Quality Circles at BHEL


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Quality Circles at BHEL

  1. 1. A PROJECT REPORT ON QUALITY CIRCLES AT BHEL(A Report Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in JNT University, Hyderabad.) Submitted by Mr.A.NAGASUDHAKAR Enrolment No: 107R1E00F9 MBA: (HR) Jawaharlal Nehru Technological University Hyderabad – 500 085 2010-2012 1
  2. 2. A PROJECT REPORT ON QUALITY CIRCLES AT BHEL(A report submitted in partial fulfillment of requirement for the award of degree of Master of Business Administration in JNTU Hyderabad) Submitted by Mr.A.NAGASUDHAKAR 107R1E00F9 MBA (HR) Under the guidance of Mrs.T.ROJA RANI M.A,MBA Asst.professor CMR Technical Campus School of management Kandlakoya (v), Medchal 2010-2012 2
  3. 3. DECLARATIONI,A.NAGASUDHAKAR hereby declare that the project work titled “A PROJECT ONQUALITY CIRCLES” is an original work done by me and submitted to the JNTU inpartial fulfillment of requirements for the award of Master of Business Administration inHuman Resource Management is a original work done by me under the supervision ofMr. SATYABABU ,Chief Welfare Officer Of BHEL and under the guidance of Mrs.ROJA RANI of school of management, CMR technical campus, Medchal,Hyderabad.DATE: SIGNATUREPLACE: (A.NAGASUDHAKAR) 3
  4. 4. ACKNOWLEDGEMENTI would like to express my deep gratitude to DR.R.PURNACHANDAR RAO Dean, forproviding remarkable support in doing this project work.I would like to express my deep gratitude to Dr. JACQUELINE WILLIAMS, HOD, forproviding remarkable support in doing this project work.I feel very good to have valuable guidance from my guide Mrs. T.ROJA RANI-Ass.Professor, throughout the project period. I myself take a privilege to express mysincere gratitude to my guide.I express my sincere gratitude to Mr. B.SATYABABU, Chief Welfare Officer of BHELfor guiding me to complete my project in their organization.I felt it has privilege to express my sincere gratitude to my family members and friendsfor their extended support all through the project period. A.NAGASUDHAKAR 4
  7. 7. 1.0 INTRODUCTION:Organization development is an effort (1) Planned (2) Organization wide and (3)managed from the top, to (4) Increase Organization effectiveness and health through (5)Planned Interventions in the organization’s “process” using behavioral-scienceknowledge. -Richard Beckhard“Organizational Development requires a plan approach to change based on meeting theneeds of both the people in the organization” -Kilion &Harrrison(1990)Due to globalization and redefining in the field of information Technology, theadvancement and applicability of Organizational Development has changed. Luckily,most of the organizations are adopting various kinds of organizational changes whichare inevitable to survive in today’s competitive environment. In this regard, EmployeeInvolvement Interventions is adopted to improve the responsiveness and progress of themembers of the organization which directly improves organization’s effectiveness andproductivity.OD is an effort planned organization wide, managed from the top, through plannedintervention, using processes of behavioral science1.1 organizational development process:The process, it takes minimum of one year and sometimes continues indefinitely. Thereare different approaches to OD process but the typical process consists of seven steps,viz., initial diagnosis, data collection, data feedback and confrontation, action planningand problem solving, team building, inter group development and evaluation and follow”up. 7
  8. 8. If executives recognize that there are inadequacies within organization which can becorrected by OD activities, it is necessary to find out the professional and competentpeople within the organization to plan and execute OD activities. If competent people arenot available within the organization the services activities are to be taken. Theconsultants adopt various methods including interviews, questionnaires, directobservation, analysis of documents and reports for diagnosing the problem.Survey method is used to collect the data and information for determining organizationalclimate and identifying the behavioral problems.Data collected are analyzed and reviewed by various work groups formed from thispurpose in order to mediate in the areas of disagreement or confrontation of ideas oropinions and to establish priorities.The interventions are the planned activities that are introduced into the system toaccomplish desired changes and improvements. At this stage the suitable interventions areto be selected and designed.1.2 Implementation of intervention:The selected intervention should be implemented. Intervention may take the form ofworkshops, feedback of data to the participants, group discussions, written exercises, on-the-job activities, redesign of control system etc. Interventions are to be implementedsteadily as the process is not a one-short, quick cure for organizational malady. But itachieves real and lasting change in the attitudes and behavior of employees.Groups prepare recommendations and specific action planning to solve the specific andidentified problems by using data collected. 8
  9. 9. The consultants encourage the employees throughout the process to form into groups andteams by explaining the advantages of the teams in the OD process, by arranging jointmeetings with the managers, subordinates etc.The consultants encourage the inter group meetings, interaction etc., after the formationof groups/teams.The organization finally has to evaluate the OD programs, find out their utility, anddevelop the programs further for correcting the deviations and/or improved results. Theconsultants help the organization in this respect. All the steps in the OD processes shouldbe followed by the organization in order to derive full range of OD benefits.The following a few of most common OD Interventions, that most of the companiespractice:1.3 Organizational interventions are I. Survey Feed back II. Quality Circles III. Process Consultation IV. Sensitivity training V. The Managerial grid VI. Goal setting and Planning VII. Team building and management by objectives VIII. Job enrichment, change in organizational structure and participative management and, ISO, TQM 9
  10. 10. 1.4 QUALITY CIRCLESDEFINITION:Quality Circle is a small group of 6 to 8 employees doing similar work who voluntarilymeet together on a regular basis to identify improvements in their respective work areasusing proven techniques for analyzing and solving work related problems coming in theway of achieving and sustaining excellence leading to mutual up liftment of employees aswell as the organization.It is "a way of capturing the creative and innovative power that lies within the workforce".1.5 HISTORY OF THE QUALITY CIRCLES:The history of Quality Circles cannot be discussed with- out discussing the country of itsOrigin .The success of any concept or philosophy gains conviction and spreads only whenit was practiced sincerely .The Japanese have not merely evolved a concept but practicedit with sincerity of purpose bringing forth amazing results .This has drawn the attention ofthe nation the world over and they have found great potential in involving the people by1947: General Douglas McArthur requested US Govt. to send experts to help Japaneserejuvenate their industries.Dr.Edward Deming was sent.1949: An Overseas Technical Research Committee was organized by the Union ofJapanese Scientists Engineers (JUSE)1949: JUSE organized a seminar on “SQC”1949: JUSE organized a seminar “Quality Control-Basic Course”1950: JUSE published a magazine “SQC”1950: Dr Deming invited to eight day Quality Control seminar organized by JUSE.1951: Deming prize instituted. 10
  11. 11. 1954: Dr Joseph Juran invited to Quality Control Management seminar organizedby JUSE.1956: Japan’s radio started broadcasting a Quality Control Course organized by JUSE.1960: Japanese Govt. declared November as Quality Month and Q-flag was adopted.Quality Control Circles (Japan)1962: First QC Circles was registered with Circle Head Quarters1962: First annual QC Conference for Foremen was held1964: Regional chapters of QC were organized in four different districts1966: Dr.Juran observed QC Circles activities1966: Special QC Circle session was organized at the 10th conference of EuropeanOrganization for Quality Control held in Stockholm, Sedan1967: Number of registered QC Circles grew to 100001968: JUSE dispatched the first QC Circle Study Team overseas1969: Registered Circles grew t 200001969: 100th QC Circle Conference was held in Tokyo1970: Registered Circles grew to 300001971: JUSE organized the first QC Circle seminar1971: 200thQC conference was held1971: Registered QC Circles grew t 400001971: First National QC Circle Conference was held in Tokyo1972: Regional Circles grew to 50,0001973: 300th QC Circle Conference was held1974: Registered circles grew to 60,0001974: 400th QC Circle conference as held1975: Registered Circes grew to 70,000.500th Conference held 11
  12. 12. 1977: Registered Circles grew to 80,000.700th Conference was held1978: Registered Circles grew t 90,0001978: First international QC Circles Convention was held1979: 800th QC Circles Conference was held1979: Registered QC Circles Conference numbered 10000001980: 900th Conference was held1981: International QC Circles Convention was held1985: Third International QC Circles Convention was held1988: More than one million Circles with over ten million membersQUALITY CIRCLES (OTHER THAN JAPAN)1974: Lockheed Company, USA Started Quality Circles movement1977: International Association of Quality Circles (IACC) was formed in USA1980:230 Companies in USA has Quality Circles1983: There were more than 500,000 known Quality active in the worldQUALITY CIRCLES (INDIA)1980: BHEL, Hyderabad first in India to start Quality Circles1982: Quality Circle Forum of India (QCFI) was founded1983: Tata Motors (formerly Telco) started Circles by 1985 they had more than Circles1985: BHEL had 1411 Circles covering around 13362 members1.6 QUALITY CIRCLES IN INDIAIn India, Quality Circles movement was introduced in BHEL in January1981, afterpreparing the ground in 1980.Its success in a large public enterprise like BHEL having73000 employees naturally drew the attention of many organizations in the country and ittriggered off the spread of the movement in the country .BHEL kept its door open in 12
  13. 13. sharing its experiences and organizing National Seminars in association with otherNational Bodies and thus the Q.C movement started catching up.FORMAL AND INFORMAL GROUPSFormal Groups • Family. • Organization. • Departments.Informal Groups • Employees meet near water cooler and gossip. • Five salesmen from marketing department meet once a month for lunch to discuss mutual concerns and to seek relief from tedious aspects of their job. • Four computer programmers form a jogging club that meets three days per week at lunch time to run two miles. • All employees of a section meet and discuss how to improve and beautify office layouts. • Seven workers of a production shop floor meet once a week to solve their technical problems. • Maintenance department staff meets regularly to maintain machines in a better way.1.7 WHAT IS QUALITY CIRCLE (QC)?Quality Circles are (informal) groups of employees who voluntarily meet together on aregular basis to identify, define, analyze and solve work related problems. 13
  14. 14. Usually the members of a particular team (quality circle) should be from the same workarea or who do similar work so that the problems they select will be familiar to all ofthem. In addition, interdepartmental or cross functional quality circles may also beformed.An ideal size of quality circle is seven to eight members. But the number of members in aquality circle can vary.OTHER NAMES OF QUALITY CIRCLES • Small Groups • Action Circles • Excellence Circles • Human Resources Circles • Productivity Circles1.8 STRUCTURE OF QUALITY CIRCLES 14
  15. 15. 1.9 Quality Circle Meetings • Meetings are important part of quality circles working. • Meetings are attended by all the members of the quality circle. • In general, meetings take place once a week or once in a fortnight. • Each meeting lasts for approximately one hour, though variations are possible. • Apart from the frequency of the meetings, what is important is the regularity of the meetings.1.10 What takes place during quality circle meetings? Any of the several activities may occur during a meeting such as: • Identifying a theme or a problem to work on. • Getting training as required to enable members to analyze problems. • Analyzing problem(s). • Preparing recommendations for implementing solution(s). • Follow up of implementation of suggestions. • Prepare for a presentation to the management.1.11 Pitfalls and problems • Lack of faith in and support to Quality Circle activities among management personnel • Lack of interest or incompetence of leaders/facilitator • Apathy, fear and misunderstanding among middle level executives • Delay or non-implementation of Circle recommendations • Irregularity of Quality Circle activities • Lack of or non-participation by some members in the Circle activities 15
  16. 16. 1.12 QUALITY CIRCLES IN BHELTo facilitate the employees of grass root level to involve in improvement activities andtake-up problems related to their respective work area, analyze and solve them in asystematic way to enable self development & mutual development of Quality circle Teammembers.PROBLEM SOLVING TECHNIQUES:Quality commonly uses certain basics techniques to identify analyze and resolveproblems they are: 1) Brain storming 2) Data collection 3) Stratification 4) Pareto analysis 5) Cause and Effective diagram 6) Histogram 7) Scatter diagram 8) GraphsThese techniques through simple, but are very powerful ones and they help they qualitycircles investigation the case for their work related problems and find solutions inscientific way. 16
  17. 17. 1. BRAIN STROMING:Stimulating generation of ideas in a group is done through brain storming, which moreeffective then is trying to generate ideas alone brain storming helps to realize the creativepower of the group. It is also helps effective group participation. Its effectiveness wouldincrease with the skill of application by the leader.Brain storming generally usually three stages by quality circles. 1. While listing out the problem, 2. While listing out the probable causes influencing the effect, 3. While listing out the suggestions /recommendations,Guidelines for brainstorming:Each member, by rotating, is asked for ideas (this continues unit all ideas are exhausted),only one idea is offered by individual per turn,Member having no idea, just says ‘Pass’No idea should be treated as stupid (criticizing or ridiculing any idea would in habit freeflow of ideasRigid formality may be avoided good natured humor would enthuse members to open upfreely,Leader should help in summarizing an idea and guide members in clarity of expression,No evaluation of ideas is done during brain storming, 17
  18. 18. A black-board or a large sheet of paper could be used for listing out ideas.Brain storming technique can be fruitfully used to identify problems effecting the workarea; factors which help prevent potential problem causes responsible for problems,solutions to problems to etc.2. DATA COLLECTION:Data is nothing but collection of act in terms of figures, which gives a clear picture of anywork situation allows for comparison. data collection forms the first step in statisticalanalysis of a problem. it would also form a sound basis for decision making andcorrective action. The analysis and solution would depends on the correctness andaccuracy of data must be related to the problem under reviewTypes of dataGenerally data can be of two types one variable i.e. which is measurable, eg.length,weight, time, etc, and the other attribute .i.e. which is countable data, is a example:smooth running of a machine small etc,(attribute).Source of data:There are two sources f data, past data(previous record, previous feedback) and live data(current observations).Past data:In many cases the required data will be ready available with some agency or the recordedthrough a feedback system. The data so available is termed as “Past data”. The past datahelps to have a preliminary study and to understand the causes of the problem. 18
  19. 19. Live Data:Where such a recorded data is not available we have to systematically collect datathrough observation over a period of time and this is termed as “Live data”.Collection of data:Before the start of the data collection, one should be clear in his mind about theparameters or characteristics and their periodicity for which data is to collected. For easiercollection of data, a Pre-designed checklist/format/ check sheet or any designed format asper the requirement could be used. This would simplify the process of analysis.Data collection format: No of components made SI. Name of the Type of Any special No machine operation Reminder Accepted Rejected Vertical Boring Bring Horizontal Lathe Turning Coil Winding Final Taping Final Grinding Grinding Length Cutting CuttingAnalysis of dataAfter the data is collected, it is analyzed and information is extracted by applyingstatistical method. Decision making or further course of action should be based onanalyzed data. 19
  20. 20. 3. STRATIFICATION:The technique of data segregation based on segregated element is called stratification datacollected should be properly classified for giving meaningful and correct inference.The stratification of data is nothing but segregation of are groping the data. machine wise,operator wise, shift wise etc,. for identifying the influencing the factors• Material Base:data is stratified n the basis of the supplier of the materials, delivery lot of the materials,preliminary process etc, by this the effects of the materials have on the quality of the finalproduct.• Quality Base:Data is stratified by kind’s f products specification etc. if phenomenon inherent to aspecial group of product can thus be traced.• Work Base:Stratification on the basis of worker is often very effective.• Time base:Data is stratified by the seasons, day-and-night, atmospheric conditions such astemperature, humidity and physiological conditions of the workers differ from time to 20
  21. 21. time. the influence of these elements on quality is sometimes founded by time basedstratification .• Surrounding conditions:The quality of product may be influenced by such surrounding conditions as weather,productions schedules, tightness r slowness of the market etc. • Processing:Element such as production equipment, measuring instrument, manufacturing methodsetc. There are more stratification bases other than the listed above.4. PARETO ANALYSIS:Pareto was an Italian economist who discovered a universal relationship between valueand quantity and he used this technique for assessing uneven distribution of wealth.Pareto analysis helps in the identification of “the vital few trivial many” at a glance henprojected, using the column graph named after Pareto diagrams are frequently used toselect the few important problems out of many.What is Pareto Diagram:Pareto diagram is a column graph, drawn after data collection for the purpose of:- a. Differentiating the major factors (vital) that contributes most to the unsatisfactory situation from other minor ones (trivial). b. Trackling the major factors responsible for any problem.How to prepare Pareto diagram:Stratify the problem points according to purpose (by causes, by phenomena, byequipment) and represent them numerically, 21
  22. 22. Preferably data should be expressed in monetary values rather than quantity, counts orpercentage,Select a data period proper for the purpose,Arrange the stratified items in descending order of value and bar chart ,in descendingorder of value and draw a bar chart,(on a graph paper)PARETO CHARTSimple example of a Pareto chart using hypothetical data showing the relative frequencyof reasons for arriving late at work.A Pareto chart is a special type of bar chart where the values being plotted are arranged indescending order. The graph is accompanied by a line graph which shows the cumulativetotals of each category, left to right. The chart is named after Vilfredo Pareto, and its usein quality assurance was popularized by Joseph M. Juran and Kaoru Ishikawa. Typically on the left vertical axis is frequency of occurrence, but it canalternatively represent cost or other important unit of measure. The right vertical axis is 22
  23. 23. the cumulative percentage of the total number of occurrences, total cost, or total of theparticular unit of measure. The purpose is to highlight the most important among a(typically large) set of factors. In quality control, the Pareto chart often represents themost common sources of defects, the highest occurring type of defect, or the mostfrequent reasons for customer complaints, etc.The Pareto chart was developed to illustrate the 80-20 Rule that 80 percent of theproblems stem from 20 percent of the various causes.5).CAUSE& EFFECTIVE DIAGRAMIshikawa diagramIshikawa diagram, in fishbone shape, showing factors of men, machines, milieu(workplace), materials, methods, measurement, all affecting the overall problem. Smallerarrows connect the sub-causes to major causes.The Ishikawa diagram (or fishbone diagram or also cause-and-effect diagram) arediagrams, that shows the causes of a certain event. A common use of the Ishikawadiagram is in product design, to identify potential factors causing an overall effect.OverviewIshikawa diagrams were proposed by Kaoru Ishikawa in the 1960s, who pioneered qualitymanagement processes in the Kawasaki shipyards, and in the process became one of thefounding fathers of modern management.It was first used in the 1960s, and is considered one of the seven basic tools of qualitymanagement, along with the histogram, Pareto chart, check sheet, control chart,flowchart, and scatter diagram. See Quality Management Glossary. It is known as afishbone diagram because of its shape, similar to the side view of a fish skeleton. 23
  24. 24. Mazda Motors famously used an Ishikawa diagram in the development of the Miatasports car, where the required result was "Jinba Ittai" or "Horse and Rider as One". Themain causes included such aspects as "touch" and "braking" with the lesser causesincluding highly granular factors such as "50/50 weight distribution" and "able to restelbow on top of drivers door". Every factor identified in the diagram was included in thefinal design.CausesCauses in the diagram are often based on a certain set of causes, such as the 6 Ms, 8 Psor 4 Ss, described below. Cause-and-effect diagrams can reveal key relationships amongvarious variables, and the possible causes provide additional insight into processbehavior.Causes in a typical diagram are normally grouped into categories, the main ones of whichare:The 6 msMachine, Method, Materials, Maintenance, Man and Mother Nature (Environment)(recommended for the manufacturing industry).Note: a more modern selection of categories used in manufacturing includes Equipment,Process, People, Materials, Environment, and Management.The 8 psPrice, Promotion, People, Processes, Place/Plant, Policies, Procedures, and Product (orService) (recommended for the administration and service industries).THE 4 SSSurroundings, Suppliers, Systems, Skills (recommended for the service industry).Causes should be derived from brainstorming sessions. Then causes should be sortedthrough affinity-grouping to collect similar ideas together. These groups should then be 24
  25. 25. labeled as categories of the fishbone. They will typically be one of the traditionalcategories mentioned above but may be something unique to your application of this tool.Causes should be specific, measurable, and controllable. AppearanceA generic Ishikawa diagram showing general (red) and more refined (blue) causes for anevent.Most Ishikawa diagrams have a box at the right hand side, where the effect to beexamined is written. The main body of the diagram is a horizontal lines from which stemthe general causes, represented as "bones". These are drawn towards the left-hand side ofthe paper and are each labeled with the causes to be investigated often brainstormedbeforehand and based on the major causes listed above.Off each of the large bones there may be smaller bones highlighting more specific aspectsof a certain cause, and sometimes there may be a third level of bones or more. These can 25
  26. 26. be found using the 5 Whys technique. When the most probable causes have beenidentified, they are written in the box along with the original effect. The more populatedbones generally outline more influential factors, with the opposite applying to bones withfewer "branches". Further analysis of the diagram can be achieved with a Pareto chart.6).HISTOGRAM:In statistics, a histogram is a graphical display of tabulated frequencies, shown as bars. Itshows what proportion of cases fall into each of several categories. The categories areusually specified as non-overlapping intervals of some variable. The categories (bars)must be adjacent. The intervals (or bands) should ideally be of the same size.Histograms are used to plot density. The total area of a histogram always equals 1. If thelength of the intervals on the x-axis is all 1, then a histogram is identical to a relativefrequency plot.The word histogram is derived from Greek: histos anything set upright (as the masts of aship, the bar of a loom, or the vertical bars of a histogram); gramma drawing, record, and 26
  27. 27. writing’. A generalization of the histogram is kernel smoothing techniques. This willconstruct a very smooth probability density function from the supplied data.ExamplesAs an example we consider data collected by the U.S. Census Bureau on time to travel towork (2000 census, [1], Table 2). The census found that there were 124 million peoplewho work outside of their homes. This rounding is a common phenomenon whencollecting data from people.In other words a histogram represents a frequency distribution by means of rectangleswhose widths represent class intervals and whose areas are proportional to thecorresponding frequencies. They only place the bars together to make it easier to comparedata.Check sheetThe check sheet is a simple document that is used for collecting data in real-time and atthe location where the data is generated. The document is typically a blank form that isdesigned for the quick, easy, and efficient recording of the desired information, which canbe either quantitative or qualitative. When the information is quantitative, the check sheetis sometimes called a tally sheet. 27
  28. 28. A defining characteristic of a check sheet is that data is recorded by making marks("checks") on it. A typical check sheet is divided into regions, and marks made indifferent regions have different significance. Data is read by observing the location andnumber of marks on the sheet. 5 Basic types of Check Sheets:Classification:A trait such as a defect or failure mode must be classified into a category.Location:The physical location of a trait is indicated on a picture of a part or item being evaluated.Frequency:The presence or absence of a trait or combination of traits is indicated. Also number ofoccurrences of a trait on a part can be indicated.Measurement Scale:A measurement scale is divided into intervals, and measurements are indicated bychecking an appropriate interval.Check List: 28
  29. 29. The items to be performed for a task are listed so that, as each is accomplished, it can beindicated as having been completed.7).CONTROL CHART 29
  30. 30. The control chart, also known as the Stewart chart or process-behavior chart, instatistical process control is a tool used to determine whether a manufacturing or businessprocess is in a state of statistical control or not.Overview If the chart indicates that the process is currently under control then it can be usedwith confidence to predict the future performance of the process. If the chart indicatesthat the process being monitored is not in control, the pattern it reveals can help determinethe source of variation to be eliminated to bring the process back into control. A controlchart is a specific kind of run chart that allows significant change to be differentiatedfrom the natural variability of the process.This is a key to effective process control and improvement. On a practical level thecontrol chart can be seen as part of an objective disciplined approach that facilitates thedecision as to whether process performance warrants attention or not. Types of Control charts: A Control chart form Varies According to Kind of data it contains .For variable data the following charts are used 30
  31. 31. 1. P-chart=Fraction defective, 2. np-chart=No. of defectives, 3. c-chart=No. of defects.Here the quality circles are coordination by the qualityassurance in BHEL, Hyderabad.1.13 Quality assurance co-ordination activities: a) Formation of Quality Circles & Registration b) Re-organization of circles (based on the need) c) Maintaining data base of circles (Membership data) d) Providing necessary inputs to circles like arranging training, Meeting register, QC related books, formats etc., e) Maintaining performance record of Quality Circles( SIPs : Small Improvement Projects, MMPs :Middle Management Presentations) f) Keeping records of active circles (Active circles shall have Minimum of24 Meetings ,2 Case studies, & one Middle Management Presentation made in a calendar year) g) Conducting Annual Unit Quality Circle Convention (AUQCC). h) Nomination for External Conventions (Facilitating QCs to participating in external Conventions) i) Republic day, EDs Rolling shield for best performing Quality circle by Evaluating the case studies and performance of the previous year. 31
  32. 32. j) Procurement and performance of mementoes to active Circles. k) Reporting the performance of Quality circles to corporate Quality from time to time. l) Facilitate Quality Circle teams to participate in International Conventions as per corporate guide lines.1.14 Formation of new circles:Max 5 members Minimum 4 employees (worker category, supervisor category) workingat a particular function /area can form Quality Circles(QC).The Quality Circles also haveto select an Executive Guide(preferably from their work centre).The proposed Team Members shall fill up the registration form(Format No : QA/QCC-001) available with a QA-Quality Circles coordination centre. Members shall giveconsent by signing on the form. After obtaining the signatures of area Co-ordinatorand facilitator f the concerned work area/product/service group, form to be submitted toQuality circle coordination (QA).QA shall Register the Quality Circle and allocate “Quality circle Number” and issuemeeting Register, copies of “handbook n Quality circles” to the newly formed QualityCircles All the New Quality circles formed shall be encouraged with a welcome Mementoto each member f the team (including Executive Guide)1.15 Re-organization of quality circles:If the circle strength is reduced due to retirement or transfer of team members orotherwise, shall fill in the Form (Format No: QA/QCC-001) with revised Team andindicate “Re-organization of Quality Circles” with the consent of members and with the 32
  33. 33. signature of area Co-ordinator and facilitator of concerned work area/Product/ServiceGroup and submit to Quality Circle Co-ordination (QA)Quality Circle Coordination shall update the data base accordingly.Maintaining performance record of Quality Circles (Small problems solved, MMPs(Middle Management Presentation).MMP Format No: QA/QCC-04, Rev-00and SIPFormat No: QA/QCC-03, Rev: 00Based on the Submitted documents (Filled in signed SIP booklets &MMP Booklets) QAshall update the data on problems solved by teams. Solved problems also can registeredas IMPRESS project by respective Quality Circle Team.Keeping Records of Active Circles (Min.24 Meetings I a year, 2 case studies (SIPs) &nemiddle management Presentation in a calendar year). QA shall prepare the list of activecircles for calendar year based on SIPs and MMPs data received from Teams.1.16 Annual unit quality circle convention:The QA shall organize Annual Unit Quality Circle convention to provide a platform topresent the case studies by Quality Circles. The case studies shall be evaluated byexternal Judges and winning Quality Circles Teams shall be awarded.The Category for participation are: (a) Manufacturing (b) Support Services (c)Manufacturing-New Circle (d) Support Services-New Circle.Qualification for a New Circle is “First time participation in the Annual Unit QualityCircle convention” and “Should have formed in the past calendar years”1.17 Key activities of quality circles coordination:Quality Assurance is the coordination agency for promoting, monitoring the qualitycircles in the unit.To encourage the formation of QC Circles by potential members 33
  34. 34. To organize 2 day training program for all Newly joined members and also to organizerefresher program to existing members. 1. All the Ne Members shall be given a 2 day class room training on simple problem solving Tools, Presentation techniques. 2. As per training need identified by area co-ordinator, one day refresher programs shall be organized to members of Existing Circles. 3. Organizing appreciation programs t area coordinators, Facilitators. 4. Training Shall be planned based on the requirement as at pint 4 above, and get incorporated in HRDC Calendar. 5. In addition to HRDC Calendar programs, need based programs shall be organize with due approvals.To organize to review of Quality Circles functioning by verifying meeting registers,collecting Small Improvement Project (SIPs), facilitating Middle managementPresentations (MMPs) at function/shop level.To plan to conducting steering committee meetings (twice a year)t discuss the status ofQuality circles movements and achievements and obtain directions for improvement.Members of Steering committee: All GMs and DRO of unit.ED is the chairman and Head/QS will be the convener.Measurement parameters for Quality circles are:1).No. of Circles formed2).No. of dormant circles made active3).No. of Awards on in external conventions(Prizes in IUQCC, CCQC, NCQC, ICQCC, APPC, CII etc.,)4).No. of Training imparted-No of Man days 34
  35. 35. To plan the budget and obtain financial concurrence towards “Delegation fee” for QualityCircles participation in External conventions, and for organizing AUQCC for the year. Toplan, get approved for the procurement of mementos for distribution to eligible qualitycircles as per norms. To plan the budget and obtain financial concurrence towards inter unit QualityCircle Convention f BHEL (On rotation of Major Units of BHEL,BHEL Hyderabad mayhave to host once in 5 years)1.18 Roles and responsibilities of quality circle membersQuality Circle: Circle consist of Leader, Dy.Leader, 4members (Total QC Teammembers=6) from working class (workers &Supervisors) and an Executives will be anExecutive guide from work area of teamLeader: Quality circle leader organizes and conducts quality circle meetings /activitiesas per schedule and records meeting notes in the meeting register. Leads the team in allactivities.Dy.Leader: In the absence of leader, Dy.Leader will take over as leader role.Members: All members including leader, Dy.Leader are equal in sharing, discussingproblems, coming out with solutions and implementations of solution for the problemwith the consent of concerned work centre in-charge. Through the Quality Circles arevoluntary, they have responsibility of functioning with in a frame work of rules ofcompany for the improvement.Executive Guide: The person chosen to guide the team possessing-work area jobknowledge, Basic SQC skills and PPT skills. Executive Guide shall support the circle inimplementation of solution, providing technical inputs, preparation of presentation etc. 35
  36. 36. Area Coordinator: The person nominated by the respective product/service GM toact as a link between Quality Assurance & Quality Circle of the product/Functional area.The area coordinator will liaisons with work centre in-charge of concerned circles andprovide facility for conducting weekly meetings.Facilitator: Facilitator shall be nominated by concerned product/Service GM. He/Shecoordinates the several quality circles through the circle leaders. the facilitator shallprovide resources for model making, trail implementation of solutions fund by Qualitycircle team. Encouraging the Quality circles for greater involvement. The vetting of gainsof the projects shall be done by work centre in-charge &Facilitator.Steering committee: Steering Committee consists of Unit head as Chairman, allproduct& Service GMs& DROs as members and head of Quality Assurance shall be theconvener for committee meetings.1.19 Terms of reference for steering Committee are: • To set goals and objectives for the Movement of Quality Circles. • To formulate/revise the policies for development of the Quality Circles • Approve the guide lines for measuring the effectiveness of Quality Circles • Review the Performance and progress of Quality Circles periodically • To provide all support and encouragement to Quality Circle movement in the organization • Recommend for monetary benefits for nurturing the Quality Circles &Encouraging the Best performing Quality Circles.QA-Quality Circle coordination shall organize Steering Committee meeting periodically(once in a Quarter) 36
  37. 37. 1.20 NEED FOR THE STUDY • Self development. • Promotes leadership qualities among participants. • Recognition. • Achievement satisfaction. • Promotes group/team working. • Promotes continuous improvement in products and services.1.21 SCOPE OF THE STUDY Facilitating all the eligible employees of BHEL, Hyderabad to participate in theQuality Circle movement. Though, the participation by workers in Quality Circles isvoluntary, the role of QA is to encourage the formation of Quality Circles and to nurturethem to take up improvement activities /solving the problem in their respective functions.Providing platform for presenting the Improvement made. BHEL Hyderabad initiated the first five quality circles in the country on 5 thJanuary 1981. 3 circles were started in manufacturing area and two circles in materialsmanagement function of pump shop. this five circles presented their case studies withinthree months i.e. on 20th march1981in the presence of sri.M.R.Naidu,the then executivedirector one of the circles made a presentation on “ work place improvement”BHEL, Hyderabad facilitated starting of Quality circles in other sister units in 1981BHEL, Hyderabad played a key roll in organizing first inter unit Quality circleconvention at R&D, in august 1981. 37
  38. 38. First annual unit Quality circle convention was held in august 1985.BHEL, Hyderabad as adjudged as the “Best organization for promoting Quality circles”for seven consecutive years from Andhra Pradesh productivity council (1997-2003).“Best organization for promoting quality circles” from QCFI from 2003 onwardsBHEL, Hyderabad initiated student quality circles first time in schools of township.BHEL, Hyderabad circles participated in international Quality circles conventions held atBangkok (2004), Bali (2006-Silvel medal) Beijing (2007-Gold medal) and Singapore(2008)1.22 OBJECTIVES OF THE STUDY 1. Create problem solving capability, Improve communication, Promote leadership qualities & personal development. 2. Improve morale through closer identity of employee objectives with organizations objectives, Enhance quality, and awareness for cleanliness &Reduce errors. 3. Build an attitude of problem prevention, Job involvement, harmonious relationship between supervisor and worker. 4. Improve productivity, Reduce downtime of machines and equipment &Increase employee motivationRESEARCH METHOLOGYAs the organization identified human resource as their asset, taking care of them is veryimportant to make them motivate for the achievement of the goal. How welfare activitiesto be structured so that it should be up to the satisfactory level of the employees is verycritical.Quality Circles are to know the Quality circle activities and hoe it is practiced, and toknow whether the employees are aware of it and availing the benefits. 38
  39. 39. The main objective of Quality Circles is “self” and mutual development, cohesive teamwork and engaged in continuous improvement activities, thus improving their quality ofwork life”.METHODOLOGY:The methodology used in this project has been that of unstructured interview of the guide,which has facilitated the extractions of information. Although there has been a structuredquestionnaire to capture the information.DATA COLLECTIONPrimary dataCollected through responses of employees related to the topic with the help of thestructure questionnaire.Secondary dataCollected through Broachers’ news magazines, Hand Books, corporate journals and apexmanuals, web sites.SELECTION OF THE MEASUREMENT TECHNIQUE 1. Fully aware 2.Aware 3.only basics 4.Not aware 5 Frequently 6.Sometimes 7.rarely 8.Never 9 Fully agree 10.To some extent 11.satisfied 12. Fully satisfied 13strongly disagree 14.Important 15. Very importantSAMPLINGPopulation – employees of BHEL, HyderabadSample size – 100 employees from all categories.ANALYTICAL APPROACH 39
  40. 40. The assumption has been carried out with the help of chi – square method, presuminghypothesis for each question. Pie chart representation shows the percentage responsesreceived from the questionnaire.ASSUMPTIONSThe study assumes that the information revealed by the respondents is authentic and notmisleading.1.23 LIMITATIONS OF THE STUDY• The experimenters had no control over the extent to which managerial support ofthe QC programs differed in the work groups and organizations under the study• As the Quality Training was provided by the base of QC Facilitator, theexperimenters had no control over any differences in training emphasis and/or techniqueto which the various QC were exposed.• Non-attitudinal measures of QC outcomes (such as number of problem solutionssuggested or implemented) were not investigated. 40
  42. 42. 2.0 LITERATURE REVIEWQuality Circles (QC), participative decision making (with selected consideration of thebroader area of decision making in organization), Job Involvement, communicationclimate and job satisfaction,Literature concerning participating decision making, decision making, job involvement,communication climate and job satisfaction is reviewed because this study seeks todetermine whether QC membership results many changes with respect to these workattitudes (as measured by the AFIT survey of the work attitude). Each of the above listedtopics is reviewed separately.Quality circles research:Few studies have attempted to evaluate the attitudinal or behavioral outcomes associatedwith participation in a QC program. Also, there is a severe shortage of research involvingquantitative assessments of factors which are considered necessary for success. It is witha discussion of the suggested “basic elements” necessary for a successful QC programthat this review of the literature will begin.The most notable listing of significant factors related to QC success arises from theresults of a survey administered to 50 QC experts attending the third annual conference of 42
  43. 43. the International Association of Quality Circles (Stevens&Moore, 1981).Rankedaccording to frequency of mention, these factors are: 1. Management acceptance/support/understanding 2. Training for the circle leader(s) and facilitator(s) 3. Voluntary participation 4. A. “people-building” managerial philosophy 5. Allowance of sufficient time for assessment of results and return on investment 6. Open channels of communication with upper management 7. A “team effort” approach to problem solving 8. Team member and management participation 9. Recognition 10. Confining circle activities to work-related problemsStevens and Moore believe that the presence of each of the above 10 factors is crucial forthe survival of a QC program. Metz (1980) and Cole ((1980) have warned that failure to include and /or educatemiddle management personnel when QC programs are initiated can lead to oppositionalwhen QC programs are initiated can lead to oppositional and obstructional attitudes andbehaviors on the part of supervisors. these attitudes and behaviors stem from the beliefthe circle activities are an infringement on their ( the supervisors’) own jobresponsibilities and/or QC suggestions are a reflection of their own inadequate jobperformance (and hence represent a threat to their job security) Burck (1981) points tothe importance of a trusting relationship between management and employees as anecessary ingredient for QC success. Cole (1980b) further emphasizes the importance offinancial incentives and recognition as additional motivators for QC members. 43
  44. 44. These impressions of QC experts concerning the necessary ingredients for QCsuccess all assume that QC programs indeed result in improvements related to theincreased organizational effectiveness. However, given the lack of research on the subjecteven this most basic of assumptions cannot be made. Despite the assertion by Rieker andSullivan (1981) that assessing QC effectiveness may cannot be possible or cost effectivein the near term because of the difficulty in isolating the effects of one relatively smallcomponent of an integrated organizational structure, research must be conducted in to thearea if the QC concept is to be anything more than merely a passing fad (Ouchi, 1981)Only four studies QC outcomes presently appear in the literature. The first, anuncontrolled field experiment conducted by general dynamic Pomona Division (Hunt,1981) reports the results of a six month pilot program, the purpose of which was toprovide information for management as an aid for the evaluation of the long rangepotential of QC’s within the firm. Several morale, motivation and performance criteriawere monitored with “before” and “after” comparisons made for Quality Circle membersand other employees. No mention was made of controls for possible differences betweenmembers of the QC group and the “other employees” comparison group; nor were thereindications of controls made for changing group composition. Though the author notedthat Quality circle members demonstrated superior performance on measures of productQuality, error reduction job involvement and problem-solving capabilities whencontrasted with other employees, these conclusions must be viewed with caution due tothe limitations of the experimental design. Results of this study therefore should not begeneralized to other organizations. The value of the experiment is that it demonstrates aninterest by management in empirically evaluating QC success before organization-wideadoption of the QC concept. 44
  45. 45. In noting the need for QC program evolution, Donovan and Van Horn (1980) haveprovided the following suggestions: 1. Measuring of “multiple levels which includes objective measures ofproductivity and quality (such as hours/unit and defects/.unit) and assessment whichprovide an overview of program coats. 2. Effective research tools including surveys and questionnaires which provideinformation concerning job and climate variables related to high productivity andsatisfaction. 3. Adequate research. Designs providing pre-and post circle implementationcomparisons and, where possible, control group of baseline information.The authors conducted five independent studies of QC effectiveness at Honeywell, Inc.upon which they concluded that the intervention was responsible for dramaticperformance and efficiency improvements. However, due to significant flaws in studydesign, it is impossible to assess the true impact of the circles. No controls for thechanging memberships of the QC and control groups were incorporated into the study.Further, the authors made no specific mention of the composition of the various circle andcontrol groups if circles membership was voluntary; it was likely that the circle memberexhibited differences of personality and motivation which distinguished them from thosewho chose not to participate. If the composition of the QC group was not a representativesample of employees performing similar work at Honeywell, Inc., then no generalizationof the study result can be made which will apply to others organizational employeegroups. On the other hand, if existing work groups were designated as QC groups andcontrols , group equivalence is not assured through randomization through pretests wereadministrated to both QC and control groups; no mantion was made as to whether pretest 45
  46. 46. observations were used to develop correction factors to be used to compensate for pre- existing group differences. Tortorich at all (1981) developed a method of QC evaluation at Martin Marietta Corporation Michoud Assembly division which avoid some of the pitfalls discussed above .the following three categories of effectiveness measures were developed for internal use by managers, program administrators’, facilitators and the circles themselves.1. Program measures are obtained which are direct measures of QC growth and efficiency and include assessments of the number of supervisors and management personnel completing circle leadership training, the number of employees completing circle training, the number of circles formed, the average circle membership size, success rate, the ratio of trained employees volunteering for circle activity, the number and rate of presentations made by circles to management, the percentage of approved proposals , and the direct cost savings. Resulting from circles activities.2. Personnel outcomes are asses; these are defined as the effect of QCs on employees’ attitudes concerning their job situation as measured by various attitude questionnaires.3. Organizational outcomes are also evaluated Organizational outcomes are the effects of QCs on such cost related criteria as performance rates, defect rates, scrap rates, attrition rates, lost time, grievance rates and accident rates. Depending on need, assessment information is calculated monthly or at six-month intervals. The former approach is use to identified and quickly respond to problems or to provide managers with summery information about circle related variables. Six month data interval is use to contrast the personal and organizational outcomes of QC Groups members with those of non-circle employees. The effectiveness of the QC programs is also analyzed in terms of individual changes on measure of personal and organizational outcomes which are attributed to the effects of circle membership or non membership. To 46
  47. 47. performed this analysis, performance data for each circle member is analyzed in six-month intervals using the data of entry into the circle as the point of reference. Hence,data collected six-months prior to entry in to a QC group is compared with data collectedsix months following initial circle membership. A similar analysis is conducted onperformance. Information collected on employees not joining circles within the same timeframe under study for circle members. Therefore, for both circle and non circlesemployees, data are collected for staggered, but identical, time intervals thud controllingfor the fact that circle members join and resign QC group at difference times during thelife of the program. Circles effectiveness can then be analyzed by calculating thedifference with in circles members’ six-months before and six-months after entry in to theQC program while concurrently performing a similar analysis of non circle members overthe identical six months intervals. Group and individual comparisons can then be made.Summary data is presented in Tortorich et al paper through rigorous statistical analysisis not included, between 90 to 100% of the suggestions offered to management by the QCgroups in the areas of Quality improvement, cost reduction, tooling and training wereapproved over the January, 1980 to june,1981 time period.Employee attitudes, as measured by a survey, were assessed When the work attitudes ofthose who had participated in QC activity for at least six-months were concurrentlycompared with the work attitudes of untrained QC members,the formed were found byTortorich et al. to demonstrate a number of more positive work attitudes. For the year1980, significant differences (P=.05) were found between the comparisons groups for thefollowing job related attitudes: employee supervisor relations, satisfaction whichsupervisor, employee influence, internal motivation, job satisfaction, team climate, 47
  48. 48. growth satisfaction and job performance. In short, the results suggested that QC groupscan provide potentially help full inputs to the managerial decision making process as wellas promote improved employee work attitudes.The most rigorous evaluation of QC outcomes in the literature is reported by Steel,Lloyd, Ovalle and Hendrix (1982) and Steel, Ovalle and Lloyd (1982). Theorganizational assessment package (OAP), a survey questionnaire consisting of 109 items(rating scales) and 24 factors, was administered to all members of a base civil engineeringdivision at a Department of Defense installation shortly before a QC program wasinitiated in December, 1980.Employees of 14 departments were trained in QC techniques and then offered theopportunity to participate in one of several QC groups. Members of an additional 37Departments from the same division were provided no direct exposure to the Qc programand served as the control group for this study. There were no controls for changing groupmembership this is a serious methodological limitation but one which difficult toincorporate in field study research. Considerable fluctuations in the demographicmeasures during the six-to-nine month’s interval between administrations of the presetmeasures suggest changes in the composition of treatment groups during the course ofthis experiment the absence of controls for changing group membership such as thoseemployed by Tortorich et al.(1981) are likely to limit the interpretability of findings forany study where QC and control groups are characterized by high mortality of subjects.Utilization of intact work group as experimental (QC) and control subjects necessitated 48
  49. 49. the use of the non equivalent control group design (Campbell & Stanley, 1963). Thisquasi-experimental design is characterized by taking preset of both experimental andcontrol groups before the intervention is initiated A statistical correction adjusting forpretest differences was then made group differences on the posttest were evaluated inorder to compensate for pre-existing group differences. The data were analyzedemploying stepwise hierarchical regression analysis with the result that no significantincreases in R2 were observed for the 23 OAP attitudinal measures. This suggests thatQC participation did not significance impact employee work attitude through the authors’state that the following methodological limitations severely impacted study results:1. Because QC groups were formed at staggered intervals, some did not have enough time to reach maturity prior to post test data collection. Three of the six QC groups functioned for less than one month when post test data was collected.2. Experimental mortality (discussed above)3. Several significant demographic differences existed between the treatment and control groups at the study’s outset.4. Behavioral and group effectiveness outcomes of QC participation were not measured.5. The sample size was small: the treatment condition contained only 14 functional work units, enhancing the likelihood of Type II errors.The interpretability and generalized of findings are restricted by these limitations, yet thisstudy is important from a historical perspective. It is the first research reported by theselimitations, yet this study is important from a historical perspective. It is the first researchreported in the QC literature that assesses attitudinal outcomes of QC activity whileemploying an experimental design that incorporates control group comparisons andstatistical control for non Equivalent of matched groups.Whereas research regarding the outcomes associated with the QC approach to employee 49
  50. 50. participation in decision making is quite in both its scope and methodology, much workhas been coming the more general area of participative decision making. It is to the bodyof Literature addressing this topic that we now turn. CHAPTER-III COMPANY PROFILE 50
  51. 51. COMPANY PROFILEBHEL (Bharat Heavy Electricals Limited) is the largest engineering and manufacturingenterprise in India in the energy-related/infrastructure sector. 2.1 Manufacturing• Establishments in the Manufacturing sector are often described as plants, factories, or mills and characteristically use power-driven machines and materials-handling equipment.• Manufacturing establishments may process materials or may contract with other establishments to process their materials for them. Both types of establishments are included in manufacturing.• BHEL was founded in 1950s.Its operations are organized around three business sectors:• Power.• Industry-including Transmission, Transportation, and Telecommunication & Renewable Energy.• Overseas Business.2.2 Industry 51
  52. 52. • BHEL has also emerged as a major supplier of controls and instrumentation systems especially distributed digital control systems for industries, and simulators for various applications.• BHEL is supplying Xmas tree valves and well heads up to a rating of 10,000 psi to ONGC and Oil India. It can also supply on-shore drilling rigs, sub-sea well heads, super deep drilling rigs, desert rigs and heli-rigs.2.3 Transmission• BHEL supplies a wide range of transmission products and systems of up to 400 kV class. Those include: high-voltage power and distribution transformers, instrument transformers, dry-type transformers, SF6 switchgear, capacitors and ceramic insulators.• Equipment for high-voltage direct current (HVDC) systems are also supplied, for economic transmission of bulk power over long distances. Series and shunt compensation systems are also manufactured to minimize transmission losses.• BHEL has developed and commercialized the country’s first indigenous 36 kV Gas Insulated Substation and has also developed 145 kV Gas Insulated Substation (GIS) which has undergone successful testing at CESI, Italy.• BHEL has also established its capability in the area of Flexible AC Transmission systems (FACTS).2.4 Transportation• Most of the trains of the Indian Railways are equipped with BHELs traction and traction control equipment. 52
  53. 53. • Indias first underground metro at Calcutta runs on drives and controls supplied by BHEL.• The Company has developed and supplied broad gauge 3900 HP AC locomotives, 5000/4600 HP AC/DC locomotives, diesel shunting locomotives of up to 2600 HP, battery powered road vehicles, including electrics & control electronics.• BHEL has acquired the technology for 6000 HP 3-phase AC Locos and started manufacturing the electrics & controls as well as those for 3-phase AC EMUs, Diesel EMUs and OHE cars.2.5 Telecommunication• BHEL manufactures telecom switching equipment based on C-DOT technology, the major products being MAX-XL of up to 40,000 lines capacity and Single Base Module RAX for rural applications.2.6 Renewable Energy• Technologies have been developed and commercialized for exploiting non-conventional and renewable sources of energy.• These include photovoltaic cells and modules, solar lanterns, grid-interactive PV Power Plants and solar heating systems.• BHEL has emerged as a major manufacturer of wind electric generators of up to 250 kW unit size. The Company has set up its own wind farms of 3000 kW capacity (12x250 kW) at Ramgiri (A.P.) and another of 4000 kW capacity (16x250 kW) at Kadavakkallu (A.P.). 53
  54. 54. • Today, BHEL has a wide-spread network comprising 14 manufacturing divisions, 8 service centers, 4 power sector regional centers, 18 regional offices, and a large number of project sites spread all over India and abroad.• This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes in the market.• It manufactures over 180 products under 30 major product groups and caters to sectors including power generation and transmission, transportation, and renewable energy, among others.2.7 Profits and losses of BHEL• The company recorded revenues of INR331, 544.8 million ($6,962.4 million) during the financial year ended March 2010 (FY2010), an increase of 25.2% over FY2009.• The operating profit of the company was INR55, 957.7 million ($1,175.1 million) during FY2010, a decrease of 8.3% compared to FY2009.• The net profit was INR43, 269.2 million ($908.7 million) in FY2010, an increase of 38.9% over FY2009.• Bharat Heavy Electricals Limited (BHEL) - SWOT Analysis examines the companys key business structure and operations, history and products, and provides summary analysis of its key revenue lines and strategy. 54
  55. 55. 2.8 Strengths• The company has 180 products under 30 major product groups that cater to the needs of the core sector like power, industry, transmission, transportation, defense, telecommunications and oil business.• BHELs ability to acquire modern technology and make it suitable to Indian conditions has been an exceptional strength of the company.• Strong relationship with NTPC is strength as NTPC is planning a capacity expansion of Rs. 52 bn and based on the past, 85% of NTPC projects have been bagged by BHEL. The company also enjoys purchase price preference.• Huge investment in R&D.• Merger & Acquisition – The Company has taken over the Management & Control of Bharat Pumps & Compressors Ltd and completely taken over M/s- Bharat Heavy Plate & Vessels Ltd.2.9 Opportunities• The power sector reforms are expected to pick up in the near future in India, which would directly benefit BHEL.• Increase in defense budget will increase the top line for the company.• NTPC is planning additional capacities to the tune of 2,800 MW, at a cost of Rs 52 bn.• BHEL could benefit a lot as it has happened in the past that significant portion of the project of NTPC is handled by BHEL. Nearly 85% of the NTPC projects were assigned to BHEL only.• Huge order for setting up of nuclear power plant2.10 Competitors of BHEL 55
  56. 56.  L&T  SUZLON  BEML  BGR ENERGY  AIA ENGINEERING  ALFA LAVAL  PRAJ INDUSTRIES  SANGHVL MOTORS  WALCHAND NAGARVISIONA World-class Engineering Enterprise Committed to enhancing Stakeholder Value.MISSION To be an Indian Multinational Engineering Enterprise providing Total BusinessSolutions through Quality Products, Systems and Services in the fields of Energy,Industry, Transportation, Infrastructure and other potential areas BHEL has been a pioneer in the area of Human Resource Development, being thefirst Public Sector Undertaking of its kind, in India, to have setup an extensive HRDinfrastructure as way back as the early sixties. Human Resource Development Centre(HRDC) of BHEL R.C.Puram, Hyderabad occupies a significant place not only among 56
  57. 57. other HRDCs of BHEL but also as an important Training and Development Centre in thetwin cities of Hyderabad [Andhra Pradesh].VALUESZeal to Excel and Zest for ChangeIntegrity and Fairness in all MattersRespect for Dignity and Potential of IndividualsStrict Adherence to CommitmentsEnsure Speed of ResponseFoster learning, Creativity and Team-WorkLoyalty and Pride in the CompanyOVERVIEW OF BHEL Established in the mid fifties, Bharat Heavy Electricals Limited-BHEL, has todayemerged as the largest engineering and manufacturing enterprise of its kind in India andranks amongst the top ten power generation equipment manufacturers in the world.BHEL has diversified its product base over the years and today caters to the needs ofalmost all the key sectors of the economy. In addition to the power generation equipment,BHEL products cater to a wide spectrum of customers encompassing various fields ofoperation, like Fertilizers & Petrochemicals, Refineries, Oil Exploration and production, 57
  58. 58. steel and metals, cement, sugar and paper plants, transportation and non-conventionalenergy sources etc. With a massive network of 14 manufacturing Units located at various importantcenters all over India, BHEL manufactures almost all critical high technology productsrequired for power sector like Gas Turbines, Steam Turbines, Turbo generators, Boilers,Pumps and Heat exchangers, Pulverizes and electrical switch gears. With strategic alliances and technological collaborations with world leaders for itsproducts, BHELs technological strength is today on par with the best in the world. The BHEL, which set up it’s first in Bhopal was established in the year 1956. It isthe first and largest industrial undertaking in the country manufacturing power equipment.It has now 4 Regional Centers, 8 Service Centers and 18 Regional Offices. Thecorporate head-quarters is located in New Delhi. In the early sixties three major plantswere set up at Haridwar, Hyderabad and Tiruchirapalli. It’s products cover a wide rangelike power, transmission, industry, transportation, oil and gas, telecommunication etc.,besides non-conventional energy systems. The other areas covered by the BHEL includesdefense and civil aviation. It’s services extend from Project Feasibility Studies to aftersales service including undertaking turn-key projects. It’s credibility and standing in theindustrial scene of the country is evident from the report of the World Bank as the IndianPublic Sector wherein it is described as “ One of the most efficient enterprises in theindustrial sector, at par with international standards of efficiency. BHEL has acquired theISO-9000 Certification for most of its operations”. According to the organization’s vision 2002, it aims to become a world class,innovative, competitive and profitable engineering enterprise providing total businesssolutions. It’s declared mission is to acquired the status of leading engineering enterprise 58
  59. 59. providing quality products, systems and services in the field of energy, transportation,industry, infra-structure and other areas covered by the electricity industry. The value system of the organization envisages meeting commitments tocustomers, both internal and external, faster learning experiences and creativity amongthe work force, maintain the dignity of the individuals working in the organization as wellas customers and outsiders, promote loyalty and a sense of pride among the workers,encourage team spirit, create a zeal to excel and follow a policy of fairness among allthose with whom it deals. The leadership styles in the organization are oriented towards fostering andsustaining organizational values, empowering everyone with responsibility but ensuringaccountability at all levels. The leadership styles include a vision, courage, credibility,versatility with due importance given to recognition of merit, acting on feedback from thelower levels and counseling those who need it, adopt a system of information sharing andconsultation. In short, it would like to project itself as a role model for others.The organizational objectives of BHEL has been carefully and judiciously formulated toensure study growth in the current global environment of competition, secure areasonable and adequate return on the capital invested, ensure a high degree customersatisfaction, to motivate it’s employees for performance of improvement and aim as acareer growth within the organization to achieve technological up gradation and to fulfillthe expectations of it’s share holders, customers and the BHEL manufactures wide rangeof transmission equipment such as transformers, reactors, switches, control relay panel,insulators, capacitors, instrument transformer sets etc. It has developed capability toprovide a wide variety of electrical, electronic and mechanical equipment for industrialrequirements particularly fertilizers, petrochemicals, coal mining etc. It’s role in the 59
  60. 60. transportation sector as today over 60% of the Indian Railways is equipped with thetraction equipment manufactured by the BHEL. It’s investment in the development of oiland gas industry in the country, both on shore and off shore is considerable. Its entry intothe telecommunication industry has given India an Electronic Private Automatic BranchExchange (EPABX) system, the Rural Automatic Exchange (RAX) based on indigenoustechnology from C-Dot. The latest digital switching used in these exchanges and theirnetwork capability opens up endless possibilities. BHEL’s engineering and R&D efforts are focused on improving the quality of it’sproducts, upgrading the existing technologies, accelerating the process of indigenizationand diversifying its products. It is a matter of pride to the country that BHEL’s products and services are used inover 50 countries all over the world. It caters to export orders ranging from individualspecified products to complete power stations.BHEL’s future plans include up gradation of its product engineering manufacturingtechnology through induction of the state of the art technologies and absorption ofknowhow and know why its collaborators form.BHEL’s strength lies in its dedicated work force, of about 63,000 employees whoundergo entry and on the job training to promote appropriate work culture throughparticipatory management techniques to meet the challenges of the current millennium.BHEL - Hyderabad (Ramachandrapuram) Unit:BHEL’s Ramachandrapuram Unit located in the out skirts of Hyderabad city wasestablished in the early sixties to “bring power to the people”. The products of the unitinclude TG sets up to 200 mw, industrial TG sets, gas turbines, turbo-compressor 60
  61. 61. systems, heat exchangers, switch gears etc. Around 7000 employees work in theHyderabad unit of whom about 1500 are executives, 1200 supervisors and 4300 others.As a member of the prestigious BHEL family, BHEL-Hyderabad has earned a reputationas one of its most important manufacturing units, contributing its lions share in BHELCorporations overall business operations.The Hyderabad unit was set up in 1963 and started its operations with manufacture ofTurbo-generator sets and auxiliaries for 60 and 110 MW thermal utility sets. Over theyears it has increased its capacity range and diversified its operations to many other areas.Today, a wide range of products are manufactured in this unit, catering to the needs ofvariety of industries like Fertilizers & Chemicals, Petrochemicals & Refineries, Paper,sugar, steel, etc. BHEL-Hyderabad unit has collaborations with world renowned MNCs like M/SGeneral Electric, USA, M/S Siemens, Germany, M/S Nuovo Pignone, etc BHEL is thelargest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector, today. BHEL was established more than 40 years ago,ushering in the indigenous Heavy Electrical Equipment industry in India - a dream thathas been more than realized with a well-recognized track record of performance. Thecompany has been earning profits continuously since 1971-72 and paying dividends since1976-77. BHEL manufactures over 180 products under 30 major product groups and catersto core sectors of the Indian Economy viz., Power Generation & Transmission, Industry,Transportation, Telecommunication, Renewable Energy, etc. The wide network ofBHELs 14 manufacturing divisions, four Power Sector regional centre’s, over 100project sites, eight service centers and 18 regional offices, enables the Company topromptly serve its customers and provide them with suitable products, systems and 61
  62. 62. services -- efficiently and at competitive prices. The high level of quality & reliability ofits products is due to the emphasis on design, engineering and manufacturing tointernational standards by acquiring and adapting some of the best technologies fromleading companies in the world, together with technologies developed in its own R&DcentersProduct Profile:• Gas turbines • Heat Exchangers • Steam turbines• Pumps • Pulverizes • Turbo generators• Compressors • Switch Gears • Gear Boxes• Oil Rigs • Project EngineeringBHEL HRDCBHEL has been a pioneer in the area of Human Resource Development, being the firstPublic Sector Undertaking of its kind, in India, to have setup an extensive HRDinfrastructure as way back as the early sixties. Human Resource Development Centre(HRDC) of BHEL R.C.Puram, Hyderabad occupies a significant place not only amongother HRDCs of BHEL but also as an important Training and Development Centre in thetwin cities of Hyderabad [Andhra Pradesh]. Since its inauguration (earlier known as Technical Training School) on 8th July1963 by Sri K.Kamaraj, the then Chief Minister, Madras, todays HRDC, R C Puram,Hyderabad has come a long way, bagging the prestigious Golden Peacock NationalTraining Award .We organize and conduct different kinds of Training and Development programs for ouremployees, customers, suppliers, and others. The spirit at our HRDC is continuouslearning and "the learning" which move towards focussed Individual and OrganizationalGrowth. 62
  63. 63. BHEL’s Human Resource Development Institute endeavors to –BHEL has a Human Resource Development Center the provision of knowledge, skillsand appropriate attitudes among it’s work force. They are trained through GeneralManagement, Behavioural, Safety, Computer, Customer and other general programmes.Besides, the center provides opportunities for training students from the universities andcolleges to do their project work in fulfillment of their academic requirement. (i) Help formulate Human Resource Development Policies to meet the present and future needs of the organization as well as promote an organizational culture emphasizing team work. (ii) Integrate and co-ordinate Human Resource Development activities of various units to provide necessary corporate guidelines required from time to time. (iii) Help the executives to improve their managerial effectiveness to take up new responsibility and face the current and future challenges. (iv) Strengthen organization’s value system. (v) Collaborate with academic institutions and professional bodies of repute both in and out side India for knowledge sharing.It’s track record can boast of continuous profits from 1971 and paying dividends from1976.BHEL has installed equipment for over 62000 mw of power generation for utilities,captive and industrial users. Supplied 2,00,000 MVA Transformer capacity and sustainedequipment operating in transmission and distribution network up to 400 kv – AC and DC.Supplied over 25,000 motors with drive control system to power projects, petrochemicals,refineries, steel, aluminum, fertilizers, cement plants, etc. Supplied traction electrics and 63
  64. 64. AC/DC locos to power over 17000 km railway networks. Supplied over one millionvalves to power plants and other industries.The capital employed rose from Rs.23,707 millions in 1995-96 to Rs.35,985 millions in1999-2000. The value of sales increased from Rs.48,335 millions to Rs.66,340 millionsduring the same period. Thus, while the capital employed rose by about 52% the salesrose by only 31%. The Company’s profit was Rs.5, 994 millions after tax in 1999-2000while it was only Rs.3, 502 millions in 1995-96 thus registering an increase of over 70%(71%). In 2000-01 the company’s after tax was Rs. 3,126 millions. It will be seen thatthe profits of the company declined 2000-01 compared what it earned in 1995-96 and1999-2000.These in brief study of BHEL an electrical industry of international repute and a brightjewel among the public sector undertakings in the country.BHEL - OVERSEAS BUSINESSBHEL, Ranking among the major power plant equipment suppliers in the world, is one ofthe largest exporters of engineering products and services from India. Over the years,BHEL has established its reference in around 60 countries of the world, ranging from theunited state in the west to new Zealand In the far east. BHEL’s exports range coverindividual product to complete power stations, turnkey contracts for power plants, EPCcontracts, HV/EHV substations, O&M services for familiar technologies, specializedafter- market service like residual life assessment (RLA) studies and retrofitting,refurbishing and overhauling, and supplies to manufacturers and EPC contractors. 64
  65. 65. BHEL has assimilated and updated / adopted the state-of-the-art technologies in thepower and industrial equipment sectors acquired from world leaders. BHEL hassuccessfully undertaken turnkey projects on its own and possesses the requisite flexibilityto interface and compliment international companies for large projects, and has exhibitedadaptability by manufacturing and supplying intermediate products to the design of othermanufacturer and original equipment manufacturers (OEMs) The success in the area of rehabilitation and life extension of power projects hasestablished BHEL as a reliable alternative to the OEMs for such power plants. 65
  66. 66. CHAPTER-IV DATA ANALYSIS AND INTERPRETATIONQ.1 Since how many years have you been working with this organization? No. of S. No Opinion Percentage respondents 1 0-5 Years 28 28 2 5-10 Years 47 47 3 10-15 Years 14 14 More than 15 4 11 11 Years Total 100 100 66
  67. 67. INFERENCE: 1. 0-5 Years (28%) 2. 5-10 Years (47%) 3. 10-15 Years (14%) 4. More than 15 Years (11%)Q.2 Are you aware of Quality Circles? No. of S. No Opinion Percentage respondents 1 Fully Aware 44 44 2 Partially aware 31 31 3 only basics 21 21 4 Not aware 4 4 Total 100 100 67
  68. 68. INTERPRETATION:Most of the employees are aware of the Quality Circles.Q.3 Do you involve in Quality circles teams working in your work area? No. of S. No Opinion Percentage respondents 1 Frequently 28 28 2 Some times 47 47 3 Rarely 14 14 4 Never 11 11 Total 100 100 68
  69. 69. INTERPRETATION:The Majority of the respondents i.e. 47% agree and only 11% disagree with the statementQ4. Are you a member of any Quality Circle? No. of S. No Opinion Percentage respondents 1 Yes 67 67 2 No 33 33 Total 100 100 69
  70. 70. INTERPRETATION:Most of the employees are having membership in “Quality Circles”Q.5 What is the main purpose of Quality Circles in your Organization? S. No. of Opinion Percentage No respondents Improvement in 1 1 1 Human Relations Promotion of Work 2 2 2 Culture 3 Develop Team Work 19 19 4 Improve Productivity 13 13 Enhance Problem 5 12 12 Solving Capacity 70
  71. 71. 6 All of the Above 53 53 Total 100 100INTERPRETATION:The majority of the respondents’ i.e. 53% agree and only1% of respondent wants to makesome improvement in human relations.Q.6 Do you think quality circle develops a participative environment in the Organization? No. of S. No Opinion Percentage respondents 1 Fully agree 55 55 2 To Some extent 38 38 3 Does not 4 4 4 Not aware 3 3 Total 100 100 71
  72. 72. INTERPRETATION:Regarding feedback 55% of the employees are fully agree where as 3% of the employeesare not aware of quality circles.Q.7 Do you think that quality circles team can solve the problems of your work area? No. of S. No Opinion Percentage respondents 1 Fully agree 39 39 2 To Some extent 55 55 3 Never 6 6 Total 100 100 72
  73. 73. INTERPRATATION:Most of the employees are agree to take active part in quality circles team to solve theproblems in that work areaQ.8 Do you think that Quality Circles are helpful in Cost Reduction? No. of S. No Opinion Percentage respondents 1 Fully agree 59 59 2 To Some extent 37 37 3 Never 4 4 Total 100 100 73
  74. 74. INTERPRETATION:Out of 100 employees 59% of the employees are agree to belive Quality Circles arehelpful in Cost Reduction.Q.9 Do you think that Quality Circles are helpful in increasing Productivity? No. of S. No Opinion Percentage respondents 1 Yes 66 65 2 To Some extent 32 32 3 Never 2 2 Total 100 100 74
  75. 75. INTERPRETATION:Out of the 100 employees 66% percent of the employees are agree to declare QualityCircles are helpful in increasing ProductivityQ10. Do you think that Quality Circles are helpful in building a PositiveWork Culture? No. of S. No Opinion Percentage respondents 1 Yes 70 70 2 To Some extent 28 28 3 Never 2 2 75
  76. 76. Total 100 100INTERPRETATION:Regarding feed back 70% of the employees are satisfied whereas 2% of the employeesare not satisfied with this statement.Q11. Does the management keep track on the activities of Quality Circles? No. of S. No Opinion Percentage respondents 1 Yes 56 56 2 To Some extent 41 41 3 Never 1 1 Total 100 100 76
  77. 77. INTERPRETATION:Out of 100 employees 56% of the employees are agree to say the management keep trackon the activities of Quality CirclesQ12. Are you satisfied with the Quality Circle Movement in your organization? No. of S. No Opinion Percentage respondents 1 Highly satisfied 25 25 2 Satisfied 70 70 3 dissatisfied 5 5 Total 100 100 77