PRODUCT DESIGN DEPARTMENT

Once the contract is obtained by the marketing division it is reviewed in the pre-
contract review meeting in which all the managers of different departments
discuss the following:
1. Delivery schedule.
2. Manufacturing capabilities and parameters.
3. Constraints should be added (if needed).
The PD department then studies the general specifications required by the
customer (a general outline of the product is given by the customer) The
engineers then come out with the required manufacturing drawings specifying
the dimensions, size, shape and the materials (BOM) to be used. These have to be
approved by the customer or his agency (RDSO in case of Indian railways).
Then a prototype of the product is made and is inspected by the customer's
agency (RDSO), If any changes are required it is made accordingly. Once satisfied
the customer's agency (RDSO) gives the approval for bulk production.
The drawings are then printed in a non-tear able sheet by the draftsmen. Which
nine blueprints are made of which two are retained by the department: one each
is sent to the methods planning and industrial engineering departments.
PLANNING DEPARTMENT
This department mainly performs two main functions
1. Materials planning-involves the decision to decide whether the components
required are to be manufactured in house or to be brought from vendors.
2. Facilities planning-involves plan for machineries, material flow, man hours
availability etc.
3. Scheduling-based on monthly basis.
The mentioned above functions are carried by an ERP-SAP. Initially the input is
entered. Input may include the process used, quantity, material, sub-assemblies,
and components. cost etc.
The output of the ERP run is the planned order and the product order which gives
cost of the entire process, components to be procured, components left in the
stores, products to be manufactured per month etc. Once any transactions are
carried it is updated accordingly. The other five are sent to the PD control rooms
present in the shop floors. The department uses an enterprise resource system
(ERP) for all its activities.
PURCHASE DEPARTMENT
The Purchase Department is decentralized, and each section is responsible for the
procurement of its requirement. It handles the central excise, customs and
insurance of the products that are procured from different vendors.
On every product manufactured, the manufacturer must pay value added tax and
excise duty (ED) which will be some percentage of cost of the goods. BEMI, pays
both these duties to the vendor. Since BEML also manufactures products which in
turn will be taxed upon it can credit the duty it had paid on products from the
vendors. In the case of imported goods ED is called customs duty, Only after
paying the customs can the components be received by BEML Products whose
customs duty is not paid are called bonded goods. These are kept in bonded
warehouses and can be de bonded after payment of the customs duty. This
department also handles the insurance regarding the products. Every product
that enters the stores is ensured.

STORES
• Receiving Stores: These receive materials through the gate pass and are sent to
the concerned departments.
• Project Stores: These receive materials concerned to the production work.
• Non-Project Stores: These receive materials which indirectly help in the
production work like weld rods etc,.
• Stock Control Department: This department will look alter non production
materials such as issuing of clothes, medicines, books etc,.
• Salvage stores: These collect waste materials from shop side on corner of
factory premises and are stored for the further processing.
• Rejected stores: These collect rejected items from the various departments and
send it for Further action.
The other stores are:
 Painting store
 Cylinder store
 Oil and diesel store
For identification each product in he stores has BIN card. The BIN card indicates
the date of arrival and withdrawal of the product from the stores and the net
quantity and location in the stores. Every product has a reference number. This
system is common for all the factories of BEML.