126763341 organisation-study

BHARAT HEAVY ELECTRICALS LIMITED
AISHWARYA INSTITUTEOF MANAGEMENTSTUDIES & RESEARCH Page 1
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CHAPTER 1
EXECUTIVE SUMMARY
It gives a practical exposure to what we have learnt in theoretical form during the first
year of the MBA programme. It nurtures us to face the real corporate situations and gives
a firsthand experience in the real corporate world.
The project work enables the student to put down his/her thoughts in formal written
report and thus gives an opportunity to improve the written communication skills. During
the study the student also have to make an effort to collect the primary data through the
personal interviews with various officials of the company, which is again an opportunity
to improve the oral communication in the organizational context.

The study is made an integral and important part of the programme of MBA as it
provides insights into the industrial environment of which the company is a part. The
student is able to relate the impact of various industrial players’ viz. competitors,
suppliers, customers, government etc.
OBJECTIVESOF THE STUDY
 To gain the practical knowledge while conducting the study.
 To study the functions of an organization.
 To study the impact of management on the performance of the organization.
 To know about the policies, rules and regulations of the organization.
 To suggest the measures to the organization on the basis of findings.
STUDYMETHODOLOGY
PRIMARY DATA
 Direct interaction with Departmental heads
 Interaction with superior and employees
SECONDARY DATA
 Company Manuals
 Magazines
 Web sites

LIMITATION OF STUDY
 It was difficult to gather all the information from various departments during the
stipulated period of time.
 The report also suffers from the bias of information due to several restrictions
imposed.
 The time allotted to do the project is limited.
 The company is not allowing studding each department in details. As all executive
are busy in their schedule.
 Regarding the data provided by the company is mostly secondary.
CHAPTER 2
INDUSTRY PROFILE
Analysais of Indian power sector
The critical role played by the power industry in the economic progress of a country has
to be emphasized. A self sufficient power industry is vital for a nation to achieve
economic stability.

India had been traditionally depending on thermal power as a major source of power
generation, which constitutes about 65 percent of current capacity. Balance is contributed
by Hyde power (26 percent), Nuclear (3 percent) and Renewable energy (6 percent).
Over 87 percent of the current installed capacity in the country is by the government;
with the state governments having lion’s a share of over 52 percent and the balance by
central (federal) government. Due to the initiative of government of India to encourage
Public Private Partnerships in power sector, share of private companies has gone up to
steadily to MW, about 13 percent of the installed capacity.
Indian Power Sector Analysis” focuses on the growing marketplace for power sector in
India. It thoroughly investigates the current market trends, evolving markets, and growth
prospects for the Indian power industry. It will help the client to analyze the driving
forces and leading-edge opportunities critical to the success of the power industry.
Indian PowerIndustry
Pre-Independence
The British controlled the Indian power industry firmly before Independence. The then
legal and policy framework was conducive to private ownership, with not much
regulation with regard to operational safety.
PostIndependence
Immediately after Independence, the country was faced with capacity restraint. India
adopted a socialist structure for economic growth and all the major industries were
controlled by public sector enterprises. By 1970's India had nationalized most of its
energy assets, due to its commitment to social goals. By the late 1980's the Indian
economy felt the strain of the socialist agenda followed since independence. Faced with a
serious deterioration in public finance and balance of payment crisis, the Union
government as part of its policy of economic liberalization allowed greater investment by
private sector in the power industry.
The various types of Power

Non Renewable Energy
Fossilfuels
The Industrial Revolution in Europe in the 19th century forced human's to seek
alternative sources of fuel to cater to the increasing demand. Focus was shifted to fossil
fuels as an alternate source of energy. Fossil fuels were formed millions of years ago.
They are nothing but fossilized organic remains that after millions of years has been
converted into oil, gas and coal. Because this process takes a long time, they are known
as non renewable.
1.
Coal
It is the most easily available fossil fuel in the world. It is mostly carbon and is used as a
combustion fuel, especially after the Industrial Revolution. Coal can further be divided
into lignite, bituminous and anthracite. Lignite and Bituminous have lesser percentage of
carbon and therefore burn faster. They are not environmentally friendly, Whereas
Anthracite has about 98% carbon and therefore burns slowly and is more environmentally
friendly.
Oil and Gas
Oil and Gas is mostly found in underground rocks. Millions of years ago when plants and
animals died, they got buried in layers of mud and sand. The earth's crust changed its
shape and put immense pressure and heat on the dead plants and animals. Over a period
of time, the energy in those plants and animals changed into hydrocarbon liquids and
gases.
Renewable Energ
Because of the environmentally disastrous effect of non renewable energy, an
alternate source of energy which would not pollute the environment and which can also
be renewed was tapped. They are known as renewable energy.
SolarEnergy

It is the most easily available renewable resource. After the oil shock in 1970's many
countries conducted research work to tap solar energy. It is believed in the next few years
millions of consumers across the world would switch to solar energy. In India the Indian
Renewable Energy Development Agency and the Ministry of Non Conventional Energy
Sources are devising strategies to encourage the usage of solar energy.
Hydra Energy
Energy available in fast flowing water can be used to generate electricity. Waves occur
due to the interface of the wind with surface of sea and represent a transfer of energy.
This energy can be tapped for commercial purpose.
Hydro Power
It is the one of the best, cheapest and cleanest source of power, though large dams could
have environmental and social repercussions. In view of these problems associated with
larger dams, experts have advocated the construction of smaller dams. New
environmental laws to safeguard the planet from the effects of global warming have made
smaller hydropower Projects more viable.
Wind Energy
It is the kinetic energy used for many centuries in water sports like sailing and for
irrigation. It converts kinetic energy into more usable forms of power. Wind turbines help
to convert the energy in the wind into mechanical energy which can be used for
generating power. Since the late 1980's the viability of wind energy has gained in
prominence across the globe.
NuclearEnergy

Nuclear energy can be created in nuclear reactors under strict human control. The nuclear
power can be generated by the fission of uranium, plutonium or thorium or the fusion of
hydrogen into helium. Nowadays mostly Uranium is used for generating nuclear power.
Findings of PowerSector
 More than 64% of India’s total installed capacity is contributed by thermal power.
Significant jump in unit size and steam parameters will result in higher
efficiencies and better economics for the Indian power sector.
 Western region accounts for largest share (30.09%) of the installed power in
India followed by Southern region with 27.76%.
 Unbalanced growth remains the cause of concern for the Indian power sector.
Only about 56% of households have access to electricity, with the rural access
being 44% and urban access about 82%.
 Southern region remains the dominant region in renewable energy source
accounting for more than 57% of the total renewable energy installed capacity.
CHAPTER 3
COMPANY PROFILE
3.1 BACKGROUND OF THE COMPANY
The Electronics Division (EDN) of BHEL, situated at Bangalore, was formed in
1976,mainly to establish a strong base in the areas of power and control
electronics, to supplement the company’s pioneering efforts in power generation
and transmission equipment manufacturing. The division came into being when
BHEL took over the Radio and Electricals Manufacturing Company (RAMCO),
which formally merged with BHEL

EDN in 1980. Making a modest beginning with a turnover of Rs.3 crore in 1976-
77, the unit was poised to record a turnover of over Rs.500 crore. 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.
It has established itself as a market leader in new generation Power Plant
Automation System. Besides manufacturing and supplying state-of-the-art control
and automation equipment and systems for power plants and process industries, the
Electronics Division has also emerged as a leading player in the fields of Power
Transmission and Distribution, Industry, Transportation and Renewable energy
sources.
BHEL-EDN has been successful in meeting the demanding requirements of
International markets in terms of technical specifications and qualities, establishing
references in over 25 countries by installation of Automation, Semiconductors and
Photovoltaic Systems..
In recognition of its commitment to the quality systems and procedures, the unit
has been certified for ISO 9001. It is also the first Electronics Industry in
Bangalore to get ISO 14001 Environment Management System Certification and
OHSAS 18001 Certification.
3.2 NATURE OF THE BUSINESS
The BHEL Business sectors are supported by various corporate functions and the
manufacturing units, all of which function in a well orchestrated manner in order to meet
the market needs or customer needs. To provide a strong orientation BHEL’s operations
are organized around 3 business sectors namely
 Power: This sector contributes to around 65% of the company’s sales
 Industry :BHEL’s entry into this sector in 1982 was a diversification move to
reduce company’s dependence on power sector

Exports (International operations): BHEL’s export strategy is to give in
competitive prizes, taking advantage of its low cost of operation. Its products and
systems are exported to around 45 countries.
3.3 AWARD AND ACHIVEMENTS
 CMD, BHEL receiving the SCOPE MoU Excellence Award for ‘Highest Growth
Rate in Market Capitalization’ from the Prime Minister of India
 CMD, BHEL receiving ‘ICWAI National Award for Excellence in Cost
Management’ for the 5th consecutive year from the Union Minister of State for
Corporate Affairs
 BHEL receiving the ‘Business Standard Star PSU of the Year Award’ from the
Union Home Minister
 Union Minister of Heavy Industries & Public Enterprises handing over BHEL’s
final dividend cheque to the Union Finance Minister
 Prime Minister's Sham Awards 2007 (declared on 15th August 2009 by
Ministry of Labor)
 National Safety Awards 2007 (declared by Ministry of Labor)
 10th National Award for Excellence in Energy Management 2009
(Confederation of Indian Industry)
3.4 COMPETITORSPROFILE
 ABB
 GE
 Siemens
 Itachiwe
 NTPC
3.5 AREA OF OPERATION

Sl.No Plant Location
1 Electronic Division Bangalore
2 Electro porcelains Division Bangalore
3 Industrial Systems Group Bangalore
4 Heavy Equipment Plant Bhopal
5 Industrial valve plants Gooddwal
6 Central forge and foundry plant Haridwar
7 Heavy electrical equipment plant Haridwar
8 Heavy power equipment plant Hyderabad
9 Insulator plant Jagadishpur
10 Transformers Plant Jhansi
11 Boiler auxiliary plant Ranipet
12 Component fabrication plant Rudrapur
13 High pressure boiler plant Trichy
14 Seamless steel tube plant Trichy

BHEL has been a profit making company right since its incorporation and has been
making significant contribution to the Government’s funds by way of dividend on the
equity, taxes and duties etc.. Major contribution of BHEL to the nation is by the way of
its involvement in the social development work such as adoption of backward villages,
running of schools, providing medical centers, providing self employment facilities for
widow, handicapped persons etc.
The wide network of BHEL with Corporate head quarters at New Delhi, consists of 14
manufacturing plants all over India with 9 service centers, 4 regional centers in addition
to over 150 project sites spread all over India. Over the years the company has developed
strong technological skills to manufacture a wide variety of sophisticated products.
3.6 INFRASTRUCTUREFACILITIES

BHEL-EDN has established comprehensive world class facilities for its entire range of
products, system and service.
 The fabrication shop with state of art CNC machines.
 The air conditioned PCB sub assembly shop with antistatic flooring and a range
of automated component preparation and assembly units, computerized wave
soldering machines etc…
 A modern surface mount technology line with screen printer, pick and place
machine, reflow oven, inspection station etc…
 The facilities in the PCB test area include computerized testing of components
using in circuit tester and environmental chambers for thermal cycling.
 The system testing includes a number of specialized setups are built for functional
testing using simulation concepts.
 A comprehensive functional testing facility for modules equipped with test racks,
fixtures and specific testing programs reduce cycle time for testing individual
modules.
 Temperature control oven for testing temperature stability.
 The solar photovoltaic manufacturing line has sophisticated equipment for the
manufacture of solar cells and PV modules.
 The anti reflection coating equipment installed in the PV cell production line
increase cell conversion efficiency and average solar cell output.
3.7 FUTURE GROWTHAND PROSPECTS

Electronics DivisionGrowth
BHEL- EDN has grown rapidly over a period of time. It’s shown in the below graph:
BHEL DiversificationStrategies
 Solar
 Nuclear
 Transportation
 T&D
 Water
 NBFC
Solar
 Strategic Alliance with BEL for formation of JV for setting up manufacturing
facility (250 MW) for silicon wafers, solar cells & modules.
Nuclear
 Steam generators for new rating 700 MWe Nuclear sets .
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
3 30 55
131
311
406
748
931
1082
1284
1490
1775
2115

 MoU with GE-Hitachi for cooperation in Nuclear island equipment for Power
plants to be set up by NPCIL.
Transportation
 MoUs with Alstom and GE for participating in the tender for setting up a factory
for Electric Loco components at Dankuni, West Bengal and Diesel Loco factory
at Marhowra, Bihar respectively.
 Executing an order for 200 numbers of 5,000 HP 25 kV AC Mainline Electric
Locomotives (Type WAG -7) for Indian Railways.
T&D
 Strategic Alliance with Toshiba, Japan to establish a JVC to address T&D
business in India and other mutually agreed countries. The JVC will cover
equipments and projects in EHVAC & UHVAC range including 765 kV
transformers and reactors & GIS, in addition to other products and systems.
Water
 BHEL will be able to provide more cost-effective membrane-based water
treatment systems for power plants and industrial sector for all type of input water
like sea water, brackish water and waste water.
NBFC
 Total Solution provider in power generation .
 To finance power projects by providing funding support to attract potential
customers & optimize returns on our huge cash reserves.
 May also expand to other segments like Renewable where funding support is
critical.
CHAPTER-4

PRODUCT PROFILE
Established in the late 50's, Bharat Heavy Electricals Limited (BHEL) is, today, a name
to reckon with in the industrial world. It is the largest engineering and manufacturing
enterprise of its kind in India and one of the leading international companies in the power
field. BHEL offers over 180 products and provides systems and services to meet the
needs of core sectors like: power, transmission, industry, transportation, oil & gas, non-
conventional energy sources and telecommunication. A wide-spread network comprising
14 manufacturing divisions, 8 service centers, 4 power sector regional centers, 18
regional offices, besides a large number of project sites spread all over India and abroad,
enables BHEL to be close to its customers and cater to their specialized needs with total
solutions -efficiently and economically. An ISO 9000 certification has given the company
international recognition for its commitment towards quality. With an export presence in
more than 60 countries, BHEL is truly India's industrial ambassador to the world.
PRODUCT RANGE POWER
 Air pre heaters.
 Boilers.
 Controls relay panels.
 Electro static precipitators.
 Fabric niters.
 Fans.
 Gas turbines.
 Hydro power plant.
 Piping systems.
 Pulverizes.
 Pumps.
 Seamless steel tubes.
 Soot blowers.
 Steam generators.
 Steam turbines.

 Turbo generators.
Industry
 Capacitors.
 Cerulean.
 Compressors.
 Desalination plants.
 Diesel generating sets.
 Industrial motors and alternators.
 Gas turbines.
 Oil field equipment.
 Solar photovoltaic.
 Power semi conductor devices.
 Seamless steel tubes.
 Soot blowers.
 Steel casting and forging.
 Steam generators.
 Steam turbines.
 Turbo generators.
 Valves.
Transmission
 Bushings.
 Controls relay panels
 Dry-type transformers.
 Energy meters.
 HVDC transmission system.
 Insulators.

 Switch gears.
 Power semiconductor devices.
 Power system studies.
 Control shunts reactors.
Transportation
 Battery powered road vehicle.
 Electric rolling stock.
 Electrics for rolling stock.
 Electrics for urban transportation system.
Telecommunication
 265 port RAX.
 High capacity exchange.
Non-conventionalenergysource
 Battery powered road vehicle.
 Mini/micro hydro sets.
 Solar lanterns.
 Solar photo voltaic.
 Solar water heating systems.
 Wind electric generators.
R&D Products
 Fuel cells.

 Surface coatings.
 Automated storage and retrievals.
 Load sensors.
PowerGenerationSystems
 Transmission systems.
 Transportation systems.
 Industrial systems.
SYSTEMS AND SERVICES
 PowerGenerationSystems
 Turnkey power stations.
 Combined-cycle power plants.
 Modernization and rehabilitation of power stations.
 Erection commissioning, operation and maintenance services.
 Spares management.
 Consultancy services.
 TransmissionSystems
 Sub-stations switchyards.
 HVDC transmission systems
 Shunt and series compensation systems.
 Power system studies.
 Erection commissioning, operation and maintenance services.
 Consultancy services.
TransportationSystems

 Traction systems.
 Urban transportation systems.
 Erection commissioning, operation and maintenance
Sample Photographs of BHEL-make Semiconductor Devices and Heat-
sink assemblies.
CHAPTER-5

ORGANIZATION STRUCTURE
OrganizationStudy,
Organization is the foundation upon which the whole structure of management is built. It
is a tool of management. Organization is the pattern of ways in which a large number of
people engaged in a complexity of tasks, relate themselves to each other in the systematic
establishment and accomplishment of mutually agreed purposes.
B.H.E.L, a Public Sector Undertaking, is a Company form of Organization with
Corporate Functions, Business Sectors and Operating Units under the control of
Chairman & Managing Director reporting to the Board of Directors. Directors
individually deal with corporate functions with the help of Executive Directors/ General
Manager’s in-charge. Each unit is headed by an Executive Director / General Manager
in-charge.
 The BHEL electronics division comes under the director of industrials groups
and units.
 BHEL EDN has one unit head and four GM for commercials, operations,
engineering, HR and one AGM for finance.
 The GM commercials heads the marketing and project management and
commercials department
 The GM engineering head the engineering and design departments.
 The GM operations head the production, PCB subassembly and system testing
departments.
 The GM HR heads the human resource an factory service departments

ORGANIZATION STRUCTURE OF BHEL-ELECTRONICS
DIVISION
FUNCTIONAL AREA
SGM
GM/ CE ENGG & ES GM/ CE COMM & MM GM/CE
PRODN
GM/ ESD GM/ SC&PV
GPC
AGM/HR
AGM/ FIN AGM/ VIG AGM/ VIG DGM/ CC&PR AGM/ FST,
SHIPPING
CPD/ PTS
AGM/ ITS AGM/QS AGM/SA AGM/
P&D
AGM/ EM

Introduction
The functional areas of BHEL are divided into categories. They are Production department,
Human Resource department,Finance department, marketing department; Finance is the main
source of every business. Finance department of BHEL involves managerial activities concerned
with procurement at low cost and utilization of funds for business purposes the financial manager
deals with planning, organizing, directing and controlling financial activities of the enterprise
Production is also an important work in every manufacturing unit. BHEL has latest technological
machineries so that the production process can be done easily.
The HR department of the company is well structured and employees are getting good benefits
and this is one strategy of the company to increase the productivity. .
 To carry out the easy work.
 To know how the company process is taken place.
 To forecast the future needs of the each Department.
Functional areas
1. Marketing & Commercial Department
2. Human Resource Department
3. Health & Safety Department
4. Factory Service Department
5. Finance Management Department
6. Information Technology Department
7. Material Management Department
8. Production Management Department
9. Purchase Department
10. Stores Department
11. Quality Control Department
12. System Testing Department

MARKETING & COMMERCIAL DEPARTMENT
MARKETING DEPARTMENT
Departmental structure
FUNCTIONS:
 Market exploration
 Order booking
 Offering.
 Preparing annual budget.
 Projections.
Exploration of market is very important for new products as well as old products.
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. Cost estimates will be given by Finance
department, which makes the work easy for this department for quoting to an offer.
Assistant general manager
(Marketing)
Deputy General Manager
(Proposal &market)
Utility power
Export
PADO
SCADA
OMGEA
(Proposal &market)
Hydro power
Export
SCADA
(Proposal &market)
Energy saving
Transportation & transmission
SCADA

Approach to marketing is different at BHEL as the customers are usually known and
orders are of large size and value. The main function of Marketing Department is to
procure manufacturing order in coordination with the commercial group. The central
manufacturing agency is located at the corporate office in Delhi.
The process of sanctioning a project goes through the following stages: -
 Pro-active Marketing.
 Tendering.
 Post- tender follow up.
The following are the ways of getting an order-
 Bidding after floating an enquiry, tenders are procured technical viability studies
and commercial analysis is done to select the Best one.
COMMERCIAL DEPARTMENT
FUNCTIONS
 Every month follow-up has to be done.
 Preparation of him over plans. Based on the internal orders and shop floor
capacity turnover plans will be prepared.
 Billing, invoice and dispatch.
 Periodical monitoring i.e. monitoring the achievements, and comparing that
whether they are doing as per the schedule.
 Packing.

FLOW CHART OF HUMAN RESOURCE DEPARTMENT

HUMAN RESOURCE DEPARTMENT
Selecting tide right person for a right job is very important the major function of this
department is to manage people at work. This also includes white collared professionals.
Usually the HRD function will be tailor made to suit the organization needs.
With the changing scenario, BHEL is alive to the challenges before it in terms of new
approaches to human resource management. Developing and sustaining a dynamic work
culture, which enables joint optimization goals and individual potential, taking care of
changing aspirations of people, is the key focus area for the organization at this juncture.
On an average 35000 employees are trained every year across the organization through
in-house training program. Apart from this around 6000 apprentices are provided training
every under the apprentices act.
All the units have their separate HR department mat administrates the HR function of the
unit level's confinable HR controls all HR departments. The most prized asset of BHEL-
EDN is its more than 2000 employees.
Objectives of Human ResourceManagementDepartment
1) Procurement and Maintenance of adequate work force
 Recruitment
 Interviewing
 Induction
 Placement
 Follow-up of new employees for adjustment
 Merit rating
 Promotion, Transfer and Discharge
 Employment records

2) Education and training of present employees
 Apprentice Training
 Operative Training
 Supervisory Training
 Executive Training
 General Industrial Education
 Library Facility
3) Maintaining satisfactoryemployee relationship
 Job analysis
 Job specification
 Wages, bonus and rewards
 Regularization of employment
 Handling grievances
4) Maintaining Employees health
 Health standards
 Sanitation control
 Physical examination
 Treatment of minor injuries and diseases
 Hospitalization
 Personal hygiene and health education
5) Maintaining Employees safety
 Safety standards
 Inspection of equipment
 Fire protection and accident investigations
 Workmen compensation for injury
6) Maintaining employees welfare activities

 Insurance
 Profit sharing
 Pension
 Legal assistance
 Housing programme
 Recreation plans
7) Maintaining satisfactorygroup relation
 Contacting employees representatives
 Contacting government agencies
 Integrating group interest
Recruitment of employees
Recruitment is the major step in the total staffing process; recruitment develops and
maintains adequate manpower to run an organization efficiently. Recruiting makes it
possible to acquire the right number and type of people necessary to ensure the continued
operation of the organization.
Sources of employment
a) From within the company
 By Promotion
 By Transfer
b) From outside the company
 Through advertisement (newspaper, website etc)
 Campus recruitment
Selectionofemployees

Selection of candidates is the process of assessing and hiring the right person for the job.
It is the process of examining the applicants with regard to their suitability for the given
job and choosing the best from the suitable candidates.
Education and Training
When the employment aspect of the personnel function has succeeded in providing
suitable employees for various tasks, it is followed by education and training aspect
which brings employees to standard where they can carry out industrial tasks efficiently.
One of the characteristics of modern society is the increasing rapidity of change today
compared with older social society. This intensifies the need for study, adaptation and
new education and training.
Type of training for different levels of staff in Industry
Sl.No Staff Type of training
1 Workers  Induction
 By skilled and experienced workers
 Apprentice Training
2 Supervisor  Lecture
 On job training
 Written Instructions
3 Executives  Conferences
 Meetings
 Special Projects
 On the job training
 Special courses and class.
Employee Classification

 Executives
E1 -Officers Engineers
E2 -Senior Officers Engineers
E3 -Deputy Manager
E4 -Manager
E5 -Senior Manager
E6a -Deputy General Manager (DGM)
E6b -Senior Deputy General Manager (SDGM)
E7 -Additional General Manager (AGM)
E8 -General Manager (GM)
E9 -Executive Director (ED)
Promotions
Every employee is eligible for promotion. The criterion for promotion is time bound and
performance/merit based. The promotion is given once the employee completes the
stipulated duration and then based on the performance; promotions are awarded. The list
is usually released twice a year, once during June and other during December
Working Hours
Every individual has to put in a minimum of 48 hours of work per week, 7:30 am to 4:35
pm in all working days except on Saturday (7:30 to 12:30 pm), Sunday is weekly off.
Leaves
 Casual Leave (CL)

 Earned Leave (EL)
 Maternity Leave
Trade Union
Recognized union/s in units will negotiate with union on local and unit level issues.
There can be single or multiple unions in each unit with or without affiliation to any
national trade union organisation.
Plant Council
Plant council is a body comprising of union nominees on the one side and the senior
executives on the other side. They will meet periodically to discuss and sort out
many issues concerning business operations at unit level.
Works Committee
Is a statutory body with 8 members elected and equal number nominated by
management They would discuss working conditions, quality of work life and
recommend solutions to problems, if any.
CanteenManaging Committee
Is an elected body with three members from the workers and equal number nominated
by the management. The committee ensures smooth working of the canteen and
suggests plan of improvement.
HEALTH & SAFETY DEPARTMENT

BHEL safety organization is taking every step to minimize accidents, by taking care and
involving at the stage of planning and designing. Though the frequency rate of accidents
is comparatively low, the management is taking keen interest to reduce the accidents as
far as possible by engineering methods and personnel protective equipments at inevitable
stages.
Safety day is celebrated around March every year and surprise site visit to see whether
the employees are following safety measures.
Organization Chart of Safety Department
SafetyPrecautionin BHEL – EDN, Bangalore
Towards accident prevention:
 Safety committee
 Safety steward committee
 Safety training for executive supervisor and artisans
 Accident investigation reporting systems
 Issue of safety equipment
SENIOR MANAGER
(Factory Service)
MANAGER (Safety)
SENIOR
ENGINEER
EX-
FOREMAN

The functions of the safetycommittee is to
 Control the accidental hazards.
 Promote safety consciousness among employees.
 Communicate to the top management regarding safety aspects.
Safety stewards will be entrusted with the responsibility of continuous watchfulness.
Persuasion and correction of fellow employees to enable safe methods of work being
adopted (Steward Scheme in BHEL since 1988).
Chemicalhazard prevention in Electronic Division
 Identified areas
 Electrolytic Capacitor
 Photovoltaic devices
 Painting
 Effluent treatment plant
 Inflammable material stores.
Hazards
The chemical hazards are corrosive and toxic.
SafetyMeasures
 Exhaust fans are provided at forming and etching areas. Personnel protective
equipments such as hard glass, proof apron and goggles are provided.
 Separate soundproof chamber is provided. 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.
FACTORY SERVICE DEPARTMENT

FUNCTIONS:
 Maintenance services.
 Power and transport service.
 Maintenance of information technology systems (PC's).
 Canteen, gardening, lifts, etc.
 Manufacturing tools and fixtures.
 Design and fabrication special type of machines.
 Operation and maintenance of vehicles.
 Maintenance at township.
TransportationSection:
In EDN, there are fork lifters, 3 tractors, 2 trucks and 3 cars. Additional cars for
the moment of Executives will be hired. Maintenance and service of all these vehicles
comes under the purview of this department. BMTC buses are hired for facilitating the
employees to reach factory and back home at the beginning and of each shift. Drivers will
be given identity cards except these; other people are not permitted to drive in the
vehicles into the premises.
Water, Power, Telephone services:
In EDN, water is used in the production and in the daily consumption of the plant for all
purposes including canteen, gardening, drinking purposes. The service section looks after
electrical problems at the plant as well as at the township. Maintenance of Telephone
system is also a part of this service section.
Township:

In Bangalore, there are i69 flats allotted on the basis of seniority. Maintenance of these
flats also comes under this department. Civil maintenance bore well maintenance, sports
club maintenance etc will be looked after by this department.
Civil:
Functions:
 Housekeeping.
 Civil construction.
 Civil maintenance.
 Township maintenance.
 Horticulture.
Maintenance:
This section will look after mechanical and electrical maintenance. Since this is the
process industry, several special types of machines are used. For the maintenance
department, starting time is receiving the complaint, down is getting the requisition slip
and end time is handing over the machine to production department. There are 2 types of
maintenance viz. preventive and breakdown maintenance.
FINANCE DEPARTMENT

Financial management is that managerial activity which is concerned with the planning
and controlling of the firm’s financial resources. It is the effective and efficient utilization
of financial resources. Financial management in a broad sense provides a conceptual and
analytical framework for financial decision making. Finance function is related to
acquisition of funds, allocation of funds and overall management of the organization.
Financial management is concerned with the procurement and allocation of funds. Main
aim is to use business funds in such a way that the earnings are maximized. Financial
Management provides a framework for selecting a proper course of action and deciding a
viable commercial strategy.
The two main objectives of Financial Management are:-
 Profit Maximization
 Wealth Maximization
Profit Maximization
Profit earning is the main aim of the business concern. Profit is the measure of efficiency
of the business enterprise it shows the entire position of the business concern. Profit
serves as a protection against risks which cannot be ascertained. Business concern mainly
functions for the very purpose of earning profit.
Wealth Maximization
Wealth maximization means maximizing the net present value (or wealth) of a course of
action. The net present value (or wealth) of a course of action is the difference between
the present value of the business concerns benefits and the present value of its costs. A
financial action which has positive net present value creates wealth and therefore, is
desirable.
Organizationstructure of Finance Department
Assistant general manager
(Finance)

Finance Department is categorizedas follows
Senior DGM – finance DGM – Indirect tax Manager -establishment
& PF
Manager – (costing, PSL
& SVC)
Manager – Indirect tax
Manager
Administrative officer
(AO)
3 DY. manager
Senior AO
AO
Deputy manager
AO
Sr.Manager (w
& SB & FP)
Sr.Manager(Bills) Sr.Manager(Sales) Manager
(Books
&Budget)
2 Manager
(Purchase
Finance
Dy.Manager
(cash)
AODy.ManagerAO
Dy.manager
2 AO
Senior AO
2 AODY.Manager
(SB)
DY.Manager
(FP)

a) Books
The books section maintains general ledger. It is also entrusted with passing journal
entries, passed by the various sections of finance. BHEL follows the common code
system for all its units, so that consolidation of accounts will not be a big problem for
them. In order to maintain the uniformity of the codes BHEL follows this system. This is
also concerned with preparation of budgets.
b) Budget
Budget is a written plan of action, used for cost control purpose and it is one of the most
important overall control devices employed by management. It represents the financial
requirements of different sections of the business during a given period to achieve an
estimated profit.
Payroll
Based on the employee grade the Salary, Dearness Allowances (DA), House Rent
Allowances (HRA), City Compensation Allowances (CCA), Reimbursement of Medical
Expenses, and Traveling and Daily Allowances Rule (TA) are allocated based on certain
percentage and the payment is done through Electronic Fund Transfer (EFT) Mode.
c) Costing
The main task of this department is to classify, accumulation assignment and control of
cost. Costing department assists the management in decision making.
Main functions are:-
 To prepare the cost estimates.
 To look after the capital payments.
 Valuation of closing stock of each department.
e) Bills Payables Section:

This section is concerned with the payment of all supply bills, statutory bills, capital
bills and revenue bills.
 Supply Bills
 Statutory Bills
 Capital Bills
 Revenue Bills
f) Bills Receivable Section:
The payment amount which has to be received by the customer after the dispatch of
the product is checked by this section. The sales department follows the invoice
raised by commercial department and collects the amount from the customers.
Customers are identified with a unique customer code. Main functions are as follows,
 Maintenance of customer accounts.
 Follow up after dispatch of the goods.
Terms of payment for purchase are
 Letter of credit (L/C) (most preferential)
 Advance (D.D)
 Cash and delivery (C.O.D)
 Site draft (S.D) (if supplier is not familiar)
 Pro-forma payment
Service Bills

This section maintains bills for payment of
 Factory service
 Maintenance (civil & mechanical)
Purchase Finance
Procurementof both indigenousandimports,300 croresof material ispurchasedeveryyear
and 50-60% are imports.
Internal Audit
The main functions of internal audit are:
 Fault recognition
 Suggestions for improvement
 Overseas work of book budget
 Assisting working level people
 Internal audit conducts site audit, once in a year.
INFORMATION TECHNOLOGY DEPARTMENT

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,
servicing and allied areas. BHEL can leverage itself to diversify into the new economy
sector of InfoTech and IT enabled services. The company is strengthening its IT linkages
within the organization and is evaluating its approach towards emerging opportunities in
IT, including e-business which is fast transforming the traditional ways of business
transactions.
OrganizationStructure of IT Department
MATETIAL MANAGEMENT DEPARTMENT

Material Management Structure
Material Management department plays a vital role in the success of BHEL-Electronics
division. A significant portion of the capital is invested in materials, and well planned and
well designed materials management operations lead to considerable saving in capital
expenditure. Material Management is of great importance to Production, Marketing,
Finance and Engineering department of an enterprise.
Functions of MaterialManagement
 Materials Planning.
 Procurement of materials required for production.
 Storage and store administration.
 Translation of the sales projection into long term requirements of materials.
 Inspect the raw materials at the time of procurement to minimize the possibility of
finished product being rejected.
 Keep updated records of the materials received, issued and unused.
 To store materials in order and ensure their quick identification.
 Ensure regular supply of materials reduce the chance of any interruption during
production.
 Better utilization of labor, capital and equipment.
 Minimize the length of the manufacturing cycle.
Material
management
Material planning
and control
Purchase section
Indigenous
purchase
Import purchase
Stores

Purchase of material
Purchase department mainly deals with procurement of material and hence occupies a
vital position in the organization.
Objectives of Purchase Departmentare
 Procure right material.
 Procure material in right quantity.
 Procure material from the reliable vendor.
Stores ManagementFunctions:
 Receive materials, goods and equipments.
 Record the receipt of goods.
 Correct positioning of all materials in store.
 Issue items to the users only on the receipt of authorized stores requisition.
 Record receipts and issue of materials.
 Coordinate and cooperate with the purchasing, production, planning and control
departments.
Types of stores in BHEL-Electronics Division
 Raw Material Stores
 Metal Stores.
 Oil Stores
 General Stores.
PRODUCTION MANAGEMENT DEPARTMENT
The various products produced from BHEL can be broadly classified as-

 Control Equipment
 Semi-conductor photovoltaic
 Energy meters
 Tele communication
 Defense
 AC drive system
 DC drive system
 Excitation systems
 Static starters
Energy Meters:
BHEL Electronics Division's Induction type energy meter range includes single and three
phase versions for both domestic and industrial applications. The unit to its credit has
delivered over 15 million energy meters, a feel unparalleled among various energy meter
manufacturers of India.
The improved designs of the Electronic Energy Meters have additional anti-fraud features
like Phase reversal and Earth loading. The new generation software based Trivector
Meters with Maximum Demand Indication, Differential Tariff, and Time of Day; down
loading are some of the new features being offered to customers.
Industry Industrial
Automation:
BHEL-EDN has the competence to offer Automation System comprising of Distributed
Digital Controls, Programmable Logic Controllers and Process Controllers including
appropriate software. Many such systems have been designed, manufactured and supplied
to steel plants for rolling mills and blast furnace applications.
Non-ConventionalEnergy Photovoltaic System:

Realizing the tremendous potential of Solar Power as a Non-Conventional Energy
Source, BHEL-EDN started manufacturing Solar Photovoltaic (SPV) Cells and Modules
besides developing complete SPV Systems. A sophisticated facility with a capacity of 2
MW per annum has been set up for manufacture of cells and modules.
The SPV systems are specifically designed keeping in mind the necessity for unattended
operation and ease in maintenance. Some of the major systems in operation are SPV
Power Plants (Stand Alone and Grid Interactive), Solar Power Systems for Rural Radio
Phones, Telecommunications, Railway Signaling and other applications.
Power Automation and Power Electronic System Power Plant
Automation:
Any power plant is a mini industrial cosmos with a variety of control elements with
intricate inter-relationships. BHEL Electronics Division offers a large variety of control
equipment for power stations ranging from simple control systems to single push-button
automation for power plants of any size. Automation systems for controlling steam/water
turbines, boilers and generators employing state-of-the-art Distributed Digital Control
Systems (DDC) concepts are amongst the products that are offered. The DDC systems for
power plants include CRT-based Man-Machine Interface and Computer based
Information Management and Optimization systems.
BHEL-EDN also offers unified DDC solution for the entire power plant comprising of
Boiler, Turbine and Balance of Plant (Bop) bringing the benefit of uniformity in
hardware, software, operation methodology as well as spares inventory to the user.
The SG (Boiler) C&I package, the sub packages offered by BHEL-EDN include Burner
Management Systems (also called FSSS), Secondary Air Damper Control Systems, and
Soot Blower Control Systems, HP Bypass Control Systems and Auxiliary Pre-Reducing
and De-super heating System.

BHEL-EDN manufactures Integrated Control and Instrumentation systems capable of
monitoring & controlling the critical parameters of a steam turbine to a high degree of
accuracy. The Electronic Automation system for Steam Turbine (EAST) is designed for
automatic start up and shut down as well as efficient operation during normal and safe
shut down during abnormal conditions. The complete range of thermal, nuclear, industrial
and combined cycle plants is covered for Steam Turbine controls.
Balance of Plant (Bop) automation comprises of Control, Monitoring and Information
system including regulation controls, coordinated controls, sequential controls, interlocks
& protections, alarm annunciation, operator interface units with large video screen as
well as performance calculation for the entire power plant.
DC Drive Systems:
BHEL-EDN's Thyristorised Digital Converters are used for DC Drives with constant
power or constant torque control. Many such converters are already in service at rolling
mills and process lines in industries like steel, aluminum, rubber, cement, coal and
copper. Converters up to 10,000 a ratings with digital controls have been supplied by
BHEL-EDN.
AC Drive System:
BHEL-EDN's adjustable speed AC Drive System with Load Committed Inverter is a
highly energy efficient system for controlling Synchronous Motors used for flow Control
Applications like Fans, Pumps and Compressors in Power Plants and Industries. Speed
control of squirrel cage Induction motors with GTO (Gate Turn-off) Thyristors is cost
effective, requires low maintenance and finds widespread application in industries.
The digital controls with hot standby control and power channels increase system
availability and make these drives user friendly. A number of systems have been
designed for ID Fans and Boiler Feed Pumps (BFP) for power plants of up to 500 MW
capacities.

Solutions are also available to provide cost effective Digital Drive Controllers for new
and/or existing induction motors employing either GTO or Insulated Gate Bipolar
Transistor (IGBT) devices.
PowerSupplies:
BHEL-EDN offers state-of-the-art, digitally controlled, highly efficient low voltage and
high current DC Power Supplies (Typical rating: up to 90KA and 950V DC) with water
cooled Thyristor Rectifiers to Industries like Caustic Soda, Aluminum / Copper smelters
and others. Solutions also exist for high voltage power supplies (Typical rating: up to
100A and 20KV DC) using air-cooled thyristors suitable for broadcasting transmitters,
test plants and many other applications.
BHEL-EDN has also supplied forced Air Cooled Inverters using IGBT devices, suitable
for medium frequency induction heating equipment, for controlled preheating of X20
special alloy tubes for welding and stress relieving at higher temperature (Typical rating:
up to 3 kHz and 120 kV).
Static Starters:
BHEL-EDN has designed and manufactured special purpose Digital Static Starters for
soft starting of hydro generators and synchronizing with the grid either as a pump or as a
synchronous condenser. The system provides an easy interface with plant C&I and has
protections like over voltage, over current, earth fault etc. Static starters of
18.5MVA/13.8KV and of 3.3KV/1.2MW ratings have been supplied.
Excitation Systems:
BHEL-EDN offers Excitation systems in Synchronous generators for hydro, thermal,
nuclear, co-generation, combined cycle, DG power plants as well as for synchronous
machines in industrial applications. With the ever-growing size and complexities of the

power system network, fast response excitation systems capable of meeting more
stringent specifications are called for to improve system stability and availability. The
state-of-the-art excitation system offered by EDN includes fast acting, fully controlled
semiconductor bridges along with digital controls. Redundant philosophy in power and
control circuits employed ensures high availability and hot repair/replacement
possibilities.
SemiconductorDevices:
BHEL-EDN manufactures Power Thyristor Devices and Diodes of various ratings to
meet the requirement of high power electronic systems used for various applications in
Power, Industry and Transportation systems. While high power thyristor devices are used
in high current rectifiers for Industrial projects, high voltage thyristor devices are used in
HVDC applications. Power semiconductor devices manufactured by EDN have earned a
reputation for high reliability. As testimony to this, the unit has won the prestigious
ELCINA award thrice and has been recognized by the Department of Electronics as a
'Center of Excellence' in this area.
Manufacturing Process:
The marketing section procures orders from customers, through advertisements,
propaganda's and promotional methods. A copy of this order is passed to the commercial
section. The commercial section prepares a manufacturing order on the basis of the
customer specifications. The Engineering section makes a note of these specifications and
tries to design the product. At the same time, a copy of the order is issued to the material
management section so that the required materials can be made available at the stores for
production. Once the products are produced, they need to be tested by the testing section
before being issued or transported to the customer's sites.
BHEL Electronics DivisionBangalore
Transmission:
High order to improve the efficiency of power transmission system, high voltage DC
transmission technology was introduced. On an experimental basis, the first project taken

up by BHEL was the 100MW/100KV National HVDC project between Barsoor (Madhya
Pradesh) and Lower Sileru (Andhra Pradesh) with indigenous technology. Based on the
successful completion of the first phase, the second phase taken up to upgrade the system
to 200MW/200KV using state -of- the -art technology. BHEL has also executed
commercial HVDC projects of Rihand - Delhi and Chandrapur - Padghe of rating
1500MW, +/- 500kV each in collaboration with ABB Power System, Sweden.
Static VAR CompensationSystems:
With quality of power supply-gaining prominence both in utilities and industries, BHEL-
EDN offers indigenously developed technology for reactive power management by way
of Series Compensation Systems and Shunt Compensation Systems. A number of
systems have been supplied for both utility and industrial applications for improvement
of voltage, reactive power controls etc. BHEL- EDN manufactures thyristor valves and
controls for the SVC. To cater to the need of LT loads, solid state switched capacitor
systems using Thyristors or Triacs are also offered for improving the power factor,
reducing the reactive power demand.
The Team:
With the advent of the 'knowledge' millennium, BHEL-EDN's team of highly qualified
and experienced professionals is fully geared to face new challenges. Each one of them, a
talented individual performer and a committed team player, is proud of the BHEL-EDN
ethos.
The environment at EDN has a whiff of freshness about it, carrying an exciting mix of
tradition and innovation. Many of them have been trained abroad at the collaborators'
establishments in critical areas like design, production, quality assurance and
commissioning.
PURCHASE DEPARTMENT

This department is headed by the senior DGM. This is the department that has key
responsibility for placing the purchase order (P.O) and procuring the right material.
Purchase Process
The technique of processing the right material from right supplier at a right price can be
termed as the major function of the purchase. The steps carried out in this process of
purchase are:
 An initial check if there are any orders placed for similar material. If so then
order placed is amended for the additional required quantity.
 In the absence of any such order being placed there is a check for any rate
contract (R.C) with the suppliers for the material intended. If any R.C is found,
the order can be placed immediately
 In absence of any such R.C, check is made for any similar order placed in the
past. If there is any order placed and the quantity required is less than three times
and if the number of order placed of the same orders being less than three times, a
repeat order can be placed.
 In absence of any such repeat purchases, tender is called for and the purchase
order is released.
STORES DEPARTMENT
This department is headed by the senior DGM. The major responsibility of this
department is to store the material and issue them when requested by the authorized
intender.
STORES OF BHEL-EDN
Maintain assembly store or component store.

PCB stores: mechanical stores and electronic stores.
Raw material stores.
W.I.P stores.
Stores telecom
Semiconductor stores.
Photovoltaic stores.
Energy meter and capacitor stores.
Tool crib stores.
Central tool crib stores.
Industrial Engineering
Industrial Engineering is oriented towards optimum usage of the resource available. It
includes the techniques like work study, time study, method study and PTS etc. Some of
the advantages of Industrial engineering are stated below
 In calculating the expected time required to complete a project
 In fixing time standard for jobs
 In production planning and control
 In analysis of man, machine and material flow
 In performance appraisal
 In computing efficiency of the individual
 In estimation of overtime required in completion of any time bound project
QUALITY CONTROL 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.

The quality service department is divided according to its functions as quality assurance
inward control, meter & capacitors, control equipments & high voltage electric controls,
general quality.
 The quality service department has obtained international certificates of ISO
9000:2000, OHSAS 18001:1999, and ISO 14001: 2004.
 The quality service department has successfully implemented six sigma in the
PCB sub assembly department and achieved the sigma level of 5.44.
 Quality service department maintains a separate component testing labs for
mechanical, electrical, electronics, chemical and instrumental products.
 The quality service department also forms the quality policy, plan and audit
maintains the record.
 To review the quality service activities, implementation of quality studies and to
form the quality targets plant quality committee is formed with the association of
EN head, quality service head and the representatives from material management,
production manager and finance department.
Quality service
Quality
assurance &
Control inwards
Meters &
Capacitors
CE & High
voltage
General Quality
assurance

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.
Quality objectives
 Competitive edge of product and service by build and improve procurement.
 Value addition by reducing the cost of quality
 Delivery and response.
 Quality f supply by improving the supplier performance.
 Capability of human resource by upgrading skills & competence.
 Value of the stakeholder.
Quality assurance & Control inwards
 This section inspects the incoming material and gives the quality assurance to the
products.
 The separate labs to test the components like mechanical, electrical, electronics,
chemical and instruments.
 It also checks the instruments like vernier caliper, screw gauge and no go gauge
and calibrates it according to Indian standards.

 The vendor evaluation for the implementation of quality standard is also check by
this section.
Meters & Capacitors
 This section inspects the process and final inspection of sub components like
energy meters, water meters and capacitors.
 The BHEL concentrate more on the process inspection than the final inspection to
rectify the problem once for all.
Control equipments & High voltage
 This section inspects the control equipment fabrication and main assembly.
 It also inspects the high voltage electrical components used in the control
equipments.
 It maintains a separate metrology lab for automations.
Generalquality assurance
 The general quality section assurance looks after the preparation of quality plan,
quality training, quality audit and quality circles.

 In the quality plan the quality goals are formed and plant for the achievement of
goals are formed.
 The quality circles are the small group of people present in each department and
works for the improvement of the quality in the workplace.

 To motivate the quality circles the quality awards are given for the best
performing circles.
 The quality plan is also achieved through quality circles.
 To check the activities of the quality plan and quality circles the quality audit is
conducted.
 In the quality audit the check the documentation and steps taken by the each
department to achieve the quality standards are checked.
 This section also conducts the quality training programs to create awareness on
quality among the employee.
SYSTEM TESTING DEPARTMENT
System testing department check the operation of finished goods. It also conducts the
functional test by integrating with other systems and stimulates the control equipments
for control equipments.

System testing receives engineering drawings, circuit diagrams, signal flow diagram from
the engineering department and conducts various tests like continuity test, high voltage
test, and functional test.
Continuity test
 In the continuity test the connection of the control equipments and check for
ferules and check the connections with respective ports.
 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.
 Another major function of this test is to check the ferule to avoid the
misconnection.
High Voltage Test
 In the High voltage test the components are grouped according to voltage like
24v, 110v, 220v etc…
 This test is performed to ensure the correct current connection during the
operation of the control equipments.
Functional test
 The functional test is also called as energizing the panel. This functional test
involves two activity i.e. routine test and type test or special test.

 In the routine test the working of the modules and different components of the
control equipments are checked for outputs by giving inputs.
 The routine test also involves the integration of all the hardware. It also logical
testing with the help of software’s for the desired output.
 The type test is conducted on the customer request or some special test like
nuclear test etc…
Departmental structure
McKinsey 7-S Framework
The 7-S-Model is better known as McKinsey 7-S. This is because the two persons who
developed this model, Tom Peters and Robert Waterman, have been consultants at
McKinsey & Co at that time. Thy published their 7-S-Model in their article “Structure Is
GM
operation
AGM CE
productio
n
Sr. DGM
PPC
Sr.DGM
CE
fabrication
Sr.DGM
main
Assembly
AGM
System
testing
DGM DGM DGM DGM

Not Organization” (1980) and in their books “The Art of Japanese Management” (1981)
and “In Search of Excellence” (1982).
The model starts on the premise that an organization is not just Structure, but consists of
seven elements
Structure:-
The organization structure of BHEL is clear and efficient with which co-ordination
among all the employees is achieved efficient organization structure leads to
specialization of labour.
Strategy:-
 Focus on Development of core competences in High-Tech areas.
 Cultivate leadership with shared vision at various levels in the organization.

 Introduce / implement personnel policies based on performance that would ensure
growth, reward, recognition, motivation.
System:-
 BHEL has adopted new technology in production department.
 BHEL is raising the required funds by selling the products.
 The performance appraisals system should take care a systematic performance
planning and review.
 The new performance appraisals system based on work planning and
commitment.
 Reward for an individuals who innovatively and creatively makes exemplary
contributions in the key thrust areas of the company that would lead to its
achieving overall excellence.
Staff:-
 BHEL has earned solid reputation in India as well as in abroad, hence the
employees in BHEL has got a good recognition in the society.
 BHEL provides good fringe benefits, performance based incentives to the
employees.
 Efficient and skilled personnel’s are employed in all the levels of BHEL.
Styles:-
 The BHEL is adopting styles of management, because it has to follow the policies
and the procedure framed by government

Skills:-
 The key personnel in BHEL have communicational skills, leadership qualities,
which help them to achieve their organizational goals.
 Skilled personnel posses technical skills which help them to increase production
capacity.
 The key personnel is having the knowledge of various discipline like Technology,
Engineering management.
Shared value:-
 CUSTOMER SATISFACTION
We are dedicated to building a relationship with our customers where we become
partners in fulfilling their mission. We strive to understand our customer’s needs and to
deliver products and services that fulfill and exceed all their requirements.
 COMMITMENT TO TOTAL QUALITY
We are committed to continuous improvement of all our activities. We will supply
products and services that conform to highest standards of design, manufacture,
reliability, maintainability and fitness for use as desired by our customers.
 COST AND TIME CONSCIOUSNESS

We believe that our success depends on our ability to continually reduce the cost and
shorten the delivery period of our products and services. We will achieve this by
eliminating waste in all activities and continuously improving all processes in every area
of our work.
 INNOVATION AND CREATIVITY
We believe in striving for improvement in every activity involved in our business by
pursuing and encouraging risk-taking, experimentation and learning at all levels within
the company with a view to achieving excellence and competitiveness.
 TRUST AND TEAM SPIRIT
We believe in achieving harmony in work life through mutual trust, transparency, co-
operation, and a sense of belonging. We will strive for building empowered teams to
work towards achieving organizational goals
 RESPECT FOR THE INDIVIDUAL
We value our people. We will treat each other with dignity and respect and strive
for individual growth and realization of everyone's full potential.
CHAPTER -6

SWOT ANALYSIS
STRENGTH
 BHEL aims at achieving and sustaining product excellence in friendly manner.
 The main assembly shops, HVDC test laboratory and other manufacturing shops
are equipped with the artistic floorings and air shower systems thus providing the
environment necessary for reliable manufacturing and testing operations.
 The fabrication shop is equipped with CNC machines for quicker and faster
transformation of sheet metals into cabinets for assembly.
 ISO 9001 Certificate conferred by the bureau varies Quality information i.e. BVQ
(UK) on EDN has strengthened BHEL in the national and International market.
 All electronic test and measuring equipments are calibrated regularly at the unit’s
well-equipped instruments calibration laboratory.
 BHEL is India’s leading manufacturer of power equipment.
 It has diversified into all vital sectors of the industry, reaching its benefits
of energy to every corner of the country.

 It has very good product mix that is place, product, price, promotion.
 It has an effective human resource management.
 Good work culture, job security, and high employment.
 Quality products and services.
 A customer focused company that firmly believes in being a friend for life.
 Continuous improvement in production rates especially in Control Equipment,
which is the major contributor of profits.
WEAKNESS
 BHEL – EDN fails in the having effective advertisement strategy.
 It believes in waiting for customers instead of marketing itself and thus the
customers are less in number.
 BHEL suffers from the lack of diverse product line.
 TQM policy is not adopted which hinders the continual check on Quality.
 BHEL is a public sector company. The efficiency & the commitment of the
workers are not checked effectively, because of which the workers can take undue
advantage.
 As there are no fresh recruitments since 1985, there is no chance for the new
talent, new ideas & new blood flowing into the organization.
 BHEL is a very huge organization, which proves as a constraint in effective
management.
OPPORTUNITIES
 BHEL can cater to the customers looking for EPC/ Turnkey capability
 BHEL can make use of International Financing.
 BHEL can practice SCADA systems for Energy Management and control.
 BHEL can develop as a tool system supplier for MRTS and Inland water
Transportation projects.
 BHEL is India’s leading manufacturer of power equipment.

 It has diversified into all vital sectors of the industry, reaching its benefits
of energy to every corner of the country.
 It has very good product mix that is place, product, price, promotion.
 It has an effective human resource management.
 Good work culture, job security, and high employment.
 Quality products and services.
 A customer focused company that firmly believes in being a friend for life.
 Continuous improvement in production rates especially in Control Equipment,
which is the major contributor of profits.
THREATS
 Collaborations are increasingly restricting export territories under license
agreements in order to protect their market share in territories outside India,
particularly where BHEL has built up references and strengths.
 Since most of the projects in the industry are being contemplated on BOOT basis,
various issues viz. business model of the project, revenue collection, Operation
and maintenance etc would need to be suitably addressed to gain in the business.
 Railways have indicated 3% growth in tenth plan as against 6% growth during the
eleventh plan, which result in scanty order flow for electric locos and dip in
demand for electrics for locos.
 BHEL well-being is dependent on the industrial wealth of the country and power
sector. Any disruption in the reform process of the power sector is likely to
negatively impact its performance.

VISION
A World-Class Engineering Enterprise Committed to Enhancing Stakeholder Value.

MISSION
To be an Indian multinational Engineering Enterprise Providing total business solutions
through quality products, systems and services in the fields of energy, industry,
transportation, infrastructure and other potential areas.
VALUES
Meeting commitments made to external and internal customers foster learning, creativity
and speed of response respect for dignity and potential of individual’s loyalty and pride in
the company team playing zeal to excel integrity and fairness in all matters.
 Meeting commitments made to external and internal customers.
 Foster learning, creativity and speed of response.
 Respect for dignity and potential of individuals.
 Loyalty and pride in the company.
 Team playing.
 Zeal to excel.
 Integrity and fairness in all matters.
Objective
 Competitive edge of product / service by building and improving key processes.
 Value Addition by reducing Cost of Quality.
 Delivery & Responses.
 Quality of Supplies by improving supplier performance.
 Capability of human resources by upgrading skill and competence.
 The objectives of the present study are to obtain a true insight into the financial
and operational performance of BHEL, Hyderabad, using Budgetary Control as
the tool.
 To offer suggestions for the improvement of financial performance.

QUALITY POLICY
Towards meeting its Quality Policy, BHEL is using the vehicle of Quality Management
Systems, which are certified to ISO 9001:2000 series of Standards by Internationally
acclaimed certifying agency, BVQI. Corporate Quality and Unit level Quality structure
enables requisite planning, control and implementation of Company-wide Quality Policy
and Objectives, which are linked to the Company's, Vision statement.

CHAPTER-7
FINDINGS
 Recruitment has been stopped in BHEL-EDN since 1985 and is being done only
in some selected areas.
 BHEL-EDN does not approach the customer instead it waits for the customer to
come to it since its products are priced higher than other players in the field so it
thinks that those who can afford its products will automatically approach it.
 Because of computerization there is cost reduction in the form of reduction in
paper work and also quickness of action.
 BHEL is being showing consistent growth prospective.
 BHEL-EDN is managing its Human Resources and marketing very effectively by
conducting various types of training and other sessions.
 It has centralized many functions that help of better control and coordination.
 BHEL – EDN has a motivated work force.
 EDN is able to maintain good relation. There are no lookouts or strikes for a very
long period.
 Products in BHEL are tailor made i.e. they are produced as and when demanded
by the customer.
 BHEL is taking steps towards TQM.

CHAPTER-8
SUGGESTIONS & RECOMMENDATION
 Very important of all is the marketing department function that is it has to do good
advertisement and build brand awareness in the market.
 Job rotation, job enlargement, job enrichment needs to be done frequently in EDN,
which would motivate an employee to do better.
 As BHEL faces a tough competition from the Private firms it must formulate better
policies that attract customers.
 In order to survive and to be a leader BHEL needs to come out new products
continuously and increase its product line.
 It needs young upgraded work force than an older force so it needs to replace them
gradually as time permits.
 It needs to also eliminate the excess work force.
 Though strictly mentioned about the safety adherence the employee’s neglect the
same, workers should be advised to use the safety kit.
 Finished goods are packed and placed in the open area, thus, storage facility to be
improved.
 Promotion to be given based on work efficiency.
 Provide neat and clean rest rooms nearby to HRD department.
 Technology in this regard is available with BHEL while ABL would be able to
offer the same with back up from their collaborators.

CHAPTER-9
LEARNING EXPERIENCE
I enhanced my knowledge by working in Bharat Heavy Electricals Limited. I learned
many new aspects which I was unaware. I learned the functions of the company in
different areas of production. The interaction with company’s employees and staff has me
an insight and firsthand experience of the industrial scenario in the competitive
environment of the company.
In the beginning I was given a brief explanation on the number of departments and their
respective heads. In the subsequent weeks I went to different departments and was able to
understand the importance of each department and their contribution towards the
achievement of the company’s objective. I also learned how the company always tries to
feel the pulse of the customers, as they are the purpose of the business.
The atmosphere was so friendly and co-operative that I did not find any tinge of difficulty
the whole training period of four weeks which have me a great deal of information and
knowledge.

CHAPTER-10
CONCLUSION
Public sector units will have to resort to quality improvement techniques and get more
interested in what the customer wants rather than what the Company can offer in order to
retain their customer base and get new customers.
To remain competitive and meet customers’ expectations, BHEL lays great emphasis on
the continuous up gradation of products. BHEL’s commitment to advancement of
technology is reflected in its involvement in the development of futuristic technologies
like fuel cells and super conducting generators. BHEL’s investment in R&D is amongst
the largest in the corporate sector in India.
The electronics division of Bhel was formed in 1976 growing from a merger turnover of
RS 3 crore in 1976-77 to 500 Crores approximately in 2000-2001; BHEL EDN has
entered a new phase of growth. Its quick progress was aided by the collaborations with
international leaders in the field of power and control electronics.
Looking from its commanding height, BHEL-EDN sees exciting things happening
Stoday in the field of automation and power electronics and like any young adventure, it
is eager and ready to cover new terrain.

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