Bharat Heavy Electricals LTD

Bharat Heavy Electricals Ltd.
, (EPD)
Garden City College, Bangalore Page 1 BHEL EPD belongs to heavy electrical equipment / machinery industry. Thus, we shall have a glimpse of heavy electrical machinery industry in India.
THE HEAVY ELECTRICAL MACHINERY INDUSTRY IN INDIA

The development of the Indian heavy electrical machinery industry is directly linked to the performance of the Power sector in India. With Indias development, the need for more and better power supply has become essential for industries to grow. Thus with increasing focus on capacity expansion in the Power sector, the heavy electrical machinery manufacturing industry is expanding vigorously.
A snapshot of the Indian heavy electrical machinery industry:

The heavy electrical machinery segment in India is monitored by the Ministry of Heavy Industries and Public Enterprises. The heavy electrical machinery segment manufactures a wide range of products including boilers, generators, transformers, switchgears and control gears needed mainly by the power sector.
Evolution of the Indian heavy electrical machinery industry:

Throughout the 1990s and in recent years, industry experts have been trying to ascertain methods to achieve and sustain growth across segments in the industry and to help India become a manufacturing hub. The ever increasing demand for power in India has led to a widening gap between the supply and demand of electrical machinery to be able to service the planned developmental needs in India. In the past two decades the industry has witnessed large scale consolidation. The consolidation has resulted in stronger companies with increased size, economies of scale, wider product ranges and enhanced financial strength. Companies now have greater access than before to foreign
Bharat Heavy Electricals Ltd., (EPD)

Garden City College, Bangalore Page 2 markets and higher bargaining power as a result of combined technological strengths through technology transfer from global majors. However, the industry is still highly fragmented with more than 50 per cent of the manufacturers with a turnover of less than Rs. 500 million. This is because there are many companies in the unorganized sector that manufacture transformers, switchgears, and other products in the lower technology fields. In the organized sector the domestic manufacturers mainly consist of Public Sector Units (PSUs).
Growth of the heavy electrical machinery industry:

Electricity generation is expected to double in the world between 2002 and 2025. The strongest
growth in electricity consumption is projected in the emerging economies. As per the estimates of the International Energy Outlook, investments in the power sub-segment in the developing countries in Asia are expected to be the fastest growing in the world in the next two decades. Indias per capita energy consumption is very low. With the growing economy, changing lifestyles, increasing electrification of rural and semi urban areas, the consumption of electricity is expected to increase, leading to higher per capita electricity consumption. As per the Ministry of Power and the Central Electricity Authority (CEA), per capita electricity consumption is set to increase from 585 units in 20072008 to 1000 units by 20112012.
Contestant

Garden City College, Bangalore Page 3
Size and structure of the heavy electrical machinery segment:

Heavy electrical machinery covers machinery for power generation, transmission, distribution and utilization. This includes generators, boilers, various types of turbines, transformers, switchgears, insulators and other allied items. These are used in multicore projects for power generation including nuclear power stations, petrochemical complexes, chemical plants, integrated steel plants and metal units. The Government of India has an ambitious mission of addition in generation of power named For All 2012. A capacity addition of 72 000 MW would be required to achieve power for all in India. This scale of expansion in capacity is expected to stimulate demand in a big way for heavy electrical machinery. The technology available in India is almost at par with that in the international market barring some exceptions like high voltage equipment. It is believed that the history and growth of BHEL, symbolizes the overall growth pattern of the heavy electrical machinery industry in the country. BHEL has the unique distinction of being one of the very few companies in the world, manufacturing all major power generation equipment together under one roof. Now since the demand for electricity has been increasing steadily, there is a burgeoning need for more electrical machinery manufacturers as BHEL alone is not able to fulfill the entire demand.

Garden City College, Bangalore Page 4 The industry has been upgrading the existing technology and is now capable of taking up turnkey
contracts for export markets as well. The industry has been delicensed and foreign collaborations are allowed with 100 percent FDI. The country is planning to add 150 000 MW to the power generation capacity in the next 10 years. This will generate substantial demand for heavy electrical machinery. There is a strong base for the manufacture of heavy electrical machinery in the country. The present buoyancy in the Indian economy would further create demand for electrical machinery through industrial growth and general economic development.
Large manufacturers in the Indian electrical machinery industry:

Manufacturer Company description Sectors/ products ABB Has 14 manufacturing facilities
and more than 6 500 employees. ABB Group is leveraging its India operations for projects, products, services, engineering, and R&D. India is a hub for the South Asia region.
Control systems, highvoltage products and systems, transformers, cables and accessories and generators. Crompton Greaves Started its India operations in
1937. One of Indias largest private sector companies. It is a diverse company engaged in designing, manufacturing and marketing technologically
Transformers, transmission products, generators and lighting products.

advanced electrical machinery.
Bharat Heavy Electricals Limited

Established more than 40 years ago, it is the largest company in the industry. Its range of 180 products caters to power generation and transmission, transportation, telecom, and renewable energy industries.
Switchgears, boilers, turbines, generators, transformers, compressors, capacitors etc. Kirloskar Electric Established in 1946 it is one of
Indias leading manufacturers of
electrical machinery and power equipment. Is capable of manufacturing a range of custom made products.
Motors, generators, switchgears, transformers, and other electrical products like DC machines. Larsen & Toubro It is one of the largest private
sector companies in the business. It manufactures custom designed and engineered electrical machinery and systems.
Switchgear, control and automation systems and meters, turbine casings etc Alstom Employs more than 3 300 people
in India and has 4 manufacturing facilities. Alstom India has full capabilities in engineering, manufacturing, project management and supply of power generation equipment.
Boilers, generators, turbines, heat exchangers etc. Havells One of the fastest growing
indigenous electrical and power distribution equipment manufacturing companies.
Cables, switchgear, capacitors and lighting equipment

Global share in production of Indian companies :

India is the only developing country besides China, which produces the entire range of electrical power generation and transmission machinery. Indian companies enjoy majority of the market share in production across most segments in the industry. But a large number of collaborations with foreign manufacturers are taking place in the industry leading to the growth of several joint venture companies.
Comparison of Indian manufacturers with global leaders:

Indian manufacturers are yet to reach the kind of competency levels the global manufacturers have with regard to technology, delivery and quality parameters. On the cost parameter, common
Employs over 8 000 employees and has manufacturing facilities spread across USA, Europe and Africa. Thermax An Indian company having 5
manufacturing facilities and has been in the business of manufacturing electrical equipment for more than 3 decades. Its products are sold in more than 40 countries worldwide.
Boilers and heaters are its major products

Garden City College, Bangalore Page 7 characteristics apply to the Indian heavy electrical machinery industry when compared with the western companies in the industry. According to a report published by an industry association Indian Electronic and Electrical Manufacturers Association (IEEMA), the Indian heavy electrical machinery industry is weak compared to global manufacturers with respect to automation in production, Research and Development (R&D) expenditure, training and development.
ContributioContribution of the heavy electrical machinery industry to the India economy:

More than 95 per cent of the electrical machinery successfully installed in operation in India has been produced, installed and commissioned by the Indian electrical machinery industry itself. Most of the products required for the industrial, commercial, and domestic sectors are manufactured by the Indian heavy electrical machinery industry. India has developed strong capabilities in manufacturing top-end and high technology products like transformers, turbines and generators that are at par with international standards. The industry had a volatile time during the period 1997 1998 to 20012002, but has been showing positive trends since 20022003. The heavy electrical machinery segment has exhibited a strong growth.
Advantages that are driving growth of the industry:

1. Indias quality standards are far more superior from some of the Asian tigers in the heavy electrical machinery industry. 2. The cost advantage that China enjoyed over India in the last few years was in the range of 2025 per cent whereas now that cost advantage over India is reducing and is now about 5 per cent. 3. Key strength of the industry is in being able to customize manufacturing of products. 4. Nuclear deal could lead to more business for electrical machinery manufacturers.

Bottlenecks in growth of the Indian heavy electrical machinery industry:

1. Big challenges cited by industry experts are timely availability of raw materials and infrastructural deficiencies. 2. The Government of India has set ambitious plans to increase the power generation capacity of
India. However, there are doubts about whether these targets will be achieved due to sluggish growth of the power sector. ORIGIN OF BHEL BHEL was established in 1956 at Bhopal and came into existence in November 1964. At first, nearly 41 years ago at Bhopal, a plant was setup, and that was the genius of heavy electricals equipment industry in India. BHEL is today the largest Engineering and manufacturing Enterprise of its kind in India with well recognized track record performance. Right from 1971-72 this organization is making profit.

Garden City College, Bangalore Page 9 Heavy Electricals (India) Ltd was setup in Bhopal in August 1956 with the view to reach selfsufficiency in Industrial products and power equipment which was vital for the industrialization of the country. To meet the total demand of Heavy Electrical equipment, BHEL came into being in November 1964. Three plants were established High-pressure Boiler plant - Trichy - Tamil Nadu - May 1965. High power equipment plant - Hyderabad - Andhra Pradesh December 1965. Heavy Electrical equipment Plant - Haridwar - Uttar Pradesh January 1967. As there was need for an integrated approach to the development of power equipment manufacture in India and also with the view to optimally utilize the resource, Heavy Electricals (India) Ltd. Bhopal was merged into BHEL in 1974. Presently BHEL manufactures about 180 varieties of products under 30 major product groups. It has built up an available reputation for high quality and reliability of its equipment. In BHEL 67.72% of shares are held by the Government of India and 28-32% is held by Financial Institutions, mutual funds, insurance company, foreign institutional investors and employees. BHEL is paying dividend since 1976-77. BHEL has been a profit making company right since its incorporation and has been making significant contribution to the Governments funds by way of dividend on the equity, taxes and duties etc. BHEL has also received Excellent rating for 9 years consecutively in achieving Memorandum of Undertaking targets with Government of India and has been conferred the priceless status of a Navaratna Company. Another major contribution of BHEL to the nation is by the way of its involvement in the social development work such as adoption of backward villages, buildings and running of schools, medical centers providing self employment facilities for widows, handicapped persons etc.
BHELs ELECTROPORCELAINS DIVISION (EPD) ORIGIN & GROWTH

To meet the nations demand for continuous country wide generation and distribution of electricity, early in 1902, the Govt. of Mysore took a progressive step forward and it established, for the first time in India a Hydro Electric Power Generation Station in Shivanasamudra. When Power started flowing from Shivanasamudra, the Govt. of Mysore was faced with the problem of importing Insulators to carry Power on their shoulders over miles and miles of wires. As a result in 1932, the Govt. Porcelain Factory (GPF) was established to manufacture lowtension insulators, Crockerys & artwork under the guidance of Sir.M.Vishweshwaraiah. The factory started manufacturing operation in the last week of March 1932 on a very small scale. The amount of capital invested was Rs.3,03,656 the total number of people employed were 200. The production was Rs.28,500 and sales were Rs.21,270. This was the only firm in the whole of South India which manufactured and supplied high and low tension insulators to various Electric Corporations and Government mostly in South India. On March 31, 1954 GPF made collaboration with Neigoon Gaishi Kaisha (NGK) a Japan Company. After collaboration, to increase production, a new factory block was setup. The foundation stone was laid by his Highness, the late Sri Jayachamaraja Wodeyar Bahadur, on July 7, 1954. To ensure autonomy of administration, the factory (GPF) was converted into a Public Limited company in 1st April 1967 and named Mysore Porcelains Limited (MPL). By 1975 MPL was sick unit running at heavy loss. At the instance of the Govt. of Karnataka, Mysore Porcelains Limited was taken over by BHEL on 4th October 1976 which become its subsidiary with assets worth Rs.5.5crores, an accumulated loss of over Rs.1crore and a work force of 1500. Before take-over, the unit was faced with financial difficulties, highly competitive market, surplus manpower and traditional management approach. After the take-over, improvements in the

Garden City College, Bangalore Page 11 working of the factory were affected in many areas. New departments like Central Planning, Engineering and Research, Quality Control, Field Engg. and Production Planning were started. Safety systems were introduced and the Personnel Department was revamped to include, among other things, new recruitment systems, training facilities and manpower information system. Amenities like canteen, medical center and Creche were introduced. On January 1st 1978, BHEL acquired all MPLs shares, thus making MPL a wholly owned subsidiary of BHEL and finally on May 21st 1980, MPL merged with BHEL and was called as
Electro Porcelains Division (EPD). EPD has successfully developed and now it has become a dynamic unit of BHEL. The Electroporcelains Division is one of the four plants of BHEL in the garden city of Bangalore. The plant is located in the heart of the city with well connected public transport system and other civic amenities. At present EPD being the power intensive unit consuming 8.5 millions units/annum is the leading manufacturer of High Tension Electroporcelain Insulators in the country and it has also pioneered on the manufacturing and supply of Indigenous wear resistant high alumina ceramic lining material for Power, Steel and Cement industries and also wide range of Industrial ceramics. The company has setup the Ceramic Technical Institute (CTI) with UNDP (United Nation Development Programme) assistance. EPD has an asset of 828 very friendly and loyal workers who consider the factory as their second home. They are guided by 110 supervisors, who in turn are led by 114 executives, and its annual turnover in the year 2001-2002 is about Rs. 104.60 crores.
Ceramic business unit:

Garden City College, Bangalore Page 12 BHEL has started a STRATEGIC BUSINESS UNIT for ceramics products and systems under the banner of Ceramic Business Unit (CBU). CBU is dedicated to the enhancement of business in ceramics and its associated systems. This business unit deals with High Tension Insulators, Ceramic wear resistance liners, Industrial ceramic products, Composite Insulators and associated systems. CBU has its head quarters at Bangalore and is supported by the following facilities, Manufacturing units with the STATE OF THE ART technology for ceramic products and systems at, Electroporcelains Division, Bangalore (EPD). Insulator Plant, Jagdishpur (IP). Advanced Research and Development facilities for ceramic products, processes and applications at, Ceramic Technological Institute, Bangalore (CTI).
BHELs NETWORK:
The wide network of BHEL with Corporate head quarters at New Delhi and consists of 14 manufacturing plants all over the India, 9 service centers, power sector, 4 regional centers in addition to over 150 project sites spread all over India and also provides prompt and effective services to the customers which has attained ISO 9000 certification, BHEL is now an embassy upon Total Quality Management. With the opening up of power sector to the private investment BHEL is likely to face an intense competition from other leading power sector organizations. However, in the past BHEL
demonstrated the capability to successfully face international competition introduced by multilateral agencies for funding of power projects in India.

CORPORATE IMAGE:
To build up a high degree of customer confidence in product of quality, performance and service, particularly with regard to supply of spares like government as owner, employees, customer and the country at large half from BHEL.
LEADERSHIP STYLE:
Fastening and sustaining organizational value. Empowering with responsibility and accountability at all levels. Visionary. Courage, credibility, comparison and visibility. Communication, information sharing and consultation.
THE COMPANY IS ACCREDITED WITH FOLLOWING INTERNATIONALLY ACCLAIMED STANDARDS: ISO 9001 COMPANY
Quality policy
ISO 14001
Environmental policy
OHSAS 18001
Occupation health and safety policy

ORGANISATIONAL HIERARCHICAL STRUCTURE OF BHEL-EPD




PRODUCT PROFILE, ITS APPLICATION AND CUSTOMERS Product Application Customer segment
1. Disc insulators Transmission line & substation SEBs, Power Grid, EPC contractors 2. Hallow insulators Transmission equipments BHEL, ABB, AREVA 3. Station post insulators Substation SEBs, BHEL, TBG, EPC
contractors 4. CERALIN Power generation plant NTPC, DVC, SEBs, etc... 5. Composite insulators Substation and Traction SEBs, Railways 6. Electronic water level indicator / flow bean Boiler &Valves BHEL(Thirchy), NTPC, DVC,SEBs 7. Grinding media Pulvisers NTPC, DVC, SEBs, etc 8. Filtration system Boiler feed water SAIL, TISCO, etc 9. Ceralin new application Steel plant, boiler, etc

Garden City College, Bangalore Page 19 Among all the functional areas of management, production is considered to be crucial in any industrial organization. The production department undertakes the process of converting the raw materials and other inputs into finished products. The manufacturing of goods requires a predetermined plan so that available recourses of the company are used to optimum level and wastage is reduced to the greater extent. BHEL-EPD unit being the power intensive unit consuming 8.5 million units/annum is the leading manufacturer of High Tension Electro porcelain Insulators in the country and it has also pioneered on the manufacturing and supply of Indigenous wear resistant high alumina ceramic lining material for Power, Steel and Cement industries and also wide range of Industrial ceramics.
HIERARCHICAL STRUCTURE OF PRODUCTION DEPARTMENT IN BHEL-EPD

For the production to take place smoothly and effectively the whole process involved in the production operation is divided into various sections. Each section is managed by one deputy manager followed by senior executives, executives, engineers, supervisors, shift in charge, assistances, trainees & artisans.

The hierarchical structure of EACH SECTION in Production Department at BHEL-EPD

THE VARIOUS SECTIONS IN THE PRODUCTION DEPARTMENT

Since production is a very important activity in any organization, the process of production should be smooth. To manage this process there are several section in existence. They are:-
1. Ceramics Lab:
Laboratory is meant for quality checking and help in product development. The monitoring of quality of newly arrived raw materials and the materials which are in- production process is done in this lab. There is a predefined systematic procedure & also the work instruction to study the actual quality of the material.
2. Slip House:
Slip house is a preproduction section. Before the actual production starts, the raw materials have to undergo a certain specific process. Here in slip house, the raw materials are obtained from the Material Management Department. These raw materials are mixed into certain composition according to the customer specifications which are then fed to Ball Mills. The ceramic slurry got from the Ball Mills is fed to the vibrator screens to check for the correct accumulation throughout the material and also to remove the solid particles. Then the material will be having too less impurities and then goes for filter press to extract water by pressing that ceramic body with high pressure.

3. Manufacturing Section:
In this section, the actual production takes place. From this phase, each section gets divided into two Sub-sections. They are:a) For Insulator production & b) For Ceramic Lining Tiles (CERALIN) production. a) The process of production for insulator is called Stiff mud process. The cake which is formed after filter press is given to pug mills & blanks are formed. These blanks are thrown & jiggering is carried over. The shaped material goes for finishing operation. Then it goes for visual & oil inspection and then for glazing, sanding and gets fired in the kilns. This finishing of the product is called Green / Dry finishing because the rejected material from here can go for recycling. The insulators, which are manufactured, are disc, post, hollow and solid core insulators. These insulators range from 70 KN to 420KN. b) For ceramic lining tiles production, the cake which is got from filter press is dried and granulated. The granulated cakes are mixed with organic binders and are compacted in a hydraulic press into the required shape of the tile. Then it is fired in kilns.
4. Kiln Section:
In kiln section, the firing of insulators and ceramic lining tiles are done. a) Kilns used for firing the insulators to increase the resistant capacity are of three types having different capacities. They are: Oil Tunnel Kilns Shuttle Kilns
Rectangular Kilns

Garden City College, Bangalore Page 23 For disc & post insulators tunnel kiln are used. For hollow insulators & solid core insulators they use shuttle kilns and also the rectangular kilns. Oil tunnel kilns can fire 2500 units of disc insulators per day. The process that takes place in oil tunnel kilns is oxidation, reducing, neutralization & cooling. The temperature at which the insulators are fixed is 1250 to 1280 degree Celsius. b) Kiln used for firing ceramic lining tiles is a Modern Micro-processor controlled kiln.
5. Testing Section:
a) There are several tests to be carried out to check for the quality of the insulators. These tests are done in this section which includes: i. Hydraulic Pressure test: In this test, a huge amount of pressure will be executed over the fixed insulators (disc) at an order of 180 +/- 20 kg/cm for insulators ranging from 70KN to 210 KN and of order 200 +/- 20 kg/cm for 320 KN disc insulators. ii. Thermal test: The insulators, which are successful in the hydraulic pressure test, are subjected to thermal testing. In this testing the insulators are dipped in hot water at 90 Celsius. Then within 60 seconds it has to be removed from the hot water and has to be placed in the cold water which is having a temperature around 20 Celsius. This test is done to see its withstanding capacity for fluctuation in temperature. If the insulator fails to withstand the sudden fluctuation in temperature, small cracks will appear. iii. Mallet test: In this testing, the insulators, which have undergone thermal testing, are beaten using a nylon hammer of 1.5kgs on the top and sides of the insulators. If there is any small crack, it will be revealed and thus are rejected.

Garden City College, Bangalore Page 24 iv. Electrical test: Insulators are subjected to routine electrical testing at 70 kV to 80kV for 4 minutes, 1 minute for high frequency power test and 3 minutes for high voltage power test. If any insulator fails in the test or it punctures and it is thus rejected. b) For ceramic lining tiles, there are no tests conducted but visual inspection of the tiles are done to check its shape and to see whether the tiles are complying to the geometrical requirements.
6. Assembly Section:
a) For insulator: These tests are done before assembling. Then the units go for assembling where special, crock, cap,
pin are placed using cement & is fed to steam dryer for initial setting & then finally goes into hot water for 3 days & 1 day to steam. This final product again goes for electric resting at 150kV & the successful insulators are sent for dispatch after packing. b) For ceramic lining tiles: Here, depending upon the nature of application, the fired and tested tiles are fixed to the metal base by either using silicon cement or metal studs and thus they are dispatched after proper packing is done.

THE MANUFACTURING PROCESS FOR INSULATORS

The different raw materials for the manufacture of insulators are stored in identifiable bins. The raw materials that are required are: Quartz, Feldspar, Dolomite, Manganese dioxide, Chrome ore, Calcite, Pyrophyllite, Bangepur Clay, Bikaner Clay, Than Clay, Ellur Clay, Neyveli Clay, Chaybasa Clay, Japan ball Clay, Kundra Clay, Festile and China Clay. The production in BHEL-EPD runs 365 days, and it is a continuous process. Here raw materials are tested before manufacturing the insulators so that raw materials obtained satisfies their requirements. All these materials are used in different quantities for different type of insulators that are manufactured.

Garden City College, Bangalore Page 26 1. Crushing Plant: Above said materials other than clay are available in the stone form. Crushing plant is used to crush these raw materials into powder form and also it is used to powder the rejected ones for recycling. 2. Weightment: Different raw materials from the storage bins are collected and weighed according to the percentage composition given by the ceramic lab section and according to the ball mill capacity to be charged. Then the weighing card is attached to the lot. 3. Ball Milling: Weighed raw materials including clay are mixed with sufficient water i.e. 50% of raw material & 50% of water and grinded in ball mills for duration of 20 to 24 hours. Its a continuous process round the clock. The material obtained in the ball milling process is called Slip or the Ceramic Slurry. 4. Screening: Here the slurry is transferred to the tank from the ball mill to remove the unwanted materials like threads of the plastic bags in which the raw materials were stored, wooden pieces, etc., through electromagnetic separation. This tank is called discharge tank. 5. Slip Agitating: After screening, the ceramic slurry is transferred to another specially built tank called Top Tanks. From this tank it is passed through two vibratory screens which will be
rotating continuously to avoid accumulation of raw materials at the bottom and on top. Then the mixture is fed to Ferro filter for removing the iron particles. Finally the fresh slip is collected in the fresh tank or storage tank. 6. Filter Pressing: Filter pressing is dewatering process. In this process 80% of the water is removed from the slip so as to convert the slip into cake form using nylon clothes. In this process high pressure is applied by compressing them from both sides.

Garden City College, Bangalore Page 27 7. Pugging: It is a de-airing operation under vacuum. The cakes are filled into pug mills to remove air bubbles present in the cakes. In the pug mill homogenous mixing of cakes takes place. The product which comes out after pugging process is called as blanks. Blanks are extruded from the pug mills in the cylindrical form of different sizes for different type of insulators. In this process the moisture content is reduced to 22%. 8. Throwing: This process is done only for disc and post insulators. The blanks formed from pug mills need to be shaped in a tomb form to give the shape to disc insulators. This process is called as Throwing. 9. Jiggering: This process is done only for disc insulators. Here the blanks are given a shape using an automatic jiggering machine which produces 100 units per hour. 10. Drying: The disc insulators and hallow insulators are to be dried after giving their respective final shape to see that the moisture content is below 1%. Otherwise it will burst out in firing operation. The different drying steps are as follows: Chain Dryer: These driers are used for drying the disc insulators. After this process the insulators will be having less than 18% of moisture in it. Blank Dryers: For hallow insulators and solid core insulators the blank produced by pug mills are directly fed to these blank driers. For making the hollow insulators and solid core insulators the hardness of blanks is very much necessary. Therefore blanks are dried to see that the moisture content is less than 17%. 11. Turning: Turning is a process used to make hallow insulators and solid core insulators with the help of turning machine. In turning machine there is wheel in which the dried blank is kept

Garden City College, Bangalore Page 28 vertically and is made to rotate. When it rotates, the other part of the machine having a metal rod gives the spiral shape to the blank.
12. Oil Inspection: After the disc insulators are dried from chain dryer, they go for finishing operation. Those processes give a perfect shape for the product and then the visual and oil inspection is carried out for the quality of the product. 13. Tunnel Driers: The disc insulators after inspection; and hallow insulator and solid core insulators after turning, goes into tunnel driers for further drying. In this process the moisture is removed through steam. After the drying is over each product will have less than 1% of moisture in it. This model of drying is called drying chamber. 14. Glazing: After the model drying is over all types of insulators goes for glazing. Glazing is a process to give the required color to the insulators like red, brown, black and white. Glazing is done to give a coating of 0.3mm to 0.5mm of thickness. Glazing results in improved mechanical and electrical stability characteristics. 15. Sanding: The tip of the disc insulators is sanded using glue for mounting of the metallic cap and for inserting the metallic pin inside the insulators. For sanding, the fired insulators which are rejected are powered and used as sandy materials. 16. Firing: The insulators are subjected to firing operation in kilns where temperature is gradually increased, maintained and gradually decreased to avoid cracks in the insulators. The maximum temperature is up to 1300C.

Garden City College, Bangalore Page 29 17. Testing: After firing the insulators goes for testing. The various types of tests are Hydraulic pressure test, Thermal test, Mallet test and Electrical test. 18. Assembling: The insulators, which have undergone all the tests and are successful, are sent to assembling section. The insulators are then mounted with metallic cap on the top, which is inserted inside the insulator using electrets, a type of cement used to assemble these metallic parts. 19. Curing: After assembling, the insulator goes for curing operation. The different kinds of curing are steam curing, hot water curing & air curing. 20. Final Electrical Test: After curing, the insulators are set for final electrical test. If insulators fail in this test, it bursts out and thus they are rejected. 21. Packing: The insulators, which are successful in the tests, are sent for packing section. The insulators are well packed in crates to avoid damages during transportation and to ease smooth handling. Thus, the time taken for all this activities crushing to packing is 31days.

THE MANUFACTURING PROCESS FOR CERALIN

CERALIN is the abbreviation for Ceramic Lining. Ceralin is an abrasion and erosion resistant high alumina ceramic lining material, which is the result of an extensive R&D programme initiated by EPD of BHEL. Ceralin reduces the down time and increases the overall efficiency of the system or metal in which it is being used. It also has an added advantage of withstanding very high temperature of up to 300 degree centigrade. Ceralin is produced in the form of tiles, depending upon the shape, geometry and the functional requirements. The shapes of tiles manufactured in EPD are :Curved plain tiles. Curved weld on tiles. Flat plain tiles. Flat weld on tiles. Depending on the nature of application the tiles are fixed to the base metal either using silicon cement or by welding metal studs.
The Process

Garden City College, Bangalore Page 31 The average days required for production is 15 days.
HIERARCHICAL STRUCTURE OF FINANCE DEPARTMENT IN BHEL-EPD General Manager DGM (Finance Manager) Manager
Books & budget Indirect taxes Pay Roll
Manager
Cost Cash Material purchase Work proposal concurrence
Manager
Sales accounts 1 Accounts Officer 5 Assistants
Manager
Bills Payable 1 Accounts Officer 2 Assistants 3 Accounts Officer 3 Accounts Officer 2 Assistants 3 Assistants

Garden City College, Bangalore Page 32 Finance is the life blood of business and hence it requires a lot of effort to manage it well. The basic functions of the Finance Department are procurement of funds at the right and optimum utilization of funds. Like every manufacturing company, BHEL also has its own separate finance department which deals with different financial matters of the company. The finance department of BHEL is subdivided into various sections and the work flow is divided among these sections which are consolidated and put together as a whole at the end and the final accounts are prepared and then the decision making process begins and targets are set for the next financial year.
THE VARIOUS SECTIONS IN THE FINANCE DEPARTMENT 1. Books and Budget Section:
BOOKS SECTION This section keeps the records of all the matters of finance department and all theother records that each section keeps with it. They record all the ledgers and vouchers of monthly, quarterly and yearly accounts. They also maintain records of the inter-unit transactions i.e. the transfers that takes place between this unit and BHELs other units. They keep the records of the entire audit that is done internally as well as the record of the entire statutory and government audit. BUDGET SECTION This section also deals with the budgeting of the company. The funds are allocated by the corporate office for each BHEL unit. After receiving this budget they prepare their own budget of each department with the respective heads and then allocate the funds to each department for their

Garden City College, Bangalore Page 33 purposes. They also prepare the budgeted figures and targets of the company for the next financial year.
2. Sales Section / Bills Receivable Section:
This section deals with all the sales related issues in the company. It keeps all the records and the data that is necessary while making the records and maintaining the accounts of sales. Eg., packing list, clearance letter, lorry receipts, guarantee certificate, etc It also keeps the record of all the debtors of the company and the Central and State sales tax that is levied on each item and the terms and conditions related to them. The debtors management is also dealt with this department. They have to prepare an MIR (Manual Information Report) for every month which is sent to the corporate office as a report of the company.
3. Bills Payables Section:

This section is concerned with the payment of all revenue bills. A revenue bill includes payment made to suppliers, payment to government agencies like KPTCL, BWSSB, BSNL and RTO. In case of purchasing the materials, the actual process starts once the order is placed and the material is received by stores and it is sent to quality section. Wherein inspection department will certify and then clear the stores receipt vouchers. The cleared stores receipt will then come to material

Garden City College, Bangalore Page 34 management who will value it. After this, it is forwarded to bills payable section. They will release the payment immediately when the bill becomes due. THE RECORDS MAINTAINED BY THIS SECTION ARE: Purchase order book Suppliers invoices Store requisition voucher, etc.,
4. Cash Section:
The main function is to account the cash and bank balance. Other than this function the actual payment of money is done through this section. The employees salary, contract laborers wages, suppliers amount and receipt of customers payment all are done through this section.
5. Costing and Material Account Section:

Costing section in EPD is an part integral section which co-ordinates various other departments like production, marketing, etc.. The main task of this department is to classify the various types of costs, accumulation of assignment and control of cost. The information supplied by this department has a great deal of importance to the management in decision making. By cost splits the management will be in a position to know where exactly wastages are more, or which method is causing runoff profits etc,. It also prepares the cost estimates, based on which the marketing department will make the bidding.
Another important function of this section is preparing the price stock ledger and major task of this section is that it looks after the capital payments.

6. Works Bill Section:

This section keeps a record of all the infrastructure related issues. They keep a record of the building, roads, furniture and the township related matters. It also keeps a record of the work that is needed to be done for the company as well as for the township and other areas.
7. Pay-Roll Section:
This section is concerned with the computation and payment of wages / salaries, medical reimbursement, conveyance reimbursement, tour advance settlement, air fare settlement, payment of medical expenses of retired employees, provident fund and gratuity, etc,. Hence for this purpose, this section maintains Master Records which consists details of each and every employee regarding their date of joining, leave taken, payment of salary, loan taken, allowances given, etc., which are monitored and updated every month. This section ensures a pleasant atmosphere by ensuring accurate payment to the employees in order maintain industrial harmony and employee satisfaction. Apart from these activities, the department is also concerned with recording and maintaining the attendance, leave taken and over time work done by each and every employee. Here the department records time in and out of employee through the medium of automatic time recorders provided at the vantage points within the factory.

8. Taxation Section:
This section takes care of the tax related issues of the company. All the indirect and direct taxes that they have to deal with is taken care of by this section. They also take care of the excise duties and customs duty in case of export. They also deal with the service tax related matters. All these sections of Financial Department collectively function efficiently for the effective and optimum allocation and utilization of funds of the organization.
INTERNAL AUDIT
It acts as a watch dog of the various functions by continuously observing and evaluating the records, both financial as well as others. This section mainly functions as a service to the management. The main activity of internal audit is to physically verify the assets mentioned in the records. This investigation helps in identifying losses, pilferage on inventory and controlling them.
The functions of internal audit are:
Planning of the audit Gathering information Examining & evaluation of information Communicating with authority concerned Finally to check if any action is being taken on its audit findings

BHEL-EPD conducts 3 kinds of Audit. They are: 1. Internal Audit :

The Internal Auditors are full time employees of the organization who functionally report to directly to the General Manager or the Audit of Corporate Office. The internal audit in EPD is done as per the internal audit manual issued by the BHEL Corporate Office.
2. Statutory Audit :
It is done by the Chartered Accountants who are also called as Company Auditors. They are not full time employees but are appointed by the Company Law Board and are changed every 3 years.
3. Government Audit :
It is done by the resident at the Office of the Member Audit Board and Ex-office of the Director of Commercial audit. All BHEL units of the southern region are covered by the Director of Commercial Audit, BHEL Hyderabad. For any organization to carry out its sales activity effectively and more efficiently it requires a good Marketing Department. Most of the activities of marketing in BHEL-EPD are carried out by BHEL-CBU (Ceramic Business Unit). In the field of ceramic components BHEL has a good stand in the country and its sales are very high. BHEL-EPD works only on orders. The concept of producing and looking for customers is not there. That means BHEL is a customer oriented organization. This brings a great deal of responsibility and stress for the functioning of the marketing department. Marketing Department in BHEL-EPD always looks forward for opportunities which generally come to them in the form of tenders and enquiries.
BOOKS MAINTAINED BY MARKETING DEPARTMENT ARE:

Garden City College, Bangalore Page 38 Quotation book and enquiry book Work order book Complaint book from customers Book for Internal order from customers Tenders enquiring register Pending order register
The duty of marketing department in BHEL-EPD is to maintain all these records. For doing so there are 8 employees, in which 5 employees deals with the disc insulators, 1 employee deals with the exerts of these insulators, 1 employee deals with other type of insulators and other employee takes care of other ceramic products.
HIERARCHICAL STRUCTURE OF MARKETING DEPARTMENT IN BHEL-EPD

FUNCTIONS OF MARKETING DEPARTMENT 1. Tender notification and purchase Order:

Garden City College, Bangalore Page 40 The work of marketing department commences when they fill a tender and the purchase order is received by them. After receiving the purchase order the marketing department works within the guidelines that are mentioned in the purchase order to fulfill that particular order. 2. Drawing: Drawing specifications are given to the engineering department for preparation of detailed drawings for further submission to the customers for approval. After approval from the customer, copies of the drawing are given to the engineering department, quality department and to the production department for their reference and for modification in the manufacturing, if suggested by the customer in the drawing. 3. Type test and quality plan: As per the specification of the contract, the type test is to be conducted either at BHEL works or at third party laboratory. The type test reports for which the test have already been carried out within 5 years earlier to the date of contract, the same are submitted to the customer. The customer considers these tests as per the industry terms and gives the approval. But if the customer insists for fresh type tests, the same has to be performed. Some customers like power grid, UPCL, power-links etc requires the quality plan, and the same is submitted to the party with consultation of quality department. After all the above steps manufacturing process starts according to the specification and quality design. 4. Contract price The price quoted is for delivery ex-contracts works/subcontracts works/port of entry inclusive of packing and forwarding but exclusive of freight and transit insurance charges. Quoted price also do
not include sales tax, excise duty or local authorities from time to time and all such levies shall be charged extra as prevailing on the data of actual deliveries and borne by the purchaser at actual regardless of the contracted delivery schedule and other terms and conditions of contract. 5. Test and inspection

Garden City College, Bangalore Page 41 Type tests are not included in this offer. The materials are subjected to root line and acceptance test as per relevant international standard and specification, by the contractor which works before dispatch. The testing facilities available in the contractors works are enclosed. Having satisfied himself that the materials have successfully passed the routine and acceptance test, the contractor shall dispatch the materials as per dispatch instructions in the contract and shall furnish the test certificate along with dispatch documents for purchasers reference and records. It is also desired that the contractor shall be placed to offer the first lot for inspection and witnessing of acceptance tests by purchasers representative contracts works. For this inspection the contractor shall normally give the purchaser 2 weeks written notice. The expenses of the purchasers representative will be borne by the purchaser. In case the purchasers representative arrives on the notified inspection date, he shall take up the inspection, witness the acceptance test, shall also sign the test certificates after successful completion of the tests at the contractors works itself. Then the lot will be deemed cleared for dispatch. In case the purchasers representative does not make himself available at the contractors works for inspection the contractor shall go ahead with the tests which shall be deemed to have been carried out in presence of purchasers representative and the lot shall be deemed cleared for dispatch. The contractor shall however take full responsibility for actually carrying out the routine and acceptance test successfully on these lots and for conformity of the material to the agreed specification. 6. Packing Packing is done in accordance with the contractors standard practice. Any damage due to bad/loose shunting, improper handling by the railways/road transporters in transit or at the transshipment point is not the responsibility of the contractor. 7. Dispatch Final dispatch orders are issued by the purchaser along with the order. However if the contractor
faces difficulty in dispatch by the mode/route specified by the purchaser the contractor will have the option to effect dispatch by an alternative mode/route with the prior consent of the purchaser which

Garden City College, Bangalore Page 42 is nay unduly withheld and the contractor should be paid any difference in the freight arising due the change in the dispatch route. 8. Transit insurance Liabilities pass over to the purchaser immediately upon the dispatch of goods. The contractor accepts no liability for storages in transit. Purchaser shall be furnished with dispatch particulars soon after dispatch of equipments to enable the purchaser to arrange transit insurance. Any replacement/repairs if required due to damage during transit, is covered by a separate new quotation and order. 9. Delivery The contractor shall deliver the equipments within the period specified in the offer. The commencement and completion of delivery, however, are subject to the following conditions: The purchaser making available the detailed dispatch instruction along with the order. The contractors foreign/indigenous supplier delivering the basis of raw materials and components within the committed delivery periods. The purchase effecting the payment, as stipulated in the offer. Force Majuro conditions. In all cases where the contractor experience delay on either one or more than one of the above accounts, the contractor should intimate the purchaser the cause of the delay and the period lost during such occurrences. The deliveries specified in the offer will automatically be extended by the period thus lost. Delivery shall be made in one or several consignments and each dispatch would constitute a sale. 10. Payment terms : There are four modes of payments: 100% advance payments in case of private party. Through letter of credit in case of private and government party.

Garden City College, Bangalore Page 43 100% advance 90% balance after dispatch from PSUs. 100% after dispatch in case of government agencies. For export to foreign country advance payment of 100% amount.
4 Ps OF THE MARKETING MIX OF BHEL-EPD I. PRODUCT : Product Width

Disc insulator
Hallow insulator Solid insulator CERALIN Composite insulator HDVC 500kv 800kv 33kv 66kv Pulverized mills 132kv HVAC *Fog & Antifog *Aero foil *ANSI *Normal 66kv 132kv Pulverized pipes 220kv 132kv 220kv Steel sector 400kv 220kv 400kv Cement sector Railway traction

Product Line Product depth II. PRICE :

o Pricing Strategies: 400kv

Garden City College, Bangalore Page 45 Pricing strategies followed in BHEL-EPD varies according to the market conditions and the current market demand for their products. The various pricing strategies followed by BHEL-EPD at different situations are as follows:Cut-all Follow the leader Hot and cold price (price fixed as per quantity order) Probe price
Fixed / variable price Dual price Denial price Skimming price o Different types of prices applicable to BHEL-EPD: Ex- works FOR ( Free On Rail ) - Destination / Store FOR ( Free On Rail ) - Bangalore FOB ( Free On Board ) CIF ( Cost Insurance Freight ) CFR ( Cost + Freight ) DAF ( Delivered At Frontier ) DDP ( Delivered Duty Paid ) DDU (Delivered Duty Unpaid ) III. PROMOTION:

Garden City College, Bangalore Page 46 BHEL does not undertake any promotional activities to advertise its products to the customers but it still has a whooping order of about Rs. 1,30,000 crores. IV. PLACE: Various marketing divisions in BHEL are: 1. Power sector marketing group Delhi 2. Industrial sector marketing Delhi 3. Regional Operational Division (ROD) All capital states 4. International Operations Divisions Delhi 5. Oil sector rigs and maintenance Chennai 6. Ceramic Business Unit Bangalore 7. Transmission Business Group 8. Spares and Services Business Group COMPETITORS FOR BHEL-EPD IN INSULATOR BUSINESS 1. Aditya Birla 2. WS 3. Sharavana 4. Modern Insulators 5. IEC 6. Chinese manufacturers 7. Sediver France 8. NGK - Japan.

Garden City College, Bangalore Page 47 Efficient manpower is the greatest asset to an organization. The company has to keep the employees happy for its smooth functioning. For this purpose, an organization should have a department solely dedicated to manage the Human Resources and also to integrate all HR policies and programmes with the frame work of the companys strategies.
In BHEL- EPD, there is an efficient Human Resources Department which effectively utilizes the human resources to assist the company in achieving a competitive advantage in the business arena.
THE MAIN OBJECTIVES OF HRM DEPARTMENT IN BHEL ARE:

To attract, retain, develop and motivate human resources with required skills and competencies to meet organizational needs and changing business profiles in the ever dynamic environment. Maintain positive industrial relations. Support and nurture organizations culture and climate in such a way that it leads to fulfillment of both individual as well as organizational goals. To make the human resources function more effectively and make the functions customer oriented using information technology systems. To bring about cost effectiveness in all HR related operations and become self-sustained in the long run.

HIERARCHICAL STRUCTURE OF HUMAN RESOURCES DEPARTMENT IN BHEL-EPD General Manager DGM (HR & HRD Manager) Senior Manager
Establishment Industrial Relations Welfare Kannada Cell
Deputy Manager
Recruitment Performance Appraisal HRIS MRIS Business Excellence Communication & Public Relations Contract labour
Medical Superintendent
Factory Medical Centre Township
Dispensary
HRDC Security & Fire Intelligence Canteen ESI Medical Centre
Rajbhasha Adikari Translator Executives Officers & Assistants General Physicians Nurses Attenders

THE VARIOUS SECTIONS IN THE HUMAN RESOURCES DEPARTMENT

The chart above not only gives the information about hierarchical structure of the HR Department but it also gives information on the various sections that come under HR Department. As per that, the details pertaining to each of the various sections in HR Department are as follows:-
I. ESTABLISHMENT: 1. Human Resource Development Centre

The business environment is ever dynamic. This is the reason for a perceivable gap between the present state and desired state in all aspects be it professional, personal or organizational scenarios. The most important role of HRD is narrowing this gap through appropriate training. Thus the main purpose of HRD is to assist employees in such a manner that they not only fulfill the organizations goals but also their personal goals by helping them acquire new skills to perform better, discover and explore their own potentials and also help in developing a culture which encourages team work, trust and freedom of expression.
The main functions of HRD are:

Identify the needs of employees Need decides the training programme. Prepare the training budget and seek for approval from HOD Select the employees in need of this training and provide it to them Executives Officers &
Assistants

Garden City College, Bangalore Page 50 Take feedback from employees about the program undertaken and check for changes in their performance after training.
Thus the role of HRDC is as follows:

Creating organizational culture. Training the employees and helping the organization create second level managers. Appraising the performance of the employees Discovering the talents of the employees and helping them to utilize it.
2. Security and Fire Security:

Security means securing company men and properties. o Total strength of security section: Company security : 32 Ex-serviceman : 16 Leader : 2
Security Measures taken at BHEL-EPD for securing Properties of the company:

For preventing physical loss of the properties of the organization from outsiders, the company has 4 well secured gates. They are as follows: 1. Main Gate For all types of visitors. 2. Rear Gate For materials movement.

Garden City College, Bangalore Page 51 3. CTI Gate For foreigners, officers, etc 4. Control Gate Its an access control gate.
Security Measures taken at BHEL-EPD for securing men:

Employees at BHEL are divided into 5 categories based on their position in the hierarchical structure of the organization for the purpose of issuing ID Cards to them for easy recognition. Thus, there are 5 different colored ID Cards for employees at different positions. They are :-
ID Card Color Designation/Grade

1. White Chairman, Director & MD Dont have to produce ID card 2. Green AGM & above (E7 to E9) Should swipe the card for walking-in and walking-out of the factory. 3. Yellow E1 to E6 (Executives) _ ,, _ 4. Pink S1 to S8 (Supervisors) _ ,, _ 5. Blue A1 to A12 (Artisans) Should swipe the card for attendance and should obtain a gate pass to walk-out of the factory premises.
Fire:
In BHEL-EPD, protection against fire is given on the basis of the classes of fire. The company has
divided fire into 5 different classes. They are:1. A class fire : general fire

Garden City College, Bangalore Page 52 2. B class fire : fire of inflammable materials 3. C class fire : electric fire 4. D class fire : gas fire 5. E class fire : metal fire To combat fire accidents, the company has ready fire extinguishers and many Emergency Exits at various points within the factory premises.
3. Intelligence Section:
Intelligence section under HR department is part of Vigilance Department. o It performs the following functions: Routine and surprise checks Scrutiny of personal files Suggestions and feedback Training programmes Inter-face meetings List of officers of doubtful integrity Complaints, investigation and penalty Informal counseling Liaison with CBI & COD o It monitors the following: Out of turn allotments and sanctions Systems / procedures Employees in sensitive area ; job rotation Records / document tracking system

II. INDUSTRIAL RELATIONS

Industrial relations refers to the relationship between the management and the employee or among employees and their organizations that characterize and grow out of employment. In any industry Trade Unions are present to maintain such industrial relations. Trade Unions are a voluntary organization of worker or employees formed protect and promote their interest through collective actions. BHEL-EPD has only one union which is managed internally within the organization. The Industrial relations have been maintained peacefully in BHEL. The union consists of educated employees who prefer to settle issues within the factory. The organization also follows the methodology of involving the employees in decision making i.e. Management by Objective.
III. WELFARE 1. Canteen
Food which is the basic necessity of human being is being served in the company over the years at subsidized rates of about Rs 5 per day and it also serves nutritious and hygienic food. And a special feature is that, each and every employee has to swipe his/her I.D. card in a magnetic machine so that it is a way to identify the time of entry and exit to the canteen. The canteen also provides Tea/Coffee at least twice a day to the employees.
2. ESI
The company provides ESI facility to the employees with the basic objective of offering Social Insurance to workers in respect of three contingencies - * Sickness * Employment injury & * Child birth

3. Medical Centre
A Medical Center with an ambulance service is attached to BHEL industrial complex. The medical centre in the company campus provides,First aid to the injured employees at the time work. Regular health check-ups for the employees. Medical treatment for current employees and also for retired employees who are suffering from minor illness and diseases. This medical centre does not treat chronic illness, diseases or major health problems of the employees. The company has tie up with famous hospitals in the city for that purpose and the medical bill is paid by the company.
Other welfare benefits are:

Leaves and holidays-these are classified in to casual, earned and half pay leave. Earned leave encashment Encashment of half pay leave Leave travel concession every two years anywhere in India Home town allowances Group insurance schemes and accident insurance schemes Medical reimbursement facilities Loans-housing and vehicle Conveyance reimbursement Education allowances Uniforms and masks are given to all employees.
IV. RECRUITMENT

Garden City College, Bangalore Page 55 There has been no recruitment since 1994. Earlier to that, they followed the procedure of written test, followed by a personal interview for recruiting the employees.
Source of Recruitment:
From employment exchange From open market through advertisement in the press By considering departmental candidates possessing the specified require From reputed engineering/ management through college campus interview.
V. SELECTION
In BHEL, selection of applicants is done through the central recruitment committee. The committee constitutes of corporate personnel departments in consultation with the respective division.
VI. PERFORMANCE APPRAISAL

The Performance Appraisal and Performance management in BHEL-EPD is done through a web enabled performance management system. It is called as e-MAP i.e. electronic - MOVING AHEAD through PERFORMANCE. Performance evaluation and thereby performance appraisal at BHEL is done internally by the immediate concerned officer. The employees are given points based on the performance. The employees are evaluated on the basis of points. Till 1999, BHEL-EPD appraised the performance through Annual Confidential Reports but later eMAP was introduced with the help of SAP.
o Why e-MAP:

Garden City College, Bangalore Page 56 Administrative control and convenience. Quick on-line access to remote locations and quick retrieval of records. Reduce paper records and storage problem. Allows for an interactive process of target setting and objective appraisal. Helps improve employee competencies through continuous feed back. Currently it is operating at over 70 locations across the country covering around 10000 executives + sites abroad.
Modules of MAP

Garden City College, Bangalore Page 57 1. Performance planning: Performance benchmarks are planned in the months, April and May. 2. Mid year review: In the month of the October, the performances of employees are reviewed before the final review. 3. Final review: Final review of performances of all the employees are done in the month of April. 4. Normalization: The actual end result is compared with the pre-set performance benchmarks and necessary corrective measures are taken if there are any deviations.
KRAs (Key Result Areas)

Garden City College, Bangalore Page 58 KRAs capture only critical activities that needs monitering for improvement of
performance of each individual employee. KRAs are divided intooperational and capability building categories with prescribed minimum weightage of KRA for different levels. Weights for KRAs are assigned accordingtothe difficulty level of the job. Team level KRA broken down with sub-KRAs to capture individual specific work area. Unit of measurement is standardised for all KRAs to ensure uniformity scross the company. Exhaustive list of KRAs are prepared for all functions including areas from Balance Score Card. Only performance is regarded for appraisl but not the Behavioural Traits. Behavioural Traits are given weightage only for promoyions and they are not covered by SAP.
KRA Levels Stretch Action plan

1. ************ Marks 1 2 3 4 5 Difficulty level of the job (Ranges from 0.33 to 1) *********** MARKS * STRETCH = TOTAL MARKS Employees are marked on a total marks of 100. Each functional departments performance is assessed by the respective departmental head. But the MAP cycle and policies are done by HR department.

VII. COMMUNICATION AND PUBLIC RELATIONS SECTION

Communication is the essence of social behavior. In everyday living, the mere presence of another person encourages communication. It is a universal human propensity and, as some state. In the organization point of view communication plays vital role for the smooth functioning of the concern. Communication flows between individuals, department, unit and corporate; and company and outer world. It creates connectivity, knowledge sharing and industrial and public relation. The sections main objective is to interact, communicate, share information and maintain good relations with the people. This department maintains and promotes the companys Goodwill in the business world. The Functions of this department are: Press Releases about Company Achievements Media Coverage- Radio, Television Conceptualization and release of Advertisements
Participating in International Exhibitions Publishing of House journals (for private circulation) Corporate Films Brochures of Product Profile Maintenance of the Transit House for employees/ customers/ VIPs Providing Holiday Homes to the employees at tourist places Entertainment for Customer like clubs Arrange for guests Lunches/Dinners at reputed Hotels which provide credit facility Photography on rate contract Accessories like diaries. Calendar, greeting cards are provided to employees and customers. Providing Corporate Mementoes and gifts.

OTHER RELATED ASPECTS LINKED TO HR DEPARTMENT o Classification of employees:

The employees shall generally be classified as under: 1. Regular employee is an employee who has been engaged in a vacancy on the regular establishment of the company and who has satisfactorily completed his probationary period of service and employment in regular service has been confirmed in writing. 2. Temporary employee is an employee who has been engaged on a temporary basis for work, which is essentially of a temporary nature and likely to be completed within a stipulated period. 3. Casual employee is an employee whose employment is of an occasional or casual nature. 4. Probationer is an employee who is provisionally employed with a view of being considered for appointment on the regular establishment of the company. 5. Trainee is a learner who is paid stipend or placed a grade as may be decide by the management, during the period of apprenticeship
o Pay structure:
The employees are divided in two different grades which are: E1 to E9-executives S1 to S8-supervisors A1 to A12-workers B1 to B11-Administrators Employees in BHEL are paid according to the 6th pay commission of the Central Government.

o The pay structure includes: Basic Salary Dearness allowance as a percentage of basic House rent allowance City compensatory allowance
Conveyance allowance
These are the regular items in the pay cheque but there are some extra benefits like Entertainment allowances-for E4 and above Over time allowances and night shift allowances for workers Special incentives-cash awards for acquiring higher qualification, sponsorship for higher studies and family planning incentives. Plant performance bonus-same for everybody. Bonus-this is given out of profits. Availability of ESOP for the employees.
o House Rent Allowance (HRA)

The HRA is given by the organization of the employees at the following rates:
City/class of cities Rate of HRA per month

Mumbai and Delhi 30% of pay Other A class cities 25% of pay B1 and B2 class cities 15% of pay C class/unclassified cities 10% of pay

Garden City College, Bangalore Page 62 Payment of HRA at the above rates would be subject to the provision that the employee will have to bear a 10% of their pay towards their house rent. Employees who live in houses owned by themselves, they will be paid HRA at the above rates, depending on the ratable values assessed by the Municipal Authority of the area where the house is situated.
The other allowances include:

1. City compensatory allowances 2. Non practical allowances to medical 3. Late night snacks allowances for night shift employees 4. Messing allowances 5. Free uniforms accommodation 6. Free electricity 7. Kit allowances to employees deputed abroad 8. Vehicle allowance 9. Welding allowance to high pressure welders 10. Transport subsidy 11. Convenience allowance to blind and physically handicapped employees 12. Washing allowance 13. Educational assistance 14. Re-imbursement of tuition fees 15. Subsidiary to apprentices or trainees 16. Traveling allowance.
o Promotions:
Promotions in BHEL are usually based on merit cum seniority. This ensures that no employee is
deprived of promotion. They are all given equality of opportunity in growth and career prospects.

Garden City College, Bangalore Page 63 But it also brings out one aspect that efficient and inefficient employees are not segregated. Hence efficient employees are not recognized.
o Transfers:
Employee shall be liable to be transferred at the discretion of the management from one work or development section of station to another, provided that in doing. So the management shall keep in view the suitability of the employees for the particular management work and also the pay grade and the seniority of the employees concerned is projected.
o Hours of work:
Every employee of the company shall be requires working 48 hours a week.
o Overtime:
The management reserves the right to require any employee to work overtime including work on weekly holidays in accordance with the instructions issued from time to time and the employee is also liable to be recalled for duty at anytime for such overtime, adequate compensation by way of compensatory of overtime payment will be allowed off at the discretion of the management.
o VRS scheme:
The Company in order to reduce its employee strength due to global competition and removal of the security veil by the government, it introduces VRS scheme for every four years.
o Retirement:
The retirement age of the employees is 60 years. They receive pension after retirement. They receive the provident fund in one lump sum on retirement after deducting any loans taken by them. They also get the benefits of medical reimbursement for the retired employee and the spouse throughout their lifetime.

Garden City College, Bangalore Page 64 In the event of death of an employee while in service, one child will get a job and if the child is young the spouse will get the job according to their qualification. There has been no recruitment since 1994. Earlier to that, they followed the procedure of written test, followed by a personal interview for recruiting the employees. Since the introduction of IT sector to the world, IT has become a key part in the day to day functioning of organizations. Systems Department in BHEL-EPD provides service to production
and other departments which in turn helps in network infrastructure, mail transaction and virtual private networks to connect other units and provides on-the-job training to employees. The company implemented SAP in the year 2004. SAP stands for Systems Applications and Products in Data Processing. Since then the units functions have gradually changed from traditional way of working to the usage of the systems. The implementation of SAP by using given resources in various levels and in different departments has made the functioning smooth, since IT maintains the systems round the clock.
HIERARCHICAL STRUCTURE OF IT DEPARTMENT IN BHEL-EPD

DGM (CBU Marketing and IT Manager) Senior Engineer / IT Asst. Officer Grade II / IT Senior EDP Operator ROLROLE OF IT DEPARTMENT IN BHEL-EPD:
Provide IT services to EPD office users Manage IT infrastructure Develop and maintain business applications Procurement, deployment & maintenance of IT Hardware and Software To plan, coordinate and implement software applications
SERVICES PROVIDED BY IT DEPARTMENT FOR THE UNIT I. Server Administration & Operations Process

Garden City College, Bangalore Page 66 Server list and their details are maintained by IT services In charge. Following administration tasks are to be performed on the servers: a) System Checks on Servers b) Maintain backup of application data for recovery in case of failure. c) Update the servers for critical operating system patches and anti-virus patterns. d) Coordinate with service providers for correction, if required. e) Analysis of records, to continually improve server and application availability. The analysis will be carried out periodically and corrective action, if any, will be taken accordingly.
II. Process of Maintenance of IT Infrastructure

1. IT department will coordinate with WEX for maintenance of air-conditioning and power requirements for proper functioning of IT infrastructure. 2. List of vendors who have supplied the equipments and services and are responsible for its upkeep, are maintained by IT Services staff. 3. For planned shutdowns, advance intimation is provided to users through e-mail. 4. Users log their Complaints and Requests with complaint coordinator numbers at the IT Department.
5. The Complaint helpdesk coordinator checks the complaints and ensures communication to the

Garden City College, Bangalore Page 67 respective vendors operating in the premises and / or IT technical staff responsible for resolution of complaints. 6. The vendors representative examines the complaint and it is resolved either in EPD premises or the equipments taken to vendors repair center. 7. If the equipment is taken out for repairs, Returnable Gate Pass is issued for the equipments taken out from EPD premises 8. Equipment is brought back after repair and IT Services group ensures the returned equipment by verifying with the issued Gate pass. 9. On resolution of complaint, the vendor representative informs the complaint coordinator. 10. Any complaint requiring further action or follow-up with vendor is taken up with vendor office.
III. H/W and S/W Augmentation Process 1. IT Services group receives computer hardware and software requirements from various
EPD Users and also has its own requirements for the operations. 2. Based on the rate contract issued by the CIT procurement group the requirements approval is taken from the competent authorities and the same is sent to CIT for Further Procurement. 3. The indent is generated for items not in the CIT rate contract or the items for emergency requirement and after necessary approval sent to MM / Purchase for procurement. The item after procurement and delivery is installed at user location.
IV. Network Operations Process

At present, following are the Network services in EPD:

Garden City College, Bangalore Page 68 (a) LAN (Local Area Network) Users PCs and Network printers are connected to LAN. With the help of LAN, user machines are able to connect to network services like printers, peer-topeer networking, access e-Mail, Internet and application servers of SAP and intranet. (b) WAN (Wide Area Network) - It provides Internet connectivity to users. Users can browse Internet sites and access Virtual Private Network in BHEL over Internet. Following administration tasks are to be performed on WAN setup: System check of Internet connectivity Complaints if any are to be logged with the service provider. Connectivity check of Leased Line From EPD to IP Connectivity check of Internet Leased Line Internet link from service provider Internet modem and router
Health Check up for Gateway and Proxy server
V. BHEL-EPD Intranet Website Maintenance

IT services group maintain EPD Intranet Website. The following Procedure will be carried out for Updating of data on Intranet Websites pages. a) The requirement of updating the intranet pages has to be sent by users with the approval of the Section In charge of the respective Section. b) The approved requirement will be submitted to IT- section in charge for further processing. c) The changes to be made on the website will be recorded as per the format: AA: EPD: IT: ICF. Corresponding Changes will be incorporated by IT services group. d) The respective section will check and be responsible for the correctness of the data after the updating is complete.

VI. Internet Website Maintenance:

IT services group will coordinate for all issues of CBU Website www.bhelceramics.com. The same will be maintained by the Vendor. The following Procedure will be carried out for Updating of data on Websites pages. 1. The requirement of updating the pages has to be sent by users with the approval of the Head of the Department of the respective Department. 2. The approved requirement will be submitted to IT- section in charge for further processing. 3. The changes to be made on the website will be recorded as per the format: AA: EPD: IT: WCF after respective approval of Head IT 4. Corresponding Changes will be incorporated by Vendor through coordination by IT services group. 5. The respective section will check and be responsible for the correctness of the data after the updating is complete.
VII. Internet and Email User Registration

Users may register themselves for Internet or Email services by applying through Internet Registration Form and E mail Registration Form (AA:EPD:IT:ERF) which are also available on Intranet Site. Once the users are registered, they are intimated and can start availing the services. For providing the Internet services the corresponding approval has to be taken from the HOD of the respective user and HOD of IT department. The final authority for the approval of internet services will be Head of the Unit.
VIII. Disaster Recovery Management System

Scheduled Backup ups :

Garden City College, Bangalore Page 70 a) Take the backups according to the following schedule on HP LTO3 Ultrium RW Data Cartridge / Tape
Details of the data Frequency Activity Details of data Frequency Backup On Tape Drive Email Server Data Once in 15 days Backup On Tape Drive Netware Server Data Once in 15 days Backup On Tape Drive Sap Server Data Once in 15 days b) Mark the details on the tape/ cartridge with respect to the date of backup and details of the data. c) Send the backup tape / cartridge to a different seismic zone (IP-Jagdishpur) through a courier. d) Record the details of the courier onto a Disaster Notebook giving details of the date sent and the courier number. e) On receiving the tape / cartridge back, enter the details of the received courier details in the Disaster Notebook.
IT HARDWARE AND SOFTWARE PROCUREMENT

a) Compilation of Requirements: The IT group receives the computer hardware, software, AMC/ATS and IT training requirements from different departments of EPD in the form of ION / Request It also assesses other requirements independently depending upon future plans.

Garden City College, Bangalore Page 71 b) Interaction with Vendors: The group interacts with the various hardware & software vendors to keep an eye on the latest developments in the field of Information Technology. Interaction is also done for the finalization of specifications. c) Review of Requirements: The requirements of various departments are reviewed by Head of IT Department based on compatibility requirements and state of the art technology. If required, the requirements are discussed with the indenters for final Release of payment advice to Finance. d) Monitor performance for agreed contractual terms. e) Approval of specifications and the list of items to be procured.

Garden City College, Bangalore Page 72 SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. A scan of the internal and external environment is an important part of the strategic planning process. Environmental factors internal to the firm usually can be classified as strengths (S) or weaknesses (W), and those external to the firm can be classified as opportunities (O) or threats (T). Such an analysis of the strategic environment is referred to as a SWOT analysis.

STRENGTHS:
1. The greatest strength of BHEL is its highly skilled, committed and motivated employees 2. Every employee is given an equal opportunity to develop himself and grow in his career. 3. Brand name of BHEL is known internationally without much promotional efforts. 4. BHEL-EPD has achieved TQM in quality and is aiming to achieve SIX SIGMA. 5. It has a separate Ceramic Research Institute with expert man power and lab for pilot production. 6. BHEL-EPD has an In House Engineering Department. 7. All the activities of the Company are directed towards Customer Satisfaction. 8. BHEL-EPD enjoys a market share of about 95% in CERALIN i.e. ceramic liners. 9. Leading status in CERALIN and impetus for new product introduction in existing market. 10. Business group of the Company helps in establishing a easy market entry.
WEAKNESS:
1. Ratios of skilled to unskilled workforce are low and hence difficult for deployment. 2. Over depleting of skill force due to retirement. 3. Expensive man power for Ceramic business product. 4. Manually oriented product lines. 5. Cost does not commensurate with returns for certain varieties of insulators because of long manufacturing process. It takes 31days to produce the product when compared to 27 days period in the competitors firms.

OPPORTUNITIES:
1. Growth in existing products and market share for hollow insulators, higher rating disc, and solid core insulators because of very well established International brand image. 2. Growth in existing products in exports markets. 3. Growth in new product in existing markets and new markets. 4. SF6 hollow insulators plus station post insulators in existing market and new markets. 5. BHEL-EPD has great potential for capitalizing the competitive advantage it has on Composite insulators, Industrial ceramics, Acid proof tiles and the upcoming new inventions in the field of ceramics. 6. There is great opportunity for automation to reduce the cost of labour and thereby reduce the cost of production.
THREATS:
a) Merger of world renowned Japanese manufacturer NGK with Indian firm (Jayashree Insulators) to produce high quality products in competition. b) Threat of low price Chinese insulators market entry in India. c) Profit margin threat due to stiff competition from the national players like Jayashree Insulators, WS Industries, Sharavana Insulators and electrical and international players restrict market share.

Garden City College, Bangalore Page 75 The findings in different functional departments of BHEL-EPD are as follows: PRODUCTION DEPARTMENT: 1. The process production of production in BHEL-EPD is process production where the cycle time
involved in manufacturing insulators is long which increases the cost of production. 2. Masks for Artisans are not provided in all the sections of the shop floor but it is provided only for the Artisans at the Glazing section which actually does give full protection from the dust and smell. FINANCE DEPARTMENT: 1. The method of obtaining costs for various departments, in that various sections and for each unit is very precisely done without any ambiguity. 2. The whole of Finance Departments activities are carried out and integrated with the help of SAP. MARKETING DEPARTMENT: 1. Sales promotional activities are minimum because they manufacture their products based on the orders mostly placed by the government department. 2. The market share of BHEL-EPD in CERALIN (Ceramic Liners) is more than 95% percent in India. INFORMATION TECHNOLOGY DEPARTMENT:

Garden City College, Bangalore Page 76 1. The work force in IT department is the least in the whole unit of EPD with only 3 employees who are burdened to control and monitor all the functions related to IT in BHEL-EPD. 2. All the units of BHEL are inter-linked with the help of INTRANET. HUMAN RESOURCES DEPARTMENT: 1. The company has maintained a well motivated & dedicated workforce. 2. The method of appraising the performance of employees through the e-MAP is very unique. 3. It encourages the students to take projects as a part of their Corporate Social Responsibility, so that they can get a practical knowledge of the companys different function areas. 4. Excellent canteen facility with hygienic food is provided to its employees at Re.1. 5. The Salaha Scheme introduced in BHEL with the initiative of the HR department has been successful in tapping the employees potential. OTHER FINDINGS: 1. There is no proper storage facility for finished goods. They are packed and stacked on pathways. 2. Water recycling plant has been set up in the plant to promote water conservation or natural resource. 3. The quality circles of BHEL EPD has won many awards. They have achieved TQM. They are keen to improve their benchmark and are working hard to acquire SIX SIGMA.

Garden City College, Bangalore Page 77 1. Can implement Computer Integrated manufacturing system. 2. Job rotation should be done frequently to workers especially in the shop floor, so that they are
released from boredom of work, and which also motivates them to acquire additional skills. 3. To design modernized facility layout so that the cycle time is reduced and thus the cost of production. 4. Workers should be provided with good quality masks in all the sections of the production department and they should be insisted to wear them compulsorily. The casual labourers also should be given all the safety equipments as is given to company employees. 5. The work force in IT department should be increased to reduce the burden bestowed on few employees. 6. Signboards should be provided within the factory premises to facilitate easy identification of the department. 7. Proper storage facility for finished products should be provided to avod stacking along the pathways.

Garden City College, Bangalore Page 78 I would like to conclude that EPD is one of the growing units of BHEL. BHEL-EPD is doing well in the present market and possesses highest market share compared to its competitors. The employees are provided with very good facilities and have very good working environment and work culture which in turn helps Company achieve a newer heights every year. It has achieved customer satisfaction by manufacturing customer needed products of good quality. The Company is trying increase the profits by setting up new targets and implementing the new projects. They have also planned to go for semi-automation which will ease the conditions for workers without effecting their present job. The unit is also intensively working hard to achieve SIX SIGMA. The problem areas are identified and are solved by dedicated team work. It has been accredited with eco-friendly certifications. The unit has very good safety and security provisions. The organization is decentralized at certain conditions which encourage freedom to work, employee participation in the development of the organization. The unit consists of well established departments which work in coordination. It has in-house R&D which is doing research on Ceramics and on Grinding Media. BHEL which is one among the NAVARATNA Companies. Earlier I had a perception that BHEL being a Government Company may not be working like other private companies and also may not

Garden City College, Bangalore Page 79 provide necessary information which I was in need of but I was surprised to see the committed employees in this organization. During this in-plant training, the company provided an opportunity
to learn various things which I was not aware. I came to know the implementation of many theoretical aspects in practice which I have learnt during my course.
BooksBooks:
1. BHEL magazines (monthly and fortnightly) 2. Personal manuals of various departments. 3. Particulars of organization, functions and duties. 4. Norms set by company for the discharge of its functions. 5. Rules, Regulations, Instructions, Manuals and Records held by company or under its control or used by its employees for discharging its functions. 6. Details in respect of Information, available to or held by the company, reduced in an electronic form. 7. Obtained information, during the working hours of a library or reading room.

Reports:
Annual Reports of BHEL-EPD.
Websites:
www.bhelceramics.com www.bhel.com www.teknikfortagen.se

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Bharat Heavy Electricals Ltd.

THE HEAVY ELECTRICAL MACHINERY INDUSTRY IN INDIA

A snapshot of the Indian heavy electrical machinery industry:

Evolution of the Indian heavy electrical machinery industry:

Bharat Heavy Electricals Ltd., (EPD)

Growth of the heavy electrical machinery industry:

Bharat Heavy Electricals Ltd., (EPD)

Size and structure of the heavy electrical machinery segment:

Bharat Heavy Electricals Ltd., (EPD)

Large manufacturers in the Indian electrical machinery industry:

Transformers, transmission products, generators and lighting products.

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Limited

Cables, switchgear, capacitors and lighting equipment

Bharat Heavy Electricals Ltd., (EPD)

Global share in production of Indian companies :

Comparison of Indian manufacturers with global leaders:

Boilers and heaters are its major products

Bharat Heavy Electricals Ltd., (EPD)

ContributioContribution of the heavy electrical machinery industry to the India economy:

Advantages that are driving growth of the industry:

Bharat Heavy Electricals Ltd., (EPD)

Bottlenecks in growth of the Indian heavy electrical machinery industry:

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

Garden City College, Bangalore Page 10

BHELs ELECTROPORCELAINS DIVISION (EPD) ORIGIN & GROWTH

Bharat Heavy Electricals Ltd., (EPD)

Ceramic business unit:

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

ORGANISATIONAL HIERARCHICAL STRUCTURE OF BHEL-EPD

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Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

HIERARCHICAL STRUCTURE OF PRODUCTION DEPARTMENT IN BHEL-EPD

Bharat Heavy Electricals Ltd., (EPD)

The hierarchical structure of EACH SECTION in Production Department at BHEL-EPD

Bharat Heavy Electricals Ltd., (EPD)

THE VARIOUS SECTIONS IN THE PRODUCTION DEPARTMENT

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Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

THE MANUFACTURING PROCESS FOR INSULATORS

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Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

Bharat Heavy Electricals Ltd., (EPD)

THE MANUFACTURING PROCESS FOR CERALIN

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Cost Cash Material purchase Work proposal concurrence

Sales accounts 1 Accounts Officer 5 Assistants

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Bharat Heavy Electricals Ltd., (EPD)

2. Sales Section / Bills Receivable Section:

3. Bills Payables Section:

Bharat Heavy Electricals Ltd., (EPD)

5. Costing and Material Account Section: