ORGANISATION

STUDY

CHAPTER-1
INDUSTRY PROFILE
Industries are the most vital of all sectors to all the economies of the world whether developed or
developing; industries provide support to the agriculture sector on one hand and on the other hand
produce goods and by exporting these goods earn foreign currency for the country. thus they also be
called as the back bone of the economy .the establishment of the industries demands many facilities such
as power, communication systems, transport facilities, nearness to market and to the source of raw
materials and several other facilities. the need for power and communication facilities gave birth to the
electronics industry the industrial revolution took place in 17 century in britian.the industries initially
operated with coal as fuel but in late 18 century with the birth of electronics industry all this
changed.now the industries became more inclined towards electronics.
With the passage of time the involvement of electronics in ones life has become inevitable. all of us in
some form or the other, directly or indirectly are consuming electrical goods, electronics has made life
simpler. For example consider earlier sending a letter from Delhi to Bangalore by post would take at
least 4-5days but now with the arrival Of computer which is an electronic device the same mail can be
sent in 5 to 10 minutes or by fax in 10 to 15 minutes.
Because of such wide applications of electronic there are several producers in different fields of
electronics. For example some produce mobile phones, some produce computers, television sets, music
systems etc. each field there are many players, for example take the example of television set producers.
We have LG, SAMSUNG, SONY, BPL etc.what this competition does is it gives the consumer the
goods with better quality at an affordable price. That is why this industry is growing rapidly than any
other industry in the world. Its product range from microwave to complex parts of machines used for
power generation in power plants.
Another reason for the industries wide scope is due to the fast improvement in the technologies. The
IAME B-SCHOOL

Page 1

ORGANISATION

STUDY

large number of the consumers in India has given to many investors to invest in India.
Factors Governing the Growth of this Industry
The key factors governing the growth of electrical and electronics industry are as follows:

Rising and continuous investments in research and development has led to increased
productivity and higher-value added electrical and electronics products.

Increased foreign investments have resulted in the accelerated growth in terms of

electronics production and exports. Foreign companies are now making huge investments
and are installing extensive production capacities in developing countries.

Extends support to several global industries namely medical, telecommunications,

industrial and automotive sectors.

Rising incomes and living standards have resulted in the increase in demand of
electronics especially consumer electronics products in the world.

This industry is highly fragmented which comprises of many small and medium size
enterprises.

Asia Pacific region is emerging as the most spinning place for the consumer electronics
industry, as the markets remain still unbroached.

Rapid pace of innovation in electronics technology is resulting in a consistent demand for

newer and faster products and applications.

IAME B-SCHOOL

Page 2

ORGANISATION

STUDY

Future Outlook
The worldwide electrical and electronics industry is experiencing phenomenal and remarkable
changes these days. The worldwide electronics industry is distinguished by fast technological
advances and has grown rapidly than most other industries over the past 30 years.
Voluminous production is slowly and gradually moving towards low cost destinations, which in
turn are the markets which offer the most long term potential. In today's age of competition,
electronic and electrical products manufacturing companies are under constant pressure to
develop new and innovative products in shorter time cycles, at reduced cost, and with improved
quality.
The global electronics industry is driven by demand for the products, which are
durable, lighter, cheaper, and better than the ones, they replace. To meet up the growing market
demands, industry is slowly and gradually shifting its base to Asia Pacific countries, which is
now the prominent source of electronic components and is soon going to turn out to be the
primary destination for consumer electronics.
There is an estimation that within 20 years, two third of the electronics industry will be four
times as big as today and half of it will move into Asia
.Foreign collaborations and mergers are on a rise. A new wave of industrialization is throwing up
several business opportunities for electrical and electronics market to further its market. There is
a vast growth in the sales of computers, software and networking products. Younger generation is
increasing becoming tech savvy and spending huge amount of money on digital products such as
MP3 players, Dvd players, CD players, mobile phones, speakers, headphones, shuffle, nano etc

CHAPTER - 2
IAME B-SCHOOL

Page 3

ORGANISATION

STUDY

COMPANY PROFILE
INTRODUCTION OF COMPANY
Bharat Heavy Electrical Limited (BHEL) is one of the most leading and the largest Engineering
and Manufacturing Enterprises 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 that has been more than realized with a well-recognized track record
of performance. It has been earning profits continuously since 1971-72 and paying dividends
since 1976-77
The first plant of BHEL was set up at Bhopal in 1956. BHEL is involved in the manufacture of
over 180 products under 30 major products groups. BHEL's range of services extends from
project feasibility studies to After-sales -service successfully meeting diverse needs through
turnkey capability.
With corporate Head quarters at New Delhi, BHEL's operations are organized around three
Businesses sectors viz. power, industry and international
functions

and

operations.

Various

corporate

the operating/manufacturing units in turn support the business sectors, all of

which function in a well-orchestrated manner in order to meet market/customer needs.

The BHEL-EDN division came into existence when BHEL took over Radio and Electrical
Manufacturing Company (REMCO), which formally merged with BHEL-EDN in 1980.
Growing from a turnover of 3 crores in 1976-77 to Rs. 465 crores in 1999-2000, BHEL, as on
date is a tough competitor in the field and has won many prestigious contracts against stiff
worldwide competition.

BHEL has acquired certifications to Quality Management Systems - ISO 9001, Environmental
IAME B-SCHOOL

Page 4

ORGANISATION

STUDY

Management Systems - ISO 14001 and Occupational Health & Safety Management Systems OHSAS 18001 and has also adopted the concepts of Total Quality Management.
The Electronics Division (EDN) of BHEL was formed in 1976, mainly to establish a strong base
in the areas of power and control electronics, to supplement the Companys pioneering efforts in
power generation and transmission equipment manufacturing. Making a modest beginning with a
turnover of Rs. 3 crore in 1976-77, the unit is poised to record a turnover of over Rs. 500 crore.
This growth is amply reflected in the fact that most of the power plants and process industries in
the country today are equipped with products and systems made by BHEL-EDN.
Its quick progress is aided by the collaborations with international leaders in the field. However,
it was BHEL-EDNs relentless efforts and unwavering commitment to in-house solutions that
have really contributed to its rapid growth and success. Even in the midst of stiff competition
posed by the world leaders and domestic private manufacturers, the unit has successfully
maintained its growth rate and become a major force to reckon with in power and industrial
electronics.
In recognition of its commitment to the quality systems and procedures, the unit is certified for
ISO 9001 since July 1993. To fulfill its role of a responsible corporate citizen envisaging
protection and conservation of the environment and ensuring that its products and systems are
also environment friendly, BHEL has finalized a Corporate Health, Safety & Environment
Policy. Accordingly, the Electronics Division has also become the first Electronics Industry in
Bangalore to get ISO 14001 Environment Management System Certification and OHSAS 18001
Certification. BHEL has also joined United Nations Global Compact and has committed to
support the set of core values enshrined in its nine principles in the area of Human Rights,
Labour Standards and Environment.
BHELs vision envisages further growth for EDN, transforming it into a world class enterprise
providing comprehensive solutions to customers, while exploring new frontiers in software and
hardware applications to fulfill the growing needs and expectations of the global market.

IAME B-SCHOOL

Page 5

ORGANISATION

STUDY

BHEL has

Installed equipment for over 90,000 MW of power generation - for Utilities, Captive and
Industrial users.

Supplied over 2,00,000 MVA transformer capacity and sustained equipment operating in
Transmission & Distribution network upto 400 kV - AC & DC.

Supplied over 25,000 Motors with Drive Control System to Power

Projects. Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc.

Supplied Traction electric's and AC/DC locos to power.

Supplied over one million Valves to Power Plants and other Industries.

BHEL's operations are organized around three business sectors, namely power.

Industry

including Transmission, Transportation, Telecommunication & Renewable Energy and Overseas

Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs
and respond quickly to the changes the market.
BHEL's vision is to become a world class engineering enterprise, committed to enhance
stakeholder value. The company is striving to give shape to its aspirations and fulfill the
expectations as a ' Navratna' Company.
The greatest strength of BHEL is its highly skilled and committed 47,000 employees. Every
employee is given an equal opportunity to develop himself and improve his position. Continuous
training and retraining, career planning, a positive work culture and participate style of
management have engendered development of a committed and motivated work force leading to
enhanced productivity and higher levels of quality.

IAME B-SCHOOL

Page 6

ORGANISATION

STUDY

VISION:
BHELs vision is to become a world class, innovative, competitive and portables engineering
enterprise providing total business solutions.

MISSION:
To be leading Indian engineering enterprise providing quality products, systems and services in
the field of energy, transportation, industry infrastructure and other potential areas.

VALUES

Meeting commitments made to external and internal customer fast learning

creativity and ensure speech of response.

Respect for dignity and potential of individual.

Loyalty and pride in the company team playing.

Zeal to excel.

Integrates and fairness in all matters.

CONCERN FOR SOCIETY:

Striving for the growth of the nation, BHEL-EDN Bangalore has always been contributing for
the upfilment of the and backward sections of the society. Three villages near Bangalore have
been adopted by BHEL-EDN and no. of social welfare programs like solar electrocutes, low-cost
housing, education of medical acidities in dressing water facilities have been implementing
resolution in remarkable transformation in the loving conditions of the villagers poorer.
BHEL has joined the Global Compact of United Nations and has committed itself to support it
and the set of core values enshrined in its ten principles. The Global Compact is a partnership
IAME B-SCHOOL

Page 7

ORGANISATION

STUDY

between the United Nations, the business community, international labour and NGOs. It provides
a forum for them to work together and improve corporate practices through co-operation rather
than confrontation.
BHELs contributions towards Corporate Social Responsibility till date include adoption of
villages, free medical camps/charitable dispensaries, schools for the underprivileged and
handicapped children, ban on child labour, disaster/natural calamity aid, Employment for
handicapped, Widow resettlement, Employment for Ex-serviceman, irrigation using treated
sewage, pollution checking camps, plantation of millions of trees, energy saving and
conservation of natural resources through environmental management.
BHEL shares the growing concern on issues related to Environment and Occupational Health &
Safety (OHS), and is committed to protecting Environment in and around its own establishment,
and to providing safe and healthy environment to all its employees. For fulfilling these
obligations, a Health, Safety & Environmental Policy has been formulated and implemented
through management systems.
In recognition of this, BHEL has been awarded the ISO 14001 Environmental Management
Systems Certification and OHSAS 18001 Occupational Health & Safety Management Systems
Certification from M/s Det Norske Veritas (DNV). Under UNDP programme for specialized
services in the area of Environment, BHEL has set up a Pollution Control Research Institute
(PCRI). BHEL also has a Model Centre for Occupational Health Services at Trichy, which is a
pioneer in this field in India. Today it offers a wide range of occupational health care as well as
expertise in work Environment monitoring, Toxicology, Ergonomics and in organization of OHS
to multitude of industries for different sectors in India. Few ILO sponsored candidates from
African countries have undergone training at this Modecentre.
BHEL is a member of CoRE (Corporate Roundtable on Development of Strategies for
Environment) launched by The Energy Research Institute (TERI). CoRE is envisaged as a means
to facilitate a proactive and catalytic role for industry in addressing the environmental problems
plaguing India and helping the industry towards sustainability paradigm. CoRE is now a partner
organization to the WBCSD (World Business Council for Sustainable Development). It has
signed a memorandum of understanding with WBCSD, now called as CoRE-BCSD, India.
Interfaces between companies such as BHEL, TERI and the WBCSD would provide an
IAME B-SCHOOL

Page 8

ORGANISATION

STUDY

important link to address issues of sustainable development at a global level and to learn and
exchange experience of the participating companies.

BHELs commitment to environmental issues can be seen as an integral part of its core business.
In the field of Non-conventional and Renewable Energy, BHEL has successfully launched
products like wind electric generators, solar heating systems, solar photovoltaic systems,
solar lanterns and battery powered road vehicles. Technology up gradation has been done to
minimize environmental impact of fossil energy products, by way of low-NOx oil/ gas burners,
circulating fluidized bed combustion boilers etc.

IAME B-SCHOOL

Page 9

ORGANISATION

STUDY

QUALITY POLICY
In its quest to be world-class,BHEL pursues continual improvement in the quality of its product,
services and performances leading to total customer satisfaction and business growth through
dedication,commitment and team work of all employees.

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

IAME B-SCHOOL

Page 10

ORGANISATION

STUDY

to the Company's, Vision statement. Corporate Quality derives strength from direct reporting to
Chairman and Managing Director of the Company.
Other than traditional Quality functions, today the focus is on:

Propagating Quality Management Systems and Total Quality Management.

Formulating, implementing and monitoring, "Improvement Plans" with

internal

and

external Customer Satisfaction.

Investigations and preventive actions on Critical Quality Issues.

Calibration and testing laboratories of BHEL are accredited under the National Accreditation
Board for Calibration and Testing Laboratories (NABL) scheme of Laboratory Accreditation,
which has got mutual recognition with APLAC and ILAC.
As a result of its thrust on quality and technology, BHEL enjoys national and international
recognition in the form of Product Certification by International Bodies like ASME, API etc. and
Plant Approvals by agencies like Lloyds Register of Shipping, U.K., Chief Controller of
Explosives India, TUV Germany etc.
In its movement towards Business Excellence and with the objective of achieving International
level of Quality, BHEL has adopted European Foundation for Quality Management (EFQM)
model for Business Excellence. Through this model and annual self-assessment exercise BHEL
is institutionalizing continuous improvement in all its operations.

Research and development:

To remain competitive and meet customers' expectations, BHEL lays great emphasis on the
continuous upgradation of products and related technologies, and development of new products.
BHEL's commitment to advancement of technology is reflected in its involvement in the
development of futuristic technologies like fuel cells and superconducting generators. BHEL's
investment in R&D is amongst the largest in the corporate sector in India. Products developed inIAME B-SCHOOL

Page 11

ORGANISATION

STUDY

house during the last five years contributed about 7% to the revenues in 2002-03.

Health and safety:

BHEL has joined the "Global Compact" of United Nations and has committed to support it and the set of
core values enshrined in its nine principles. The "Global Compact" is a partnership between the United
Nations, the business community, international labor and NGOs. It provides a forum for them to work
together and improve corporate practices through co-operation rather than confrontation.
BHEL's contributions towards Corporate Social Responsibility till date include adoption of villages, free
medical camps/charitable dispensaries, schools for underprivileged and handicapped children, ban on
child labor, disaster/natural calamity aid. Employment for handicapped. Widow Resettlement
employment for Ex-serviceman, irrigation using treated sewage, pollution checking camps, plantation of
millions of trees, energy saving and conservation of natural resources through environmental
management.
BHEL shares the growing concern on issues related to Environment and Occupational Health & Safety
(OHS), and is committed to protecting Environment in and around its own establishment, and to
providing safe and healthy environment to all its employees. For fulfilling these obligations, an
Environmental Policy and an Occupational Health & Safety Policy has been formulated and
implemented through management systems.
In recognition of this BHEL has been awarded the ISO 14001 Environmental Management Systems
Certification and OHSAS 18001 Occupational Health & Safety Management Systems Certification from
M/s Det Norske Veritas (DNV). Under UNDP program for specialized services in the area of
Environment BHEL has set up a Pollution Control Research Institute (PCRI). BHEL also has a Model
Centre for Occupational Health Services, which is a pioneer in this field in India. Today it offers a wide
range of occupational health care as well as expertise in work Environment monitoring. Toxicology,
Ergonomics and in organization of OHS to multitude of industries form different sectors in India. Few
ILO sponsored candidates from African countries have undergone training at this Model center.
IAME B-SCHOOL

Page 12

ORGANISATION

STUDY

BHEL is a member of CoRE (Corporate Roundtable on Development of Strategies for Environment)

launched by The Energy Research Institute (TERI). CoRE is envisaged as a means to facilitate a
proactive and catalytic role for industry in addressing me environmental problems plaguing India and
helping the industry towards sustainability paradigm. CoRE is now a partner organization to me
WBCSD (World Business Council for Sustainable Development). It has signed a memorandum of
understanding with WBCSD, now called as CoRE-BCSD, India. Interfaces between companies such as
BHEL, TERI and the WBCSD would provide an important link to address issues of sustainable
development at a global level and to learn and exchange experience of Ac participating companies.
BHEL's commitment to environmental issues can be seen as an integral part of its core business. In the
field of Non-conventional and Renewable Energy, BHEL has successfully launched products like wind
electric generators, solar heating systems, solar photovoltaic systems, solar lanterns and battery powered
road vehicles. Technology upgradation has been done to minimize environmental impact of fossil energy
products by way of low-NOx oiV gas burners, circulating fluidized bed combustion boilers etc.

Overseas business:
BHEL ranking among the major power plant equipment suppliers in the world is one of the largest
exporters of engineering products & services from India. Over the years, BHEL has established its
references in around 60 countries of the world, ranging from the United States in the West to New
Zealand in the Far East. BHEL's export range covers individual products to complete Power Stations,
Turnkey Contracts for Power Plants, EPC it Contracts, HV/EHV Sub-stations, O&M Services for
familiar technologies, specialized after-market-services tike Residual Life Assessment (RLA) studies
and Retrofitting, Refurbishing & Overhauling, and supplies to manufacturers & EPC contractors.
BHEL have acquired, assimilated and updated/adopted the state-of-the-art-technologies in the Power
and Industrial equipment sector from world leaders. BHEL has successfully undertaken turnkey projects
on its own and possesses the requisite flexibility to interface and complement international companies
for large projects, and has also exhibited adaptability by manufacturing and supplying intermediate
IAME B-SCHOOL

Page 13

ORGANISATION

STUDY

products to the design of other manufacturers and OEMs. The success in the area of rehabilitation and
life extension of power projects has established BHEL as a reliable alternative to the original equipment
manufacturers (OEMs) for such power plants. In addition to demonstrated capability to undertake
turnkey projects on its own, BHEL possesses the requisite flexibility to interface and complement with
international companies for large projects by supplying complementary equipment and meeting their
production needs for intermediate as well as finished products.

LAND MARKS ON THE WAY

A number of installations in various locations across India have elevated BHEL-EDn's expertise to
commanding heights, from where it moves on to even more challenging ventures. The customers are
well aware of BHEL-EDn's commitment to any project undertaken, which does not stop at the formal
commissioning of the project, instead extends to a lifelong post-installation care. Instances of many
repeat orders, received from reputed organizations amply prove this point.

India's functionally and geographically first DDC System commissioned at Khaperkheda, 2x210
MW project of MSEB.

India's first Combined Cycle Power Plant with DDC at Vatwa, 100 MW project of AECO.

India's Unified DDC for Boiler, Steam turbine and Station auxiliaries at Dahanu 2 x 250 MW
projects of BSES.

India's first VFD system for ID Fans for Trombay 500 MW project of Tata Electric Company.

India's first VFD system for Boiler Feed Pumps at APSEB's Kothagudam 2x250 MW project.

India's first "Single Push Button" based automation of Hydro Power Plant at APSEB's
Pochampad 3x9 MW project.

India's first Digital Static Excitation System (SEE) for KPCL's Sharavati HEP (10 x 109 MW)

IAME B-SCHOOL

Page 14

ORGANISATION

STUDY

and Digital Brushless AVR with 150

Hz PMG for GIPCL CCP.

India's first Brushless AVR with black start facility for Reliance Industries' Patalganga Gas
Turbine Power Plant.

Supervisory Control and Data Acquisition (SCADA) System, also successfully tested at M/s.
ABB, Sweden, in operation at MSEB's HVDC Converter Stations of Chandrapur & Padghe and
Low Distribution Centre at Kalwa, India.

Export ofmark4 gas turbine controls to GE, USA

Export of mark 5 gas turbine controls to Oman Cement Company and ministry of electricity and
water (MEW), Rusail project, Oman

Supply of mark 5 gas turbine control for the first advanced gas.

Turbines 6FA to be installed in India at kovilka-1 appal combined cycle power project.

FUTURE PLANS OF THE ORGANISATION

During the coming years QIIEL-EDN is planning for containing its trends of improvement in order from
industry segment, BHEL-EDN expects to get order in the 1s quarter upto l/S^ of its annual target.
BHEL-EDN is also planning for the bags (II-exam commendation for signifier achievement towards
business excellence.
BHEL-EDN is also planning for the CMD conferred scope individual excellence award.
Vindaychar STPS.
BHEL - EDN is to set up one unit of 500 mw capacities at Birsinghpur Thermal power station in
Madhya Pradesh.
Under international competitive bidding (ICB). BHEL has bagged an order for be Compressor package
IAME B-SCHOOL

Page 15

ORGANISATION

STUDY

for the Chennai referring expansion project of Chennai Petroleum Corporation Limited (CPCL).
BHEL has bagged yet another major order from Indian oil corporation (IOC) for setting up an energy
efficient and friendly co-generation power plant at its Mathura refinery complex.
BHEL and Skoda expert join hands for overseas power, transmission and transportation projects.
To promote and mature the culture of excellence in the organization. BHEL presented "Excel Awards"
(2001 - 2002) to its employees, for their meritorious achievement in various fields.
BHEL-EDN is also planning for the bags mega contract for NTPC'S 1000 mw.

INFRASTRUCTURE STRENGTH
BHEL is a recognized manufacturer by the Department of Telecommunications (DoT). BHEL-EDN has
a strong team of highly efficient and experienced engineers to carry out installation & commissioning
works as well as site support activities. The team is always on its toes for the emergency calls from
customers not only in India but also from every nook and comer of the globe.
Restoration of operations in shortest possible period at Srisailam HEP (AP) submerged in flood waters,
fire ravaged Kothagudem TPS (AP) and SEE sets submerged in flood waters at Tenompangi HEP
(Malaysia) are just few examples of commitment of BHELengineers, which have been highly acclaimed
by the customers.

Registered office:
BHEL House, Siri Fort, New Delhi, India-110049

REGIONAL OFFICES (POWER SECTOR)

1.

New Delhi (Northern Region)

2.

Kolkata (Eastern Region)

3.

Nagpur (Western Region)

4.

Chennai (Southern Region.

IAME B-SCHOOL

Page 16

ORGANISATION

STUDY

BUSNIESS OFFICES:
1. Bangalore

5. Kolkata

2. Baroda

6. Chandigarh 10.Lucknow

14.Ranchi.

3. Bhubaneshwar

7. Guiwehali 11. Chennai

15.Secundrabad

4. Mumbai

9. Jaipur

8. Jobalpur

13.patna.

12. New Delhi

MANUFACTURING UNITS:
1. Bangalore

2. Bhopal

4. Haridwar

5. Hyderabad 6. Jagdishpur.

7. Jhansi

8. Ranipet

IAME B-SCHOOL

3. Goindwal

9. Rudrapur.

Page 17

ORGANISATION

STUDY

PRODUCT PROFILE
Established in the late 50's, Bharat Heavy Electricals Limited (BHEL) is, today, a name to reckon with
in the industrial world. It is the largest engineering and manufacturing enterprise of its kind in India and
one of the leading international companies in the power field. BHEL offers over 180 products and
provides systems and services to meet the needs of core sectors like: power, transmission, industry,
transportation, oil & gas, non-conventional energy sources and telecommunication. A wide-spread
network comprising 14 manufacturing divisions, 8 service canters, 4 power sector regional canters, 18
regional offices, besides a large number of project sites spread all over India and abroad, enables BHEL
to be close to its customers and cater to their specialized needs with total solutions -efficiently and
economically. An ISO 9000 certification has given the company international recognition for its
commitment towards quality. With an export presence in more than 60 countries, BHEL is truly India's
industrial ambassador to the world.

PRODUCT RANGE Power

Air pre heaters

Boilers

IAME B-SCHOOL

Page 18

ORGANISATION

Control relay panels

Electro static precipitators

Fabric niters

STUDY

Fans
Gas turbines

Hydro power plant

Piping systems

Pulverizers

Pumps

Seamless steel tubes

Soot blowers

Steam generators

Steam turbines

Turbo generators

Valves

Industry:

Capacitors

Cerulean

Compressors

Desalination plants

Diesel generating sets

IAME B-SCHOOL

Page 19

ORGANISATION

Industrial motors and alternators

Gas turbines

Oil field equipment

Solar photovoltaic

Power semi conductor devices

Seamless steel tubes

Soot blowers

Steel casting and forging

Steam generators

Steam turbines

Turbo generators

Valves

STUDY

Transmission:
Bushings
Capacitors
Control relay panels
Dry-type transformers
Energy meters
HVDC transmission system
Insulators
Switch gears

IAME B-SCHOOL

Page 20

ORGANISATION

STUDY

Power semiconductor devices

Power system studies
Control shunt reactors

Transportation:
Battery powered road vehicle
Electric rolling stock
Electric's for rolling stock
Electric's for urban transportation system

Telecommunication
265 port RAX
High capacity exchange

Non-conventional energy source

Battery powered road vehicle

Mini/micro hydro sets

Solar lanterns

Solar photo voltaic

Solar water heating systems

Wind electric generators

IAME B-SCHOOL

Page 21

ORGANISATION

STUDY

R&D Products

Fuel cells

Surface coatings

Automated storage and retrievals

Power Generation Systems

Transmission systems

Transportation systems

Industrial systems

SYSTEMS AND SERVICES

Power Generation Systems

Turnkey power stations.

Combined-cycle power plants.

Cogeneration systems.

Modernization and rehabilitation of power stations.

Erection commissioning, operation and maintenance services.

Spares management.

Consultancy services.

Transmission Systems
IAME B-SCHOOL

Page 22

ORGANISATION

Sub-stations switchyards.

HVDC transmission systems

Shunt and series compensation systems.

Power system studies.

Erection commissioning, operation and maintenance services.

Consultancy services

STUDY

Transportation Systems

Traction systems.

Urban transportation systems.

Erection commissioning, operation and maintenance services.

Consultancy services

Industrial Systems

Industrial drives and control systems.

Erection commissioning, operation and maintenance services.

Spares management.

Consultancy services

IAME B-SCHOOL

Page 23

ORGANISATION

STUDY

Executive
ORGANIZATION CHART OF BHEL-ELECTRONICS DIVISION

Director

GM/C

GM/C

GM/C

GM/S

ENGG

COM

PROD

PV

& ES

&

&

MM
AG

AG

AG

AG

AG

AG

M/E

M/FI

M/V

M/S

M/Q

M/E

SD

IG

AG
IAME B-SCHOOL
M/H

DG

DG

AG

AGM

AGM/FS
Page 24

M/I

M/C

M/I

/P&D

TSHIPPI

/CPD&
STUDY

&PR

ORGANISATION

3. DEPARTMENTS IN BHEL-EDN
There are various departments in the organization. The major departments are:

Human resource department.

Marketing department.

Finance department.

Health and Safety department.

Factory Service department.

IAME B-SCHOOL

Page 25

ORGANISATION

Planning and development department.

Quality control department.

Production department.

Research and development department.

Management information system department.

Material Management department.

STUDY

3. 1 HUMAN RESOURCE MANAGEMENT DEPARTMENT

BHEL - EDn has a very effective HRM department. It derives its strength from its strong and
dedicated workforce of 2000 employees. Sustaining and developing a dynamic work culture,
which enables joint optimization of organizational goals and Individual potential and taking care
of changing aspirations of the people are the key focus areas of BHEL-EDn. With the changing
business scenario, BHEL _ EDn is alive to the challenging before it in terms of new approach to
HRM.

IAME B-SCHOOL

Page 26

ORGANISATION

STUDY

HRM department
Personal & administration
department

Human resource
development department

Structure of Human Resource Management Department

At BHEL - EDn, HR department is divided into 2 sub - departments Personnel &Administration
department (P & A) and Human Resource Development (HRD) Department.
Distributed HR department at BHEL:
BHEL has a corporate HR department at Delhi. Also, each unit of BHEL has a separate HR department
of their own which administers the HR functions at unit level. Corporate HR Controls all other unit level
HR departments.
Work Culture at BHEL - EDn:
Positive work culture and participative style of management at BHEL-EDn have resulted in developing
a committed and motivated workface who is ready to meet the challenges of the future. All employees
are given encouragement to take part in cultural, sport, and educational and other activities; a unique
work culture at BHEL-EDn has set a tradition of Individual responsibility and commitment, which
reflects in every sphere of BHEL's growth.
BHEL has a very sound personnel policy that was framed more than 3 decades and updated very often.
The personnel and Administration department takes care of all the policies, rules and procedures relating
to various aspects of Human Resource Management and is intended to serve as a basis for the effective
and uniform implement of these across the entire organization. In other words, it is just managing the
people by personnel Policy.
Personnel and Administration department of BHEL - EDn is again subdivided into
Four sections as shown in the figure below:

IAME B-SCHOOL

Page 27

ORGANISATION

STUDY

Personal and administration

department

Establishment

Administration

IR

Welfare

Establishment section at BHEL-EDn:

The Establishment Section is responsible for following activities
1. Manpower planning (i.e. recruitment, selection, retrenchment, etc.)
2. Performance appraisal, etc.,
3. To look after LTC.
4. Promotions.
5. Retirement benefits, etc.

Administration department:
The responsibilities of Administration Department are as follows:
1. To look after discipline of employees within the factory premises.
2. Canteen administration comes under this department's purview.
3. This department is also responsible for transportation of employees.
4. Allocation of furniture to various departments.

It is administration department's responsibility to take care of full office assets Le, it is

responsible for allocation of office assets like furniture, tables, bureaus, chairs, computers, etc.,

IAME B-SCHOOL

Page 28

ORGANISATION

STUDY

to various departments and its employees.

This department is also responsible for getting these above-mentioned items

repaired and

maintained.This department also looks after fax, mails, and couriers etc,
It collects and distributes fax messages and mails to different departments.

Takes care of both domestic and international couriers.

Issue of ID cards, visitors' cards, etc., is also taken care of by this department. Administration
department issues ID cards to CISF. Only on certification by this department, CISF issues ID
cards employees or trainees. Administration department also looks after pest control. A contract
has been given to "Karnataka Pest and todent Control Corporation" to take care of pest control at
BHEL-EDn.
This department selects apprenticeship trainees- this department conducts written tests and
selects the trainees. Once this department selects the trainees, they are referred and sent to HRD
department and HRD allocates the trainees to different departments.

Welfare department:
Welfare department at BHEL-EDn is proactive in nature. It provides its employees all kinds of
facilities even before he demands for it. It covers all areas such as food, health, clothing, housing
wages, job security etc., of the employees.

Human resource development:

Functions:

Training & development of employees.

Individual positioning, monitoring, control of appraisal.

Implementation of pre employment skills.

Student training and interaction.

Organizing factory visits.

IAME B-SCHOOL

Page 29

ORGANISATION

STUDY

Conducting seminars, functions, programming.

Human resource is a valuable resource and an asset of any organization and also the only
resource, which does not depreciate with time. When molded and trained properly it keeps on
appreciating over time. Towards its end BHEL-EDn lias an effective HRD department which
looks after training and development of employees as well as student trainees, apprenticeship
trainees, etc., HRD's main function is to appreciate the human resource of BHEL-EDn. BHELEDn has a separate HRD department i.e., here HRD works as a separate department, separate
from HRM department / Personnel & Administration department. There are around seven
employees in HRD department, which is now clubbed with EDP department and headed by a
common AGM.

3.2 MARKETING DEPARTMENT

Functions:

Market exploration

Order booking

Offering

Bidding

IAME B-SCHOOL

Page 30

ORGANISATION

Preparing annual budget

Projections

STUDY

Exploration of market is very important for new products as well as old products.
Planning Commission forecasts as well as based on the projections of the working group,
annual plans will be prepared by this Department and in turn it will be always tracking
the laying of the new electric line and tenders. Cost estimates will be given by Finance
department, which makes the work easy for this department for quoting to a bid.
Approach to marketing is different at BHEL as the customers are usually known and
orders are of large size and value. The main function of Marketing Department is to
procure manufacturing order in coordination with thee commercial group. The central
manufacturing agency is located at the corporate office in Delhi. It breaks a composite
project and assigns to the required manufacturing units.
BHEL usually adds a profit margin about 10-12% of the order. BHEL-EDN has a
separate marketing department for each product group. BHEL has been a leader in the
power sector for a long time. Its Turnkey capability gives it a Competitive edge. After
Liberalization BHEL is acing tough competition from MNC's like siemen's, ABB,
Cegetec, and C-DOT etc.

BHEL-EDN exports its products to Iran, Malaysia. Some other customers are Tisco,
MRL, and Jindal power Company Limited.

The process of sanctioning a project goes through the following stages

Pro-active Marketing

Tendering

IAME B-SCHOOL

Page 31

ORGANISATION

STUDY

Post- tender follow up

The following are the ways of getting an order

Direct enquiry

Bidding after floating an enquiry, tenders are procured technical viability studies and
commercial analysis is done to select the Best one.

Global competitive bidding BHEL has bagged more than 80% of the orders floated for
the competitive bidding.

Commercial department:
This department acts as an internal customer to the EDN.
Functions:

Every month follow-up has to be done

Preparation of him over plans. Based on the internal orders and shop floor capacity
turnover plans will be prepared.

Billing, invoice and dispatch

Commercial department issues dispatch and billing instructions, based on me above
instructions invoice will be prepared. In case of Ex-works, constructions for covering up
insurance will be given to the consignee.
If it is for destination, it is the duty of EDN to cover the insurance. In case of export
invoice, packing list and GR form will be sent. Earlier even the payment of excise duty
was rested with the department but now the Finance department has taken over this
function.

Periodical monitoring i.e. monitoring the achievements, and comparing that whether they
IAME B-SCHOOL

Page 32

ORGANISATION

STUDY

are doing as per the schedule.

Packing.

3.3 FINANCE DEPARTMENT

Various Sections in Finance Department.
Book and Budget
Sales
Bills payable

IAME B-SCHOOL

Page 33

ORGANISATION

STUDY

Costing
Establishments
Internal audit.
Price stores ledger.

1. Book and Budget

2.

Collection of accounts from different sections

Preparation of trial balance and final accounts

Co-ordination with auditors

Helping statutory auditor

Sales:

Invoice generation

Billing

Collection

3. Bills Payable
This section handles the payment to be made to the suppliers. This includes the receiving
of stores receipt vouchers, purchase order and their verification in terms of quality and
quantity. Once the claims are found satisfactory, the payment is made as per the terms.

4. Costing
Sets the cost that is used by commercial group to add profit margin to set the price.
5. Establishment
This section handles all the payment to the employees such as
IAME B-SCHOOL

Page 34

ORGANISATION

Salary

Provident Fund

Incentives

Loans and advances

Medical reimbursement

STUDY

6. Internal audit:
After preparing the balance sheet, the internal auditors will audit & they send audited
balance sheets to the government auditors to audit the balance sheet.

7. Price stores ledger:

Maintenance of accounts of stores in monetary terms.
Features:
BHEL is the first Government Company to publish accounting policies. They have
centralized cash credit control and centralized Cash Management. BHEL units cannot
borrow directly from outside but from centralized component account. The surplus funds
of any BHEL unit are allocated to other units and interest is charged on them. There are
80 employees in the finance department to take care of all transactions from top to
bottom.

Other functions of Finance Department are,

Payment of wages and salaries

Payment to suppliers

Foreign purchase payments.

Cash management.

IAME B-SCHOOL

Page 35

ORGANISATION

STUDY

Finance department structure:

Executive Director
IAME B-SCHOOL

Page 36

ORGANISATION

STUDY

AGM (asst general

manager)

Sr DGM

Sr DGM (deputy
general manager)

DGM

DGM

Sr manager

Manager

Sr manager

Manager

3. 4 HEALTH & SAFETY DEPARTMENT

BHEL's safety department takes every possible step to minimize accidents by taking the
necessary measures at the various stages of planning and designing BHEL follows the motto
'safety/first'. Though the frequency of accidents is extremely low the management is taking keen
interest to reduce the accidents as far as possible by engineering methods and personal protective
IAME B-SCHOOL

Page 37

ORGANISATION

STUDY

equipment at various stages.

Safety day is celebrated around March every year and apart from this surprise site visits are
carried out to check whether the employees are following the safety measures.
The Management is committed to be an environmentally sound company in its activities,
products, services and to provide safe and healthy working environment covering its employees,
products and services as an integral part of business performance through:
Compliance with applicable Legislation and Regulations.
Setting objectives and targets to eliminate / control / minimize environmental pollution,
risks due to Occupational Health and Safety Hazards.
Promotion of activities for conservation of resources by environmental management with
focus on oil, electrical energy and chemicals.
Enhancement of Environmental, Safety and Occupational Health awareness amongst
employees, customers, suppliers, contractors by pro-active communication.
Regular evaluation and pro-active measures for prevention and control of environmental
pollution / accidents / occupational diseases.
Appropriate training of employees and interested parties on Health, Safety and
Environmental (HSE) aspects.
Formulation and maintenance of HSE Management programmes for continual
improvement.
Periodic review and audit of HSE Management System to ensure its continuing
suitability, adequacy and effectiveness.
Communication of HSE Policy to all employees and interested parties.
Co-operation with concerned agencies / regulatory bodies engaged in HSE activities.

IAME B-SCHOOL

Page 38

ORGANISATION

STUDY

Safety precautions in BHEL-EDn Bangalore:

Safety committee
Safety steward committee
Safety training for executive supervisor and artisans
Issue of safety equipment
Accident investigation reporting systems
The functions of safety committee are:

Control of accident hazards

Promote safety consciousness among employees

Communicate to the top management regarding safety aspects

Safety department
Sr manager

Manager safety

Ex foreman safety

Sr. engineer safety

3.5 SECURITY AND VIGILANCE DEPARTMENT

Security:
Safeguarding the property of the company by the security persons appointed to guard against
theft, robbery, etc.

IAME B-SCHOOL

Page 39

ORGANISATION

STUDY

The security department is maintained to ensure that workers arrive on time to the premises and
the entry of trespasses into the premises is checked. The visitors and the supplier's etc have to
seek the permission of security before entering the premises.
Vigilance:
'Vigilance' means to guard. This department's task is to guard against the white collared crimes,
malpractices, malfunction, misuse if power and position to ensure that the activities of
employees are in compliance with rules and regulations, procedures and policies of the
organization.
Functions of this department:
To collect information for effective performance

Preventive vigilance

Punitive or taking stem action against erring employees

Reformative/educating the employees

Monitor the guide line

At EDN vigilance awareness week is celebrated from October 31 st to November 5* to
commemorate the birthday of IRON MAN of India, the late- Sardar Vallabhai Patel.

Safety Measures:

Exhaust is provided at forming and etching areas. Personnel protective equipments such
as hand gloves and proof and goggles are provided.

IAME B-SCHOOL

Page 40

ORGANISATION

STUDY

BHEL-EDn has got 2 ground level reservoirs in which the water from all the bore wells
and open wells is pumped. This water in the ground level reservoir chlorinated at regular
intervals.

The effluents from the entire department are collected at the effluent treatment Plant.
They collect in separate tank and through separate effluent treatment Plant. They collect
in separate tank and through separate effluent lines.

Separate south proof chamber with Exhaust Fans are provided for operators of Terrate
punch machine. Ear aids are provided to minimize the sound effects while operation.

AC generators are used in case of emergency when power supply is cut down.

Power generating machines are installed on huge concrete platforms. Inside these
platforms huge rubber blocks are fixed which nuts and bolts so as 10 minimize the
vibrators. Fire alarms are also kept.

Nose mask, lead fumes absorbing equipment are provided to employees who solder the
PCBs.

BHEL-EDn has an efficien.fire Alarm System.

Fire extinguishers (portable and trolley mounted) used in BHEL-EDn:

3. 6 PLANNING & DEVELOPMENT DEPARTMENT

Planning and Development Department acts as an information center where all information
regarding EDN will be available and also it acts as a control room for all activities of BHEL- It
IAME B-SCHOOL

Page 41

ORGANISATION

STUDY

acts as a tool, to communicate between EDN and corporate office.

Functions:

Planning
1. Revenue Budgeting
2. Capital Budgeting

Monitoring activities

Correspondence with corporate office

Management Information System

Co-ordination with union chief.

Preparation of short term plan (up to 3 years)

Planning will be done year wise. Based on the capacity, orders and market conditions, the above
said plan will be spit into monthly wise. This department is concerned with assisting the Finance
department and monitoring the activities either weekly or monthly, based on the series of
Management services which are complied every month and forward the same to the corporate
officesThe monthly information report will be prepared and it will be sent to the corporate office and
local office for decision-making. This helps the unit
Chief, stay tuned with the activities of EDn and facilities effective decision-making.
In the corporate office of all the units, monthly information reports will get consolidated and a
corporate monthly information report will be prepared.

3.7 QUALITY CONTROL DEPARTMENT

Focus on Quality ISO 9001 Certification awarded by me Bureau Veritas Quality International
(BVQI) UK, for the Electronics Division, is a testimony to the unit's total commitment to achieve
IAME B-SCHOOL

Page 42

ORGANISATION

STUDY

quality in all spheres of its operations. The international recognition has enabled it to strengthen
its presence both in domestic as well as international markets.
The unit is also fast progressing in its efforts to achieve TQM. As a sincere corporate citizen, the
Electronics Division realizes its responsibility to protect and conserve the environment, not only
by conforming to environmental norms but also continuously making efforts to manufacture
products and systems, which are increasingly environmental friendly and produce cleaner energy.
A comprehensive environmental policy has led to the ISO 14001 certification. Latest, high
precision test equipment in each area of testing is available in the mechanical, electrical,
electronics and chemical laboratories.
A full-fledged Metrology Laboratory (accredited by The National Accreditation Board for
Testing and Calibration Laboratories) caters to pehodic in-house calibration of all mechanical
gauges and fixtures. All electronic test and measuring instruments are calibrated regularly at the
unit's well-equipped instruments calibration laboratory. The concept of Quality Circles has been
an integral part of EDN's operations and has resulted in commendable improvements in systems
and processes.
The proximity and access of BHEL- EDN to evaluation facilities like CQAL, ETDC, CPRI, IISe
and LCSO has been a great advantage in keeping up the quality standards (including different
inter- national standards and documentation).

Quality Inspections:
Quality Inspections, which are a must to ensure quality products, are carried out all the stages of
manufacturing. The various types of Inspections carried out are as follows:

A). Inward 1nsepction:

This inspection is carried out as soon as the materials arrive at the Goods Inward Section and
IAME B-SCHOOL

Page 43

ORGANISATION

STUDY

before moving it to the Holding Stores.

B).In process inspection:
This inspection is carried out when the material is in the process of manufacturing on the shop
floor.
This Inspection reduces the unnecessary processing.
C). Final inspection:
This inspection is carried out once the product is ready to be dispatched to the customer.
Rework & rejection:
In any stage if rework or repair is possible, suitable steps are taken. If no process can bring to the
Quality Standards, the product is rejected. This technique helps in meeting the Quality Standards
as well as reduces the cost.

BHEL-EDn has 4 mm Inspection Labs-Mechanical Lab, Electrical Lab, Electronic lab

etc., where Quality checking is carried on.

Quality Audits are carried on once in 6 months.

Employees are provided with regular training on Quality Management Systems by the
QC department in co-ordination with the HRD.

ISO certification:
BHEL-EDn has been certified as ISO 9001 for Design, Development, Manufacturing, Testing,
Erection, Commissioning & Services by BVQI of UK.. This certification is helping BHEL to
complete in International market. BHEL-EDn is in process of achieving TQM and it has
achieved ISO 14000 this year for Environment Management.

ISO 2500: This is a standard that is followed by the QC department when the material is in bulk
IAME B-SCHOOL

Page 44

ORGANISATION

STUDY

and it is practically not possible to check and every material. Hence a sample of 13% is selected
from the received lot, of which, if more than 2.5% is found defective, the entire lot is rejected.
For specialized and high cost components the cut off ratio is fixed at 1%.
Quality control department structure

Executive Director

Assistant General
Manager

Senior Manager

Senior Deputy
General Manager

Manager E4
Senior Manager

DGM E6
Manager - E4
Senior Engineer E2

IAME B-SCHOOL

Deputy General
Manager

Senior Engineer E5
Manager E4
Senior Engineer E2

Page 45

ORGANISATION

STUDY

3.8 PRODUCTION DEPARTMENT

The Various products produced from BHEL can be broadly classified as:

Control Equipment

Semi-conductor photovoltaic

Energy meters

Tele communication

Defense

AC drive system-

DC drive system

Excitation systems

Static starters

Energy Meters
BHEL Electronics Division's Induction type energy meter range includes
single and three phase versions for both domestic and industrial applications. The unit to its
credit has delivered over 15 million energy meters, a feel unparalleled among various energy
meter manufacturers of India.
The improved designs of the Electronic Energy Meters have additional anti-fraud features like
Phase reversal and Earth loading. The new generation of Software based Trivector Meters with
Maximum Demand Indication, Differential Tariff, and Time of Day; down loading are some of
the new features being offered to customers.

IAME B-SCHOOL

Page 46

ORGANISATION

STUDY

Industry Industrial Automation

BHEL-EDN has the competence to offer Automation System comprising of Distributed Digital
Controls, Programmable Logic Controllers and Process Controllers including appropriate
software. Many such systems have been designed, manufactured and supplied to steel plants for
rolling mills and blast furnace applications.
Data acquisition and monitoring systems for the novac chamber, for testing of satellites of ISRO
and systems for monitoring the presence of poisonous gases in mines and heavy water plants
supplied by BHEL-EDN can claim credit for safety-sensitive applications.

Power
Automation and Power Electronic System Power Plant Automation
Any power plant is a mini industrial cosmos with a variety of control elements with intricate
inter-relationships. BHEL Electronics Division offers
a large variety of control equipment for power stations ranging from simple control systems to
single push-button automation for power plants of any size. Automation systems for controlling
steam/water turbines, boilers and generators employing state-of-the-art Distributed Digital
Control Systems (DDC) concepts are amongst the products that are offered. The DDC systems
for power plants include CRT-based Man-Machine Interface and Computer based Information
Management and Optimization systems.
BHEL-EDN also offers unified DDC solution for the entire power plant Comprising of Boiler,
Turbine and Balance of Plant (BoP) bringing the benefit of uniformity in hardware, software,
operation methodology as well as spares inventory to the user.
The SG (Boiler) C&I package, the sub packages offered by BHEL-EDN include Burner
IAME B-SCHOOL

Page 47

ORGANISATION

STUDY

Management Systems (also called FSSS), Secondary Air Damper Control Systems, and Soot
Blower Control Systems, HP Bypass Control Systems and Auxiliary Pre-Reducing and
Desuperheating System.
BHEL-EDN manufactures Integrated Control and Instrumentation systems capable of
monitoring & controlling the critical parameters of a steam turbine to a high degree of accuracy.
The Electronic Automation system for Steam Turbine (EAST) is designed for automatic start up
and shut down as well as efficient operation during normal and safe shut down during abnormal
conditions. The complete range of thermal, nuclear, industrial and combined cycle plants is
covered for Steam Turbine controls.
Balance of Plant (BoP) automation comprises of Control, Monitoring and Information system
including regulation controls, coordinated controls, sequential controls, interlocks & protections,
alarm annunciation, operator interface units with large video screen as well as performance
calculation for the entire power plant. Higher-level automation can also be offered ensuring
automatic plant start-up, shut down and plant optimization. Solutions also include automation for
gas turbine based open and combined cycle power plants as well as hydro power plants.
BHEL-EDn also manufactures SPEEDTRONIC Mark IV/Mark V control systems for Gas
Turbines with technical know bow from GE (USA). BHEL-EDn is the first licensee of GE
(USA) for manufacturing and servicing of Mark IV/Mark V Gas Turbine Controls in the world.
DC Drive Systems:
BHEL-EDns Thyristorised Digital Converters are used for DC Drives with constant power or
constant torque control. Many such converters are already in service at rolling mills and process
lines in industries like steel, aluminum, rubber, cement, coal and copper. Converters up to 10,000
a ratings with digital controls have been supplied by BHEL-EDn
AC Drive System:
BHEL-EDns adjustable speed AC Drive System with Load Committed Inverter is a highly
IAME B-SCHOOL

Page 48

ORGANISATION

STUDY

energy efficient system for controlling Synchronous Motors used for flow Control Applications
like Fans, Pumps and Compressors in Power Plants and Industries. Speed control of squirrel cage
Induction motors with GTO (Gate Turn-off) thrusters is cost effective, requires low maintenance
and finds widespread application in industries.
The digital controls with hot standby control and power channels increase system availability
and make these drives user friendly. A number of systems have been designed for ID Fans and
Boiler Feed Pumps (BFP) for power plants of up to 500 MW capacities
Solutions are also available to provide cost effective Digital Drive Controllers for new and/or
existing induction motors employing either GTO or Insulated Gate Bipolar Transistor (IGBT)
devices.
Power Supplies:
BHEL-EDN offers state-of-the-art, digitally controlled, highly efficient low Voltage and high
current DC Power Supplies (Typical rating: up to 90KA and 950V DC) with water cooled
thyristors Rectifiers to Industries like Caustic Soda, Aluminum / Copper smelters and others.
Solutions also exist for high voltage power supplies (Typical rating: up to 100A and 20KV DC)
using air-cooled thyristors suitable for broadcasting transmitters, test plants and many other
applications.
BHEL-EDN has also supplied forced Air Cooled Inverters using IGBT devices, suitable for
medium frequency induction heating equipment, for controlled preheating of X20 special alloy
tubes for welding and stress relieving at higher temperature (Typical rating: up to 3 kHz and 120
k\V).
Static Starters:
BHEL-EDn has designed and manufactured special purpose Digital Static Starters for soft
starting of hydro generators and synchronizing with the grid either as a pump or as a
synchronous condenser. The system provides an easy interface with plant C&I and has
protections like over voltage, over current, earth fault etc. Static starters of 18.5MVA/13.8KV
IAME B-SCHOOL

Page 49

ORGANISATION

STUDY

and of 3.3KV/1.2MW ratings have been supplied.

Excitation Systems:
BHEL-EDN offers Excitation systems in Synchronous generators for hydro, thermal, nuclear, cogeneration, combined cycle, DG power plants as well as for synchronous machines in industrial
applications. With the ever-growing size and complexities of the power system network, fast
response excitation systems capable of meeting more stringent specifications are called for to
improve system stability and availability. The state-of-the-art excitation system offered by EDN
includes fast acting, fully controlled semiconductor bridges along with digital controls.
Redundant philosophy in power and control

circuits employed ensures high availability

and

hot repair/replacement possibilities.

The digital electronics with self-diagnostic feature, programmable logic controls and serial
communication etc., provide easy and efficient integration with plant DDC. Unique facility
exists at works for closed loop performance testing, using an online real time generator
simulator. Solutions are also offered for different types of excitation systems such as Static
excitation and Brush less excitation system in digital versions for any size and make of
synchronous machines to meet the ultimate customer requirements. To date, BHEL-EDN has
supplied more than 800 excitation systems of various ratings, which include over 30 sets in
operation outside India.
Semiconductor Devices:
BHEL-EDN manufactures Power Thyristor Devices and Diodes of various ratings to meet the
requirement of high power electronic systems used for various applications in Power, Industry
and Transportation systems. While high power thyristor devices are used in high current
rectifiers for Industrial projects, high voltage thyristor devices are used in HVDC applications.
Power semiconductor devices manufactured by EDN have earned a reputation for high
reliability. As testimony to this, the unit has won the prestigious ELCINA award thrice and has
IAME B-SCHOOL

Page 50

ORGANISATION

STUDY

been recognized by the Department of Electronics as a 'Center of Excellence' in this area.

A new type of diode suitable for rotational applications, developed by BHEL-EDN, has also been
exported. This device is used in the exciter of turbo-generators for power generation.
Production department structure
GM
Production

AGM Control

Equipment

AGM

AGM
SC & PV

AGM
Defense
Equipment

AGM Meters
& Capacitors

Fabrication

PPC

Main
Assembly

Sub
Assembly

Testing

Manufacturing Process:

IAME B-SCHOOL

Page 51

ORGANISATION

STUDY

The marketing section procures orders from customers, through advertisements,

Propagandas and promotional methods. A copy of this order is passed to the commercial
section. The commercial section prepares a manufacturing order on the basis of the
customer specifications. The Engineering section makes a note of these specifications and
tries to design the product. At the same time, a copy of the order is issued to the material
management section so that the required materials can be made available at the stores for
production. Once the products are produced, they need to be tested by the testing section
before being issued or transported to the customer's sites.

IAME B-SCHOOL

Page 52

ORGANISATION

STUDY

3.9 MANAGEMENT INFORMATION SYSTEM DEPARTMENT

MIS

Transaction Processing

Management reporting

System (TPS)

System. (MRS)

Decision support
system.(DSS)

Office automation
System.(OAS)

MIS Sub Systems:

Computerization in BHEL-EDn commenced at the very inception of the company in the
seventies... Today, computers are being developed in all facts of the company's operations
both for business and for engineering applications. In data communication area, all the
units are linked through a Wide Area Corporate Data Network-BHEL NET. Each of the
major units have also set up its campus wide backbone network supported by the LAN
for inter office / department ' connectivity for systems integration.
The IT department provides and maintains the network, applications, database, software
etc., of different departments of BHEL -EDn. The PCs are brought on Lease Rental basis.
At present, the MIS department is looking forward to implement ERP at BHEL-EDn.

IAME B-SCHOOL

Page 53

ORGANISATION

STUDY

3.10 MATERIAL MANAGEMENT DEPARTMENT

Activities / Functions
1. Registration of Incoming Materials.
2. Goods Receipt (GR) generation.
3. Shortage / Damage reports (SDR).
4. Rejection Report.
5. Material handling equipment.
6. Unloading, Pallestisation, Movement of material.
7. Transport contract and collection of material.
8. Freight bills processing.
9. Levant section (credit in books).
10. Scrap & Surplus disposal.

IAME B-SCHOOL

Page 54

ORGANISATION

STUDY

4. SWOT ANALYSYS
Strengths:

It is one of the oldest, strongly, established industry, well versed in the manufacture of
electronic products for industrial users (CE, defense, electronics etc.) as well household
users (meters, capacitors)

Implementation of the ERP package, which would fetch good results. It helps the
organization to stay competitive in the software era.

ISO 9001 certificate conferred by the bureau varies quality information i.e. BVW (UK)
on EDn has strengthened BHEL in the national and international market.

It has the most efficient infrastructural facilities-capable of providing customized

products for its customers.

BHEL has paid great interest to quality from many years which helps them for improved
productivity.

It has international competitiveness.

Weaknesses:

Technology contains shades of 1970s.

BHEL EDn does not do any effective advertisement nor has not looked much into
advertisement strategy.

TQM policy is not adopted which hinders the continual check on the quality.

BHEL-EDn has a very weak marketing and commercial department.

Opportunities:

In the years to come, more power stations are expected to show up and make way for
more business opportunities.

IAME B-SCHOOL

Page 55

ORGANISATION

STUDY

Indian power market is expecting an expansion of 120000MW by 2012 which BHEL can
encash.

Indian Railways is planning an up gradation programme in which BHEL can take an

active participation.

Cater to meet nuclear power plant requirement.

BHEL can look forward for an increase in the export share in the Middle East, southeast,
Bangladesh and African countries.

Extend Potential business in coal washers, water treatment plants.

More diversification in its product range is another path open for BHEL-EDn

A positive growth in the profits made by BHEL-EDn indicates a bright future.

It can get into the line of engineering and design (E&D).

Threats:

A stiff competition from MNCs like GE, ABB, L&T etc.

An imbalance created because of increasing raw materials costs and low prices of BHELEDn products.

Railways have indicated 3% growth in the tenth plan as against 6% growth during the
eleventh plan, which would result in scanty order flow for an electrics for locos.

Collaborators are increasingly restricting export territories under license agreements in

order to protect their market share in territories outside India particularly where BHEL
has built up references and strengths.

IAME B-SCHOOL

Page 56

ORGANISATION

STUDY

5. Mc kinseys 7S framework

The 7-S framework of McKinsey is a Value Based Management model that describes how one
can holistically and effectively organize a company. Together these factors determine the way in
which a corporation operates. The model starts on the premise that an organization is not just
structure, but consists of seven elements. Effective organizations achieve a fit between these
seven elements. This criterion is the origin of the other name of the model: Diagnostic Model for
Organizational Effectiveness.

1. STRATEGY
Strategies are actions a company plans in response to or anticipation of changes in its external
environment. Its a route that the organization has chosen for its future growth. Its a plan an
organization formulates to gain a sustainable competitive advantage. Strategy must give scope
for modification to suit environmental changes.

IAME B-SCHOOL

Page 57

ORGANISATION

STUDY

2. STRUCTURE:
Shows authority and responsibility relationship between the people working at different levels.
Its a chart that explains who reports to whom. It clearly shows how the tasks are subdivided and
integrated. Based on the change in the strategy, structure must also be altered.
The Company has divided the departments into two broad categories viz., Front
Line Functions and Supporting Functions.
Brief note on the Frontline Functions
Production:

The Company has six manufacturing units and four are situated in Bangalore.
As per recent information, the Company has employed more than 2200
labors, who would be functioning in three shifts. The Company has a
production capacity of 130 millions parts of automotive products yearly.

Marketing:

This department goes hand in hand to ensure that the customers demands
are correctly captured and informed the same to the production department
on monthly basis.

Brief note on Supportive Functions:

Accounts & Finance:
This Department is headed by Mr. K.N Prakash, General Manager Finance. The

structure of

the Department is furnished below:

GM Finance

Senior Manager Accounts

Accounts Officers

Accounts Executive
Accounts Assistants.

The major functions of the Department are:

Banking and Loan Arrangement (short and long-term)

Book Keeping & Finalization of Accounts (Quarterly & Annually)

Budgeting and review of Budgeting

IAME B-SCHOOL

Page 58

ORGANISATION

STUDY

Taxation including Tax Planning

Costing including Product & Process Costs

Risk Analysis and Insurances

Purchase:

The Company has a Purchase Department with 15 personnel, who are all
reporting to K Hari Director, Business Development .This Department
takes care of entire procurement of the Companys needs through a
formulated system viz., Material Requisition, Quotation call, Comparative
Statement, Purchase Order, Procurement and Transfer to Stores.

HR & Admin:

This Department takes care of entire facilities of employees as well as

Company. HR manger plays a crucial role in maintaining the utilization of
machinery and labour productivity.

Information Tech:

This Department is entrusted with entire system functions of the Company

including a new venture into SAP. This Department consists of 10
personnel, who are reporting to Senior Manager C J Terence.

3. SYSTEMS
The processes and flows that show how an organization gets things done from daily operations.
It also refers to the rules and regulations and procedures both formal and informal that
complement the organizational structure. This includes the way the functions of different
department are carried out. A proper system avoids confusion and duplication of work.
4. STYLE
Style is the way the management behaves; style also refers to the employees common way of
thinking, behaving, written norm of behavior and thoughts. Style is also the patterns of actions
taken by over by a period of time, this including the organization culture, the style of leadership.
Corporate Culture of BHEL
Democratic and partnership oriented corporate culture is the driving force of companys success.
It is driven by the culture of trust and freedom of thought with its employees. With business
associates it work as partners in growth and believe in incorporating.
IAME B-SCHOOL

Page 59

ORGANISATION

STUDY

5. STAFF
Acquiring and developing employees is vital in the organizational success. Committed work
force is an asset to the organization. They must be motivated to contribute their maximum efforts
for the development of the organization. Quality and quantity of workforce should change to suit
the demanding situation. The company employs around 2200 people with manufacturing
operations spread over six plants in India as on 2012.
Performance management
360-Degree Feedback System
A 360 Degree Feedback System provides senior managers with valuable inputs through
assessment from their colleagues, subordinates and internal as well as external customers. This
enables the management to prepare their employee's individual development plans by
understanding their potential, interests and goals.
Employee Involvement
BHEL believes that employee involvement is the key to continuous improvement, sound
decision-making and developing an open and transparent organization. Open forums provide
opportunities to employees to share their views regarding people policies. This ensures a
foundation of people centric policies.
Compensation and benefits
Apart from a satisfactory wage and salary it has also provided bonus. The company has provided
insurance coverage for all the workers.
6. SKILLS
Organizational capabilities and competencies help the organization to gain competitive
advantage. These strong qualities must be polished and strengthened to maintain competitive
advantage over a long period of time. Skill is character that one should posses to perform a given
job. It includes those characteristics the company expects its members to perform the assigned
job efficiently.
IAME B-SCHOOL

Page 60

ORGANISATION

STUDY

a) Skills of top level management

Top level management is the key decision maker. Top managers are ultimately responsible for
the performance of the organization, and often, these managers have very visible jobs. Also they
have the skill of relating, balancing, setting and developing standards, which the organization
and workers should meet.
b) Skills of supervisor
Every supervisor should have a sound technical knowledge of their own functional fields, so that
they can provide proper instruction to the shop floor operators in doing their work which leads to
discipline and success.
c) Skills of lower level
Lower level constitutes of labors who are dealing with the machineries. They

have got the

job of forging, packing, drilling, lathe & maintenance etc. So these workers should have
technical skills of dealing with machines.
7. SHARED VALUES:
It means that the employees share the same guiding values or the societal obligations or the
Business ethics. Values are things that you would strive for even if they were demonstrating not
profitable. Values act as an organizations conscience, providing guidance in times of crisis.
Identifying corporate values is also the first essential step in defining the organizations role in the
larger community in which it functions. Any organization respecting the human resources has
good value sharing among the people in the organization.

Employees accident relief fund: BHEL has introduced a unique Employee relief scheme
entitling the dependents of the Employee for an immediate compensation of Rs. 1 lakh
in case of accident death of any employees of BHEL. Such relief will be in addition to
the regular compensation awarded by the Industry accident claims.

Medical facilities: BHEL following the Karnataka government servants (medical

attendance) rules 1963. Employees are entitled to reimbursement

IAME B-SCHOOL

Page 61

ORGANISATION

STUDY

6. FINDINGS AND SUGGESTIONS

FINDINGS

During the training extracted the following distinctive features of BHEL.

BHEL overseas business is going to increase more in the next five years.

Market distribution in international market can be increased by entering into the new foreign
countries.

BHEL is the main market holder in the domestic market but faces a fierce competition at
international level.

The quality control & quality assurance is major concerning area of BHEL.

Financial strategy adopted by BHEL is best.

SUGGESTIONS

Very important of all is the marketing department function that is it has to do good advertisement
and build brand awareness in the market.

Job rotation, job enlargement, job enrichment needs to be done frequently in EDn.which would
motivate a employee to do better

As BHEL faces a tough completion from the Private firms it must formulate better policies that
attract customers.

In order to survive and to be a leader BHEL needs to come out new products continuously and
increase its product line.

BHEL also needs serious technological upgrading since in some production units, the machinery
being used is as old as 1980's

IAME B-SCHOOL

Page 62

ORGANISATION

STUDY

It needs young upgraded work force than an older force so it needs to replace them gradually as
time permits.

It needs to also eliminate the excess work force.

7. CONCLUSION
The electronics division of BHEL was formed in 1976 growing from a merger turnover of RS 3 crores in
1976-77 to 500 crores approximately in 2000-2001; BHEL-EDn has entered a new phase of growth.its
quick progress was aided by the collaborations with international leaders in the field of power and
control electronics.
'Looking from its commanding height, BHEL-EDN sees exciting things happening today in the field of
automation and power electronics and like any young adventure, it is eager and ready to cover new
terrain
Electronics division stands poised for greater conquests in many challenging fields, using state of the art
technologies and keeping pace with the international scenar.
Human resource department
Though we had a very short tag in the organisation, we had a great experience meeting people across all
the departments arranged by the human resource personnel.accordingly.we found that though they have
lot of employees in this organisation, human resource department is able to manage things successfully .
Production department:
As for as production department is concerned it has good and well-equipped machinaries.has a very
good layout, which enables me workers to allow on the work without any hard ship. but the only thing is
that they are of same designs.
Marketing department:

IAME B-SCHOOL

Page 63

ORGANISATION

STUDY

Marketing department deals with industrial marketing as they have got different product lines so they
target their particular areas and follow the customers with personal attention, as they have to expand all
the technicalities and some areas they have monopoly.
Finance department
The department is well managed its records but depends on the corporate office for all its transactions
and till know they haven't had any problems in working capital.
Systems department
As today need the organization has been paying a lot of interest towards the networking and software. It
has implemented ERP package which is going to be complete by January BHEL looks forward on the
line of business to do better and prosper and it is working towards it and can be success full doing so
adopt the modem designs and engineering to the present market needs.

IAME B-SCHOOL

Page 64

ORGANISATION

STUDY

8. BIBLIOGRAPHY
1. COMPANY LITERATURE.
2. ANNUAL REPORT.
3. INTERNET.
4. INFORMATION GATHERED AT BHEL.
5. BHEL LIBRARY.

IAME B-SCHOOL

Page 65