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The document provides an overview of Bharat Electronics Limited (BEL) and its Kotdwara unit. Some key points: - BEL is an Indian public sector undertaking under the Ministry of Defense manufacturing electronic products. It has 9 manufacturing units across India. - The Kotdwara unit was established in 1985 and manufactures products like telecom switching equipment, radios, fire detection systems and more. - The document outlines the unit's mission, organization structure, major milestones, product portfolio, and describes departments like HR, marketing, production, and finance. - It also provides details on quality initiatives, employee development programs, and marketing and sales processes at the Kotdwara unit.

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A STUDY ON WORKING OF DIFFERENT DEPARTMENT OF BHARAT ELECTRINICS LIMITED BY- RAHUL CHAUHAN 08MBA077 UNDER GUIDANCE OF Ms. A.ANEETHA Assistant Professor, VITBS
CONTENTS • Company Profile-BEL • Unit Profile-BEL-KOT • Mission Vision Value &Objective of BEL-KOT • Organization Structure • Major Milestones of BEL-KOT • Product of BEL-KOT • HR Department • Marketing Department • Strategic Challenges • Finance Department • Production Department • Development & Design Department • SWOT Analysis • Recommendations
COMPANY PROFILE • From a humble beginning to a Navratna Company • BEL is a PSU, under Ministry of Defense, Government of India established on 1954. • BEL has more than 360 products in its range from small components costing a rupee to huge equipment costing about Rs.60 Cr. • Starting with a single Unit at Bangalore, BEL now has nine Units spread across the country. • Nearly 80-85% of the company’s annual sales turnover accrues from products sold to Defence Services and the balance from Civilian customers. • The company’s dividend payment has been continuously increasing and the company paid a dividend of 170% for the year 2007-08. • BEL became a Mini Ratna Category I company in February 2002. Subsequently BEL has been got Navratna status in June 2007
UNITS ESTD. (YEAR) No. of Employee BANGLORE 1954 5927 GHAZIABAD 1974 2596 PUNE 1979 411 MACHLIPATNAM 1983 500 PANCKULA 1985 625 CHENNAI 1985 410 KOTDWARA 1986 720 HYDRABAD 1986 490 NAVI MUMBAI 1986 500 NINE MANUFACTURING UNIT
PRODUCT MANUFACTURED BY BEL BANGALORE • Communication equipments – HF/VHF Man pack, Mobile & static Trans-receiver/Transmitters GHAZIABAD • Antenna for primary & secondary radars PUNE • Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide Battery packs MACHILIPATNAM • Passive night vision devices- Goggles, Binoculars, Periscopes, KOTDWARA • ULSB, BEST, SMART, HART PANCHKULA • VHF/UHF Ground to ground to air communication equipment NAVI MUMBAI • Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipment CHENNAI • Gun control & Drive System for Armored Fighting Vehicles HYDERABAD • Electronic warfare equipment
INTRODUCTION OF UNIT BEL KOTDWARA • Established in 1985-86 coincided with the formation of C-DOT in August 1984 for development of electronic switching equipments in India • BEL-KOT is the 9th and the youngest Unit in the family of BEL. • Soon after its inception, the Unit undertook manufacturing of Radio Relay Equipment, a very complex equipment • The Unit entered in the highly competitive market of telecom and became one of the leading suppliers of C-DOT switching equipments. • It also received CII-EXIM Bank Excellence recognition for strong commitment to TQM/Excel for three consecutive years: 2003, 2004 & 2005.
Mission ,Vision, Values and Objective Of BEL- KOT Vision • To be a world-class enterprise in a professional electronics. Mission • To be a customer focused globally competitive company in defence electronics and in other chosen areas of professional electronics, through Quality, Technology and Innovation. Values • Putting customers first. • Working with transparency, honesty & integrity. • Trusting & respecting individuals. • Fostering team work. • Striving to achieve high employee satisfaction. • Encouraging flexibility and innovation. • Endeavoring to fulfill social responsibilities.
INTRODUCTION OF UNIT BEL KOTDWARA Contd.. OBJECTIVES OF BEL-KOT • To be a customer focused company providing state-of-the-art products & solutions at competitive price, meeting the demands of quality, delivery & services. • To generate internal resources for providing growth. • To attain technological leadership in defence electronics through in-house R&D, partnership with defence/research laboratories & academic institutions. • To give thrust to exports. • To create a facilitating environment for people to realize their full potential through continuous learning & team work. • To give value for money to customers & create wealth for shareholders. • To constantly benchmark company’s performance with best-in-class internationally. • To raise marketing abilities to global standards. • To strive for self-reliance through indigenization.
Organization Structure of BEL-KOT GM AGM D&E AGM MKT DGM PROD DGM CS Sr DGM Q&MS MGR MM MGR F&A MGR P&A MGR P&S DGM O&T
MAJOR MILESTONE OF KOTDWARA UNIT • 1988 Plant inaugurated by Defence Minister • 1990 Self Inspection Status • 1993 Certification for ISO 9002:1987 • 1997 Golden Peacock award for quality • 1997 ELCINA award for manufacturing • 1998 Certification for 1SO 9001: 1994 • 1999 Excellence in professional Electronics, Deptt. of IT , Govt of India • 2002 Corporate R&D award for ULSB MKII • 2003 Certification for ISO 9001:2000 & ISO 14001:1996 • 2003,04 & 05 Strong Commitment to Excel “ in CII Exim Bank Business Excellence “ • 2005 Platinum award in IMEA-2005 by Frost & Sullivan • 2006 Certification for ISO 14001:2004 • 2007 SAP implemented • 2008 Recommended for AS 9100 Rev B
PRODUCT OF BEL- KOT WITH COMPETITOR PRODUCT PRODUCT DETAILS COMPETITORS SMART, BEST, HART Data terminals with encryption facility for use with radios Not till date, but MNCs like TADIRAN may come ULSB MKII 15 line Automatic EPABX ITI SLSB MKIII 50 line Battalion level state of the art Exchange for Indian army ITI, ECIL, IL, ALPHA SARX MKII 600 line EPABX for application at command level - MAX XL AND SPARES Land line exchange based on C-DOT design ECIL, ITI, IL, UTL STM1/4/16 SDH based transmission equipment in Telecom network ITI, Siemens, Fibcom,SCL& Terracom SACU Encryption Data terminal with simultaneous transmission ( TOT with M/s Elbit) - PRC-6020 HF Radio trans receiver with encryption, TOT with M/s TADIRAN - IFDSS Microprocessor based fire detection & suppression system for tracked vehicle with detection & suppression in less than 140 seconds INTEL, Spectronics, Southern Electronics and Ashoka Engg
HUMAN RESOURCE DEPARTMENT Work culture in BEL KOT • BEL KOT believes that performing work culture can be nurtured by being a learning organization • Series education, training, self development and career development programme are done for Human resources development. Various activities done in BEL to promote continuous learning are: Individual learning • Internal/ External Training, Work experience, On the job Training, Job Rotation Team Learning • Improvement projects , Task force for specific task, Seminars/ Conference Organizational Learning • Adoption of Business Excellence Model • Best practices from other units/ industries
Various innovative methodologies to improve employee’s response Unit has taken several initiatives for introducing innovative methodologies to improve organizational response, customer satisfaction, enhancing productivity and morale of the employees in continuous improvement activities. Innovative methodologies for HR Management • Performance Management System • Cross Functional team • Job Rotation • Self inspectors • Excellence awards • QC circles A four tier need identification system is institutionalized in the unit. Based on assessment manpower planning is done. Training records of all employees are maintained in computer database Employees are sent for training to premier training institutes like XLRI, Administrative Staff College, Tata Management Training Centre, MDI etc.
Employees involvement and participation in BEL-KOT BEL KOT believes in involving and empowering people through greater participation by giving them various opportunities . Major employee involvement programs are: • Quality circle, Suggestion scheme • Some of the committees: • Cultural , sports, safety, canteen, community centre, labor welfare fund committee , death relief fund committee • Quality circle in BEL was started in 1991 and has taken deep root. • Around 65 quality circles are active. The coverage of employees is highest among all units of the company. • More than 85% of employees are the member of QCC. • Participation of QCC in various competitions like yearly Inter Unit QCC Competition, CCI Competition and National QCC Competitions give them immense opportunity to learn and improve the process effectively. • An attractive award scheme was introduced in year 2002 for QCC presentation and implementation of solution generated
0 2 4 6 8 10 12 14 16 2005 2006 2007 No.of QCCs Awards won QCC represented in CII, QCFI and Awards won
Benefits and Reward for Employees in BEL KOTDWARA Compensation and benefits plans of BEL are comprehensive.BEL enters with wage negotiation with Negotiating Trade Union periodically according to the guidelines issued by Department of Public Enterprises Some of the rewards are: • Appreciation or cash award for suggestion • Awards for outstanding Performance • Gifts after completion of 15 and 25 year of service • Sponsorship for competition/ Seminars • Awards for achievements in safety QCC and Housekeeping. List of some suggestion and awarded during 2007-08 Name Suggestion Given Saving in Rs lakh S.S. BISHT Use of rejected power supply of SACU project 10.91 VED PRAKASH Repairs of OLD thermal Strippers 4.90 BHOPAL SING Rectification of Filter Failure during leak test of STARS-V FH 3.56 VED PRAKASH Reduction in rejection of display card used in front panel assay of PRC 2.54
Job Rotation Unit has planned for rotation of 10 % 0f its employee each year 0 1 2 3 4 5 6 7 8 9 10 (04-05) (05-06) (06-07) (07-08) AVG % 0f Job rotation of EMP. % 0f Job rotation of EMP.
MARKETING DEPARTMENT ORGANISATIONAL CHART . GM (KOT) MKT-1 MKT-2 Training, Demo & Exhibition FGS & Excise Sales A/C Defence Telecom Paramilitary New Projects ARC New Market Excise FGS
PROCESS FLOW CHART OF MARKETING DIVISION VISIT CUSTOMER & MARKET TIE-UP WITH TECHNOLOGY PARTNER QUOTE/TENDER PARTICIPATION TECHNO COMMERCIAL EVALUATION OBTAINING SUPPLY ORDER FINALIZATION OF CONTRACT & REVIEW EXECUTION OF PO/SO DESPATCH OF MATERIALS BILL SUBMISSION OF CUSTOMER PAYMENT COLLECTION TRAINING & AFTER SALES SUPPORT CUSTOMER
MARKETING STRATEGY IMPLICATION AT BEL KOTDWARA It can be divided into following parts: • Market Segmentation • Targeting • Promotion Strategy • Positioning Strategy • Competitive Analysis • Diversification strategy
SEGMENTATION MARKET SEGMENT CUSTOMER EQUIPMENT %TURNOVER (08-09) DEFENCE ARMY, NAVY, AIR FORCE, ORDINANCE FACTORIES, ULSB, STARS-V SMART, SACU, PRC/VRC 68 MINISTRY OF HOME AFFAIRS BSF, CRPF, ITBP, STF, STATE POLICE, SSB BEST, HART, SMART 03 CIVIL BSNL, MTNL, RAIL-TEL, CAPART CDOT EXCHANGE, STM 17 OTHER UNIT OF BEL BEL-PK, BEL-GAD, BEL-BG MUX, FILLGUN, ELOCTRONIC WARFARE ( SANKET) 12
MARKETING TARGETING • Need based customer: • Segment Attractiveness • Segment Profitability • Segment Positioning
POSITIONING • Positioning is the act of designing the company’s product and image to occupy a distinctive place in the minds of target market and customer to increase the sale of their product. • This goal is to locate the brand in the minds of consumer to maximize the potential benefit to the firm at less time. Brand or company Target customer Benefits Value Proposition BEL- KOT Defence, Civil, Reliable, best coverage and service A company which is highly reliable, have branches all over India, and gives service on their product for 15 year
Promotion • Advertising • Sales Promotion • Direct Marketing
COMPETITIVE ANALYSIS Strategy may be of three types:- • ENTRY INTO NEW PRODUCTS:- • COST LEADERSHIP:- • AFTER SALES SERVICES SEGMENT COMPETITORS EQUIPMENT Telecom Market (BSNL) ITI, PCL, IL, SIEMENS, FIBCOM, ICOM, ORDYNE, TERRACOM Switching & Transmission Defence Market ITI, ERRICSION, TADIRAN, HBL NIFE, ALFHA, ECIL, SPANCO, PRECISION ELECTRONICS, SPECTRONICS, INTEL, ASHOKA ENGG EXCHANGE, ENCRYPTION & IFDSS EQUIPMENTS
DIVERSIFICATION STRAGY BY BEL-KOT • a) NEW PRODUCT DEVELOPMWNT • BEL-KOT is always known for development of new product according to the need of the customer . In order to develop new product BEL follow the general pattern: • They gathered the information from the customer relating existing product and also about their need and used it for the development of new equipment. • Up gradation of existing equipment and product. • Planning and imparting operation and maintenance training to employees. • Field visit of their technical personnel to impart in-situ training and planning for early deliveries of ordered equipments Little equipment under development as a result of such interactions is • S-RAXMKII • ULSBMKII • IFDSS for T90 Tank
DIVERSIFICATION STRAGY BY BEL-KOT Contd…… b) NEW BUSINES DEVELOPMENT GROUP In view of rapid expansion of mobile phone communication, disappearance of old product which are the strength of BEL and increase of market challenges, New business development group is formed during 2005-06 to enter into new business areas. Therefore, advance technology partners are scanned and selected, keeping in view their product portfolios, R&D strength and leadership position in Global/ Indian market. As a major step in diversification, BEL-KOT has started interaction with Nuclear Power Corporation of India Ltd. IGCAR for manufacturing of Nuclear Instrumentation . Some of BEL major partners are : FIELD PARTNER CORE COMPETENCY Technology/ D&D TADIRAN-Israel, NUTEK- Hyderabad, SPECTRON-Pune, NID- Ahemdabad, CDOT, UDAY, CORAl Switching, Data terminal, Radio, software, Power supply, Fire Fighting Sys. Materials AMPHENOL, FRAMATOME, AT&S Connectors, PCBs Manufacturing RHPL, DELTRON, RTL, BASANT INDIA, Local Subcontractor Manufacturing of line, Cards & Power Supplies, SMT Assembly Human Resources MDI, IIMS, NITIE, ASCI, COD HYDRABAD Human Resources Development
STRATIGIC CHALLENGES • Strategic challenges of BEL Kotdwara include: • Fast changing technology • Management of obsolescence of material • Retention of competent engineers • Cost reduction • Timely delivery • Productivity improvement • Effective utilization of machines • Human resource • Motivation of employees • Export marketing
FINANCE DEPARTMENT • BEL Kotdwara since inception is a profitable company. Its Finance department is highly efficient and always looking for reducing unwanted cost which leads to increase in the earning of company • Turn Over: For last five year turnover of the unit and PBT given in following fig. respectively. 2006-07 saw a quantum jump in turnover to 415.73 Cr and PBT to 70.24 Cr due to convergent Billing and CRM project of MTNL. In year 2007-08 turnover went down to delay in placement of some of major orders by various customers. 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 (04-05) (05-06) (06-07) (07-08) (08-09) Actual Budgetd
Inventory ,Sundry Debtors PBT • The rise in Inventory in 2007-08 was due to low level of direct sales. Orders could not be released by Gov. i.e. for CAPART, STM etc. Hence inventory piled up in anticipation of orders. • In 2004-05 unit has achieved low sundry debtors turnover of 41 days. Thereafter sundry debtors figures shows increasing trend due to lower turnover. • In 2006-07 profit increased due to supply of equipments for MTNL project which had 9% margin thus even if we exclude Rs 25 Cr contribution of MTNL project, profit of the unit shows steady trend. Year 2007-08 was exceptional in nature due to low direct sales. 0 20 40 60 80 100 120 140 Inventory Inventory 0 1000 2000 3000 4000 5000 6000 7000 8000 (03-04) (04-05) (05-06) (06-07) Actual Budgeted 0 50 100 150 200 250 Sundry debtors Sundry debtors
Cost reduction, Cash Flow and Depreciation • Cost reduction technique has been deployed in a big way to achieve significant cost reduction .Cost reduction of Rs 1175 lakhs have been achieved in 2004-05 • The net cash flow of BEL KOT has been fluctuating. From high of Rs 64 Cr in 2004- 05, it dipped to net flow of Rs 190 Cr in 2006-07 due to payment of vendors of MTNL project. In 2007-08 due to sundry debtors collection in MTNL project net cash flow touched to Rs 100 Cr. • The depreciation bas been increased from Rs224 lakh in 2003-04to Rs 353 lakh in 2007-08. The increase in depreciation shows the additional investment done to ensure adequacy of technology and infrastructure. 0 200 400 600 800 1000 1200 1400 (03-04) (04-05) (05-06) (06-07) (07-08) Cost Reduction Cost Reduction 0 50 100 150 200 250 300 350 400 Depreciation Depreciati on -250 -200 -150 -100 -50 0 50 100 150 (04-05) (05-06) (06-07) (07-08) Cash Flow Cash Flow
PRODUCTION DEPARTMENT • Key production process and its key characteristics are identified through PFMEA (Product failure Mode and Effect Analysis) technique which is followed all over the world. Other Process in Production Department: • FABRICATION- Machining, Turning, Drilling, Welding, Tapping • ELECTROPLATING- Ni, Cu, Zn, Tin plating, Chromate conversion coating • PAINTING- Epoxy painting, Powder coating • PCB ASSEMBLY- Hand soldering, wave soldering • ELECTRONIC ASSEMBLY- Cable assembly, Mechanical assembly • TESTING- Card testing, Sub system/ system testing • ENVIROMENTAL STRESS SCREENING- Hot and cold cycle, Bump test, Vibration test, Leak test SIX-SIGMA: IN 1998 BEL had adopted Six Sigma technique Some of the six-sigma project s completed during 2007-08 are listed below: • Reduction in cycle time for rejected item • Improvement of Internet connectivity in BEL- Kotdwara • Cycle time reduction for repairs of printers
LIST OF SOME KEY MACHINE • In circuit tester • Reflow Owen • Wave soldering machine • CNC machining centre • CNC JIG Boring machine • CNC Turret Punch Press • Electroplating/ Painting Plant • Walk in chamber/ Environmental Stress Screening Equipment
DEVELOPMENT AND ENGINEERING DEPARTMENT PRODUCT AND SERVICES ARE DESIGNED AND DEVELOPED BASED ON CUSTOMER • To have in depth understanding of customer needs and expectation, BEL has a policy of recruiting experienced retired defence personals • when customer requirement is immediate, technology transfer is taken from global companies. During the development of design, changes suggested by the customer are discussed by and implemented on mutual agreement. • Similarly marketing and design groups keep close interaction with paramilitary forces to understand their requirement. • The needs of civilian customers are known primarily from market research.
The process flow chart for design and development process is given below Development discussion With customer by D&E and MKT Receipt of requirement 1) GSQR/QR 2) TECH specs 3) Specs from market research Design & Development planning Compilation & review of design inputs Product design Design Changes Definition Validation & review Provisional Engineering document Final Design Documentation Inputs from market research Customer and production Released to production Repair & Maintainability Technology Inputs Statutory & Regulatory Requirement
SWOT ANALYSIS OF BEL KOTDWARA STRENGTH 1) BEL has got modern manufacturing facilities with test instruments, set up at Kotdwara for manufacturing & supply of telecommunication equipments. 2)R&D set up with qualified manpower, suitable for technology development/absorption. 3)Known for quality & reliability of its products. 4)Known for its prompt after sales service, 5) Vast experience in the manufacturing of electronic equipment. The parent unit established in 1954. 6)Highly trained, professionally qualified manpower trained to deal in the latest technologies. 7)Well established organizational structure. 8) Availability of Central Research Laboratories at Bangalore & Ghaziabad, working . 9) Young & dynamic top management at corporate level, ensuring stability.
SWOT Contd…….. WEAKNESS 1) The main weakness of BEL is its being owned Govt. of India under ministry of defence. This makes decision-making slow. 2) BEL has been predominantly in defence sector, which has been monopoly business. Hence, it does not have experience in managing a competitive business like telecommunication equipment manufacturing. 3) Lack of flexibility in manpower management, especially in pay scales, promotion, recruitment policy, etc., thus resulting in brain drain. 4) Lack of bold decision making in the area of investment & others due to fear of various audits, both statutory & Govt. in the mind of management. 5) Lack of accountability in top management, as personal stakes are not related with the performance of organization.
SWOT Contd………….. OPPORTUNITIES The following are the major opportunities available for BEL Kotdwara:- 1) Liberalization leads to opening of huge market. e.g. ITI, HTL, etc. 2) BEL can go for technology transfer, ties up & JV due to liberalization 3) Various other companies are also modernizing hence creating new market for telecommunication equipment Railway, Power Sector, Oil Sector, Defence, etc. 4) Telecommunication Sector has been recognized as one of the important infrastructure sector essential for the growth of the economy. This is resulting in the availability of potential market in developing countries. THREATS 1) Entry of private sector & multinationals in this field is making competition very tough. 2) Due to overall reduction in import duties, the indigenous manufacturing & direct import are competitive. 3) Imperfections in the market, leading to price wars & undercutting of prices, resulting in sustained losses for telecommunication manufacturer. 4) Margins are under pressure due to competitive market situation. 5) Lack of infrastructure facilities like power, roads, etc. making indigenous manufacturing costly. 6) High investment required in this sector.
RECOMMENDATIONS • One s area of concern is a sundry debtor. It is recommended that either the operations in this area be toned up with introduction of skilled, trained & motivated work force or the subcontracting of this operation to be done to outside agencies. • Marketing department should be divided in different & each sub department will be responsible for their work. In the complex market, the divisional heads are required to be given total responsibility of the operations under them & be held accountable for that. • They should advertise their product through media. • Targeting low margin high volume operations and diversifying the product and business. • Better HR policies to attract and retain the talent. • Technological advancement.

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bharat-eectronics-limited-a-study-on-working-of-different-department

  • 1.
    A STUDY ONWORKING OF DIFFERENT DEPARTMENT OF BHARAT ELECTRINICS LIMITED BY- RAHUL CHAUHAN 08MBA077 UNDER GUIDANCE OF Ms. A.ANEETHA Assistant Professor, VITBS
  • 2.
    CONTENTS • Company Profile-BEL •Unit Profile-BEL-KOT • Mission Vision Value &Objective of BEL-KOT • Organization Structure • Major Milestones of BEL-KOT • Product of BEL-KOT • HR Department • Marketing Department • Strategic Challenges • Finance Department • Production Department • Development & Design Department • SWOT Analysis • Recommendations
  • 3.
    COMPANY PROFILE • Froma humble beginning to a Navratna Company • BEL is a PSU, under Ministry of Defense, Government of India established on 1954. • BEL has more than 360 products in its range from small components costing a rupee to huge equipment costing about Rs.60 Cr. • Starting with a single Unit at Bangalore, BEL now has nine Units spread across the country. • Nearly 80-85% of the company’s annual sales turnover accrues from products sold to Defence Services and the balance from Civilian customers. • The company’s dividend payment has been continuously increasing and the company paid a dividend of 170% for the year 2007-08. • BEL became a Mini Ratna Category I company in February 2002. Subsequently BEL has been got Navratna status in June 2007
  • 4.
    UNITS ESTD. (YEAR)No. of Employee BANGLORE 1954 5927 GHAZIABAD 1974 2596 PUNE 1979 411 MACHLIPATNAM 1983 500 PANCKULA 1985 625 CHENNAI 1985 410 KOTDWARA 1986 720 HYDRABAD 1986 490 NAVI MUMBAI 1986 500 NINE MANUFACTURING UNIT
  • 5.
    PRODUCT MANUFACTURED BYBEL BANGALORE • Communication equipments – HF/VHF Man pack, Mobile & static Trans-receiver/Transmitters GHAZIABAD • Antenna for primary & secondary radars PUNE • Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide Battery packs MACHILIPATNAM • Passive night vision devices- Goggles, Binoculars, Periscopes, KOTDWARA • ULSB, BEST, SMART, HART PANCHKULA • VHF/UHF Ground to ground to air communication equipment NAVI MUMBAI • Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipment CHENNAI • Gun control & Drive System for Armored Fighting Vehicles HYDERABAD • Electronic warfare equipment
  • 6.
    INTRODUCTION OF UNITBEL KOTDWARA • Established in 1985-86 coincided with the formation of C-DOT in August 1984 for development of electronic switching equipments in India • BEL-KOT is the 9th and the youngest Unit in the family of BEL. • Soon after its inception, the Unit undertook manufacturing of Radio Relay Equipment, a very complex equipment • The Unit entered in the highly competitive market of telecom and became one of the leading suppliers of C-DOT switching equipments. • It also received CII-EXIM Bank Excellence recognition for strong commitment to TQM/Excel for three consecutive years: 2003, 2004 & 2005.
  • 7.
    Mission ,Vision, Valuesand Objective Of BEL- KOT Vision • To be a world-class enterprise in a professional electronics. Mission • To be a customer focused globally competitive company in defence electronics and in other chosen areas of professional electronics, through Quality, Technology and Innovation. Values • Putting customers first. • Working with transparency, honesty & integrity. • Trusting & respecting individuals. • Fostering team work. • Striving to achieve high employee satisfaction. • Encouraging flexibility and innovation. • Endeavoring to fulfill social responsibilities.
  • 8.
    INTRODUCTION OF UNITBEL KOTDWARA Contd.. OBJECTIVES OF BEL-KOT • To be a customer focused company providing state-of-the-art products & solutions at competitive price, meeting the demands of quality, delivery & services. • To generate internal resources for providing growth. • To attain technological leadership in defence electronics through in-house R&D, partnership with defence/research laboratories & academic institutions. • To give thrust to exports. • To create a facilitating environment for people to realize their full potential through continuous learning & team work. • To give value for money to customers & create wealth for shareholders. • To constantly benchmark company’s performance with best-in-class internationally. • To raise marketing abilities to global standards. • To strive for self-reliance through indigenization.
  • 9.
    Organization Structure ofBEL-KOT GM AGM D&E AGM MKT DGM PROD DGM CS Sr DGM Q&MS MGR MM MGR F&A MGR P&A MGR P&S DGM O&T
  • 10.
    MAJOR MILESTONE OFKOTDWARA UNIT • 1988 Plant inaugurated by Defence Minister • 1990 Self Inspection Status • 1993 Certification for ISO 9002:1987 • 1997 Golden Peacock award for quality • 1997 ELCINA award for manufacturing • 1998 Certification for 1SO 9001: 1994 • 1999 Excellence in professional Electronics, Deptt. of IT , Govt of India • 2002 Corporate R&D award for ULSB MKII • 2003 Certification for ISO 9001:2000 & ISO 14001:1996 • 2003,04 & 05 Strong Commitment to Excel “ in CII Exim Bank Business Excellence “ • 2005 Platinum award in IMEA-2005 by Frost & Sullivan • 2006 Certification for ISO 14001:2004 • 2007 SAP implemented • 2008 Recommended for AS 9100 Rev B
  • 11.
    PRODUCT OF BEL-KOT WITH COMPETITOR PRODUCT PRODUCT DETAILS COMPETITORS SMART, BEST, HART Data terminals with encryption facility for use with radios Not till date, but MNCs like TADIRAN may come ULSB MKII 15 line Automatic EPABX ITI SLSB MKIII 50 line Battalion level state of the art Exchange for Indian army ITI, ECIL, IL, ALPHA SARX MKII 600 line EPABX for application at command level - MAX XL AND SPARES Land line exchange based on C-DOT design ECIL, ITI, IL, UTL STM1/4/16 SDH based transmission equipment in Telecom network ITI, Siemens, Fibcom,SCL& Terracom SACU Encryption Data terminal with simultaneous transmission ( TOT with M/s Elbit) - PRC-6020 HF Radio trans receiver with encryption, TOT with M/s TADIRAN - IFDSS Microprocessor based fire detection & suppression system for tracked vehicle with detection & suppression in less than 140 seconds INTEL, Spectronics, Southern Electronics and Ashoka Engg
  • 12.
    HUMAN RESOURCE DEPARTMENT Workculture in BEL KOT • BEL KOT believes that performing work culture can be nurtured by being a learning organization • Series education, training, self development and career development programme are done for Human resources development. Various activities done in BEL to promote continuous learning are: Individual learning • Internal/ External Training, Work experience, On the job Training, Job Rotation Team Learning • Improvement projects , Task force for specific task, Seminars/ Conference Organizational Learning • Adoption of Business Excellence Model • Best practices from other units/ industries
  • 13.
    Various innovative methodologiesto improve employee’s response Unit has taken several initiatives for introducing innovative methodologies to improve organizational response, customer satisfaction, enhancing productivity and morale of the employees in continuous improvement activities. Innovative methodologies for HR Management • Performance Management System • Cross Functional team • Job Rotation • Self inspectors • Excellence awards • QC circles A four tier need identification system is institutionalized in the unit. Based on assessment manpower planning is done. Training records of all employees are maintained in computer database Employees are sent for training to premier training institutes like XLRI, Administrative Staff College, Tata Management Training Centre, MDI etc.
  • 14.
    Employees involvement andparticipation in BEL-KOT BEL KOT believes in involving and empowering people through greater participation by giving them various opportunities . Major employee involvement programs are: • Quality circle, Suggestion scheme • Some of the committees: • Cultural , sports, safety, canteen, community centre, labor welfare fund committee , death relief fund committee • Quality circle in BEL was started in 1991 and has taken deep root. • Around 65 quality circles are active. The coverage of employees is highest among all units of the company. • More than 85% of employees are the member of QCC. • Participation of QCC in various competitions like yearly Inter Unit QCC Competition, CCI Competition and National QCC Competitions give them immense opportunity to learn and improve the process effectively. • An attractive award scheme was introduced in year 2002 for QCC presentation and implementation of solution generated
  • 15.
    0 2 4 6 8 10 12 14 16 2005 2006 2007 No.ofQCCs Awards won QCC represented in CII, QCFI and Awards won
  • 16.
    Benefits and Rewardfor Employees in BEL KOTDWARA Compensation and benefits plans of BEL are comprehensive.BEL enters with wage negotiation with Negotiating Trade Union periodically according to the guidelines issued by Department of Public Enterprises Some of the rewards are: • Appreciation or cash award for suggestion • Awards for outstanding Performance • Gifts after completion of 15 and 25 year of service • Sponsorship for competition/ Seminars • Awards for achievements in safety QCC and Housekeeping. List of some suggestion and awarded during 2007-08 Name Suggestion Given Saving in Rs lakh S.S. BISHT Use of rejected power supply of SACU project 10.91 VED PRAKASH Repairs of OLD thermal Strippers 4.90 BHOPAL SING Rectification of Filter Failure during leak test of STARS-V FH 3.56 VED PRAKASH Reduction in rejection of display card used in front panel assay of PRC 2.54
  • 17.
    Job Rotation Unit hasplanned for rotation of 10 % 0f its employee each year 0 1 2 3 4 5 6 7 8 9 10 (04-05) (05-06) (06-07) (07-08) AVG % 0f Job rotation of EMP. % 0f Job rotation of EMP.
  • 18.
    MARKETING DEPARTMENT ORGANISATIONAL CHART . GM (KOT) MKT-1MKT-2 Training, Demo & Exhibition FGS & Excise Sales A/C Defence Telecom Paramilitary New Projects ARC New Market Excise FGS
  • 19.
    PROCESS FLOW CHARTOF MARKETING DIVISION VISIT CUSTOMER & MARKET TIE-UP WITH TECHNOLOGY PARTNER QUOTE/TENDER PARTICIPATION TECHNO COMMERCIAL EVALUATION OBTAINING SUPPLY ORDER FINALIZATION OF CONTRACT & REVIEW EXECUTION OF PO/SO DESPATCH OF MATERIALS BILL SUBMISSION OF CUSTOMER PAYMENT COLLECTION TRAINING & AFTER SALES SUPPORT CUSTOMER
  • 20.
    MARKETING STRATEGY IMPLICATIONAT BEL KOTDWARA It can be divided into following parts: • Market Segmentation • Targeting • Promotion Strategy • Positioning Strategy • Competitive Analysis • Diversification strategy
  • 21.
    SEGMENTATION MARKET SEGMENT CUSTOMER EQUIPMENT %TURNOVER (08-09) DEFENCEARMY, NAVY, AIR FORCE, ORDINANCE FACTORIES, ULSB, STARS-V SMART, SACU, PRC/VRC 68 MINISTRY OF HOME AFFAIRS BSF, CRPF, ITBP, STF, STATE POLICE, SSB BEST, HART, SMART 03 CIVIL BSNL, MTNL, RAIL-TEL, CAPART CDOT EXCHANGE, STM 17 OTHER UNIT OF BEL BEL-PK, BEL-GAD, BEL-BG MUX, FILLGUN, ELOCTRONIC WARFARE ( SANKET) 12
  • 22.
    MARKETING TARGETING • Needbased customer: • Segment Attractiveness • Segment Profitability • Segment Positioning
  • 23.
    POSITIONING • Positioning isthe act of designing the company’s product and image to occupy a distinctive place in the minds of target market and customer to increase the sale of their product. • This goal is to locate the brand in the minds of consumer to maximize the potential benefit to the firm at less time. Brand or company Target customer Benefits Value Proposition BEL- KOT Defence, Civil, Reliable, best coverage and service A company which is highly reliable, have branches all over India, and gives service on their product for 15 year
  • 24.
    Promotion • Advertising • SalesPromotion • Direct Marketing
  • 25.
    COMPETITIVE ANALYSIS Strategy maybe of three types:- • ENTRY INTO NEW PRODUCTS:- • COST LEADERSHIP:- • AFTER SALES SERVICES SEGMENT COMPETITORS EQUIPMENT Telecom Market (BSNL) ITI, PCL, IL, SIEMENS, FIBCOM, ICOM, ORDYNE, TERRACOM Switching & Transmission Defence Market ITI, ERRICSION, TADIRAN, HBL NIFE, ALFHA, ECIL, SPANCO, PRECISION ELECTRONICS, SPECTRONICS, INTEL, ASHOKA ENGG EXCHANGE, ENCRYPTION & IFDSS EQUIPMENTS
  • 26.
    DIVERSIFICATION STRAGY BYBEL-KOT • a) NEW PRODUCT DEVELOPMWNT • BEL-KOT is always known for development of new product according to the need of the customer . In order to develop new product BEL follow the general pattern: • They gathered the information from the customer relating existing product and also about their need and used it for the development of new equipment. • Up gradation of existing equipment and product. • Planning and imparting operation and maintenance training to employees. • Field visit of their technical personnel to impart in-situ training and planning for early deliveries of ordered equipments Little equipment under development as a result of such interactions is • S-RAXMKII • ULSBMKII • IFDSS for T90 Tank
  • 27.
    DIVERSIFICATION STRAGY BYBEL-KOT Contd…… b) NEW BUSINES DEVELOPMENT GROUP In view of rapid expansion of mobile phone communication, disappearance of old product which are the strength of BEL and increase of market challenges, New business development group is formed during 2005-06 to enter into new business areas. Therefore, advance technology partners are scanned and selected, keeping in view their product portfolios, R&D strength and leadership position in Global/ Indian market. As a major step in diversification, BEL-KOT has started interaction with Nuclear Power Corporation of India Ltd. IGCAR for manufacturing of Nuclear Instrumentation . Some of BEL major partners are : FIELD PARTNER CORE COMPETENCY Technology/ D&D TADIRAN-Israel, NUTEK- Hyderabad, SPECTRON-Pune, NID- Ahemdabad, CDOT, UDAY, CORAl Switching, Data terminal, Radio, software, Power supply, Fire Fighting Sys. Materials AMPHENOL, FRAMATOME, AT&S Connectors, PCBs Manufacturing RHPL, DELTRON, RTL, BASANT INDIA, Local Subcontractor Manufacturing of line, Cards & Power Supplies, SMT Assembly Human Resources MDI, IIMS, NITIE, ASCI, COD HYDRABAD Human Resources Development
  • 28.
    STRATIGIC CHALLENGES • Strategicchallenges of BEL Kotdwara include: • Fast changing technology • Management of obsolescence of material • Retention of competent engineers • Cost reduction • Timely delivery • Productivity improvement • Effective utilization of machines • Human resource • Motivation of employees • Export marketing
  • 29.
    FINANCE DEPARTMENT • BELKotdwara since inception is a profitable company. Its Finance department is highly efficient and always looking for reducing unwanted cost which leads to increase in the earning of company • Turn Over: For last five year turnover of the unit and PBT given in following fig. respectively. 2006-07 saw a quantum jump in turnover to 415.73 Cr and PBT to 70.24 Cr due to convergent Billing and CRM project of MTNL. In year 2007-08 turnover went down to delay in placement of some of major orders by various customers. 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 (04-05) (05-06) (06-07) (07-08) (08-09) Actual Budgetd
  • 30.
    Inventory ,Sundry DebtorsPBT • The rise in Inventory in 2007-08 was due to low level of direct sales. Orders could not be released by Gov. i.e. for CAPART, STM etc. Hence inventory piled up in anticipation of orders. • In 2004-05 unit has achieved low sundry debtors turnover of 41 days. Thereafter sundry debtors figures shows increasing trend due to lower turnover. • In 2006-07 profit increased due to supply of equipments for MTNL project which had 9% margin thus even if we exclude Rs 25 Cr contribution of MTNL project, profit of the unit shows steady trend. Year 2007-08 was exceptional in nature due to low direct sales. 0 20 40 60 80 100 120 140 Inventory Inventory 0 1000 2000 3000 4000 5000 6000 7000 8000 (03-04) (04-05) (05-06) (06-07) Actual Budgeted 0 50 100 150 200 250 Sundry debtors Sundry debtors
  • 31.
    Cost reduction, CashFlow and Depreciation • Cost reduction technique has been deployed in a big way to achieve significant cost reduction .Cost reduction of Rs 1175 lakhs have been achieved in 2004-05 • The net cash flow of BEL KOT has been fluctuating. From high of Rs 64 Cr in 2004- 05, it dipped to net flow of Rs 190 Cr in 2006-07 due to payment of vendors of MTNL project. In 2007-08 due to sundry debtors collection in MTNL project net cash flow touched to Rs 100 Cr. • The depreciation bas been increased from Rs224 lakh in 2003-04to Rs 353 lakh in 2007-08. The increase in depreciation shows the additional investment done to ensure adequacy of technology and infrastructure. 0 200 400 600 800 1000 1200 1400 (03-04) (04-05) (05-06) (06-07) (07-08) Cost Reduction Cost Reduction 0 50 100 150 200 250 300 350 400 Depreciation Depreciati on -250 -200 -150 -100 -50 0 50 100 150 (04-05) (05-06) (06-07) (07-08) Cash Flow Cash Flow
  • 32.
    PRODUCTION DEPARTMENT • Keyproduction process and its key characteristics are identified through PFMEA (Product failure Mode and Effect Analysis) technique which is followed all over the world. Other Process in Production Department: • FABRICATION- Machining, Turning, Drilling, Welding, Tapping • ELECTROPLATING- Ni, Cu, Zn, Tin plating, Chromate conversion coating • PAINTING- Epoxy painting, Powder coating • PCB ASSEMBLY- Hand soldering, wave soldering • ELECTRONIC ASSEMBLY- Cable assembly, Mechanical assembly • TESTING- Card testing, Sub system/ system testing • ENVIROMENTAL STRESS SCREENING- Hot and cold cycle, Bump test, Vibration test, Leak test SIX-SIGMA: IN 1998 BEL had adopted Six Sigma technique Some of the six-sigma project s completed during 2007-08 are listed below: • Reduction in cycle time for rejected item • Improvement of Internet connectivity in BEL- Kotdwara • Cycle time reduction for repairs of printers
  • 33.
    LIST OF SOMEKEY MACHINE • In circuit tester • Reflow Owen • Wave soldering machine • CNC machining centre • CNC JIG Boring machine • CNC Turret Punch Press • Electroplating/ Painting Plant • Walk in chamber/ Environmental Stress Screening Equipment
  • 34.
    DEVELOPMENT AND ENGINEERINGDEPARTMENT PRODUCT AND SERVICES ARE DESIGNED AND DEVELOPED BASED ON CUSTOMER • To have in depth understanding of customer needs and expectation, BEL has a policy of recruiting experienced retired defence personals • when customer requirement is immediate, technology transfer is taken from global companies. During the development of design, changes suggested by the customer are discussed by and implemented on mutual agreement. • Similarly marketing and design groups keep close interaction with paramilitary forces to understand their requirement. • The needs of civilian customers are known primarily from market research.
  • 35.
    The process flowchart for design and development process is given below Development discussion With customer by D&E and MKT Receipt of requirement 1) GSQR/QR 2) TECH specs 3) Specs from market research Design & Development planning Compilation & review of design inputs Product design Design Changes Definition Validation & review Provisional Engineering document Final Design Documentation Inputs from market research Customer and production Released to production Repair & Maintainability Technology Inputs Statutory & Regulatory Requirement
  • 36.
    SWOT ANALYSIS OFBEL KOTDWARA STRENGTH 1) BEL has got modern manufacturing facilities with test instruments, set up at Kotdwara for manufacturing & supply of telecommunication equipments. 2)R&D set up with qualified manpower, suitable for technology development/absorption. 3)Known for quality & reliability of its products. 4)Known for its prompt after sales service, 5) Vast experience in the manufacturing of electronic equipment. The parent unit established in 1954. 6)Highly trained, professionally qualified manpower trained to deal in the latest technologies. 7)Well established organizational structure. 8) Availability of Central Research Laboratories at Bangalore & Ghaziabad, working . 9) Young & dynamic top management at corporate level, ensuring stability.
  • 37.
    SWOT Contd…….. WEAKNESS 1) Themain weakness of BEL is its being owned Govt. of India under ministry of defence. This makes decision-making slow. 2) BEL has been predominantly in defence sector, which has been monopoly business. Hence, it does not have experience in managing a competitive business like telecommunication equipment manufacturing. 3) Lack of flexibility in manpower management, especially in pay scales, promotion, recruitment policy, etc., thus resulting in brain drain. 4) Lack of bold decision making in the area of investment & others due to fear of various audits, both statutory & Govt. in the mind of management. 5) Lack of accountability in top management, as personal stakes are not related with the performance of organization.
  • 38.
    SWOT Contd………….. OPPORTUNITIES The followingare the major opportunities available for BEL Kotdwara:- 1) Liberalization leads to opening of huge market. e.g. ITI, HTL, etc. 2) BEL can go for technology transfer, ties up & JV due to liberalization 3) Various other companies are also modernizing hence creating new market for telecommunication equipment Railway, Power Sector, Oil Sector, Defence, etc. 4) Telecommunication Sector has been recognized as one of the important infrastructure sector essential for the growth of the economy. This is resulting in the availability of potential market in developing countries. THREATS 1) Entry of private sector & multinationals in this field is making competition very tough. 2) Due to overall reduction in import duties, the indigenous manufacturing & direct import are competitive. 3) Imperfections in the market, leading to price wars & undercutting of prices, resulting in sustained losses for telecommunication manufacturer. 4) Margins are under pressure due to competitive market situation. 5) Lack of infrastructure facilities like power, roads, etc. making indigenous manufacturing costly. 6) High investment required in this sector.
  • 39.
    RECOMMENDATIONS • One sarea of concern is a sundry debtor. It is recommended that either the operations in this area be toned up with introduction of skilled, trained & motivated work force or the subcontracting of this operation to be done to outside agencies. • Marketing department should be divided in different & each sub department will be responsible for their work. In the complex market, the divisional heads are required to be given total responsibility of the operations under them & be held accountable for that. • They should advertise their product through media. • Targeting low margin high volume operations and diversifying the product and business. • Better HR policies to attract and retain the talent. • Technological advancement.