INTRODUCTION

Experience is the best agency through which one can learn almost anything under the sun. An ounce of practice is equal to tones’ of theory. It is through suffering we learn sympathy and by mistakes we reach perfection likewise, theoretical knowledge will not do to face the challenges the real life. As Master of Business Administration we have to be aware of not only the theoretical aspects of business but also the practicability in the same. The business field is undergoing cut throat competition and only the power full can withstand from withering away. Therefore management students must be competitive to update their knowledge in order to withstand the competition. To familiarize and overcome the problems in the organization sector, I have selected “BHARAT HEAVY ELECTRICALS LIMITED-EDN” for organisation study

Objectives of the study:
 To get an idea about the organization.  To familiarize with different management activities.  To get an idea about the authority structure and efficiency of various departments.  To analyze the SWOT of the organization.  To offer suggestions based on the findings.

INDUSTRY PROFILE
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BHARATH HEAVY ELECTRICALS LIMITED
• Largest Engineering & Manufacturing enterprise in INDIA of its kind with the world class standards (sales turnover of RS. 28090 Crores ($ 5.5 Billion) in 2008-09; up 29% compared to that of previous year). • Conferred ‘NAVRATNA’ status by Government of INDIA in 1997. • A major Integrated Power Manufacturer in the World.

Plant

Equipment

Footprints in 71 countries; Installed over 1,00,000 MW worldwide.

• For the third year running, only PSU in Forbes Asia Fabulous 50 list of the best of Asia Pacific’s publicity traded companies.

BHEL was founded in 1950s. Bharat Heavy Electricals Limited- BHEL has today emerged as the largest engineering and manufacturing enterprise of its kind in India and ranks amongst the top ten power generation equipment manufacturers in the world. With a massive network of 14 manufacturing Units located at various important center’s all over India , BHEL manufactures almost all critical high technology products required for power sector like Gas Turbines, Steam Turbines, Turbo generators, Boilers, Pumps and Heat exchangers, and electrical switch gears. BHEL is one of the largest exporters of engineering products & services from India. BHEL has established its references in around 60 countries of the world, ranging from the United States in

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the West to New Zealand in the Far East. BHEL has the proud privilege of having been selected as one of the ‘NAVARATNA’ Public Sector Undertaking by the government of India. BHEL offers a wide spectrum of products and services to core sectors of the Indian economy viz., power generation, transmission, industry, transportation, oil & gas, renewable energy, defence etc., The wide network of BHEL consist of 14 manufacturing division,4 power sector regional centers, 8 service centers, 15 regional offices and a large number of projects sites spread all over India and abroad enables the company to promptly serve its customer and provided them with suitable products, systems and service- efficiently and at competitive prices. The quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own R & D centers. BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management. BHEL has also joined United Nations' “Global Compact” and has committed to support the set of core values enshrined in its ten principles in the area of Human Rights, Labor Standards, Environment and Anti-Corruption. BHEL’s operations are organized around three business sectors, namely power, industry including transmission, transportation, telecommunications & renewable energy and overseas business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market. The greatest strength of BHEL is its highly skilled and committed 47,000 employees. Every employee is given an equal opportunity to develop himself and improve his position. Continuous training and retraining, career planning, a positive work culture and participative style of management have engendered development of a committed and motivated work force leading to enhanced productivity and higher levels of quality. BUSINESS SECTORS OF BHEL Power generation sector
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Industrial sector Transportation sector Renewable energy Oil and gas sector Transmission sector POWER TRANSMISSION SECTOR BHEL is a leader in the field of power transmission in India with a wide range of transmission systems and products. BHEL manufactured transmission products have a proven track record in India and abroad. It also provides turnkey solutions utilities and industries. Page 4 .

BHEL has supplied stand-alone Power Plants of ratings up to 150 KW peak. Paper. In the area of Urban transportation. Refinery. are equipped with BHEL’s traction propulsion system and controls. EMU coaches and Diesel Electric Shunting Locomotives from 350 HP to 2600 HP. BHEL is geared up for turnkey execution of electric trolley bus systems. Fertilizer. electrostatic. Page 5 . INDUSTRY SECTOR Since its inception in 1982. BHEL also undertakes retrofitting and overhauling of rolling stock. Textiles etc. The systems supplied are both with conventional DC drives and state of the art AC drives.. converters. transformers. It has executed HVDC project in India with major HVDC products that is viz. precipitators. solar. etc.Substations and reactive power compensation installations set up by BHEL are in operation all over the country. Sugar. Petrochemical. It includes Photo Voltaic modules and systems. BHEL is contributing to the supply of electrics for EMUs for 15000V DC & 25 kV AC to Indian Railways. India’s first underground metro at Kolkata runs on drives and controls supplied by BHEL. BHEL also provides for solution for water management systems. usually used as Distributed Power generation plants. thyristor. aluminum. TRANSPORTATION SECTOR Most of the trains in Indian Railways. coal & ash handling plants. The Company also manufactures complete rolling stock i. the industry sector business has grown at an impressive rate and contribute significantly to BHEL turnover. The industries which BHEL serves include Steel..production & Pipeline. smoothing. Oil & Gas Exploration . reactors. Chemicals. BHEL has also diversified into the area of track maintenance machines for Indian Railways RENEWABLE ENERGY BHEL has been manufacturing and supplying a range of Renewable Energy products and systems. whether electric or diesel powered. Cement. Almost all the EMUs in service are with electrics manufactured and supplied by BHEL. light rail systems and metro systems. photovoltaic systems and heating systems. Its supply all major equipment for industries: AC/DC machine. fabric filters.e. Mining. Mainline 25 kV AC locomotives up to 5000 HP. walves and filter capacitors manufacture and supplied from its works. Automobiles.

BHEL has indigenously developed and executed a number of fixed series compensation schemes. ceramic insulators. OVERSEAS BUSINESS OF BHEL BHEL. BHEL is actively associated with the development and adoption of Wind Power and Concentrated Solar Power (CSP) projects in India and abroad. OIL AND GAS BHEL is supplying onshore drilling rig equipment viz. dry type transformers. BHEL has created a Page 6 . etc.The Company has capability to design and execute grid connected MW sized PV plants. travelling block. is one of the largest exporters of engineering products and services from India. mast and sub structure. vacuum and SF6 switchgear. the Company undertakes turnkey execution of substations/switchyards up to 400 kV and has the capability to execute 765 kV projects. ranking among the major power plant equipment suppliers in the world. instrument transformers. The products manufactured by BHEL include power transformers. mud systems and rig electrics to ONGC and Oil India Ltd. rotary-table. draw-works. capacitors. shunt reactors. Mud line Suspension System and Block Valves to ONGC for offshore application. swivel. High Voltage Direct Current (HVDC) systems have been executed for economic transmission of bulk power over long distances. and Private Drilling Companies. gas insulated switchgears. Well heads & Xmas Tree valves up to 10. BHEL has developed and commercialized the country’s first indigenous 36 kV Gas Insulated Substation (GIS) and has also developed 145 kV GIS which has undergone successful field trials at Hyderabad. BHEL has indigenously developed and commercialized state-of-the-art 400 kV Controlled Shunt Reactor (CSR) for reactive power management of long transmission lines.000 psi rating for onshore as well as offshore application are being supplied to ONGC.. With a strong engineering base. TRANSMISSION BHEL supplies a wide range of products and systems for transmission and distribution applications. Oil India Ltd. BHEL has also supplied Casing Support System. For enhancing the power transfer capability and reducing transmission losses in 400 kV lines.

BHEL has successfully undertaken turnkey prokects on its own and possesses the requisite flexibility to interface and complement international companies for large projects. and has also exhibited adaptability by manufacturing and supplying intermediate products to the design of other manufacturers and original equipment manufacturers (OEMs). BHEL has categorized its project in the global business as- BHEL LOCATIONS IN INDIA Page 7 .state of the art technology in the power and Industrial equipment sectors acquired from world leaders.

BHEL-ELECTRONICS DIVISION Page 8 .

Industry. It has established itself as a market leader in new generation Power Plant Automation System.3 crore in 1976-77. The growth is amply reflected in the fact that most of the power plants and process industries in the country are equipped with products and systems made by BHEL-EDN.500 crore. BHEL-EDN has been successful in meeting the demanding requirements of International markets in terms of technical specifications and qualities. to supplement the company’s pioneering efforts in power generation and transmission equipment manufacturing. which formally merged with BHEL-EDN in 1980. Besides manufacturing and supplying state-of-the-art control and automation equipment and systems for power plants and process industries. have been the main factors contribution to the units rapid growth and success. It is also the first Electronics Industry in Bangalore to get ISO 14001 Environment Management System Certification and OHSAS 18001 certification. It has also the first Electronics Industry in Bangalore to get ISO 9001. Making a modest beginning with a turnover of Rs.The Electronic Division (EDN) of BHEL. the unit has been certified for ISO 9001. In addition to their comprehensive products profile a number of new technology areas have been earmarked for future developments. the unit was poised to record a turnover of over Rs. relentless effort and unwavering commitment to in-house solutions. EDN has been certified for ISO/IEC 27001:2005. situated at Bangalore. Transportation and Renewable energy sources. availability and security of information. In recognition of its commitment to the quality systems and procedures. Semiconductors and Photovoltaic Systems. mainly to establish a strong base in the areas of power and control electronics. was formed in 1976. confidentiality. adherence to quality. In its commitment towards integrity. the Electronics Division has also emerged as a leading player in the fields of Power Transmission and Distribution. Focus on achieving customer delight through product excellence. Information Security Management System (ISMS) standard. along with Technical collaborations with international leaders. Prominent among them are Page 9 . The division came into being when BHEL took over the Radio and Electricals Manufacturing Company (RAMCO). establishing references in over 25 countries by installation of Automation.

CONCERN FOR SOCIETY Striving for the growth of the nation. low cost housing. electronic energy meters etc. BHEL-Electronics Division has always been contributing for the upliftment of the poorer and backward sections of the society. energy management systems. artisans and who are further classified into skilled. training simulators for defense application. BHEL EDN comprises an excellent and experienced group of 1950 employees who are classified into executives. supervisors.CRORES) WORLD CLASS TECHNOLOGIES Page 10 . medical and drinking water facilities have been implemented resulting in remarkable transformation in the living conditions of the villagers. semi-skilled and unskilled workers. SHARE HOLDING PATTERN BHEL –EDN TURNOVER GROWTH (RS.power and control electronics for traction application. educational. Three villages near Bangalore have been adopted by BHEL and a number of social welfare programmes like solar electricity.

and sourced technologies from them. PRODUCT PROFILE CONTROL EQUIPMENT Page 11 .With a view to bring world class technologies from leaders to Indian clients. BHEL-EDN has entered into strategic alliance with many international giants.

➢ INDUCTION HEATING SYSTEM ➢ AC DRIVES ➢ EXCITATION SYSTEMS ➢ STATIC STARTER ➢ THYRISTOR CONVERTERS SEMI-CONDUCTORS & PHOTOVOLTIC SYSTEMS ➢ POWER SEMICONDUCTOR DEVICES ➢ PHOTOVOLATIC SYSTEMS DEFENCE ELECTRONICS ➢ INFANTRY WEAPON EFFECTS SIMULATOR SYSTEM (IWESS) ➢ SMALL ARMS TRAINING SIMULATOR (SATS) ➢ SIMFIRE A BRIEF OVER-VIEW OF THE PRODUCTS  AC DRIVE SYSTEMS Page 12 .

BHEL-EDN’s adjustable speed AC Drive System with load commutated inverter is a highly energy efficient system for controlling synchronous motors used for flow control Applications like fans. Speed control of squirrel cage induction motors with GTO (gate turnoff) thyristors are cost effective and low on maintenance and find widespread use in industries. and compressors in power plants and industries. The digital controls with hot stand by control and power channel increase system availability and make these drives user friendly. pumps.  INDUCTION HEATING EQUIPMENT Page 13 .

Medium frequency Induction Heating Equipment are manufactured and supplied offering a controllable and localized method of heating with the following features: • • • • • Typical rating 3kHz and 125KW Forced Air-cooled Inverter stack design based on low-loss IGBT devices State-of-the-art technology using user programmable controller Suitable for controlled preheating of X20 / P91 special ally tubes for welding and stress relieving at higher temperature This equipment can also be specially designed for Retaining Ring removal and a number of other applications  EXCITATION SYSTEM Page 14 .

DG power plants as well as for synchronous machines in industrial applications. thermal. Redundant philosophy in power and control circuits employed ensures high availability and hot repair/ replacement possibilities. fully controlled semiconductor bridges along with digital controls. provide easy and efficient integration with plant DDC. The digital electronics with self-diagnostic feature. With the ever-growing size and complexities of the power and system network. Unique facility exists at works for closed loop performance testing. fast response excitation system capable of meeting more stringent specifications are called for to improve system stability and availability. co-generation..  STATIC STARTER Page 15 . using an online real time generator simulator. and combined cycle.BHEL-EDN offers Excitation Systems in Synchronous Generators for hydro. programmable logic controls and serial communication etc. nuclear. the state-of-the-art excitation system offered by EDN includes fast acting.

Rubber.1 kV ratings have been supplied. etc. this equipment is also used as starting equipment for gas turbines and large pumps used in lift irrigation schemes. Page 16 . supply and commission a wide range of converters starting from a few kilowatts to thousands of kilowatts. Many such converters are in series at rolling mills and process lines in Industries like Steel.8 kV and of 7. mounted in panels. earth fault.5 MW/4. are also being manufactured for use in such applications. • • Capability to conceptualize.000A ratings with digital controls have been supplied. Cement. Static starters of 18. manufacture. Aluminum. • Thyristors Stacks and Bridges of different ratings. over current. Coal and Copper.BHEL-EDN has designed and manufactured special purpose digital static starters for soft starting of hydro generators and synchronizing with the grid. The system provides an easy interface with plant C&I and has protections like over voltage.5 MVA/13. either as a pump or as a synchronous condenser. design. Converters greater than 10.  THYRISTOR CONVERTERS BHEL-EDN manufactures Thyristorised Digital Converters with constant power or constant torque control .

The following types of simulators are manufactured • SIMFIRE Simfire is lased based outdoor training simulator for training of crews in armored fighting vehicles with precision gunnery and tactical warfare without using live ammunition. weapon skills and use of ground cover.. paramilitary. The IWESS greatly reduces the usage of real ammunition and it gives the soldier the realism of being able to accurately use his personal weapon and also gives immediate feedback about the effectiveness of his fire position. The SATS system is computer based and can accurately simulate small arms with real recoil effect. resulting in a much more effective training at much lower cost. military forces etc. DEFENCE ELECTRONICS With the strong background of Control. It is a substitute for live ranging training. • SMALL ARMS TRAINING SIMULATOR Small arms training simulators (SATS) is an indoor simulator used for marksmanship training. there ammunition cost involved in training. • INFANTRY WEAPON EFFECTS SIMULATION SYSTEM The Infantry Weapon Effects Simulation Systems (IWESS) is a laser based system. etc. paramilitary and defense personnel with state-of-the-art technology. Instrumentation and System aspects for power plants and industries. and snipers etc. BHEL-EDN has diversified into the field of Simulators for training police. which simulates the effects of small arms live fire like self-loading rifle. The IWESS is used for training in police. Page 17 . shooting skills. light machine gun. Light Machine Guns. The system can be adopted for small arms such as Rifles.

Diodes and Power Module assemblies  PHOTOVOLTAIC SYSTEMS Page 18 . ✔ High power Thyristor devices are used in high current rectifiers for Industrial projects. SVC and FACTS applications. ✔ New type of Diodes suitable for rotational applications. POWER SEMI CONDUCTOR DEVICES BHEL-EDN manufactures Power Thyristor Devices and Diodes of various rating to meet the requirement of high power electronic systems used for various application in Power. The unit has won the prestigious ELCINA award thrice and has been recognized by the Department of Electronics as a ‘Centre of Excellence’ in this area. developed by BHEL-EDN have also been exported. ✔ High voltage Thyristor devices are used in HVDC. ✔ Capability to manufacture application specific Thyristors. This device is used in the Exciter of Turbo-Generators for power generation. ✔ Power semiconductor devices manufactured by EDN have earned a reputation for high reliability. Industry and Transportation systems etc.

A sophisticated facility with a capacity of 2MW per annum has been set up for manufacture of cells and modules. Some of the major systems in operation are SPV Power Plants 9Stand Alone and Grid Interactive). detailed designing. Railways Signaling and other applications. BHEL-EDN started manufacturing Solar Photovoltaic (SPV) Cells and modules besides developing complete SPV systems. Solar Power Systems for Rural Radio Phones. manufacture. The PV modules manufactured by BHEL have been certified to International Standards (CEI/IEC 61215) by JRC. Italy.Realizing the tremendous potential of Solar Power as a Non-Conventional Energy Source. BHEL has the competence to undertake site surveys. supply and commissioning of complete application specific PV systems. The SPV systems are specifically designed keeping in mind the necessity. Telecommunications. VISION MISSION AND VALUES Page 19 . ESTI.

In addition BHEL also planning to commission 260 MW of lift irrigation and other small Hydro projects. In line with the capacity and capability enhancement strategy adopted by company. the manufacturing capacity expansion from 10000MW per annum to 15000MW per annum is proceeding apace and plans are afoot to hike this further to 20000MW by 2011-12. Similarly 6900 MW have been planned and trail operation completion during 20102011 comprising 6488 MW Thermal and 412 MW of Hydro. BHEL – EDN ORGNIZATION STRUCTURE ED (EDN & ISG) Page 20 ED’S SECRETARIAT .OBJECTIVES BHEL-EDN objective for the current financial year is to achieve 7935 MW power plant equipment’s which is planned and synchronization comprising 6983 MW Thermal and 412 MW in Hydro.

Pathan Director ➢ Smt. Prasada Rao Chairman & Managing Director ➢ Shri Saurabh Chandra Additional Secretary and financial adviser ➢ Shri Ambuj Sharma Joint Secretary ➢ Shri Ashok Kumar Basu Director ➢ Shri M. Reva Nayyar Director Page 21 .GM (HR & FS) GM (ENGG & ES) GM (MKTG & COML) GM (OPERATIONS) GM (POWER ELNS) AGM (ESD) AGM (QS) AGM (P & D) AGM (CE PR MM) AGM (IT & S) AGM (SC & PV) AGM (VIGILIANCE) AGM (INTERNAL AUDIT) AGM (FINANCE) SA TO ED AGM (C & PR) BHEL-EDN BOARD OF DIRECTORS ➢ Shri B.A.

Jairath Director ➢ Shri Anil Sachdev Director ➢ Shri Atul Saraya Director ➢ Shri O. Bhutani Director ➢ Shri M. • The PMC Department also coordinates the project inside the factory through SAP ERP systems.P. Singh Company Secretary OVERALL FUNCTION OF BHEL • The corporate marketing get the order and splits the work according to the functions of various units and to the marketing department of the respective unit.P.K. • The project management and commercial department forms all the documentation and agreements with customer and L2 network schedule for the project and get the necessary approval from the customer. Dube Director (IS&P) ➢ Shri I. • The marketing departments of the units are responsible for the projects and surrender the work to the project management and commercials department.K. Page 22 .➢ Shri V.

material management department arrange for the material through procurement or through the EDN manufacturer. • After the list of components is prepared by the engineering department. Once the control equipments are approved by the customer then the control equipments are packed and dispatched to the site. township. Page 23 . • After the product passes the quality check it goes to the system testing to check the working of the control equipments.• Then through ERP systems the engineering department view the project details and prepares the components list and specification of the components. • The erection commission department installs the control equipments as per the appropriate layout. • • The procured materials are under gone quality checks and surrendered to the stores. security. • After the production of control equipment are made its under gone quality check and quality pass certificate is issued or the product returns for the rework. • • After the systems testing the products are inspected by the customers and approved. vigilance and transport. • Once the control panels are interconnected with other systems the power plant is ready for the operation. The store maintains the inventory of all the materials and supplies the materials for the production of control equipments. factory service. information systems and service. • To do the above function without interruption and delay there are some more departments like HR department.

MANAGER DEPUTY MANAGER ADMINISTRATIVE OFFICER [AO] SENIOR AO Page 24 AO .FINANCE DEPARTMENT ASSISTANT GENERAL MANAGER (FINANCE) Senior DGM .FINANCE DGM – INDIRECT TAX MANAGER – ESTABLISHMENT & PF MANAGER (COSTING. PSL & SVC) MANAGER – INDIRECT TAX MANAGER 3 DY.

VARIOUS SECTIONS IN FINANCE DEPARTMENT COSTING Page 25 .  Individual unit like BHEL EDN maintains book. MANAGER [BILLS] Sr. MANAGER AO FIG 3. MANAGER [SB] DY. “FINANCE.  The corporate finance division makes the centralized balance sheet by computing all business transaction of individual unit and groups. and provident financial management of cash flows with a blend of technology commercial background has brought a new dimension to FINANCIAL MANAGEMENT”. MANAGER [CASH] DY. MANAGER [SALES] MANAGE R [BOOKS BUDGET] 2 MANAGER [PURCHASE FINANCE] DY.AO Sr. MANAGER [W & SB & Sr. SENIOR AO AO 2 AO DY.  Finance department of BHEL is divided as corporate finance division and separate finance division for each unit. budgets for the whole unit. cut across all functions of the BHEL.1 DEPARTMENT STRUCUTRE FINANCE DEPARTMENT The role of finance is to manage the funds of the BHEL –EDN with a view to maximize the shareholder’s wealth.MANAGER [FP] 2AO DY. apart from compilation of accounts.

The main function of costing is to calculate the material cost and production cost, monitoring inventory, monitoring of work in progress, reporting for short shipments, reports on profitability of project. In the calculation of material cost the components and materials are checked with moving price and previous orders and the costing is prepared by considering the shipment time, import or indigenous purchase. In the monitoring of inventory the monthly report is prepared and materials are categorized to moving and nonmoving items. Apart from this the scrap dispatches and balance stock of subcontractors are reviewed. Costing department also looks after the calculation of royalty for budgets, inspection of marketing proposal and also provides SAP support to other section in the department SALES Sales section looks after the billing of shops, service and freight, looking after the LC documents and collection accounts, SEBI budget flash, advice to service tax, statutory government audits . In the billing shop it prepares the invoice for the confirmed orders and also generates packing list for the invoice . In the service and freight the it gives advice to material management regarding invoice, packing list and lorry receipt. It also looks after the billing of L2 network from the commercial department.

INDIRECT TAXATION

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The functions of Indirect taxation section is exercise duty, service tax, CST and KVAT, entry tax and export incentives In the exercise and service tax it pays duty and tax as per the government norms and files the statutory returns on due dates and provide tax clarification to other departments In the export incentives it obtains the certification form the vendor and the customer and follows up the export claims. PURCHASE FINANCE • • Purchase Finance deals with Finance Concurrence of all Purchase Files. Purchase Requisition / Material Requirement summary are verified with the Final proposal quantity. INDIGENOUS BILLS

The type of bills handled in the indigenous section is shop bills, bills of material directly dispatched to customer, freight bills of purchase materials.

The other activities of indigenous bill section is to do creditors review, advanced review, TDS certification issues.

FOREIGN PURCHASE Foreign purchase section looks after the letter of credit and checks the terms and condition of purchase department. It also looks after the payment for foreign vendors and payment of payment of air freight, console charges, local clearance charges, local freight, bank charges etc., Apart from the above activities it also it maintains the foreign bank guarantee, fund requirement for foreign purchase and export procedures.

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PERSONNEL FINANCE

This section takes care of salary computation, bonus & special incentive payments, travelling and local Conveyance payment, maintaining attendance data and close interaction with HR and PF departments. PAYMENT BHEL EDN has implemented e-payment from march 2006. It follows two modes of payment as NEFT for bellow 1 lakh transaction and RTGS for 1 lakh and above transactions. Most of the 97% of more than 1 lakh payments are through EFT and more than 70% of workers’ salaries are credited through EFT.

BALANCE SHEET OF BHEL –EDN AS AT 31-3-2011 (Rs. in crores)

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2010 489.19 0.08 406.84 15917.75 9790.52 15427.46 20688.2011 SOURCES OF FUNDS Shareholders’ Fund Share Capital Reserves & Surplus Loan Funds Secured Loans Unsecured Loans 0.52 2429.92 1762.36 127.AS AT 31.03.05 3965.64 3401.35 20317.63 Page 29 8049.75 16045.17 2163.85 .00 489.84 AS AT 31.11 APPLICATION OF FUNDS Fixed Assets & Intangible Assets Gross Block Less: Depreciation/amortization Less : Lease Adjustment Account Net Block Capital Work-in-Progress Investments Deferred Tax Assets Net (Refer note no.14 4150.23 9235.55 6580.45 79.18 5163.52 19664.15 309. Current Assets.10 439.75 127.62 14.40 1550.74 4648.84 1527.32 20153. Loans and Advances Current Assets Inventories Sundry Debtors Cash & Bank Balances Other current assets 10963.22 2415.35 163.62 9630.03.18 3400.10 0.03 27354.00 163.

DGM Executives testing Sr. CE DGM System CE Engineers AGMEngineers Assembly GM operation Shop main Supervisors FIG.Supervisors ShopDGMproduction DGMDGMfabrication SupervisorsPPC Sr.PRODUCTION DEPARTMENT Sr. 3.2 DEPARTMENT STRUCTURE PRODUCTION DEPARTMENT Page 30 .

main assembly. ASSEMBLY LINE The production line has tree assembly line namely shell assembly. In the wiring assembly the wiring connections are made between the all the components that were mounted in the control equipments. The PPC prepares complete production plan that matches the L2 schedule made by the project management and commercials department. In the shell assembly the outer part of the control equipment is manufactured it consist of the mounting racks of the control equipment components.The production department manufactures the control equipment for the power plant equipments. system testing. The production department is divided into production planning control. In the mechanical assembly the components like control boards. The production department is facilitated with automated CNC machines. fans. The CE fabrication line and sub assembly line act as the feeder lines for the main assembly line PCB SUB ASSEMBLY SECTION Page 31 . wiring assembly. mechanical assembly. PRODCUTION PLANNING AND CONTROL Production planning control (PPC) department receives the design documents from the engineering department and prepares the production plan. control equipments fabrication. PPC work is also outsourced to save the time. The main assembly is the mechanical assembly line in which all the components are mounted in the control equipments. and other circuits are mounted racks of the control equipment shell.

and functional test. The PCB sub assembly section has air conditioned shop floors with antistatic flooring with fully automated production lines. This section has technical collaboration agreement with Mesto Automation (MA) Inc. circuit diagrams. System testing receives engineering drawings. Page 32 . signal flow diagram from the engineering department and conducts various tests like continuity test. for the manufacture and supply of new generation distributed control systems “maxDNA” for modern power plant and industries. It also conducts the functional test by integrating with other systems and stimulates the control equipments for control equipments. USA. high voltage test. SYSTEM TESTING DEPARTMENT SYSTEM TESTING DEPARTMENT System testing department check the operation of finished goods.44. This section has successfully implemented the six sigma in the production line attained the sigma level of 5.The power control board sub assembly manufactures the power control boards for the control equipments at world class standards.

FUNCTIONAL TEST The functional test is also called as energizing the panel. It also logical testing with the help of software’s for the desired output. This functional test involves two activity i.CONTINUITY TEST In the continuity test the connection of the control equipments and check for ferules and check the connections with respective ports. ETDC etc… ERECTION AND COMMISSIONING DEPARTMENT Page 33 . routine test and type test or special test. HIGH VOLTAGE TEST In the High voltage test the components are grouped according to voltage like 24v. Another major function of this test is to check the ferule to avoid the misconnection. The routine test also involves the integration of all the hardware. 110v. 220v etc… This test is performed to ensure the correct current connection during the operation of the control equipments. While checking the continuity test the connection between the ports are checked and the buzzer is given if the continuity is not correct this test avoids the short circuit in the control equipment.e. In the routine test the working of the modules and different components of the control equipments are checked for outputs by giving inputs. The type test is conducted on the customer request or some special test like nuclear test etc… These special tests are performed by the government authority like CPRI.

The erection group installs the control equipments.• • • • • Erection & Commission department is divided as erection group and commissioning group. Demonstration and operation of the system as per the agreement made with the customer. systems as per the approved layout. The erection group will interconnect the each system. HUMAN RESOURCE DEVELOPMENT Page 34 . Commissioning group will give the required power and energize the power plant and they integrate all the systems as per specification. electrical panels.

apprentice training. 3. organizing industrial visits and induction training. providing strategic support to other departments and conduct many training programs.GM HR & FACTORY SERVICE (FS) AGM (HRD) MANAGER SENIOR EXECUTIVE ADMINISTRATIVE OFFICER FIG. Page 35 . students training. HR POLESTAR “To create an environment supportive of blossoming of full potential of human resources to achieve BHEL vision and mission” HR MISSION “To promote and include a value based culture utilizing the fullest potential of human resource for achieving the BHEL mission” TRAINING HRD conducts numerous training programs like training and development programs.3 DEPARTMENT STRUCTURE Human resource development group is involved in the activities like administration and monitoring the needs of the employees.

In apprentice training the ITI technicians were selected and placed with stipend. HRD also provides the strategic support to all other departments by analyzing the employee requirement and placing of new employees. industrial discipline and transformation from the student life to industrial life. HUMAN RESOURCE MANAGEMENT GENERAL MANAGER (P & A) Page 36 . In the students training program the technical and non-technical students were allowed to do internships and project as the part of their academic requirements. All the apprentice engaged were provided indoctrination training which cover the industrial safety.In the training and development program they conduct many training programs and workshops to the existing employees and send the employees to other units training programs. supervisor trainee and artisans trainee. HRD also organize many industrial visits for the educational in states. HRD also take cares the hospitality of the newly appointed trainees and modernized hostel facilities were arranged for the trainees. HRD also conducts appraisal to the employees and award the outstanding employee for his work commitment. from sister institutes and from the other organizations. ADMINISTRATION HRD looks after the needs of the personnel’s and maintains a record in the each individual. It also conduct induction training programs for the newly appointed engineers trainee.

DGM (P) DGM (P & A) DGM DM (P) SM (WELFARE) SM (LAW & ADMIN) DEPUT Y PERSONAL OFFICER FIG 3. PERSONAL OFFICER Human Resource is very valuable and is an asset to any organization and it implies to BHEL too. RECRUITMENT It is the process of searching for prospective applicants and simulating them to apply for the job in an organization. BHEL has developed a standard form of procedure for recruiting the applicants and simulating them to apply for the job in an organization. PROCEDURE FOR RECRUITMENT 1. BHEL is awake to the changes and challenges before it. In terms of new approaches to Human Resource Management.4 DEPARTMENT STRUCTURE Sr. Page 37 . The dawn of the new millennium has brought with it huge challenges and BHEL is aware about the changing business situations and challenges before it. One of the new approaches to human resource management is the developing and maintaining of a dynamic work culture that enables joint optimization of organizational goals and individual goals and individual potential. taking care of changing aspirations of the people are the key areas of focus for the organization at this juncture. The BHEL as an organization has to focus the potential of the people it also has the need for improving the efficiency of the people. With the changing business scenario. developing and sustaining a dynamic work culture which enables joint optimization of organizational goals and individual potential.

The committee constitutes of corporate personnel departments in consultation with the respective division. Call letter for trade/technician apprentices. 8. WELFARE AND BENEFITS LEAVE TRAVEL CONCESSION (LTC) RETIREMENT BENEFITS • • PENSION PROVIDENT FUND Page 38 . SELECTION In BHEL. Call letter for selection. 5. selection of applicants is done through the central recruitment committee. 3. Offer for temporary employment. 9. 10. Requisition form to employment exchange. Joining report. 7. Offer of appointment. Acceptance form. 4. 6.2. Offer of appointment for supervisors. At the same time while implementing the transfer policy the carrier base promotion policy has also to be reckoned with. Confirmation order for completion of probation SOURCE OF RECRUITMENT  From employment exchange  From open market through advertisement in the press  By considering departmental candidates possessing the specified require  From reputed engineering/ management through college campus interview. TRANSFER POLICY Executive employee of the company is liable for transfer from one department/ section/ job within the same unit/ division of from one unit/ division of which company to another or from the discretion of the management.

VEHICLE LOAN DEATH COMPENSATION COMPUTER LOANS INTERNET REIMBURSEMENT MEDICAL EXPENDITURE TRAVELLING ALLOWANCE NEWSPAPER ALLOWANCE HOUSING FACILITIES DEARNESS ALLOWANCES INCENTIVES/BONUS WORKING HOURS Every individual has to put in a minimum of 48 hours of work per year.C. Sunday is weekly off.• GROUP INSURANCE ETC.36 pm in all working days except on Saturday( 7.R) of all his subordinates with the performance recorded very often. The criterion for promotion is time bound and performance/merit based.. temporary or casual is provided with the canteen facility. 1. LEAVES ○ CAUSAL LEAVE (CL) ○ EARNED LEAVE (EL) ○ MATERNITY LEAVE CANTEEN FACITLITIES Every employee. Every day RS. PERFORMANCE APPRAISAL Every authority maintains Annual Confidential Report (A.30 am to 4.30 am to 12. During the time for performance appraisal the promotion committee discusses the various positive and negative factors. It is kept highly confidential and is available only to the senior authority and the personnel department. PROMOTIONS Every employee is eligible for promotion. 7.30 pm).75 is deducted from employees salary. The promotion is given once the employee completes the stipulated Page 39 .

There can be single or multiple unions in each unit with or without affiliation to any national trade union organization. The list is usually released twice a year. VOLUNTARY RETIREMENT SERVICE (VRS) Realizing the organization structure not being a pyramid and the number of people in the middle management being some of the lower class.duration and then based on the performance. MEDICAL FACILITIES Medical facility unit has own hospital and has a contact with a chain of hospitals like:  St. once during June and other during December. PLANT COUNCIL Page 40 . BHEL has come out with VRS. The benefits to the employees were as below: 45 days salary of each completed year of service. promotions are awarded. Johns hospital for neurology  Apollo hospital for cardiology  Mallya  CMC Vellore for cancer disease  KIMS INSURANCE Insurance establishment is responsible for two types of insurance ✔ Group saving insurance connected with corporate office and LIC ✔ Group saving linked insurance TRADE UNION Recognized union/s in units will negotiate with union on local and unit level issues. Claim on gratuity and provident fund as per the legal rules under the various schemes.

SPORTS COMMITTEE Is an elected body with 3 members and with equal nominated representatives from management. WORKS COMMITTEE Is a statutory body with 8 members elected and equal number nominated by management. & MARKETING) AGM. They would working conditions. HOD (MARKETING – CE & DE) Page 41 OFFICER. sports. literary and cultural activities from amongst employees. PS2 . OTHER ASSOCIATIONS BHEL EXECUTIVE ASSOCIATION BHEL OFFICER’S CLUB MARKETING DEPARTMENT GM (CE – ENGG. The committee facilitates. CANTEEN MANAGING COMMITTEE Is an elected body with 3 members from the workers and equal number nominated by the management. quality of work life and recommend solutions to problems if any. The committee ensures smooth working of the canteen and suggest plan of improvement. BHEL EPF Employees Provident Fund trust of BHEL is an elected body of trustees and nominated members who manage the provident fund account and the finance under this fund including loan disbursement and final settlement. They will meet periodically to discuss and sort out many issues concerning business operations at unit level.Plant council is a body comprising of union nominees on the one side and the senior executives on the other side.

) in co-ordination with the Commercial Department.C . It breaks a composite project and assigns to the required manufacturing units. TRANSMISS ION. AVR. * EXHIBITION CORDINATION * PADO / POWER PLANT SIMULATOR * IMPRESS PROJECTS.ENGR FIG 3. A.5 DEPARTMENT STRUCTURE MARKETING. BROUCHERS. DGM * POWER SECTOR * INDUSTRY SECTOR * I.O.Approach to marketing is different at BHEL.AGM * POWER SECTOR INCLUDING HYDRO * I. PLANNING/ BUDGET E1 ASST. ENGR E5 MIR. as customers are usually known and orders of large size and value. SEE * MARKETING LITERATURE.O *R&M * NUCLEAR * STAND ALONE EHTC. E6 HYDRO SEE/ Page 42 AVR/ EHTC E1 . E6 A D TC E 4 E6A TQM / ISO/ BUSINESS EXCELLE NCE E2 E0 ASST. STAND ALONE VFD * TRANSPORTATION & TRANSMISSION .O * INDUCTION HEATING.E E6 HYDR O SEE/ AVR/ EHTC E1 E6 E2 E1 E6A TRACTION. DRIVES * TQM /ISO/ BUSINESS EXCELLENCE * DEFENCE ELECTRONICS * MIR / PLANNING / BUDGETING * IMPRESS PROJECTS. The central marketing agency is located at the Corporate Office in DELHI. A/C DRIVES E5 VFD ADDL. • Marketing department of BHEL is divided as corporate marketing division and separate marketing division for each unit. The main function of marketing department is to procure manufacturing order (M.O *R&M * IMPRESS PROJECT AGM * POWER SECTOR * I.

the project is splited and handover to respective unit marketing departments. which makes the work easy for this department for quoting to a bid.• The corporate marketing are responsible to get the project from the customer. FUNCTIONS OF MARKETING DEPARMTMENT Exploration of market is very important for new products as well as old products. • The projects are obtained by the marketing department by the open tenders. • In the four P’s of marketing the BHEL mainly focus on the price. • The marketing department acts as the input for the project management and commercial department and gives full details about the project regarding product and place. Page 43 . • The main function of unit marketing department is to form a pricing strategy that are competitive and profitable. Planning commission forecasts as well as based on the projections of the working group. annual plans will be prepared by this department and in turn it will be always tracking the laying of the new electric line and tenders. BHEL never go for promotion since it is one of the market leader in the power sector. Cost estimates will be given by Finance department. • The marketing department are responsible for the formation of contract documentation between BHEL and customer. • Once the marketing department gets the order it handover the order to the project management and commercial control department. product and place. Once the projects are given to BHEL. MOU agreements between India and other nations and by the strategic alliance. In that document they specify the each and every step to be followed in the different stages of the project.

BHEL BUSINESS BUYERS There are generally three types of buyers- 1. BHEL has been a leader in the power sector for a long time. BHEL usually adds a profit margin about 10-12% of the order.Approach to marketing is different at BHEL as the customers are usually known and orders are of large size and value. tenders and procures (annexure checklist for tender review). Global competitive bidding (funded by World Bank). FOR GOVERNEMNT MARKETS Page 44 . BHELEDN has a separate marketing department for each product group. 80-90% of the orders floated have been bagged by BHEL. BHEL’s international competitiveness is demonstrated by the fact it has bagged 86% of the order floated for competitive bidding. PROCESS OF SANCTIONING PROJECT THE FOLLOWING WAYS ARE USED FOR GETTING AN ORDER Direct enquiry Bidding after floating an enquiry. technical viability studies and commercial analysis is done to select the best one.

They provide services to the power plant products after the installation also.e.. state and local levels. KEB. The growing importance of a multitude of fragmented government buying agencies at federal. they help foreign country companies in establishing the power plant like Russia. SERVICE MARKET The main objective of BHEL is to provide quality services to the world. Tata Powers. Singapore etc. 2. They buy products from BHEL and produces power.  Post sales service Once the deal is approved.BHEL’S supplies products to all the state government electricity boards i. BHEL sends their engineers to establish the power plant. monopolistic sector for demand for goods and service. MANUFACTURING PROCESS Page 45 . BHEL as a public sector company supplies’ the maximum products and services to the government market as its products are highly appreciated for its quality and durability . The managers of the Marketing Departments visit the customers to their premises to fulfill their demands. MAJOR SERVICES RENDERED BY BHEL  Pre sales service The catalogues are sent to the interested customers and after they demands for the product. Adani Powers. NTPC etc.Government market has often been classified as a unique. GE etc 3. Nigeria. Reliance Power Supplies. INDUSTRIAL MARKET An industrial market consists of all the private players who are into the business of supplying powers.

The marketing section procures orders from customers. The management is committed to be an environmentally sound company in its activities. Promotion of activities for conservation of resources by environmental management with focus on oil. Once the products are produced. Safety day is celebrated around March every year and surprise site visit to see whether the employees are following safety measures. customers. by taking care and involving at the stage of planning and designing. The commercial section prepares a manufacturing order on the basis of the customer specifications. through advertisement. products and services as an integral part of business performance through: Compliance with application legislation and regulation. contractors by pro-active communication. Environmental pollution. propaganda’s and promotional methods. risks due to Occupational Health and Safety Hazards.6 DEPARTMENT STRUCTURE BHEL Safety organization is taking every step to minimize accidents. Though the frequency rate of accidents is comparatively low. Safety and Occupational Health awareness amongst employees. electrical energy and chemicals. Enhancement of Environmental. product services and to provide safe and healthy working environment covering its employee. the management is taking keen interest to reduce the accidents as far as possible by engineering methods and personnel protective equipments at inevitable stages. HEALTH AND SAFETY DEPARTMENT FIG 3. Page 46 . A copy of this order is passed to the commercial section. At the same time. Setting objectives and targets to eliminate / control / minimize. they need to be tested by the testing section before being issued or transported to the customer’s sites. a copy of the order is issued to the material management section so that the required material can be made available at the stores for production. suppliers. The Engineering section makes a note of these specifications and tries to design the product.

Periodic review and audit of HSE Management System to ensure its continuing suitability.Regular evaluation and pro-active measures for prevention and control of environmental pollution / accident / occupational diseases. Formulation and maintenance of HSE Management programmes for continual improvement. BANGALORE TOWARDS ACCIDENT PREVENTION: a) Safety committee b) Safety training for executive supervisor and artisans c) Accident investigation reporting systems d) Issue of safety equipment FUNTIONS OF SAFETY COMMITTEE IS TO: Control the accidental hazards Promote safety consciousness among employees Communicate to the top management regarding safety aspects CHEMICAL HAZARD PREVENTION IN ELECTRONIC DIVISION  Identified areas  Electrolytic capacitor  Photovoltaic devices  Painting Page 47 . adequacy and effectiveness. Appropriate training of employees and interested parties on Health. SAFETY PRECAUTION IN BHEL-EDN. Safety and Environmental (HSE) aspects.

Exhaust fans and ear aids are also provided to minimize sound effects while in operation. AC GENERATORS AC generators are used in case of emergency when power supply is cut down FIRE ALARM SYSTEM Device building smoke and heat detectors Computer room-smoke. Effluent treatment plant  Inflammable material stores In order to prevent toxic effects of chemicals by the way of contact via respiratory tract. Separate soundproof chamber is provided. Personnel protective equipment's such as hard glass. eye. proof apron and goggles are provided. safety measures have been taken. skin. HAZARDS The chemical hazards are corrosive and toxic SAFETY MEASURES Exhaust fans are provided at forming and etching areas. or any other route. servicing and allied areas. MANAGEMENT INFORMATION SYSTEM BHEL has decided to take up information technology as a business initiative with its existing expertise in IT and rich domain knowledge in power station engineering. heat and infrared ray system. The company is strengthening its IT linkages within the organization and is Page 48 . BHEL can leverage itself to diversify into the new economy sector of InfoTech and IT enabled services. mouth.

Today computers are being deployed in all facets of the company’s operations both for business and engineering applications. In the data communications area. the computing power and its technology was gradually upgraded in line with the functional needs of the company. The systems and procedures formulated those days laid a strong foundation for the development of an information technology base in the years that followed. Each of the major units is in the process of setting up its campus-wide backbone network supported by the LAN for inter-office / departmental connectivity for systems integration. including e-business which is fast transforming the traditional ways of business transactions. initiatives and continuous efforts to enhance its competitiveness by reducing cycle times. the manufacturing units were dependent on the technology transferred from the collaborators through collaborator supplier systems procedures and computer programs with suitable adaptations. The front-end-user-friendly desktop personal computers are used in each of the units extensively. BHEL is on its way to achieving its vision of being a world class innovative. Suitable changes were adapted in the information technology scenario. all the units are linked up through a wide area corporate data network. Page 49 . BHELNET. computerized system base supported by the state-ofthe-art information technology. while minor ones have got minicomputer systems. With these strategies. starting with the unit records machines. The major units have centralized mainframe computers. Initially. competitive and profitable engineering enterprise providing total business solutions. Over the years. Each of the manufacturing units has a strong functional. Computerization in BHEL commenced at the very inception of the company in the sixties. cost and improving quality.evaluating its approach towards emerging opportunities in IT.

Strategies and strengthening in IT infrastructure is in line with the future business requirements. They have planned to implement SAP in about six months’ time PROJECT MANAGEMENT AND COMMERCIAL DEPARTMENT FIG 3. e-commerce concepts.The company has a professional outlook towards the information technology. A core group of IT personnel are available in each of the units with proper support and direction from a similar apex body at the corporate level. simulation modeling and video conferencing are some of the newer areas considered for adaptation today. for meeting the business challenges of the future. collaboration and concurrent engineering. web enables technology.7 DEPARTMENT STRUCUTRE PROJECT MANAGEMENT AND COMMERCIAL DEPARTMENT Page 50 . The enterprise-wide computerization systems. SAP IMPLEMENTATION BHEL-EDN in co-operation with WIPRO is in the process implementing SAP. an ERP package for the proper integration of business process among different departments.

material purchase and all activities regarding the project. And it specifies the time of production schedule. In the L1 network the corporate PMC specify major time limits like commencing of project. The L2 schedule network is formed with the help of primavera software. After all the clarification has been clarified the billing schedule and sale order is formed and got approved by the customer. The master list of the project is formed and entered to the SAP ERP system which can be accessed by all other departments. On the basis of the master list engineering department view the ERP system and creates the components list on the basis of the master list and enters the specification each component. PMC monitors and co-ordinates of engineering document submission and approval by customer or consultant of customer. After the confirmation of project the corporate PMC call for the kick of meeting and start the negotiation and form the L1 network. The other activities of the PMC are documentation like contract agreements and schedules. start of civil work. Page 51 . lighting of boilers etc… And on the basis of the L1 network each units like BHEL EDN forms the L2 network in which it forms the time schedule of the project with respective to the BHEL EDN unit.The project management and commercial (PMC) department is responsible for the coordination of the all projects in the BHEL EDN after the confirmation of projects from the marketing department. starting of engineering works. finishing of erection of power plants. Arrange customer meetings to resolve all technical and commercial issues.

payment follow up and payment collection. PMC is also responsible for the contract closing activities. It takes cares the submission of invoice. PMC department arrange for the customer inspection. dispatch and clearance.Then material management department view the ERP system and creates the purchase indent and give direction to the production department to start the production. PMC also prepares operation and maintenance manuals arrange for dispatch of manuals and arrange for the customer training It also supply of additional materials if required during commissioning of power plants and control equipments. FACTORY SERVICE DEPARTMENT FIG 3.8 DEPARTMENT STRUCTURE Page 52 .

Maintenance of these fiats also comes under this department. Since this is the process industry. township. 3 tractors. there are 4 fork lifters. For the maintenance department. maintenance etc…… TRANSPORTATION SECTION In EDN. Civil maintenance bore well maintenance. 2 trucks and 3 cars. starting time is receiving the complaints. Drivers will be given identify cards except these. VIGILANCE DEPARTMENT Page 53 . BMTC buses are hired for facilitating the employees to reach factory and back home at the beginning and of each shift. Additional cars for the moment of Executives will be hired.Factory service department of BHEL provides facilities in the area of transportation. several types of machines are used. this department will look after sports club maintenance etc MAINTENANCE This section will look after mechanical and electrical maintenance. down is getting the requisition slip and end time is handing over the machine to production department. there are 169 fiats allotted on the basis of seniority. other people are not permitted to drive in the vehicles into the premises. Maintenance and service of all these vehicles come under the preview of this department. TOWNSHIP In Bangalore.

A number of systems studies were also carried out with a view to improve the existing system and procedures. Several interactive sessions were also held with the line executive representing different functional areas. A web based vigilance Management Information System was also developed for on-line storage and processing of information relating to all vigilance cases.Vigilance means to guard. Page 54 . procedures and policies. INFORMATION TECHNOLOGY AND SERVICE DEPARTMENT The information & technology service (ITS) department take cares all the LAN. seminars and debates on Preventive Vigilance and discourses on moral and spiritual values were organized in all BHEL units/ regions. checklists and other related areas. BHEL vigilance also bought out the maiden issue of its annual journal “DISHA” containing number of articles on vigilance. BHEL vigilance assumed the role of a catalyst for enhancement of transparency in company operations especially in areas having interfaces with customers and suppliers. malfunctions. The vigilance organization of BHEL is headed by chief vigilance officer (CVO) of the rank of joint secretary to the Government of India. The vigilance department also guards against the white collared crimes. Regular training programmes. WAN connection inside the factory premises and with the other units of BHEL. Each unit/ region of BHEL has an independent vigilance setup headed by a senior vigilance executive functionally reporting to the CVO. printers. The ITS department is responsible to maintain all the computers. plotters and all Hi tech communication systems inside the factory. malpractices. in order to create vigilance awareness and enhance their knowledge about company’s rules. misuse of power and position to ensure that the activities of employees are in compliance with rules of the organizations.

The entire operation of the departments has been automated and integrated through Enterprise resource planning (ERP) software from SAP.9 DEPARTMENT STRUCTURE QUALITY SERVICE DEPARTMENT Quality is defined as a Strict and consistent adherence to measurable and verifiable standards to achieve uniformity of output that satisfies the customer needs . The main functions of quality service department to do inspection on the receiving goods from the customer and check the finished goods from the production line to meet the quality commitment. Page 55 . which are extensively used for data processing and management information systems. Government of India. EDN is connected with other units and various project site offices through VPN (on 2mb leased line). QUALITY SERVICE DEPARTMENT FIG 3.The ITS Department has LAN connecting over 1000 nodes through optic fiber linked file servers. The ITS department has got ISO/ IEC 27001: 2005 certificate for the information security management system (ISMS) from the ministry of communication and information technology.

The quality service department has successfully implemented six sigma in the PCB sub assembly department and achieved the sigma level of 5. quality service head and the representatives from material management. The quality service department also forms the quality policy. QUALITY OBJECTIVES Competitive edge of product and service by build and improve procurement. chemical and instrumental products. QUALITY POLICY In its quest to world-class BHEL pursue continual improvement in the quality improvement in the quality of its product service and performance leading to total customer satisfaction & Business group through dedicated commitment & team work of employees. general quality. Quality service department maintains a separate component testing labs for mechanical. Page 56 . control equipments & high voltage electric controls. production manager and finance department. To review the quality service activities. OHSAS 18001:1999.44. and ISO 14001: 2004. The quality service department has obtained international certificates of ISO 9000:2000. implementation of quality studies and to form the quality targets plant quality committee is formed with the association of EN head. plan and audit maintains the record. electrical.The quality service department is divided according to its functions as quality assurance inward control. electronics. meter & capacitors.

electrical. Capability of human resource by upgrading skills & competence. METERS AND CAPACITORS This section inspects the process and final inspection of sub components like energy meters.Value addition by reducing the cost of quality Delivery and response. CONTROL EQUIPMENT'S AND HIGH VOLTAGE ➢ This section inspects the control equipment fabrication and main assembly. electronics. water meters and capacitors. The separate labs to test the components like mechanical. Value of the stakeholder. The BHEL concentrate more on the process inspection than the final inspection to rectify the problem once for all. It also checks the instruments like vernier caliper. screw gauge and no go gauge and calibrates it according to Indian standards. chemical and instruments. Quality of supply by improving the supplier performance. The vendor evaluation for the implementation of quality standard is also check by this section. Page 57 . ➢ It also inspects the high voltage electrical components used in the control equipments. QUALITY ASSURANCE AND CONTROL INWARDS This section inspects the incoming material and gives the quality assurance to the products.

purchase and stores. GENERAL QUALITY ASSURANCE The general quality section assurance looks after the preparation of quality plan. quality training.10 DEPARTMENT STRUCTURE MATERIAL MANAGEMENT  Material management department in BHEL EDN is responsible for all the material movements in inside and outside the company. The quality circles are the small group of people present in each department and works for the improvement of the quality in the workplace. In the quality plan the quality goals are formed and plant for the achievement of goals are formed. To motivate the quality circles the quality awards are given for the best performing circles.➢ It maintains a separate metrology lab for automations.  The department is divided as material planning and control. The quality plan is also achieved through quality circles. This quality circles solve the problems in the workplace with the association of quality departments. quality audit and quality circles. Page 58 . MATERIALS MANAGEMENT FIG 3.

unreasonable increase of high price. arranging for tender. In the indigenous purchase section takes care the purchase within the India and in the Import purchase take cares the purchases from the foreign countries. Generally in tender firs the technical bid are done and this activity involves the scrutinize of technical characteristics of the products. PURCHASE SECTION After the purchase indent is raised the purchase section starts its work. But the late tenders are accepted in some special cases like due to postal delay.MATERIAL PLANNING AND CONTROL 1. Vendors are only qualified for financial bid only if they qualify the technical bid. If any of the vendors who are not Page 59 . conforming the order. In the reverse auction all the vendors take part in a time and all the quotation of vendors are displayed in the screen and lowest bid is displayed. product of only one product is offered by many vendors. The technical bid is conducted by the panel of engineers where they check all the technical details of the products. The function of the material planning and control is rise a purchase indent after receiving direction from the project management and commercials department. The late tenders after the tender closing date are not accepted. vendor management. In the reverse auction system is online biding type where auction is conducted to reduce the price of the product. 2. The main functions of the purchase section are to request for quotation. The purchase function display the request for quotation in the website and timeline of two weeks is given to submit the quotation. scarcity. The purchase section is divided as purchase of indigenous purchase and import purchase. The purchase indent consists of the details of the materials to be purchased and other details about the materials required. The financial bid is carried out by online system and where the BHEL follows reverse auction system in the financial bid.

PURCHASE POLICY ➢ Should be purchased only from the vendor commitment to the quality on longer term basis so as to improve quality reduces cost and procurement time. treating them as a business partners. ➢ Should empathize more on process control rather than end inspection of the product. Procurement shall be from vendor approve as per the procedure prevalent in the unit expect in very special circumstances as defined. If no more entry is received in the screen for 10 minutes then the lowest price at the time is consider as lowest bid and order is confirmed for that price. After the confirmation of lowest bid purchase order is issue and the due date for delivery of goods is specified and agreement is formed. consistent with quality requirement transparency in order to adhere to commitments made to customer. ➢ Maintain goodwill of the approved vendors. If the quality norms are not satisfied the products are returned for rework to satisfy the quality norms at no extra cost. equipment and related or associated service at the right time at an optimum price. PURCHASE OBJECTIVE The main objective of the procurement activity shall be to purchase the required material.the lowest bidder is ready to give cheaper price than lowest bid then he can enter his bid into the system. Purchase preference may be given to those who have adopted internationally known quality management system. Page 60 . Then the purchase department arranges for the quality inspection in the vendor place or in the BHEL EDN factory premises and the products should compulsorily satisfy the quality norms. ➢ Bulk buying and bunch of material requirement for several contracts shall be done to the maximum extent possible to the price advantage.

➢ There shall be continuous effort to reduce inventory levels. The major function of the store is to maintain all the database of the inventory that they have in the stores. Page 61 . BHEL EDN has one main store and other separate store for each and every department.➢ No purchase order shall be placed against anticipate customer orders except under special circumstances for which prior specific approvals of the competent authority shall be taken. The main function of the stores to receive the material from the vendors and maintain the inventory of finished goods. ➢ Procurement from unapproved vendor of the value of Rs. PURCHASE NEGOTIATION/COMMITTEE The purchase or negotiation committee is responsible for the all the work regarding tender and technical scrutinize and other communication with the vendors. The purchase committee changes from project to project STORES Store is the other major function of material management department. INVENTORY MANAGEMENT Inventory is the any useful resource which is kept in stock. The store receives the goods from the vendor with the quality pass certificate and issues the goods received slip to the vendor for the financial clearance.5lakh and above each case needs to be reported to corporate material management every month.

e. The registered vendors of the BHEL are given training for the customized production which suits the BHEL requirement. a vendor registered in BHEL Trichy is consider as a registered vendor of the BHEL EDN Bangalore.The BHEL EDN store uses the ABC control of inventory management and also follows the nonmoving and slow moving goods. ✔ B items: these are the 30% of the items that tie up 15% of the total inventory money. ✔ C items: these are the 50% of the items that tie up 5% of the total inventory money. Page 62 . The registered vendor in any of the BHEL unit qualifies to supply product for any BHEL units. i. VENDOR MANAGEMENT Vendor management is one major activities of the purchase department. inventory is categorized in to three sections as A. It looks after the selection of vendors and making arrangements to become the registered vendor of BHEL. B. C. In the ABC control. ✔ A items: these are the 20% of the items that tie up 80% of the total inventory money. The vendors are frequently evaluated for implementation of quality systems and its practice.

POLICIES FOLLOWED IN BHEL-EDN HR policies: • • • • • • • • • • Hours of Operation/Work Schedules Attendance Policy Leave of Absence Policy Pay and Compensation Overtime Health benefits Family Medical Leave Policy Holidays Sick Days Equal employment policy Environment policies: • • • • • • Safety Policy Workplace Security Policy Drug and Alcohol policy Dress Code Policy Smoking Policy Telephone and Computer Use Policy Production policy Page 63 .

This was a strategic vision for groups. Jr. To critically analyze BHEL from the McKinsey 7S lenses. production systems. with the other leaders in its industry and hence keep improving on it continuously. and Tom Peters (who also developed the MBWA-"Management By Walking Around" motif. committed to enhancing stakeholder value”. and teams. A close look at each of these traits identifies the fact that. from the vision we are clearly able to identify two distinct traits that BHEL wants to demonstrate during its lifetime (a) Become a world class engineering enterprise (b) Enhance stakeholder value. Thus. systems. style. to include businesses. while becoming a world class engineering enterprise is an outside-in focus where BHEL would require to benchmark its internal processes. skills. it is important to identify its vision. business units. BHEL’s vision is “to become a world-class engineering enterprise. and authored In Search of Excellence) in the 1980s. staff and shared values. The 7S are structure. quality systems etc. Waterman. where BHEL needs to determine how it will be able to generate enough value for its investors such that BHEL remains the destination of choice for investment. design principles. strategy. The fact that BHEL wants to enhance its stakeholder’s value involves an inside-out focus. Page 64 .Quality policy The McKinsey 7S Framework is a management model developed by well-known business consultants Robert H.

staff. we will utilize McKinsey’s 7S framework and try to identify which of the ‘S’s have been worked upon by BHEL and in what ways: STRUCTURE A well balanced organization structure on which the company can apart from sustaining the business also gave is evident in BHEL-EDN. with each function given utmost importance.MCKINSEY’S 7’S FRAMEWORK The first 3 elements. For analyzing and taking decision the top management will consult the lower level and functional level managers. structure and system are considered the hard elements. Since BHEL being the public sector unit the structure of the organization is more democratic and military type i. the decision is taken by the top level management of the company. shared values are called soft elements. The organization is well manned and structured. The next 4 elements – style.e. skills. Now to look at how BHEL-EDN has been able to achieve/work towards its dual element vision.strategy. Page 65 .

BRAND IMAGE etc. Artisans have direct exposure to on the job operations and supervisors are trained in various operational areas and rotation made to ensure overall development. EDN has also been certified for ISO 14001 for environment management system and OHSAS 18001 certification. human resource management. HEAD OF DEPARTMENT for all departmental such as finance. The staffs are educated. The procedures to be followed are well documented and audited. safety etc. there are many assistant engineers. EFFECTIVE COLLABORAION. Strategies of BHEL-EDN includes VISION..BHEL –EDN has good organization structure. assistant manager. Unlike tactic. BHEL-EDN uses complete systemized process in all fields like quality control systems. subject to constraints of the capabilities. middle and top level executives. SYSTEMS The organizational has well defined systems on each and every function. strategy is well thought and often rehearsed. DEPUTY GENERAL MANANGER. STAFF The employee strength of 746 persons have about 91 executives. performance measurement systems. material management. AND VALUES. 7 YEAR STRATEGIC BUSINESS PLAN. MISSION. 105 supervisors and office staff and 443 artisans. Under these departmental heads. supervisors etc. production. FUTURISTIC PLANNING. quality. There is a very good computerized system wherein database on all operational aspects is readily available. Strategy transforms BHEL-EDN from the present position to the new position described in the objectives. They are generally – BOARD OF DIRECTORS. 107 subordinates. The systems at BHEL-EDN have been certified for ISO 9001. The Manager’s and top level executives have professional Page 66 . marketing. STRATEGY Strategy is a plan or course of action in allocating resources to achieve identified goals over time. skilled and lead by professionals at the line manager.. CHAIRMAN AND MANAGING DIRECTOR. EXTENSIVE BUDGET EXERCISES.

Pumps. BHEL has went on to become the largest engineering and manufacturing enterprise in India operating from over 40 years and manufacturing over 180 products across 30 major product groups. which is the enterprise customer focused and quality driven or focused on maximizing profitability at any cost? Does the enterprise strive to build a cohesive team of its staff.. If the style clashes with its stated strategy (e. SKILLS Skills are the capabilities of the staff within the organisation as a whole. Heat exchangers & Pressure vessels. Casting & Forgings. BHEL is a market leader in Power generation and Industrial electrical machines internationally. Transportation equipment and Power devices. Following are the major areas of skill focus by BHEL: Thermal Power. Many have had experience of working in different units of BHEL which has enhanced their vision. STYLE It means the Culture Style of one Organization. Power station control equipments. vendors and partners). or does the organization view its workforce as a series of interchangeable hands-for-hire? This company's style affects who it does business with (i. Wind mills.. With a base of 42000+ skilled and committed employees. style can be changed.. style is likely to win the day. as well as who does business with it (i. DG Power.g. A dedicated staff from top to down below has been a good aspect in BHEL-EDN. Non-conventional energy systems. Industrial electrical machines. Hydro Power. Boilers & Boiler Auxiliaries. With concerted effort.e.expertise in one or more functional areas. Industrial turbo sets. customers).e. Oil field equipments. Gas based Power. However this requires delicacy and patience Page 67 . a conservative culture claiming a strategy of bold change). BHEL has historically invested in its talent pool and have been able to attract the brightest and best. Transformers & Switch gears.

This can be adjudged by the fact that the company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. BHEL has a strong focus on generating value for its stakeholders. Development of Acoustic barriers to control noise pollution in Fabrication shops.SHARED VALUES As stated in its vision. such as: • • • Development of prediction modes for forecasting air pollution. Hence it has set up PCRI which is the in-house R&D unit of BHEL. The institute has undertaken a number of R&D projects to develop industrial pollution control technologies. BHEL has a strong commitment towards environment and pollution control. Development of technology for disinfection of treated sewage using ultra violet radiation techniques SWOT ANALYSIS OF BHEL-EDN HELPFUL To achieve the objectives HARMFUL To achieve the objectives S O W T S TD Po H E I i D u R Pn R A n f e d E O E K c f m N r e i a R N A n G e n Tc Your text goes here E T g a d i Tu U S n s l H e N S e t f e S IT E r d y o i IS r n c i Eg o p Sn b m o a s p k w e e t a e r n i p d t i a SW SWOT Analysis Page 68 .

Sam Pitroda. BHEL receiving the CII-Thomas Reuters Innovation award from Dr. Chairman National Innovation Council. a t e l m q R e e u l a n i a t n p i d s m v e l i o n y n t s t t e t i a r h b s l n e e a e i t p x n i r p d u o e s n d c t a u t r i l c e a . Director (E. CMD. BHEL and Director [finance] receiving the ICAWI Award from Sh. BHEL receiving NDTV Business Leadership Award 2010 from Sh. Former Union Minister for corporate affairs. Pranab Mukherjee. BHEL receiving the SCOPE Award for EXCELLENCE and outstanding contribution to public sector management from the Honb’le Prime Minister of India Dr. Union Minister for Finance. R & D). Veerappa Moily. Manmohan singh CMD. t d l N r e d t e w e l o a l t e i g i o n v r n t e o s h r w i BHEL HAS WON SEVERAL AWARDS SUCH AS: CMD. Page 69 .b o g d i l n i u h t b p y e o n t t c o h e a e s n s p i a c l m t o a i l i m n a o m t t n e i .

2. 3. Recruitment process has been increased from last two years. Because of computerization there is cost reduction in the form of reduction in paper work and also quickness of action. n u e c s p r u o p p u l s p l r i t y a e s g r t p e s i a m . u o SUMMARY OF FINDINGS 1. Bangalore is one of the major contributions to the national economy. Soft loans should be provided to the suppliers as an encouragement to retain them. A t a i b s n f i l d e i i t n d y e e x BHEL-EDN. BHEL is showing consistent growth prospective. r o r 7.n L . BHEL is considered to be the best organization among the public sector undertakings. It has centralized many functions which helps in better control and coordination. t d c e o u r r f p SUGGESTIONS e o To honor their commitments regarding the product delivery they can introduce computer t e s w o software. BHEL-EDN is managing its human resources and marketing very effectively by r n e c o conducting various types of training and other sessions. a c E r t k g x e o p s o t p f r s Advertising methodology should be improved. There has been constant rise in BHEL-EDN’s profit year after year. 4. r o e e n s n L s . due to increase in demand. t t s p o h i a m e r n a e n s u f d i f i o a c e s n t l e u d r q f e . 5. L t a . G e 6. CONCLUSION Page 70 . p r a e l o 8. BHEL has learnt it hard way and has been continuously striving to compete with the competitors and has been successful.

Bangalore under Mr. Is quick o to e v m u progress was aided by the collaboration with international leaders in the field of power and e c e n s control electronics. n t E e i a s s n s g y l e a i p d n r i n f o g r c a t e o s t s m a r i j u n o r c g t p u o r e r f s e e n . j c o LEARNING EXPERIENCE IN BHEL-EDN. BHEL has entered a new phase of growth. which is extremely creditable in the changing to a i s r b e environment. k s s BHEL-EDN has earned profits from the initial stage of its operations and it is confident of e . i meeting all the challenges that lies ahead and aims at achieving the highest turnover. u .i u e r v f o c a f p e t e p o e c o f t r The BHEL-EDN was formed in 1976 growing from a meager turnover of Rs 3 crores in 1976-77 d s i t 500 (approximately) crores in 2001-02. KALYANA SUNDRAM. Bangalore was excellent. All the products have continued o m t c r be the undisputed leaders in the categories. t i t i Today BHEL is one of the most pioneering PSUs in the country. BANGALORE e I i To a be an inplant trainee in BHEL-EDN. I was allotted as inplant n n trainee in BHEL-EDN. The department staffs a t d b i i v Page 71 n l f e l i n u .

o m Highly experienced staff of BHEL. i r l k d a This was an excellent opportunity for me to do project in this company and gain knowledge.EDN are very humble and approachable.BHEL.COM s i lPUBLICATIONS t o o f i a o p n r o s f . . s r o Functions of each and every department in the organization. e e b t During this exposure my objectives of the study as mentioned under were successfully fulfilled. a The following Books and data were of immense help for the successful i c n s completion of this project. n a e / n I am highly indebted to the staff of BHEL for their co-operation. o i i n The methodology adopted by the organization to grow in the present and future market. u a n Analysis of the practices and procedures adopted by the functional department in the p t d organization. o S The knowledge with the real working environment of an organization. r c ’ i a s m l p p c o o r s e i t t d i i / o n t s . They contributed v l a their mite to enhance my level of confidence and knowledge in pursuing this project. p i f l The organization structure.COM e f i r t s m ~ WWW.n y u c r e t e i o s n / t p helped me all through my project by giving me excellent guidance and all the related information h r c e regarding my project. q o u t COMPANY’S WEBSITE ~ WWW.BHELEDN. o i ~ BHEL MANUALS AND PUBLICATIONS ~ COMPANY MAGAZINES Page 72 .

Himalaya publishers ~ PHILIP KOTLER. r 8 0 T r p h e r e f o d o u o r c t p m s e s r u n a d t r e r Page 73 ~ SHASHI K GUPTA. Marketing Management. Financial Management. o w T p h l o e a b w o e p u r o w c p e o s r t o . Kalyani publishers ~ SUBBARAO. Human Resource Management.a a b n i l d e i w t y f i t aBOOKS REFFERED n e d a c n h s o c n l i o v n e l n g o c g y . Pearson’s publishers . I j s t e c h a t s s o 1 . o y L f .