feeling of attendance data to computer with reference to the document received. The computer or data processing section prints out payroll or pay bill or pay sheets in duplicate or triplicate as required. Where two copies are printed the original is used for obtaining acquaintance from employees and duplicate is retained by the pay roll section for record purpose. Disbursement of salaries and wages. Payment and recovery of advances. Recovery of dues from employees.
BEML limited. Payment of travel advances and adjustment there off Reimbursement of expenses like medical, conveyance, school fees etc. Remittance of amount recovered from employees to various agencies. Accounting of all pay roll transactions. Maintenance of employees cards. Miscellaneous. The following major according registers and subsidiary ledgers or registers are maintained in this section Leave record ledger or register. Salaries and wages journal. Travel expenses journal LTC expenses journal. Loan registers. Advances register for Travel advances. LTC advances. Salary advances. Vehicle advances. Festival advances or contingency advances. Incremental register. Unpaid wages register. Conveyance reimbursements register. Remittances register of recoveries. Register for reimbursement of other expenses.
2. BILLS PAYABLE This bills payable department in BEML is highly sophisticatedly diversified. The bills payable role will start after material requirement planning is done then the tender are put forward to the vendor only to those who are registered with BEML (approved vendor list). Then the question is received only from those vendors who are rated as L1 is selected and order is placed.
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BEML limited. A copy of the purchase order is received by the bills payable department. The purchase order contains the vendor name, the material order for quality, value, the tax to be paid on the purchase or if there is any exemption under the central excise duty if so avail it on the purchase After the goods are received, the RR group prepares a receipt report after the stores department verifies the goods & even a pay order is prepared & forward it to the bills payable department. The bills payable department compares the purchase order sheet with receipt report for any verification. The release for payment is passes on to the cheque-processing department. If the goods are not delivered within the specified period or time then BEML deducts 5% as penalty on the payment. Any purchase beyond 50 lakhs is referred to the chief managing director. In BEML the credit policy followed for payment in 60 days. The bills payable section further divided into two sub-divisions. They are: Bills payable-Inland. Bills Payable-Foreign.
BILLS PAYABLE-INLAND This section deals with the following aspects of supplies and services rendered by inland vendors to the company. Payment and accounting of advances to supplies. Payment and accounting of advance to other vendors. Payment and accounting of final bills. Bank dealing with relation to suppliers. Adjustment/recovery of advances. Accounting and pricing of receipt vouchers. The following major accounting register and subsidiary accounting register are maintained in this section: Inland purchase journal. Inland service journal. Advance journal. Insurance claims journal.
BEML limited. Sundry creditors register. Advance to supplier register. Miscellaneous advance register. Letters of credit register. In addition to these accounting records, subsidiary register are also maintained by this section: To watch the flow of bills and invoices into the section and their clearance. To watch the flow of other document from bank and their clearance and To watch the flow of receipt voucher from stores or purchase department and their clearance. These register are as follows: Service bill register. Agency commission bills register. Freight bill register. Purchase order register. Other periodical expenses register such as telephone, telex, electricity, water, rent and property. BILLS PAYABLE FORIEGN This section deals with the following aspects of supplies and services rendered by foreign vendors or collaboration to the company. Payment and accounting of advances to supplies. Payment and accounting for services obtained from collaboration and others. Payment and accounting of contractual fees (licence fees, royalty, etc). Payment and accounting of customs duty, freight bills agency, commission bills etc. Payment and accounting of final bills. Accounting and pricing of receipt vouchers. Opening of letter of credit and dealing with banks for obtaining foreign exchange release and payment there off. Maintenance of deferred liabilities account.
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BEML limited. The following major accounting register and subsidiary accounting registers are maintained in this section. Foreign purchase journal. LC registers. Goods-in-transit register. Contractual payment registers. Advance to supplier register. Sundry creditors register. Deferred liability register. In addition to the above accounting records the following register are also maintained in this section. Foreign purchase order registers. Agency commission bills register. Bills of entry register. Foreign bills register. Foreign claims bill register. Foreign consignment freight bills register. Insurance bills register.
3. BILLS RECEIVABLE: It is responsibility for the preparation and submission of invoice for the equipment and spare parts sold; service rendered, followed up for the collection &accounting of sales & all other works connected to the sales like filling of commercial tax return etc. Functions Register &scrutiny of sales order pertaining to equipment & spare parts including export. Preparation &submission of invoice to customer for payment. Accounting of sales. Compliance of sales tax returns. Review of balance in the customers account on a frequent basis.
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BEML limited. Records maintained: Sales order register. Stage payment register. Dispatch advice/invoice register. Sales journal. Sundry debtors ledger. Register of export sales.
4. CASH OFFICE This section is responsible for all payments of cash, cheques & accounting same in the books of accounts. Function: Receipt of cash, cheque & bank draft etc & issue of official receipts for the same. Follow up/watch for the transfer of funds to & from regional/district offices. Operations of bank accounts. Cash disbursement to payroll for the payment of salaries & wages & other payments. To check the bank statement. Reconciliation of inter transfer of funds transaction.
5. PROVIDENT FUND This deals with the provident fund of the workers & the employees & it deals with the family provident fund, employees deposit insurance schemes, gratuity fund and group saving linked insurance plan. It also provide other activities like investment of PF accumulation in approved securities, final payment of on the termination or on the death of the person, declaration of the person, declaration of the PF accumulation in approved securities, declaration of the PF interest & crediting it to the members accounts etc.
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BEML limited. 6. COSTING AND BUDGETING DEPARTMENT Costing and Budgeting department is a very important area concerned to the company. Costing takes care of all the expenditure concerned to the production. This department will calculate all the overhead cost and they will identify the area where costs can be reduced. These reports they send it to the planning department and the planning department will in turn send this to the IE & MS department as part of annual cost reduction plan. Budgeting will be done for every financial year and the funds will be allocated for each and every activity. These will help to maintain the working capital and funds property.
7. PURCHASE SCRUTINY Purchase is considered to be very important function in a firm. Therefore, scrutinizing the purchase procedure is also as important as purchase itself. The main function of this section is to scrutinize the purchase orders. This section will assist the purchase department in deciding on the purchase order. All information of the purchase department will be scrutinized i.e. from the time request for material is placed till the purchase order being placed. Coordinating with the department during the tender formalities also.
8. MATERIAL ACCOUNT This section is responsible for accounting the material held in the holding stores by accounting all the receipts & issue documents. The accounts is done in quality, value & also in charge of accounting of material issued for subcontracts of fabrication, sent on loan basis, sent for rework/recommendation & stock transfer to other departments. Functions: Maintenance of material ledger in the computer system for all items of the material held in the stores, investment account wise & store wise by accounting the receipts & issue to the production & other accounts & releasing the accounting entries.
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BEML limited. Reconciliation of the value of inventory as per the material ledger with the general ledger figure. Reconciliation of the quality balance against the items in bin card with the material ledger balance by rendering the required assistance to the stores department. Accounting & control of the material issued to the sub contract for the fabrication/completed items as well as loaned items. Scrutiny of the list of non moving surplus items as well as loaned items. Accounting for scarp disposal orders. Books maintained: Material ledger. Inventory accounts. Ledger for material issued to sub contractors. Register for scarp/surplus items dispatched. All store documents relating to stock accounting.
9. BOOK KEEPING This section is completely responsible for the maintenance of the complete financial records all the accounting section sections present in BEML have to report to this book keeping section. This document constantly keeps in touch with other department for information pertaining to sales & purchase, investment, loans, advances & other details for the profit & loss account & balance sheet which is to be prepared at the end of the year. BEML comes under the ministry of defence which has its own set of rulers which governs the administration of the company but still it follows the rulers & regulation laid down in the companies ACT of 1956. This section is also responsible for the reconciliation of accounts of other divisions, it also charges the depreciation on the assets of the company & is responsible to answer the government audit & also entered with the work of the tax audit report.
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BEML limited. 10. SYSTEM APPRAISAL (AUDIT) Auditing is very important for every organization. Therefore, BEML established a separate section for its auditing purpose. Auditing is conducted on continues basis. Internal as well as external auditing is done in this organization. All transaction, accounts are audited by the internal staff, statutory audit is done by the external organization which includes CA & BEML being a PSU under the ministry of defence audit is done by the Government also. There are three types of audit being done which are as follows: Transaction Audit Statutory Audit Government Audit FINANCIAL DETAILS: SUMMARY OF THE LATEST REPORT: PROFIT & LOSS ACCOUNTS OF BEML BANGALORE COMPLEX SCH MARCH 2009 ( Rs Lakhs) INCOME Sales Less: Value of consortium supplies 8,256.90 293,090.04 Less: Excise Duty Net Sales Other Income Increase/(Decrease) stock 318,786.54 274,802.86 17 in 18 13,372.94 279,717.10 10,997.33 28,072.11 271,334.47 17,374.59 253,959.88 9,482.77 11,360.21 16 301,346.94 271,334.47 MARCH 2008 ( Rs Lakhs)
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BEML limited. Expenditure Cost of Raw Material & Spares 19 consumed/sold Employees Benefits Depreciation Other Expenses 5 21 2,730.88 31,295.76 276,034.96 Less: Expenditure allocated to 22 276,034.96 Interest 23 3,924.78 279,959.74 Profit for the year: Prior period adjustment Profit before tax: Less: provision for tax Profit after tax: Add: balance in profit and loss account brought forward 6,242.07 4,523.50 24A 24 38,826.80 80.07 38,746.73 11,862.49 26,884.24 46.14 238,511.97 2,308.75 240,820.72 33,982.14 (819.22) 34,801.36 12,235.98 22,565.38 1,769.68 30,445.82 238,558.11 Remuneration & 20 56,918.93 45,385.93 185,089.39 160,956.68
capital and other accounts
Profit available for appropriation Appropriations: Proposed Dividend Tax on Dividend Interim dividend and tax thereon General Reserve Balance transferred to balance sheet
33,126.31
27,088.88
4,997.34 849.30 17,500.00 9,779,67 33,126.31
2,706.88 460.04 2,679.89 15,000.00 6,242.07 27,088.88 56.10
Basic/diluted Earnings per share (Rs.)

64.56
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BEML limited. BALANCE SHEET OF BEML BANGALORE COMPLEX SOURCES OF FUNDS SHAREHOLDERS FUNDS Share Capital Reserves & Surplus 1 2 4,177.22 187,360.41 191,537.63 Loans funds Secured Loans Unsecured Loans 3 3A 47,090.88 9,673.08 56,763.96 Deferred tax liability 4 4.00 248,305.59 30,326.80 -------------30,326.80 ------------200,896.84 4,177.22 166,392.82 170,570.04 MARCH 2009 MARCH 2008
Application of funds Fixed Assets Gross Block (at cost) Less: Depreciation Net Block Add: Capital work-in-progress 6 5 74,950.61 49,401.95 25,548.66 2,361.00 27,909.66 Investments Current Advances Inventories Sundry Debtors Cash and Bank Balance Other Current Assets Loans and Advances 8 9 10 11 12 162,057.87 154,526.67 26,351.00 1,501.76 41,275.88 385,713.18 92,958.00 149,605.62 52,109.53 1,908.01 18,313.81 314,894.97 Assets, Loans & 7 794.89 68,027.78 46,970.05 21,057.73 2,425.43 23,483.16 794.89
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BEML limited.
Less: Current Liabilities & provisions Current Liability Provisions 13 14 113,326.33 53,615.48 166,941.81 Net Current Assets Deferred tax Asset 14A 218,771.37 829.67 97,916.44 42,056.36 139,972.80 174,922.17 302.80 1393.82
Miscellaneous Expenditure ( to 15 the extent not written off or adjusted)
248,305.59
200,896.84
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BEML limited. HUMAN RESOURCE DEPARTMENT HIERARCHY OF HUMAN RESOURCE DEPARTMENT DIVISION HEAD BANGALORE COMPLEX
DEPUTY GENERAL MANGER
ASST. GENERAL MANAGER
SENIOR MANAGER
MANAGER
ASST. MANAGER
OFFICER
HRM is planning, organization, directing& controlling of procurement, development, integration, maintenance & separation of human resources to the end those individual, organization & social objectives are accomplished.
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BEML limited. HR VISION HR will be Dynamic, pro-active & strategic Business Partner to enable BEML to maintain its leadership position in all its Business Domains. HR MISSION To continuously innovate, evaluate and religion HR practices with the environment, business strategies/directions and expectation to maintain relevance and to attract nature and retain talent. To foster a spirit of creativity and innovation amongst the employees by facilities creation of a rewarding, inspiring and motivational organization climate. To act as a champion of change and managing the people implication of organization changes. HRM IN BEML CAN BE DIVIDED IN TO FOLLOWING DEPARTMENTS: Welfare. Establishment Training & development Disciplinary Time office House keeping Canteen Horticulture Training centre WELFARE: As the name states the main aim of this department is to ensure the welfare of the employees in various fields. It caters to the requirements of employees. Various benefits being provided are as follows: TRANSPORTATION This department provides transportation facilities of the employees to the factory. Various functions of this section are issuing bus passes, processing bills, correspondence with BMTC, surprise checking & monitoring, cost reduction measure, maintenance of files, cleanness of bus yard etc.
BEML limited. MEDICAL This section deals with the medical treatment & facilities being provided to the employees. Various activities being performed are conducting various health programmes i.e. pulse programme, free health camp, eye check up, skin check up, diabetic check up, conducting various training programme, first aid training, checking & compliance with ESI Act Provisions, Blood donation camp arrangement & so on. CANTEEN This department ensures daily visit to canteen during breakfast & lunch hour, coordinating with the canteen officer for canteen activities, framing rules & regulation to regulate the canteen services. HOUSING /TOWNSHIP Conducts regular visit to township for beautification & handling the grievances of township offices/employees. Coordinating with the committee for smooth function of development work. Checking the day to day activities, planning for revenue generation. OTHERS Various other functions being carried out by this department are providing uniforms, shoes, dairies, coordinating with stores for smooth distribution of activities, small savings, and distribution of Sodexho coupons, settlement of death accounts, implementation of welfare activities & policies, conducting election for BEMEA & other elected bodies, meritorious awards, attending accident cases, handling the complaints boxes, school management, counselling the employees & so on. ESTABLISHMENT This section is considering as the back bone of HRD. It contains all the matters relating to an employee i.e. form the time he joins the firm till he leaves. It performs various functions such as maintenance of personal files, issues relating to promotion, wage fixation, recruitment, issuance of various certificates like service, salary, NOCs etc. the company has a total strength of 12573 comprising 2708 offices & 9865 employees. The following is the strength of the man power in Bangalore Complex as on 1-5-2010.
BEML limited.
WAGE GRADE S4 S3 S2 S1 E D C B A TOTAL
CATEGORY SENIOR SUPERVISOR SUPERVISOR JOINT SUPERVISOR DEPUTY SUPERVISOR MASTER SKILLED HIGHLY SKILLED SENIORN TECHNICAN TECHNIAN UNSKILLED
NO. OF WORKERS 200 460 135 666 229 392 270 90 12 2454
REPRESENTATION OF SC/ST/EX-SERVICEMEN
Category/ group
Total Strength as on 1.1.08 1.1.09 1517 1234 9656 130 12537
No. of SC/ST and Ex-Servicemen

Scheduled caste Scheduled tribe Ex-servicemen
1.1.08 239 135 2045 33 2452
1.1.09 221 198 2080 47 2546
1.1.08 47 35 366 448
1.1.09 45 61 375 5 486
1.1.08 16 6 392 414
1.1.09 10 7 375 392
GROUP A 1569 GROUP B GROUP C 855 9501
GROUP D 89 TOTAL 12014
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BEML limited. The function of this section relating to various areas as follows: RECRUITMENT Recruitments in BEML are based on the requirement for maintaining different operators of the company. The requirements in turn are associated by IED keeping in view the operational requirements & succession planning. Recruitments are normally made through employment exchange; walk-in or openings are published in the web site/advertisement in news papers etc. In respect of ex-service personnel the recruitment are based on the list provided by ex-serviceman organization of Government of India. Due reservation concession are provided to candidates belonging to SC/ST/OBC/Physically Handicapped etc. Medical examination & all the verification will be done. After recruitment the candidates will be probation as per company policy & confirmation of the post will be based on the satisfactory performance. Any false data being provided will lead to the termination of service. All the recruitment will be done by the corporate office. PERFORMANCE APPRAISAL It is very important for any organization to review the performance of its employees periodically. The appraisal is done annually for both employees as well as officers based on rating scale. Employees are rated by their immediate superior based on their performance throughout a year. Employees service record is an important document which indicates the performance with reference to various parameters with reference to various parameters mentioned in the document. No feedback is provided to the employees. In case of officers key performance area will be determined at the beginning of the year between the officer & reporting authority to enable the officer to achieve the target set. Self appraisal will be done by the officer & then will be reviewed by the concerned authority & the rating is given.
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BEML limited. WAGE AND SALARY FIXATION One of the most important functions is to fix the salary based on the scales fixed by the management. Various allowances are given which are described as follows: The employees are paid on monthly basis; the components of salary are Basic pay, DA, HRA etc. Various allowances given are night shift allowances, Contingency allowances, lunch allowance, transport allowance, Reimbursement of entertainment expenditure, reimbursement of internet broadband charges etc. Incentives are also given to the employees as well as the officers as per the provisions. Advances are provided for the purchase of vehicles, computers, house building advance, leased car facility to senior officer etc.
PROMOTION Promotion is given based on the seniority as well as the performance basis. Once certain year of service is completed by an employees automatically he is posted to the next level. In case of extra ordinary performance also before the tenure itself an employee will be promoted.
TRAINING AND DEVELOPMENT Each and every person is lacking some or the other skills which can be improved but providing training as per the requirements. This section looks into the training needs of the employees as well as the officers. It is done annually or as & when required. Various activities being performed by this section are as follows: Training needs differ from employees & officers. It also differs based on the grade of each of employees & officer. Each department identifies their training needs & inform to this section. All needs of the entire department are consolidated & plans are being made regarding the training to be provided & informed to the management regarding the budget of the training programmes.
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BEML limited. Training calendar will be made stating the programmes to be implemented that matches the needs. Decision will be taken regarding who will train i.e. internal or external people. Training is given based on various levels. It differs from each level based on the innovation, competition level etc. Training will be given for the overall development of an individual which helps both in case of work as well as personal life. Feedback will be collected from the employees after they are trained. Ratings are given based on the set parameters. Changes will be implemented in the next programmes from the feedback obtained. Training undergone will be recorded in each employees profile which can be referred in the future for any purpose. This record will help the department to avoid unnecessary training being given to same employee without having the knowledge of the past training being provided. This helps the management to reduce the cost. Training needs are given in various areas such as Technical programmes, Industrial safety management, Soft skills, quality improvement programmes, Inventory management, Finance, Marketing & General. Some of the training programmes are Awareness on safety, occupation safety. Soft skills like communication & presentation skills, problem solving & decision making, stress management, Awareness programme on ISO 14000, Total Quality Management. General training which includes yoga, computer training, health programme etc.
DISCIPLINARY In every organization there are set rulers & regulations to be followed by the employees. In the event of violation of standing orders, disciplinary action as deemed fit will be initiated by this department. All matters relating to the problem of the employees regarding violation of the rulers will be handled by this section.
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BEML limited. TIME OFFICE Attendance is an important aspect in any field. Therefore it is necessary to maintain the record of employees attendance. In this case each employees entry & exit time will be recorded & for this purpose punching is being used. If any employee has to go out during the working hours gate pass will be issued by the department head & also recorded in the books of the security.
HOUSE KEEPING Cleanliness is very important to be considered in any organization as it conveys a message about the image of the firm to the outsiders. Therefore, a separate section is formed by the organization in order to maintain the cleanliness of factory premises.
CANTEEN BEML is having three canteens which provide food to all employees. Seating capacity 4000-4500. Cost Rs. 5 per meal employees. Purchases are done from Government agency. Order will be placed for 1 year except vegetables. Total requirement of rice 800 kg per day. Total cost Rs. 75000-80000 per day. Wastage 2%- 3% per day. Total number of canteen staff 100 (No woman employees).
HORICULTURE For any organization greenery adds to its beauty. So the firm has made a separate section to look into the gardening/beautification of its firm. BEML has achieved various awards for its beautiful garden.
TRAINING CENTRE This is another section which is different from the training & development section. This section mainly focuses on the training requirements of the
BEML limited. apprenticeship for various types of technical & non technical training for a specific period. It does not look into the training needs of the employees.
GRATUITY ACT (1972) Employees drawing more than Rs.35000 & who have put in continuous service for not less than 5 years for eligible for gratuity. When Gratuity is not payable Partial Forfeiture: When employees causes any damage to the countrys machinery equipment provided the principle of national justice is employed. Full Forfeiture: In case of riotous or disorderly behaviour of the employee inside the factory & in case of moral turpitude like theft etc.
CALCULATION Salary for this purpose includes Basic, DA = (LAST SALARY DRAWN) *15* (COMPLETED YEARS OF SERVICE)/26
PERFORMANCE APPARAISAL, PROMOTION, MAN POWER PLANNING PERFORMANCE APPARAISAL Performance appraisal is done by the method of MBO (Management by Objectives) PROMOTIONS For employee category the promotion are done once in 4years regularly. Sometimes it may become 5 years because of miss behaviour of employee. In case of executive section it is based on performance of an executive & it is not based on management objectives.
MAN POWER PLANNING Man Power Planning is done in production department based on the requirement to complete the yearly order. Contact workers are appointed to do extra work & also night 11.00 PM to 6.30 AM is considered as overtime (OT) to complete
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BEML limited. the order. Administration of man power planning is done based on the available work in the respective department.
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BEML limited.
MARKETING DEPARTMENT HIERARCHY OF MARKETING DEPARTMENT
DEPUTY GENERAL AMNAGER (MARKETING)
SERVICE WING (SPARE PARTS)
ASST. GENERAL MANAGER (MARKETING)
SR. MANAGER
SR. MANAGER
SR. MANAGER
METRO
RAILWAY
DEFENCE
BEML limited has nationwide marketing network for sales and services of construction equipment spread across 22 states, the National Capital Region and 2 Union Territories. BEML has an effective marketing network that provides customer with immediate access to BEMLs wide range of products & service. The companys marketing strength and reach has enabled it to achieve a share of even 70% in the Indian market. The corporate head quarter is in Bangalore but the central marketing unit been shifted to KGF where most of the vehicles for commercial purpose are
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BEML limited. manufactured. It has regional offices, a large number of direct office, spare part depots and service centres located within the country and also abroad. SALES PROCEDURE: Preparation of materials. Presentation of materials. Listing of the customers. Call/invite the customer. Arrange the site/place for preparation. Display the material prepared. Product improvement. Product extension Diversified product going for new products. Demand. Availability of technology SALES PROMOTION ACTIVITIES Regional offices take the survey of the product in the market. Preparation catalogues and production guide lines. Production exhibition. Wall charts and calendars. Photograph video tapes. Transparencies mini shows. Training of sales person. Product launching FUNCTIONS OF MARKETING Mainly deals with spare parts and equipment for defence, railways and metro exclusive for defence customer and public. Army units will place their orders as per requirements. Since they cannot place an order for each and every single item they should place their requirements to Central Ordinances Depot (COD) which in turn collects all the orders & places a bulk order to BEML. Rate list will be received by the department stating the units & price.
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BEML limited. A separate section will deal with identifying the indigenous items & to be improved. Some items needed to produce the products may be available with the firm itself or may need to import. Various files are prepared by the department separately for indigenous items & improved items. BEML has collaboration with various others firms like Rotem, mitsuibhishe etc. Therefore, in case of import of items it should be intimated to the collaborator by placing the purchase order. The above mentioned files will be given to the top management for the approval. After the approval can go ahead with the purchase. Waiting period can be 6 months in case of shipping goods. In case of defence order no custom duty is charged. When it reaches the factory local inspection is done by the concerned authority of this department along with the representative of collaboration. Check sheet is prepared. It should tally with illustration spare parts and equipment manuals. It is then inspected by the Controller of Quality Assurance (CQA). The items should be accompanied along with the inspection note. Items will not be accepted if it is not accompanied with I-Note. Penalty of Rs. 1000/day will be paid in case I-note is not accompanied with the items. Payment schedule is fixed as 30 days. Waiting period is 90 days in case foreign suppliers. This department achieves a turnover of about 60-80 crore annually. Presales: Pre tender or pre quotation, support services, techno commercial analysis, order dispatch. Post sales: Dispatching messages run machines, rehabilitation, maintenance of local suppliers & 6 months in case of
contract, training, service Centre and merchandising. Finance billing, submission of bills, follow up for payments and maintain accounts, financing arrangements.
BEML limited. Servicing of products like spare parts and providing various after sale service is the major area of function.
FUNCTIONS OF SALES DEPARTMENT PRE-TENDER ACTIVITY After having known the requirement of earth moving equipment produced by BEML, all the efforts need to be exercised as per-tender activities to motivate customer to incorporate specification of BEML equipment only. If succeeded in a pre-tender activity, customer will place order on BEML on proprietary basis. Sales executive are required to keep in mind SWOT analysis to understand the potential of the customer. TYPES OF ENQUIRIES/TENDERS PROPRITARY; This type of tender, purchase who knows what he wants releases an enquiry to the supplier. Purchase would specify the technical specification & the time for supply of the equipment & other commercial terms & condition. If the supplier cannot meet the requirements of the purchase, he could go to another supplier. There is one-to-one relationship in the case. LIMITED TENDER This case the customer wills send his inquires to few suppliers (5 or 6) specifying the requirements in equipment. Based on the enquire the suppliers will submit quotation to the customer. Now the customer has to decide on purchasing of the equipment based on consideration of price, delivery time, transportation, insurance, technical specification given by the supplier. The decision making requires a long time; as well as ordering time is also more. GLOBAL OPEN TENDER In this situation the tender notification are announced in news papers. The process is similar to limited tender excepted that the numbers of suppliers are more. The purchase has to decide on different quotations sent by different suppliers on different consideration. The GM sales could do the Tender/Analysis/Participation. The GM will purchase the tender document from the tender.
BEML limited. The tender documents are divided into following parts: Technical specification. Equipment specification. Commercial Terms. General terms & condition of supply of stores. Perform for price bid. The GM is responsible to answer the specification given by the purchased in Tender For the technical requirement the design parameters is send to the R&D department, then they would give the technical support. The production department will give the delivery and cost estimate. The cost estimate would include manufacturing cost like material cost, labour & overheads. To this cost certain margin is added, and then the price is decided. The finance department will give the payment terms. The price is kept confidential. Prepare sale order and submit to production, finance and the entire connected department including the terms of purchase order. Follow-up with production units for expecting, manufacture of required equipment. When the equipment is ready inform the customer for inspection of equipment if applicable as per the order. After inspection of equipment by the customer obtain acceptance certificate & arrange to dispatch equipment to the consignee as per the order.
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BEML limited. MATRIAL MANAGEMENT This department deals with purchasing and storing of materials and supplying the materials to the production department according to their requirements. Department Purchase department. Stores department. PURCHASE DEPARTMENT: This department in BEML is decentralized each section is responsible for the procurement of its requirement. The purchase section is directly responsible for its efficient discharge of its function, duties and responsibilities. The major objectives of this section is to procure only the required amount of materials so as minimize the expenditure in inventory and keep the inventory as minimum as possible. The major functions of this department are mentioned below: Identification and selection of suitable sources of supply of materials. Analyzing of bids and prices by ensuring the fair opportunity to the supplier. Negotiation the prices by ensuring the fair opportunity to the supplier. Issue of purchase order, follow up for suppliers. Assistance in standardization of material, supplies and equipments. Co-ordination of payment to supplier bills and recovery of dues from suppliers. Conduction market research improved method and products. BEML a lead time of 3 to 4 months for Indian items and 9 to 10 months for foreign items is considered. While placing the order they take in account opening stock, closing stock to be maintained and existing materials in production. The basic document for preparing purchase plans are the production and prevision programmers, revenue and capital budget, sales order and bill of material.
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BEML limited. Purchase procedure: After getting material requisite from the planning department. Sub-planning will be done inside the department. Ask for the design for the particular machine from design department. Selecting vendors both from Authorized vendor list (AVL) or marketing department will do a survey make the list of vendors. Vendors will be short listed on the basis of considering capacity, quality, capability, technology, delivering, time etc. From the short listed vendors they will call for tenders. These tender will be opened in front of each person from audit, finance, purchase. The tender will be valued if all the three are signed in the tender. Once quotations are approved they will compare the quotes. From the list they will select the lowest quotation they will put label as L1, L2, L3 etc. Purchase order is prepared & sends to accounts department for scrutiny. Purchase department have to give justification for why they selected particular vendor. Final purchase orders have to be prepared & have to forward to the vendors. Delivery schedule also have to be prepared & send to the vendor. When making the schedule they will make sure that stock will be purchase monthly to avoid blockage of finance, storage problems. Vendor has to supply the goods as per the schedule. When goods arrive, the quality engineering department will inspect & approve it. After approval it will send to stores. Then purchase department has to make arrangement for payment for the vendor.
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BEML limited. STORES DEPARTMENT The store department is the custodians of all inventory held by BEML, and is charged with the responsibility of receipt of goods, processing, storage and maintenance, issues, reclamation salvage items and also maintenance of proper records for accounting of all stores transaction. It is a wing of materials management and is under the overall charge of chief of stores, Bangalore complex. He is issued by a team of officers and staff for carrying out the stores functions. THE STORES COMPRISES OF DIFFERENT GROUPS AS MENTIONED BELOW: Receiving store Holding store. Tools store. Defence store. Non project store. Salvage store. Stock control. FUNCTIONS: Receiving of all materials (brought out customers supplied items) & offering inspection. Control of non- confirming products in receiving stage. Proper storage and maintenance of tools, gauges & instruments. Dealing with non-projects items. Receipt & storage & issue of customers supplied products. Production identification & trace ability. Implementation statutory/regulatory requirements where ever required. Handling field failure items. Maintaining quality records. Document and data control. Control of non-confirming products range during storage. Corrective & preventive action.
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BEML limited.
SALES RECEIVING PROCESS
ENTRY OF TRUCKS
VEHICLE ENTRY PASS
RECEIVING STORES
IDENTIFICATION OF LOCATION
UNLOADING
RECEIVING REPORT
PROCESSING STORES (INSPECTION) HOLDING STORES
PRODUCTION CONTROL GROUP
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BEML limited.
PRODUCTION DEPARTMENT HIRARCHY OF PRODUCTION DEPARTMENT

CHIEF OF PRODUCTION BANGALORE COMPLEX GENERAL MANAGER
DGM METRO PRODUCT
DGM DEFENCE PRODUCTS
DGM RAILWAYS
AGM
AGM
AGM
Sr. MANAGER
Sr. MANAGER
Sr. MANAGER
MANAGER
MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
Asst. MANAGER
ENGINEER
ENGINEER
ENGINEER
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BEML limited. Production department in BEML is concerned with the manufacturing of all products of BEML. The products are manufactured in BEML are Defence, Railway coaches, mining and construction equipment, industrial robots and steel plant equipment heavy fabrication machines etc. Production department in BEML comprises of: Methods planning-1 Methods planning-2 Industrial engineering and management section (IE and MS) Production control and progress. Production shop. METHODS PLANNING-1 This department is responsible for planning activities connected with railways products, it is responsible for providing cost estimation to marketing division in coordinating with R&D department and accounts department. Functions: Preparation of bill of material. Preparation/approval/issue of process sheet. Offloading of items. Release of job cards and route cards for network. Cost estimation. Corrective and preventive action for system non-conformance. Implementation of quality plan requirements. Control of drawing. Assistance offered for developing work instruction for special process. Document and data control. Control of computer software. Internal communication. Continuous improvement. To approve temporary process deviation advice. To co-ordinate with other department. Like production control, production shops, industrial engineering & management services, tool engineering etc to sort out the problem if any, connected with inputs given to these departments.
BEML limited. METHODS PLANINNG-2 The function of the department is similar to that of method planning-1, but the only difference being in the type of the product they deal in methods planning-2 deals with defence products which includes defence truck TATRA etc. INDUSTRIAL DEPARTMENT This department coincides with the planning as well as the production department. The main activity of this department is to fix the time required to perform each operation. The major activities carried out by the department are as follows: Preparation of the job stating clearly the time required for the complete of each job. Improvement of the productivity. Deciding on the time will be based on the corporate guidelines. Estimation of the cost also will be done. A separate committee is also formed to encourage the employees to come up with the suggestion which will have a positive impact on the organization. Practical & cost effective suggestion will be encouraged & is rewarded by the management. Rewards can be in the form of monetary as well as non monetary form. Time taken by the employee is compared to the actual time given by the department to know the efficiency. Incentives will be provided for the time saved by the employee. PRODUCTION CONTROL AND PROGRESS SECTION This department is mainly concerned with movement of raw materials; components from the store to the concerned production shop. In other words this department controls the flow of material i.e. whenever there is a requirement of some component from any job shop and this department informs the stores department and ensures that there is continuous r uninterrupted flow of material so that production is unhampered. ENGINEERING AND MANAGEMENT SERVICE
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BEML limited. PRODUCTION SHOP/JOB SHOP: This is the place where the actual manufacturing/production takes place. In BEML, following are the various hangers that are involved in the manufacturing activities. HANGERS DESCRIPTION: Alternative current electrical multiple unit-ACEMU. Multiple units. Bogie. Under frame work. Sheet metal. Pre-treatment/planning. Machine shop. Tools room. Bogie frame. Final finishing coaches. Trailer shop. New material preparation. Assembly department. Earth moving fabrication and assembly shop. There are 5 major depots in production department: New material preparation (NMP) Machine shop. Sheet metal. Sub-assembly shop. Pre-treatment and pre-painting.
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BEML limited.
RESEARCH AND DEVELOPMENT DEPARTMENT HIERARCHY OF RESEARCH AND DEVELOPMENT DEPARTMENT

GENERAL MANAGER BANGALORE COMPLEX
DEPUTY GENERAL MANAGER PRODUCT DESIGN
DEPUTY GENERAL MANAGER TECHNOLOGY DIVISION Asst. GENERAL MANAGER
DEPUTY GENERAL MANAGER RESEARCH & DEVELOPMENT
Asst. GENERAL MANAGER
Asst. GENERAL MANAGER
SENIOR MANAGER
SENIOR MANAGER
SENIOR MANAGER
MANAGER
MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
Asst. MANAGER
ENGINEER
ENGINEER
ENGINEER
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BEML limited.
INTRODUCTION R&D division is gearing up to meet the challenges of future technology, which is becoming more & more interdisciplinary in nature. A well established research & development centre of the company continues to pay a vital role in the design and development of products, indigenization. BEML has built up a strong R&D base, which has a state of art manufacturing technology committed to achieving superior quality in its products and service & extends marketing support to its valuable customers. The R&D department established in the year 1964 at present there are 215 engineers in the Dept. R&D centre are located in 3 centres namely KGF plant which has one of the best R&D facility in Asia, next in Mysore & family in Bangalore complex. BEML aims to provide its customer in core sectors which state-of-the-art equipment of the quality, reliability and performance standards, towards this end, BEML R&D division is further strengthening itself as an indigenous and innovation base for mining and construction equipment, railways and transportation equipment, railway and on par with the best in the world. Electronics has penetration almost all area of operation and R&D division is increasing focusing towards macaronis, robotics and industrial automatic. Since the Bangalore complex is mainly dealing in defence products there are many groups looking after individuals projects. Groups change according to the requirements of research & development departments. R&D has four main activities Projects initiation report-this is based on the marketing report & feasibility study which has to be submitted to the management. Order based production under this method the customer place the order and the prototype is developed & the pilot batch is launched. Collaboration project items to solve the indigenous and only critical items ae reached. In house plant these are used to solve the problem within the plant.
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BEML limited. OBJECTIVES: Build total self reliance in earth mover and related technology. Adopt technology to suit national requirements practically in vital. Sectors such as construction mining, irrigation, railways, transportation and automation. Update current products for higher performance and reliability. Design and develop products in identification technology areas. Set up test facilities for evaluation of performance & reliability of vehicles and systems. Generate design data & increase reliability of design. FUNCTIONS OF THE DEPARTMENT To take up the indigenization of the vehicle. Doing case study of the existing projects to reduce the cost & increase efficiency, for example some of the projects undertaking by BEML are SAVOTRA, TATRA projects. Design and develop specialized type of the vehicle both for railways and defence for example some of the vehicles developed indigenous for railways are 8-wheeler overhead electrical (OHE) car, 4-wheeler OHE car, PRITHVI Missile launcher and 4*4, 6*6, 8*8 and 12*12 trucks for defence. With the help of advance designing and engineering softwares like
CAD/CAM the entire products is prototyped in the computer and a thorough analysis is made before the actual products designed is sent to the production Dept. Some of the current projects undertaken are PMS bridges system and another important projects is that of Delhi Metro Rail Coaches (DMRC) which is done in technical collaboration with the South Korean company ROTEM, sky bus which is launched in Goa is also one of major breakthrough of R&D Dept.
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BEML limited.
MAINTENANCE DAPARTMENT HIERARCHY OF MAINTENANCE DEPARTMENT

DIVISION HEAD BANGALORE COMPLEX CHIEF OF MAINTENANCE
CIVIL MAINTANANCE
ELECTRICAL MAINTENANCE
MECHANICAL MAINTENANCE
MANAGER
MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
Asst. MANAGER
Asst. ENGINEER
Asst. ENGINEER
Asst. ENGINEER
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BEML limited. Maintenance Department is a vital function sector of BEML taking care of mechanical, civil and electrical maintenance of the plant, machinery and equipments. The activities of the department are inter-woven with the related functional areas of complex. FUNCTIONAL AREAS 1. Civil Maintenance Maintenance of new constructions. Maintenance of old buildings. Maintenance ventilations. Control of preventive actions 2. Electrical Maintenance Maintenance of power handling equipment. Maintenance of switch boards, wires etc. Maintenance of fans, lights etc. Control of preventive actions. Control of quality records. Erection and commissioning of new equipment. 3. Mechanical Maintenance Maintains machine tools. Maintains material handling equipment such as fork-lifts, side loaders. Preventive maintenance as per the schedule drawn. Control of preventive actions. Control of quality records. Erection and commissioning of new industry.
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BEML limited.
QUALITY ENGINEERING DEPARTMENT HIERARCHY OF QUALITY DEPARTMENT

CHIEF OF QUALITY
IN CHARGE OF TRAILER/ TATRA , PMS WAGON
IN CHARGE OF RECEIVING INSPECTION
IN CHARGE OF H6, H7, H15 & BOGIE OF QE WAGON
IN CHARGE OF METROLOGY LAB, TOOLING INSPECTION
IN CHARGE OF METROLOGY TOOLING INSPECTION MACHINE
IN CHARGE OF TATRA
IN CHARGE OF PMS
IN CHARGE OF WAGON
I/C OF PRETREATEME NT OF SHEET METAL AND MATERIAL
I/C OF LAB
IN CHARGE OF H6, H7, H15
IN CHARGE OF BOGIE
Quality Engineering Department is a vital functional sector of BEML taking care of quality testing of inventory, tools, machine, which are procured from vendor and are inspected in the stores physically. It is responsibility for carrying out activities pertaining to the products which are produced and dispatched by BEML, Bangalore complex.
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BEML limited. MAJOR FUNCTIONAL AREAS There are four functional areas in this department: Receiving inspection. Regional Quality Assurance Wings (RQAW). Final Inspection. Metrology Activities The activities carried out in BEML are: Inspection. Quality assurance. Coordinating with third party inspection wing authorized by customer. Control of non-conformances. Advice preventive and corrective actions. Control of quality records. Dealing with customer complaints. Quality objectives Achieve operation excellence by reducing the non-conformances. Ensure reliability of equipment through quality assurance and quality control activities. Train and motivate quality personnel to achieve quality improvement. Have an effective and documented system to ensure that quality control in practical in all areas. Strive continuously to achieve better products quality by introducing new techniques facilities. Functions: Participation in management review. Participation in contract review. Carry out inspection & testing. Verification of customer supplied products. Verify product identification & traceability. Inspection of goods, items, assemblies and provide test status. Control of non-conforming products.
BEML limited. Advice preventive and corrective actions. Dealing with customers complaints. Monitoring customer feedback. Preparation and maintenance of quality records. Evaluation of quality costs. Identification and arranging for training of quality engineering staff. Coordination with the third party inspection agencies. Preparation & monitoring of quality objectives.
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BEML limited.
SAFETY ENGINEERING DEPARTMENT HIERARCHY OF SAFETY ENGINEERING DEPARTMENT
CHIEF MANAGING DIRECTOR
CHIEF OF MANUFACTURING & MAINTENANCE
CHIEF OF SAFETY OFFICER
SAFETY INSPECTION
SAFETY OFFICER
ADMINISTRATIVE ASSISTANT
Safety in simple terms means freedom from risk of injury or less. Individual safety or employees safety refer to the protection of workers from industrial accidents. The Indian industries faces thousands of accidents they not only causes pain, disability but death & also cause untold miseries to the families, apart from accidents it also results in financial loss, besides legal effects, embracements & loss of public image. Accidents also cripple profit and productivity safety measures have become therefore necessary for public & industrial undertaking. SAFETY GADGETS PROVIDED IN BEML Helmets, goggles, respirator, ear muff, gloves, apron, safety belt, pants, gagging boots, safety shoes, figure guards, suit, coat over all. In BEML the safety engineering department looks into the safety of men, material, machinery, equipment & environment. The safety precautions followed in BEML are governed by the ISO-9000 certifications. The Indian factory Act of 1948, the Karnataka factory Act of 1969 & the environment Act.
BEML limited. To ensure safety at BEML the following programs are undertaken Display of safety poster. Training of employees in safety maintenance, material handling & equipment handling by internal & external safety experts. 4th May is celebrated as safety day in which various safety programs like award for people who have followed standards, safety quizzes & essay writing on safety.
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BEML limited. TRADE UNION PRESIDENT
FIRST VICE PRESIDENT
SECOND VICE PRESIDENT
GENERAL SECRETARY
JOINT SECRETARY
ASSITANT SECRETARY
TREASURE
EXECUTIVE COMMITTEE MEMBERS
Trade unions have been defined as a continuous association of wage earners for the purpose of maintaining and improving the condition of their working life. In earlier times, when industry was on a small scale where few apprentice and craftsman whom the master craftsman employed lived with him and condition for employment and grievances were easily discussed individually or in small groups and quickly settled. Modern industry is very different. It is organized on a large scale and the maintenance of close, direct relations between the employers and workers for the settling of differences is very difficult. The status and security which workers had in earlier communities has gone and in its place they need the protection of trade unions. Labour is so much more mobile than in former times. The machinery and other capital used in industry have become the owners of the capital and workmen who operate the machines.
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BEML limited. FUNCTIONS OF TRADE UNION: 1. Functions relating to trade member: To safeguard workers against all sorts of exploitation by the employer, by union leaders and by political parties. To protect workers from the atrocities and unfair labour practices by the management. To ensure healthy, safe and conductive working condition and adequate conditions for work. To ensure a desirable standard of living by providing various types of social services such as health, education, housing, recreational, cooperating etc and by widening and consolidating the social security measures. To guarantee a fair and square deal and social justice to workers. To remove the dissatisfaction and redress the day to day grievances and complaints of workers. To encourage workers participation in the management of industrial organization and trade unions and to foster labour management and labour follower co-operative. To make workers conscious of their rights and duties. To stress the significance of settling disputes trough negotiations, joint consultation and voluntary arbitration and not through adjudication. 2. Functions relating to industrial organization: To highlight industrial as a joint enterprise between workers and the management and to promote identity of interest. To help in maintenance of discipline. To create opportunity for workers participation in management and to strengthen labour-management co-operation. To create favourable opinion of the management towards trade union and improve their status in industrial organization. To facilitate communication with the management. To impress upon the management the need to adapt reformative and not punitive approach towards workers fault.
BEML limited. 3. Functions relating to union organization: To formulate policies an plan consistent with those of the industrial organization and society at large. To preserve and strengthen trade union democracy. To train members to assume leadership positions. To resolve the problem of factionalism and promote unity and solidarity within the union. To keep away from advocating and adoption of unfair labour practices. To prepare and maintain necessary records. 4. Functions relating to society: To render all sorts of constructive co-operative in the formation and implement of plans and policies relating to national development. To activity participate in the development of programmes of national development, for example family planning, afforestation, national integration etc. To enable unorganised sectors to organise itself. To create public opinion favourable to trade unions and thereby to raise their status. To launch special campaign against the social evils of corruption, nepotism, communalism, casteism, regionalism, linguism, price rise, hoarding, black marketing, smuggling, sex inequality, dowry,
untouchability, illiteracy, diseases etc. The shop unions are closely affiliated to a number of central unions. At present only 10 of these central unions are recognised by the government. There are: Indian National Trade Union Congress (INTUC). Bhartiya Mazdoor Sangh (BMS). Hind Mazdoor Sang (HMS). United Trade Union Congress L.S (UTUC-LS). All India Trade Union Congress (AITUC). Centre of Indian Trade Unions (CITU). National Labour Organization (NLO). United Trade Union Congress (UTUC).
BEML limited. SECURITY AND VIGILANCE DEPARTMENT: 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 and are given pass to enter into premises. FUNCTIONS: To collect information for effective performance. Preventive vigilance. Educating the employees. Monitor the guidelines. Safeguards the men & material which are authorized and unauthorized. 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. All executives are bound to follow the policy. Works instructions are provided to all departments. THE MAIN FUNCTION OF THE DEPARTMENT ARE AS FOLLOWS: To collect source of information. To undertake preventive vigilance that is surprise check, random check. Constructive vigilance for executives, supervisors. Punitive actions to be provided wherever necessary. Reformative action also provided. Causes of corruption & measures to eradicate.
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BEML limited. SWOT ANALYSIS
STRENGTHS
WEAKNESSES
SWOT
OPPURTUNITIES
OVERVIEW OF SWOT ANALYSIS SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities & Threats involved in a project or in a business venture. It involves specifying the objectives of the business venture or project & identifying the internal & external factors that are favourable & unfavourable to achieve that objective. The technique is credited to Albert Humphrey, who led a research project at Stanford University in the 1960s & 70s using data from fortune 500 companies.
THREATS
NEED FOR SWOT ANALYSIS The SWOT Analysis is an extremely useful tool for understanding & decision making for all sort of situation in business & organizations. The aim of an SWOT Analysis is to identify the key internal & external factors that are important to achieve the objectives. SWOT analysis groups key pieces of information into two main categories. INTERNAL FACTOR-The strength & weaknesses are internal to the organization. EXTERNAL FACTOR-The opportunities & threats are presented by the external environment.
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BEML limited. The internal factor may be viewed as Strengths or Weaknesses depending upon their impact on the organization what may represent strengths w.r.t one objective may be weaknesses for another objective. The external factor may include macro-economic matters, technological charge, legislation & social-culture charges as well as charges in the market places or competitive position. The results are often presented in the form of a matrix. The SWOT analysis provides information that is helpful in matching the firms resources & capabilities to the competitive environment in which it operates. As such it is instruction in strategy formulation & selection. The following chart shows how SWOY analysis fits into an environment Scan.
SWOT ANANLYSIS FRAME WORK
ENVIRNOMENT SCAN
INTERNAL ANALYSIS
EXTERNAL ANALYSIS
STRENGTH
WEAKNESSES
OPPURTUNITIES
THREATS
SWOT ANALYSIS OF BEML Bharat Earth Movers Limited (BEML) in a premier ISO 9001-2000 company in India & the second largest manufacturing of earth moving equipment in Asia. BEML has vital application in diverse sectors of economy such as coal, mining, steel, cement, powder, irrigation, construction, road building & railways. It has expanded its product range to cover high-quality hydraulics, heavy-duty diesel engines, welding robots & understanding of heavy fabrication jobs. It was incorporated by government of India as a private Limited Company on May 11, 1964 & went public on Feb 21, 1992.
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BEML limited. The strengths, weaknesses, opportunities & threats are discussed below: STRENGTH: BEML is four and half decade old company. The company has been quite strong faced competition over a period of time. During this reign the experience gained by the company is incredible. This is the major strength of the company. The certification of ISO 9001-2000 are great strength for the company when it comes to getting orders, as the customers insist on such certifications for placing orders. The employees of BEML are highly cooperative. They understand the managements productive ideas & join hands with management to achieve the organizations objectives. The employee union are highly supportive & maintain healthy relationship with the management. BEML has a wide marketing network & services centre situated all over India. This has made the company to efficiently handle. Customers requirements & problems. The coordination between the department is quite strong with no controversies existing between the department either organization or personal. This leads to smooth functioning of the organization. The company being the public sector undertaking is strengthened by constant support from the government through receiving various subsidies & concessions. The defence department has also been cooperative in strengthening the organization. WEAKNESSES The infrastructure of BEML through spread over wide region is not well planned. The old building are still with few repair being done her & there. This could possibly reduce the moral of the employees as the working environment really matters w.r.t. organizations profitability. Non utilization of productivity work time by the employees is a major weakness to the organization. In the production side, the employees are seen
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BEML limited. moving for their break early & returning to the work late after lunch. This almost reduces the production time by one hour resulting in reduction in the production rate. Lack of scarp management is a serious issue in any organization. In BEML scarp management is not so effective. The scrap is well maintained in a corner allowing it to corrode. The over head costs incurred by the company are quite high resulting in increased cost of production. OPPORTUNITIES The company being awarded with the Mini-Ratna status allow the chief Managing director to take the important decision relating to collaborations, technology transfer etc. Making the decision making process simple & fast increasing the opportunities for the company to diversify. Implementation SAP-an ERP package has increased the efficiency of the organization. The efficiency could help the company to grasp more order. With wide service network the BEML has tremendous opportunities to enter into untapped markets. The advent of more is expected to create great demand in the future. It is the biggest opportunity for the company like BEML. The company could go for setting up of an exclusive plant for manufacturing metro coaches there by opening the doors of opportunities. THREATS The threats faced by BEML in the global market are high. The global players like Bombardier & Alston have well sophisticated technology which reduces the cost of production; however they are ready to suffer losses for the sake of sustaining the market. The tender quoted by these competitors are attractive & of low prices. This is a serious threat faced by BEML. The economic policies of the country are continuously changing, posing threats to the company.
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BEML limited. The salaries provided by the private sector are quite compared to the salaries being paid at BEML. This will increase job hopper threats if talented employees are not retained. The hardening of steel prices is one of the major concerns of the organization, as the major raw material required for the production in steel.
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BEML limited. FINDING AND SUGGESTION Findings: A detailed SWOT Analysis of the organization functioning has helped in arriving the following finding: The employees of the organization are quite conscious aiding the company to maintain competition even in the global market. The suggestion given by the employees are whole heartedly welcomed by higher authorities. The relationship maintained by the employees union with management unlike any other public sector undertaking is healthy & supportive. The welfare activities that are provided to the employees have always kept them at higher sprits which have successfully contributed towards the profitability of the organization. By setting up offices at various regions across the company is realizing the dream of Transcending new frontiers & gaining recognition in the global market. The company is diversifying its operation across the globe by setting up various sourcing offices, services centres & representatives. The implementation of Just In Time (JIT) has improved the material management of the organization, reducing the over head costs of storing. The company has taken stringent measures to ensures employees safety by providing them with safety equipment & by placing sign boards. The interdepartmental coordinating of the organization is well maintained through a proper channel with advent of E.R.P it has become much easier & faster. The company has continuously been conducting various training & development programmers on various fields so as to train the employees.
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BEML limited. SUGGESTION: Plant layout plays a major role in the progress of work in the organization. The plant layout in Bangalore complex is maintained as ot was during its inspection. A change in the plant layout could be carried out so as to achieve effective & fast progress of work. The company having the best R&D center has been developing many products that have proved successful in the Indian as well as the Global Market technology transfer through MOU & joint ventures have been common in the last few years. It is suggested that the R&D could concentrate not only on products development but also in-house technology development. This would help the company in reducing the cost of outsourcing technology from other countries. The implementation of SAP in BEML limited has triggered the profitability the organization to leaps & bounds. A constant up gradation of such technology transformations would help the company reduce the work force. Hence it is suggested that such technological advancement could be given more concentration so that the company can reduce its over head costs on labour. The company has excellent pool of workers who strive for excellence. However during the 8 hour work schedule of the company the employees almost work only for 7 hours. Utilizing the extra one hour would increase the companys productivity for this purpose. It is suggested that the working hours of the employees could be maintained at 8 hours per day for tea & lunch break relive the other by this process the work continuity will be maintained & there will be no loss of precious time. The scarp that is generated during the production process is being underutilized rather giving this waste in scarp at cheaper rates. But the company should find those small companies that can use this scarp for further production and can earn more money. BEML has 5 decades of enterprise & expertise in the field has pioneered the process & procedures of manufacturing its products & providing services. A
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BEML limited. diversification in the products & services so as to tap the rural market would help the company in exploring the left out opportunities in the country. CONCLUSION: Growth depends on performance, attitudes determine performance. This is how the revelation of talents is carried in the history of BEML limited. Highly Qualified Administrator & talented workforce are the two eyes of the organization. BEML is blessed to posses both at the same time. With the embedded strength, the company is marching on the growth path adding new ventures & diversified business activities with sole aim to become leader in global market. BEML emerged as a public sector undertaking under the ministry of defence around five decades ago to build the nation by serving the major sectors of the economy such as mining, construction, defence, railways etc. the company in its act of diversification has growing rapidly with timely expansion leading to a profit of Rs. 305 crores in the year 2008. BEML with its consistent performance & profitability has been conferred with category-1 Mini Ratna status by the government of India, Ministry of Defence. This status has enhanced the power of board to incur more on capital expenditure on new products. Now BEML is all set to realize its dreams of transcending new frontiers & gaining recognition as a truly global company. Its venture into new terrains has not only inspired its counter parts has proved itself as a bench mark for them. BEML to maintain the growth pace in accordance with the changing trends in the business scenario, has set itself to establish global presence in terms of business as well as sourcing, not only to compete with the like companies of international repute but also to cut down costs to make sleek entries into new markets worldwide. Not to ignore the technologies advancements made within the company. The implementation of SAP in the organization but has also helped in improving its functions would witch. The filly scalable solution from SAP has enable BEML to gear up for fresh set of challenges to diversify into new horizons of business which has provided BEML better insight into the enterprise-wide analysis. With such
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BEML limited. substantial advancements. BEML limited is poised to achieve profitability of 18 to 20% in metro & rail business alone. By implementation of SAP in BEML, it is indeed a great step forward for BEML to modernize the infrastructure to sync with the new strategy & vision of the company. In spite of the challenges faced by the company in its implementation, BEML has successfully been battling with all disadvantages & is making its Herculean attempt to reach a target of Rs.5000 crores turnover by the year 20132014. LEARNING EXPERIENCE: Knowledge comes out by studying volumes of books through continuous learning. These practical situations can never be simulated. Only the real time experience would allow a person to learn & there by acquire knowledge. It had been a pride and privilege to undertake an organization study at the largest & most profitable construction equipment company which is conferred with Mini-Ratna status. It was a wonderful experience & indeed a great learning working in such a multi-technology company which offers high quality products to the various sectors of the economy. The learnings acquired from the Indias largest wealth creator BEML are many along which a few are penned. A part from learning as to how the organization function, its structure, departments, policies & processes the study has opened the doors to explore the organization, whose operation are highly refined, it has helped in understanding the processes involved in manufacturing an entire Rail. A visit to production units helped in knowing the processes involved in manufacturing & the modern technology adopted in various stages of production. The study has provided a chance to view the various gigantic machines, modern equipment & tools which one could have not seen with out a study in such an organization.
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BEML limited. The functioning of the various departments quality policies of the organization & innovative management practices followed by the organization, has been awarded the prestigious Golden peacock innovation management award. The cordial relationship between the workers & the management has helped in understanding the fact that, the success of the organization depends not on employees or on management alone but it depends on the combined efforts of both the employees and management. The commitment of the employees towards quality is a great inspiration. The interactions made with the various higher officials in the organization have inspired in developing the right attitude & commitment skills & has thereby helped in becoming extrovert. The working of the entire BEML limited as one family taught the basic concepts of team building. Various theoretical aspects learnt in the books; particularly in the fields of human resources, finance, marketing, research & quality were actualized through this study. The overall study in the organization has ignited the spark in the mind to talk up an initiative in the later days to start & run such a company that would serve as an asset to the entire country & the human race.
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BEML limited. BIBLOGRAPHY Direct interviews with officers of various departments. Annual report of BEML. Previous project reports. HR hand book. Magazines. www.bemlindia.com
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BEML limited.

MASTER OF BUSINESS ADMINISTRATION

Kristu Jayanti College

(VENKATA SURESH KUMAR)

Kristu Jayanti College

Place: Bangalore Date:

(VENKATA SURESH KUMAR)

7. 8. 9. 10. 11. 12.

13. 14. 15. 16. 17. 18.

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

RESEARCH DESIGN TITLE OF THE STUDY:

SCOPE OF THE STUDY:

Kristu Jayanti College

LIMITATIONS OF THE STUDY

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

BACK GROUND AND INCEPTION OF COMPANY

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

Kristu Jayanti College

PRODUCT MANUFACTURE IN BEML: RAILWAY TRANSPORTATION EQUIPMENT

Kristu Jayanti College

Kristu Jayanti College

6663993 1239445 2472636 237526 37622

16.00 2.98 5.94 0.577 0.09

4138975 1290640 2781043 229383 88609

9.94 3.10 6.68 0.55 0.21

5615855 1141449 2474380 218052 15571

13.49 2.74 5.94 0.53 0.03

41644500 100.00 41644500 100.00 41644500 100.00

COMPETITORS OF BEML Railways Integral coach factory permbur, RCF at

Kristu Jayanti College

Kristu Jayanti College

INFRASTRUCTURE FACILITIES: BHARAT EARTH MOVERS LIMITED

BEML SOUDHA CORPORATE OFFICE NO-23/14TH MAIN S.R. NAGAR BANGALORE-560027

PUBLIC SECTOR UNDERTAKING

MANUFACTURING OF EARTH MOVING EQUIPMENTS, RAIL COACHES, DEFENCE AUTOMOTIVE VEHICLE

Kristu Jayanti College

GLOBAL OFFICE MOROCCO CHINA SINGAPOR

Kristu Jayanti College

BEML limited. EHS POLICY

Kristu Jayanti College

BOARD OF DIRECTORS Sri V RS Natarajan Chairman & Managing Director

FUNCTIONAL DIRECTORS Sri V Mohan Director (Defence)

Shri M.Poongavanam Director (Mining & Construction)

Shri P Dwarakanth Director (Metro&Rail)

Shri M Pitchaih Director (Finance)

Shri M Nellaiappan Director (HR)

OFFICIAL DIRECTORS Shri Satyajeet Rajan Jt.Secretary (Exports), Ministry of Defence

ORGANIZATIONAL CHART CMD BEML

EXECUTIVE DIRECTOR BANGALORE COMPLEX

Kristu Jayanti College

BEML limited. WORK FLOW MODEL ORDER

CORPORATE PLANNING DESIGN & DRAWING PLANNING DEPARTMENT PURCHASE

SUB-ASSEMBLY MGF-SHOP FINISHING SUBASSEMBL Y SUBASSEMBL Y SUBASSEMBL Y MGF-SHOP MGF-SHOP

EJECTOR & AIR CLEANER