A STUDY ON WORKING OF DIFFERENT DEPARTMENT OF BHARAT ELECTRINICS LIMITED

BYRAHUL CHAUHAN 08MBA077

UNDER GUIDANCE OF Ms. A.ANEETHA Assistant Professor, VITBS

CONTENTS
Company Profile-BEL Unit Profile-BEL-KOT Mission Vision Value &Objective of BEL-KOT Organization Structure Major Milestones of BEL-KOT Product of BEL-KOT HR Department Marketing Department Strategic Challenges Finance Department Production Department Development & Design Department SWOT Analysis Recommendations

COMPANY PROFILE
From a humble beginning to a Navratna Company BEL is a PSU, under Ministry of Defense, Government of India established on 1954. BEL has more than 360 products in its range from small components costing a rupee to huge equipment costing about Rs.60 Cr. Starting with a single Unit at Bangalore, BEL now has nine Units spread across the country. Nearly 80-85% of the companys annual sales turnover accrues from products sold to Defence Services and the balance from Civilian customers. The companys dividend payment has been continuously increasing and the company paid a dividend of 170% for the year 2007-08. BEL became a Mini Ratna Category I company in February 2002. Subsequently BEL has been got Navratna status in June 2007

NINE MANUFACTURING UNIT

UNITS

ESTD. (YEAR)

No.

of

Employee
BANGLORE GHAZIABAD PUNE MACHLIPATNAM PANCKULA CHENNAI 1954 1974 1979 1983 1985 1985 5927 2596 411 500 625 410

KOTDWARA
HYDRABAD NAVI MUMBAI

1986
1986 1986

720
490 500

PRODUCT MANUFACTURED BY BEL

BANGALORE
Communication equipments HF/VHF Man pack, Mobile & static Trans-receiver/Transmitters Antenna for primary & secondary radars Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide Battery packs Passive night vision devices- Goggles, Binoculars, Periscopes, ULSB, BEST, SMART, HART VHF/UHF Ground to ground to air communication equipment

GHAZIABAD

PUNE
MACHILIPATNAM KOTDWARA PANCHKULA NAVI MUMBAI

Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipment

Gun control & Drive System for Armored Fighting Vehicles Electronic warfare equipment

CHENNAI HYDERABAD

INTRODUCTION OF UNIT BEL KOTDWARA

Established in 1985-86 coincided with the formation of C-DOT in August 1984 for development of electronic switching equipments in India BEL-KOT is the 9th and the youngest Unit in the family of BEL. Soon after its inception, the Unit undertook manufacturing of Radio Relay Equipment, a very complex equipment The Unit entered in the highly competitive market of telecom and became one of the leading suppliers of C-DOT switching equipments. It also received CII-EXIM Bank Excellence recognition for strong commitment to TQM/Excel for three consecutive years: 2003, 2004 & 2005.

Mission ,Vision, Values and Objective Of BEL- KOT

Vision
To be a world-class enterprise in a professional electronics. To be a customer focused globally competitive company in defence electronics and in other chosen areas of professional electronics, through Quality, Technology and Innovation. Putting customers first. Working with transparency, honesty & integrity. Trusting & respecting individuals. Fostering team work. Striving to achieve high employee satisfaction. Encouraging flexibility and innovation. Endeavoring to fulfill social responsibilities.

Mission

Values

INTRODUCTION OF UNIT BEL KOTDWARA Contd..

OBJECTIVES OF BEL-KOT To be a customer focused company providing state-of-the-art products & solutions at competitive price, meeting the demands of quality, delivery & services. To generate internal resources for providing growth. To attain technological leadership in defence electronics through in-house R&D, partnership with defence/research laboratories & academic institutions. To give thrust to exports. To create a facilitating environment for people to realize their full potential through continuous learning & team work. To give value for money to customers & create wealth for shareholders. To constantly benchmark companys performance with best-in-class internationally. To raise marketing abilities to global standards. To strive for self-reliance through indigenization.

Organization Structure of BEL-KOT

GM

AGM D&E

AGM MKT

DGM PROD

DGM CS

Sr DGM Q&MS

MGR MM

MGR F&A

MGR P&A

MGR P&S

DGM O&T

MAJOR MILESTONE OF KOTDWARA UNIT

1988 Plant inaugurated by Defence Minister 1990 Self Inspection Status 1993 Certification for ISO 9002:1987 1997 Golden Peacock award for quality 1997 ELCINA award for manufacturing 1998 Certification for 1SO 9001: 1994 1999 Excellence in professional Electronics, Deptt. of IT , Govt of India 2002 Corporate R&D award for ULSB MKII 2003 Certification for ISO 9001:2000 & ISO 14001:1996 2003,04 & 05 Strong Commitment to Excel in CII Exim Bank Business Excellence 2005 Platinum award in IMEA-2005 by Frost & Sullivan 2006 Certification for ISO 14001:2004 2007 SAP implemented 2008 Recommended for AS 9100 Rev B

PRODUCT OF BEL- KOT WITH COMPETITOR

PRODUCT
SMART, BEST, HART

PRODUCT DETAILS
Data terminals with encryption facility for use with radios 15 line Automatic EPABX

COMPETITORS
Not till date, but MNCs like TADIRAN may come ITI

ULSB MKII SLSB MKIII SARX MKII MAX XL AND SPARES STM1/4/16

50 line Battalion level state of the art Exchange for ITI, ECIL, IL, ALPHA Indian army 600 line EPABX for application at command level Land line exchange based on C-DOT design SDH based transmission equipment in Telecom network ECIL, ITI, IL, UTL ITI, Siemens,

Fibcom,SCL& Terracom INTEL, Spectronics, Southern Electronics and Ashoka Engg

SACU PRC-6020 IFDSS

Encryption Data terminal with simultaneous transmission ( TOT with M/s Elbit) HF Radio trans receiver with encryption, TOT with M/s TADIRAN Microprocessor based fire detection & suppression system for tracked vehicle with detection & suppression in less than 140 seconds

HUMAN RESOURCE DEPARTMENT

Work culture in BEL KOT
BEL KOT believes that performing work culture can be nurtured by being a learning organization Series education, training, self development and career development programme are done for Human resources development. Various activities done in BEL to promote continuous learning are: Individual learning Internal/ External Training, Work experience, On the job Training, Job Rotation Team Learning Improvement projects , Task force for specific task, Seminars/ Conference Organizational Learning Adoption of Business Excellence Model Best practices from other units/ industries

Various innovative methodologies to improve employees response

Unit has taken several initiatives for introducing innovative methodologies to improve organizational response, customer satisfaction, enhancing productivity and morale of the employees in continuous improvement activities. Innovative methodologies for HR Management Performance Management System Cross Functional team Job Rotation Self inspectors Excellence awards QC circles A four tier need identification system is institutionalized in the unit. Based on assessment manpower planning is done. Training records of all employees are maintained in computer database Employees are sent for training to premier training institutes like XLRI, Administrative Staff College, Tata Management Training Centre, MDI etc.

Employees involvement and participation in BEL-KOT

BEL KOT believes in involving and empowering people through greater participation by giving them various opportunities . Major employee involvement programs are: Quality circle, Suggestion scheme Some of the committees: Cultural , sports, safety, canteen, community centre, labor welfare fund committee , death relief fund committee Quality circle in BEL was started in 1991 and has taken deep root. Around 65 quality circles are active. The coverage of employees is highest among all units of the company. More than 85% of employees are the member of QCC. Participation of QCC in various competitions like yearly Inter Unit QCC Competition, CCI Competition and National QCC Competitions give them immense opportunity to learn and improve the process effectively. An attractive award scheme was introduced in year 2002 for QCC presentation and implementation of solution generated

QCC represented in CII, QCFI and Awards won

16 14

12

10 No.of QCCs 8 Awards won 6

0 2005 2006 2007

Benefits and Reward for Employees in BEL KOTDWARA

Compensation and benefits plans of BEL are comprehensive.BEL enters with wage negotiation with Negotiating Trade Union periodically according to the guidelines issued by Department of Public Enterprises Some of the rewards are: Appreciation or cash award for suggestion Awards for outstanding Performance Gifts after completion of 15 and 25 year of service Sponsorship for competition/ Seminars Awards for achievements in safety QCC and Housekeeping. List of some suggestion and awarded during 2007-08
Name S.S. BISHT VED PRAKASH BHOPAL SING VED PRAKASH Suggestion Given Use of rejected power supply of SACU project Repairs of OLD thermal Strippers Rectification of Filter Failure during leak test of STARS-V FH Reduction in rejection of display card used in front panel assay of PRC Saving in Rs lakh 10.91 4.90 3.56 2.54

Job Rotation
Unit has planned for rotation of 10 % 0f its employee each year

% 0f Job rotation of EMP.

10 9

8
7 6 5 4 3 2 % 0f Job rotation of EMP.

1
0 (04-05) (05-06) (06-07) (07-08) AVG

MARKETING DEPARTMENT
ORGANISATIONAL CHART
GM (KOT)

MKT-1

MKT-2

Training, Demo & Exhibition

FGS & Excise

Sales A/C

Defence

Paramilitary

New Projects

New Market

Excise

FGS

Telecom

ARC

PROCESS FLOW CHART OF MARKETING DIVISION

VISIT CUSTOMER & MARKET TIE-UP WITH TECHNOLOGY PARTNER TRAINING & AFTER SALES SUPPORT

QUOTE/TENDER PARTICIPATION CUSTOMER PAYMENT COLLECTION TECHNO COMMERCIAL EVALUATION

BILL SUBMISSION OF CUSTOMER

OBTAINING SUPPLY ORDER

DESPATCH OF MATERIALS EXECUTION OF PO/SO

FINALIZATION OF CONTRACT & REVIEW

MARKETING STRATEGY IMPLICATION AT BEL KOTDWARA

It can be divided into following parts: Market Segmentation Targeting Promotion Strategy Positioning Strategy Competitive Analysis Diversification strategy

SEGMENTATION

MARKET SEGMENT
DEFENCE

CUSTOMER

EQUIPMENT

%TURNOVER (08-09)
68

ARMY, NAVY, AIR FORCE, ULSB, STARS-V SMART, SACU, ORDINANCE FACTORIES, PRC/VRC

MINISTRY

OF BSF, CRPF, ITBP, STF, STATE BEST, HART, SMART POLICE, SSB BSNL, CAPART MTNL, RAIL-TEL, CDOT EXCHANGE, STM

03

HOME AFFAIRS CIVIL

17

OTHER UNIT OF BEL-PK, BEL-GAD, BEL-BG BEL

MUX, FILLGUN, ELOCTRONIC WARFARE ( SANKET)

12

MARKETING TARGETING

Need based customer: Segment Attractiveness Segment Profitability Segment Positioning

POSITIONING
Positioning is the act of designing the companys product and image to occupy a distinctive place in the minds of target market and customer to increase the sale of their product. This goal is to locate the brand in the minds of consumer to maximize the potential benefit to the firm at less time.

Brand or Target company customer BELKOT Defence, Civil,

Benefits

Value Proposition

Reliable, coverage service

best A company which is highly and reliable, have branches all

over India, and gives service on their product for 15 year

Promotion
Advertising Sales Promotion Direct Marketing

COMPETITIVE ANALYSIS
Strategy may be of three types: ENTRY INTO NEW PRODUCTS: COST LEADERSHIP: AFTER SALES SERVICES

SEGMENT

COMPETITORS

EQUIPMENT

Telecom Market ITI, PCL, IL, SIEMENS, FIBCOM, ICOM, Switching (BSNL) Defence Market ORDYNE, TERRACOM Transmission

&

ITI, ERRICSION, TADIRAN, HBL NIFE, EXCHANGE, ALFHA, ECIL, SPANCO, PRECISION ENCRYPTION ELECTRONICS, SPECTRONICS, INTEL, IFDSS &

ASHOKA ENGG

EQUIPMENTS

DIVERSIFICATION STRAGY BY BEL-KOT

a) NEW PRODUCT DEVELOPMWNT

BEL-KOT is always known for development of new product according to the need of the customer . In order to develop new product BEL follow the general pattern: They gathered the information from the customer relating existing product and also about their need and used it for the development of new equipment. Up gradation of existing equipment and product. Planning and imparting operation and maintenance training to employees. Field visit of their technical personnel to impart in-situ training and planning for early deliveries of ordered equipments Little equipment under development as a result of such interactions is S-RAXMKII ULSBMKII IFDSS for T90 Tank

DIVERSIFICATION STRAGY BY BEL-KOT Contd

b) NEW BUSINES DEVELOPMENT GROUP
In view of rapid expansion of mobile phone communication, disappearance of old product which are the strength of BEL and increase of market challenges, New business development group is formed during 2005-06 to enter into new business areas. Therefore, advance technology partners are scanned and selected, keeping in view their product portfolios, R&D strength and leadership position in Global/ Indian market. As a major step in diversification, BEL-KOT has started interaction with Nuclear Power Corporation of India Ltd. IGCAR for manufacturing of Nuclear Instrumentation . Some of BEL major partners are :
FIELD Technology/ D&D PARTNER CORE COMPETENCY

TADIRAN-Israel, NUTEK- Hyderabad, SPECTRON-Pune, Switching, Data terminal, Radio, software, NID- Ahemdabad, CDOT, UDAY, CORAl Power supply, Fire Fighting Sys. Connectors, PCBs INDIA, Local Manufacturing of line, Cards & Power

Materials Manufacturing

AMPHENOL, FRAMATOME, AT&S RHPL, DELTRON, RTL, BASANT

Subcontractor
Human Resources MDI, IIMS, NITIE, ASCI, COD HYDRABAD

Supplies, SMT Assembly

Human Resources Development

STRATIGIC CHALLENGES
Strategic challenges of BEL Kotdwara include: Fast changing technology Management of obsolescence of material Retention of competent engineers Cost reduction Timely delivery Productivity improvement Effective utilization of machines Human resource Motivation of employees Export marketing

FINANCE DEPARTMENT
BEL Kotdwara since inception is a profitable company. Its Finance department is highly efficient and always looking for reducing unwanted cost which leads to increase in the earning of company Turn Over: For last five year turnover of the unit and PBT given in following fig. respectively. 2006-07 saw a quantum jump in turnover to 415.73 Cr and PBT to 70.24 Cr due to convergent Billing and CRM project of MTNL. In year 2007-08 turnover went down to delay in placement of some of major orders by various customers.

45000 40000 35000 30000 25000 20000 15000 10000 5000 0 (04-05) (05-06) (06-07) (07-08) (08-09) Actual Budgetd

Inventory ,Sundry Debtors PBT

The rise in Inventory in 2007-08 was due to low level of direct sales. Orders could not be released by Gov. i.e. for CAPART, STM etc. Hence inventory piled up in anticipation of orders. In 2004-05 unit has achieved low sundry debtors turnover of 41 days. Thereafter sundry debtors figures shows increasing trend due to lower turnover. In 2006-07 profit increased due to supply of equipments for MTNL project which had 9% margin thus even if we exclude Rs 25 Cr contribution of MTNL project, profit of the unit shows steady trend. Year 2007-08 was exceptional in nature due to low direct sales.
Sundry debtors
250 200 150 100 50 0 Sundry debtors 140 120 100 80 60 40 20 0

Inventory

8000 7000 6000 5000 4000 Inventory 3000 2000 1000 0 (03-04) (04-05) (05-06) (06-07) Actual Budgeted

Cost reduction, Cash Flow and Depreciation

Cost reduction technique has been deployed in a big way to achieve significant cost reduction .Cost reduction of Rs 1175 lakhs have been achieved in 2004-05 The net cash flow of BEL KOT has been fluctuating. From high of Rs 64 Cr in 200405, it dipped to net flow of Rs 190 Cr in 2006-07 due to payment of vendors of MTNL project. In 2007-08 due to sundry debtors collection in MTNL project net cash flow touched to Rs 100 Cr.
The depreciation bas been increased from Rs224 lakh in 2003-04to Rs 353 lakh in 2007-08. The increase in depreciation shows the additional investment done to ensure adequacy of technology and infrastructure.

Cost Reduction
1400 1200 1000 800 600 400 200 0 (03-04) (04-05) (05-06) (06-07) (07-08) 150 100

Cash Flow
Depreciation
400 350 300 250 200 150 100 50 0

50
0 Cost -50 Reduction -100 -150 -200 -250 (04-05) (05-06) (06-07) (07-08) Cash Flow

Depreciati on

PRODUCTION DEPARTMENT
Key production process and its key characteristics are identified through PFMEA (Product failure Mode and Effect Analysis) technique which is followed all over the world. Other Process in Production Department: FABRICATION- Machining, Turning, Drilling, Welding, Tapping ELECTROPLATING- Ni, Cu, Zn, Tin plating, Chromate conversion coating PAINTING- Epoxy painting, Powder coating PCB ASSEMBLY- Hand soldering, wave soldering ELECTRONIC ASSEMBLY- Cable assembly, Mechanical assembly TESTING- Card testing, Sub system/ system testing ENVIROMENTAL STRESS SCREENING- Hot and cold cycle, Bump test, Vibration test, Leak test SIX-SIGMA: IN 1998 BEL had adopted Six Sigma technique Some of the six-sigma project s completed during 2007-08 are listed below: Reduction in cycle time for rejected item Improvement of Internet connectivity in BEL- Kotdwara Cycle time reduction for repairs of printers

LIST OF SOME KEY MACHINE

In circuit tester Reflow Owen Wave soldering machine CNC machining centre CNC JIG Boring machine CNC Turret Punch Press Electroplating/ Painting Plant Walk in chamber/ Environmental Stress Screening Equipment

DEVELOPMENT AND ENGINEERING DEPARTMENT

PRODUCT AND SERVICES ARE DESIGNED AND DEVELOPED BASED ON CUSTOMER To have in depth understanding of customer needs and expectation, BEL has a policy of recruiting experienced retired defence personals when customer requirement is immediate, technology transfer is taken from global companies. During the development of design, changes suggested by the customer are discussed by and implemented on mutual agreement. Similarly marketing and design groups keep close interaction with paramilitary forces to understand their requirement. The needs of civilian customers are known primarily from market research.

The process flow chart for design and development process is given below

Development discussion With customer by D&E and MKT

Receipt of requirement 1) GSQR/QR 2) TECH specs 3) Specs from market research

Design & Development planning

Compilation & review of design inputs

Product design

Inputs from market research

Technology Inputs Repair & Maintainability Statutory & Regulatory Requirement

Design Changes

Final Design Documentation

Customer and production

Definition Validation & review

Provisional Engineering document

Released to production

SWOT ANALYSIS OF BEL KOTDWARA

STRENGTH 1) BEL has got modern manufacturing facilities with test instruments, set up at Kotdwara for manufacturing & supply of telecommunication equipments. 2)R&D set up with qualified manpower, suitable for technology development/absorption. 3)Known for quality & reliability of its products. 4)Known for its prompt after sales service, 5) Vast experience in the manufacturing of electronic equipment. The parent unit established in 1954. 6)Highly trained, professionally qualified manpower trained to deal in the latest technologies. 7)Well established organizational structure. 8) Availability of Central Research Laboratories at Bangalore & Ghaziabad, working . 9) Young & dynamic top management at corporate level, ensuring stability.

SWOT

Contd..

WEAKNESS 1) The main weakness of BEL is its being owned Govt. of India under ministry of defence. This makes decision-making slow. 2) BEL has been predominantly in defence sector, which has been monopoly business. Hence, it does not have experience in managing a competitive business like telecommunication equipment manufacturing. 3) Lack of flexibility in manpower management, especially in pay scales, promotion, recruitment policy, etc., thus resulting in brain drain. 4) Lack of bold decision making in the area of investment & others due to fear of various audits, both statutory & Govt. in the mind of management. 5) Lack of accountability in top management, as personal stakes are not related with the performance of organization.

SWOT

Contd..

OPPORTUNITIES The following are the major opportunities available for BEL Kotdwara:1) Liberalization leads to opening of huge market. e.g. ITI, HTL, etc. 2) BEL can go for technology transfer, ties up & JV due to liberalization 3) Various other companies are also modernizing hence creating new market for telecommunication equipment Railway, Power Sector, Oil Sector, Defence, etc. 4) Telecommunication Sector has been recognized as one of the important infrastructure sector essential for the growth of the economy. This is resulting in the availability of potential market in developing countries.
THREATS 1) Entry of private sector & multinationals in this field is making competition very tough. 2) Due to overall reduction in import duties, the indigenous manufacturing & direct import are competitive. 3) Imperfections in the market, leading to price wars & undercutting of prices, resulting in sustained losses for telecommunication manufacturer. 4) Margins are under pressure due to competitive market situation. 5) Lack of infrastructure facilities like power, roads, etc. making indigenous manufacturing costly. 6) High investment required in this sector.

RECOMMENDATIONS

One s area of concern is a sundry debtor. It is recommended that either the operations in this area be toned up with introduction of skilled, trained & motivated work force or the subcontracting of this operation to be done to outside agencies. Marketing department should be divided in different & each sub department will be responsible for their work. In the complex market, the divisional heads are required to be given total responsibility of the operations under them & be held accountable for that. They should advertise their product through media. Targeting low margin high volume operations and diversifying the product and business. Better HR policies to attract and retain the talent. Technological advancement.