Organisation Study on BHEL Company by Atul

INTRODUCTION

ABOUT THE SUBJECT

An organization is a group of people bound together in formal

relationships to achieve organization as an entity and other refers to

organization as a process.

Organization exits in all important phases of man life. A man is born

in an organization (hospitals), he is educated in an organization

(schools, colleges and universities) he also satisfies the various security

and egoistic need through organization.

There are three common characteristics in each of these organizations,

they are

1).They are made up of people.

2).They all have a distinct purpose of goal to achieve,

3).There is a degree of formality in each organization that results in

definition

of imitation of the behavior of its members.

The second meaning of the organization is that it is a process of

structure of arranging the parts of which the organizing has an entity is

composed. Organization is the process of defining and grouping the

activities of the enterprises and establishing the authority relationship

among them.

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1. INDUSTY PROFILE

1.1 ORIGIN, GROWTH AND DEVELOPMENT OF THE INDUSTRY

Since the product of BHEL-EPD is the porcelain insulator, it is necessary to see the

origin of the porcelain and then the origin of the ceramic insulators and non ceramic

insulators. The ceramic or porcelain insulators were introduced in 1830s. Porcelain

saw very minimal use for either telephone or telegraph after the development of thread

less glass insulators. Glass tended to be cheaper than quality porcelain, and was

deemed as it was thought that clear glass would discourage insects from building nests

under the insulators reducing their effectiveness. This all would change with the

proliferation of electricity.

1.1.1 Development of ceramic insulators:

Today, after more than 100 years of electric power transmission, wet process porcelain

insulators are still the most widely used form of electrical insulation. Their

development stems from the pin-type insulators that were in use on communication

lines. In the first designs for power transmission, the commissioning of the

communication pin-type insulators was increased to prevent electrical puncture and the

diameter of the shed was made larger for increased leakage distance.

1.1.2 Development of Non ceramic insulators:

In the late 1950s, the development of line insulators with reduced weight and improved

electrical and mechanical characteristics, relative to conventional ceramic string

insulators, was considered a prerequisite to 1000kV transmission line. Although

interest in 1000kV transmission gradually faded, interest in the light weight insulator

continued so much so that the first non ceramic insulator was introduced by General

Electric in 1959. However, that early Gepol insulator, despite its promise, experienced

severe tracking and erosion failures that were related to the epoxy sheds.

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The few types of insulators that are being manufactured in India are:

Disc Insulators : Disc insulators are mainly used for transmission and distribution.

These insulators used in the form of string by connecting (coupling) number of

insulators one into another. The strings can either be in vertical position

(suspension string) or in horizontal position (tension string). The number of

insulators to be used for various strings depends upon the kV rating of the system.

Pin Insulators : Pin insulators are used for over head power lines insulation

(transmission and distribution lines) from 1.1kV to 33kV. Pin insulators are of

rigid type and mounted on the cross arm of the pole. The conductor is rigidly fixed

on to neck (or to the top grove) of the insulator by means of tie wire. The insulator

are first fitted with rigid pins by means of thread and then mounted on to the cross

arm. The thread dimensions of pin insulator are internationally standardized for the

purpose of interchangeability. Pin insulator of 1.1kV range employ porcelain

threads and 11kV to 33kV pin insulator employ zinc thimbles which are assembled

inside the porcelain part.

Post Insulators: Post insulators are of rigid type and used in supporting bus bars,

isolator assemblies and other energized equipments in a substation.

Hollow Insulators: Hollow insulators are used in apparatus. Whenever an

energized conductor has to enter through a wall of a transformer tank, a ‘bushing

‘housed in a hollow porcelain sleeve is used. Whenever a coupling capacitor on the

winding of a potential transformer or a current transformer is to be housed in a

weather casing, a hollow porcelain sleeve is used. Whenever an insulated oil tan of

a circuit breaker is to be covered a hollow porcelain sleeve used.

Solid Core Insulator : Solid core insulators are of various types-Stay arm

insulators, bracket insulators, 9-tonne insulator, Post (pedestal) insulators,

Sectioning insulators, Operating insulators, Panto–mounting insulators, Roof line

insulators-solid core insulators for railways.

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2. COMPANY PROFILE

2.1 Origin of the Organization:

BHEL came into existence in November 1964. At first, a plant was setup at Bhopal and

that was the genius of heavy electrical equipment in India. BHEL is today the largest

engineering and manufacturing enterprise of its kind in India with a record of

accomplishment performance. Right from 1971-72 this organization is making profit.

In BHEL 67.72% of shares is held by the Government of India and 32-28% is held by

financial institutions, foreign institutional investors and employee. BHEL is paying

dividend since 1976-77.

Heavy Electrical (India) Ltd was setup in Bhopal in August 1956 with a view to reach

self-sufficiency in industrial products and power equipment vital for the

industrialization of the country. To meet the total demand of heavy electrical

equipment, BHEL came into being in November 1964.

2.2 BHEL- The Organization Setup:

BHARAT HEAVY ELECTRICALS LIMITED (BHEL) is the largest engineering and

manufacturing in the field of heavy electrical in India and one of the leading power

plant equipment manufactures in the world. BHEL has presence in core sector like

power, industry, transportation, oil and gas, telecommunications, defense and non-

conventional energy sources from “concept to commissioning”. BHEL has 14

manufacturing plants and 150 project sites countrywide and abroad. Its products and

systems have been exported to over 52 countries worldwide. Set up primarily to create

self sufficiency in the field of power generation, the first plant of what is today known

as BHEL was established in 1956 at Bhopal and was genesis of the heavy electrical

equipment industry in India with a well recognized track record of performance,

making profit continuously since 1971-72.

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It achieved a sales target of Rs. 6,471 corers with a profit of Rs.1, 022 corers in 1997-98.

BHEL an ISO 9001-2000 accreditation is now embarking upon Total Quality

Management for its operation.

BHEL has continuously paid dividends to the government. BHEL also received

“Excellent” rating for 9 years consecutively. Government of India and has conferred

the 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, free medical

camps, providing employment facilities for widows, handicapped persons etc.

2.3 The company is accredited with following internationally acclaimed standards:

2.3.1 Quality Policy of BHEL

“In its quest to be World-class, BHEL pursues Continual Improvement in the

Quality of its Products, Services and Performance leading to Total Customer

Satisfaction and Business Growth through dedication, commitment and team

work of all employees.”

2.3.2 Environment Policy

In its endeavor to adopt and implement the environment policy enunciated as

follows, “To strive to be and environmental friendly company in its Activities,

Products and services through:

Compliance with applicable Environmental Legislation\Regulation

Continual improvement in Environmental Management Systems to protect our

natural environmental and control pollution.

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Promotion of activities of conservation of resources by Environmental

Management

Enhancement of Environmental awareness amongst our employees, customers

and suppliers

2.3.3 Occupational Health and Safety Policy

BHEL is committed to provide safe and healthy working environment to all

employees as an integral part of business performance through:

Setting objectives and targets to eliminate/ control/ minimize risks due to

occupational and safety hazards

Appropriate structural training of employees on occupational health and safety

aspects

Periodic review of occupational and safety hazards management system to ensure

its continuing suitability, adequacy and effectiveness

Communication of occupational and safety hazards policy to all employees and

interested parties”.

Compliance to applicable Legislation and Regulations

2.4 Major manufacturing plants and their products:

HPEP, BHOPAL: Hydro set, Nuclear Turbines, Thermal sets (110 MW). Marine

Turbines (12 MW), AC Motors and Irate electric motors, Power

transformers (above 220 kV), Traction machines and controls for traction and Industrial

appliances, Diesel generating sets, Switch gear, Capacitors, Industrial turbines.

TP, Jhansi: power transformers (less then 220 kV), freight low transformers, ESP

Transformers, AC Locos, Diesel Electric shutters, etc.

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HPEP, HYDERABAD: Thermal set (above 200 up to 500 MW), gas nuclear

Generators (235 MW), Hydro sets, industrial machines, control

panels, light trainer aircraft, gas turbines, defense equipment.

CEEP, HARDWAR: Casting and forging for thermal/hydro sets, motors, defense, etc.

Special facilities like 900 t press forging, electric arc furnaces for

melting steel etc.

HPBP, TRICHY: Utility and industrial boilers, valves, nuclear steam generators, well

SSTP, TRICHY: Seamless steel tubes.

EDN, BANGALORE: Variable speed devices, programmable logic and digital

Controller, power devices, meters, photo voltaic / solar panels,

EPABX, HVDC systems, process simulators etc.

EPD, BANGALORE: Disc, Slid core, Bushing, Pin and Post Insulators, Ceramics liners,

Wear resistant ceramic and Honey comb.

IP, JAGDISHPUR: Disc Insulators, Ceramics Liners.

JVC, GOINDWAL: Industrial valves.

CEP, RUDRAPUR: Wind mills, solar water heaters and Solid lanterns.

ESD, BANGALORE: Telecom products and simulators.

2.5 CUSTOMER PROFILE

2.5.1 for Disc Insulators

Karnataka Power Transmission Corporation

Tamilnadu State Electricity Board

Maharashtra State Electricity Board

Punjab State Electricity Board

Andhra Pradesh State Electricity Board

Rajasthan State Electricity Board

Uttar Pradesh State Electricity Board

Kerala State Electricity Board

Meghalaya State Electricity Board

Delhi Electricity Board

Domodar Valley Corporation

Bhakara management independent power production.

2.5.2 for Solid Core Insulators

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Indian railways and Countries like: Sri Lanka, Nepal, Japan, Bhutan,

Australia, New Zealand, Malaysia, Thailand, Turkey, Iran etc.

2.5.3 For Hollow Insulators

ABB, Siemens, Sister units, Switch gear manufactures and Electrical

equipment manufactures

2.6 Ownership Pattern:

As for as ownership of Bharat Heavy Electricals Limited is concerned 67.72% of

Equity is held by the Government of India and 32.28% is held by financial institutions

and employees of Bharat Heavy Electricals Ltd., Today Bharat Heavy Electricals Ltd.,

Manufactures 180 varieties of products under 30 major production groups. It has built

an enviable reputation for high quality and reliability of its equipment.

2.7 Achievement/ Award:

BHEL (EPD) which is one among the Navarathnas is best owed with so much of

awards and achievements since from inception. There are various awards which the

company was nominated not only with in the country but also from foreign nations

which will add feathers to it name & fame.

The following are the awards which are mentioned below as follows:

Management and the workers in accident prevention programmes.

National Safety Award-1990











2.8 Vision:

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“A World-Class Engineering Enterprise Committed to Enhancing Stakeholder Value”

2.9 Mission:

To be an Indian Multinational Engineering Enterprise providing Total Business

Solutions through Quality Products, Systems and Services in the fields of Energy,

Industry, Transportation, Infrastructure and other Potential areas.

2.10 Values:

Meeting commitments made to external and internal customers.

Faster learning, creativity and speed of response

Respect of dignity and potential of individuals

Loyalty and pride in the company

Team playing

Zeal to excel with integrity and fairness in all matters

2.11 Company’s Objectives

2.11.1 Business Mission:

To maintain a leading position as suppliers of quality equipment, system and

services in the field of conversion, transmission, utilization and conservation of

energy for application in the areas of electric power, transportation, oil gas

exploration and industries. Utilize companies’ capabilities and resources to

expand business into allied areas and other priority sectors of the economy like

defense, communication and electronics.

2.11.2 Growth:

To ensure a steady growth in business so as to fulfill national expectations from

BHEL and expand international operations.

2.11.3 Profitability:

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To provide a reasonable and adequate return on capital employed, primarily

through improvements in operational efficiency, capacity utilization and

productivity and generate adequate internal resources to finance the company’s

growth.

2.11.4 Customer Focus:

To build a high level of customer confidence by providing increased value for his

money through international standards of product quality, performance and

superior customer services.

2.11.5 People Orientation:

To enable each employee to achieve his potential, improve his capabilities,

perceive his role and responsibilities and participate and contribute positively to

the growth and success of the company, to invest on human resources

continuously and to be available to their needs.

2.15.6 Technology:

To achieve technological excellence in operation by development of indigenous

technologies and efficient absorption and adaptation of imported technologies to

suit business needs priorities, and provides a competitive advantage to the

company.

3. PRODUCT PROFILE

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BHEL-EPD India’s leading manufacture of High – Tension porcelain Insulators, a class

by themselves – acknowledge by internationally reputed laboratories of CESI (Italy),

KEMA (Holland), Dolton (UK), and IISc (Indian). BHEL disc insulators are known for

their reliability more than 10 million insulators are in service in India and abroad.

3.1 Product range of BHEL-EPD includes:

High – Tension porcelain Insulators for transmission and distribution lines from

11Kv to 800Kv with a wide range of 70kN to 300kN in standard, semi-fog, fog,

anti-fog varieties.

Hollow Insulators for Power Transformers, Instrument transformers, Electrostatic

Precipitators, Circuit Breakers of Conventional and Gas Insulated Types.

Post Insulators for support for bus bars, switches and isolators from 11kv to

220kv.

Wear-resistant High Alumina Ceramic Lining Material for power, steel, cement

and mining industries, as well as a wide range of industrial ceramics.

Catalytic converter for two and four wheeler vehicles.

3.1.1 SOLID CORE INSULATORS:

3.1.2 HOLLOW INSULATORS

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Application: In power transformers, instrument transformers electrostatic precipitators, Circuit breakers of conventional and gas insulated types.

3.1.3 CAP AND PIN TYPE POST INSULATORS

Application: As bus supports in substations for switches and isolators from 11 to 220kV.

3.1.4 DISC INSULATORS

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CANTILEVER STRENGTH from 920 kg for 11 Kv up to 400 kg for 220 Kv

CREEPAGE DISTANCE from 330 mm for 11 Kv up to6150 mm for 220 Kv

APPLICATIONSAS BUS SUPPORTS IN SUB STATIONS FOR SWITCHES & ISOLATORS FROM 11 Kv to 220 KV

Application: Transmission lines for 11 KN to 800 kn. [AC&DC] and substation

3.1.5 HYBRID INSULATOR

A hybrid insulator consists of a porcelain core fitted with weather resistant polymeric shed. This design offers better performance under pollution is light in weight can withstand flames/ arcs offers resistance to chemicals and UV radiation and in vandal proof.

5. ORGANISATIONAL STRUCTURE

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HYBRID INSULATOR CONSISTS OF A PORCELAIN CORE FITTED WITH WEATHER RESISTANT POLYMERIC SHEDS.

THE DESIGN OFFERS BETTER PERFORMANCE UNDER POLLUTION.

LIGHT IN WEIGHT

CAN WITHSTAND FLAMES/ ARCS, CHEMICALS, ULTRAVIOLET RADIATION

RATINGS 70 KN to 300 KN e ms

CREEPAGE DISTANCE 280MM TO 540 MM

COUPLING DESIGNATION 16mm, 20mm, 24mm

APPLICATION in TRANSMISSION LINE

FROM 11 Kv to 800 Kv

BOTHE A C AND D C APPLICATIONS

In BHEL-EPD activities are grouped into different functional units. Each major function

of the enterprise is grouped into different department. This can also be studied as a

separate function. Departmentation based on functions is a simple form of organizing the

activities. Specialization of department promotes the excellence in performance. It leads

to improve planning and control of key functions and ensure economy.

The various departments in BHEL-EPD are:-

Production

Finance

Human resource & Human resource Development Center

Communication and Public relations

Marketing

Commercial

Information Technology

Management Services

Material Management

Quality

Safety/HSE

Engineering

Security and Vigilance

Works Engineering/ project /IE

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Organization Structure of BHEL-EPD

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GENERAL MANAGER EPD

INSULATOR OPERATIONS

MATERIAL MANAGEMENT

PROJECT & CATELYTIC

INSULATOR ENGINEERING

KILN & SOLID CORE INSULATOR

CERAMIC LAB & DEVELOPMENT

HOLLOW & SOLID CORE INSULATOR

ASSEMBLY & TESTING

CATELYTIC CONVERTER

HRM

COMMN. & PUBLIC RELATION

FINANCE DEPT

CERALIN & INDUSTRIAL CERAMIC

HRD

COMMERCIAL DEPT.

WEX PROJECTS DEPT.

WEX

MS & EDP

QUALITY DEPT.

6. PRODUCTION DEPARTMENT

Production department in any industry performs the functions of converting raw materials into

finished products. The manufacturing of goods requires a predetermined plan so that available

recourses of company are used to optimum level and more wastage is reduced to the greater

extent.

BHEL-EPD is today a leading manufacturer of high tension electro porcelain insulators with

an experience of over 70 decades. EPD’s product range includes disc insulators, post

insulators, solid core insulators and hallow insulators in insulators category. Apart from these

they manufacture ceralin tiles like curved plain tiles, curved weld on tiles, flat plain tiles, and

flat weld on tiles.

6.1 MANUFACTURING PROCESS:

The raw materials required for manufacturing the insulators are: Quartz, Feldspar,

Bangepur Clay, Bikaneer Clay, Than Clay, Ellur Clay, Neyveli Clay, Ball Clay, Chaybasa

Clay, Japan ball Clay, Kundra Clay, Festite and China Clay.

The production in the BHEL runs 365 days, and it is a continuous process. Here raw

materials are tested before manufacturing the insulators so that raw materials obtained from

places satisfies their requirements.

6.1.1 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.

6.1.2 Weightment: The raw materials are required to be mixed in different composition.

Therefore weightiest of raw materials is done.

6.1.3 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 a duration of 20 to 24 hours.

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It’s a continuous process round the clock. The materials obtained in the ball milling process are

called Slip or the Ceramic Slurry.

6.1.4 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 are stored,

wooden pieces through electromagnetic separation. This tank is called discharge tank.

6.1.5 Slip Agitating : After screening, the ceramic slurry is transferred to another

Specially built bank 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 after 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.

6.1.6 Filter Pressing : It is dewatering process. In this process 80% of the water is

removed from the slip so as to convert 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. (250N/m2 or Pascal)

6.1.7 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 taken

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 the 22%.

6.1.8 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.

6.1.9 Jiggering : This process is done only for disc insulators. Here the blanks are given a

shape using an automatic jiggering machine.

6.1.10 Drying : The different drying steps are as follows

6.1.10.1 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.

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6.1.10.2 Blank Dryers: For hallow insulators and solid core insulators the blank produced by

pug mills are directly fed to these black 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%.

6.1.11 Turning : Turning is a process to make hallow insulators and solid core insulators

using turning machine. In turning machine there is wheel in which the dried blank is kept

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.

6.1.12 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.

6.1.13 Tunnel Driers: The disc insulators after inspection and allow 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.

6.1.14 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.

Advantages of Glazing are :

Good looking

Additional strength

Clustering surface

Smooth surface & long life

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6.1.15 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.

6.1.16 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 1300°C.

6.1.17 Testing: After firing the insulators goes for testing. The various types of

tests are Hydraulic pressure test, Thermal test, Mallet test and Electrical test.

6.1.18 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.

6.1.19 Curing: After assembling, the insulator goes for curing operation. The

different kinds of curing are steam curing, hot water curing & air curing.

6.1.20 Final Electrical Test: After curing, the insulators are set for final electrical

test. If insulators fail in this test, it burns out and

thus they are rejected.

6.1.21 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 ease smooth handling. Thus, the time taken for all this activities

‘crushing to packing’ is 31days.

6.2 The Various Sections Which Come Under “INSULATOR OPERATION”

For the production to take place smoothly and effectively the whole insulator operation is

divided into various sections. Each section is managed by one deputy manager & consists

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of senior executives, executives, engineers, supervisors, shift in charge, assistances,

trainees & artisans.

Since production is a very important activity in any organisation, the process of production

should be smooth. To manage this process there are several section in existence. They

are:-

6.2.1 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.

6.2.2 Slip House:

It 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 need then these are 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.

6.2.3 Manufacturing Section:

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Here the actual insulators production takes place. The insulators, which are manufactured,

are disc, post & pin, hollow and solid core insulators. The process of production 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.

To carry out this process smoothly & systematically there are 90 employees for disc

insulator manufacturing. There are 2 Deputy General Manager, Senior Engineer, Engineer,

Supervisors and Artisans. For the jiggering process there is an automatic jiggering

machine, which can produce 200 insulators per hour. The capacity of the plant for disc

insulators production is 1300 units per shifts.

6.2.4 Kiln Section:

Kilns are used for firing the insulators to increase the resistant capacity of the product.

There are 3 types of kilns and their capacities are:

Oil Tunnel Kilns

Shuttle Kilns

Rectangular Kilns

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.

6.2.5 Testing and Assembling Section:

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There are several tests to be carried out to check for the quality of the product. These tests

include:

Hydraulic Pressure test : In this a huge amount of pressure will be executed over

the fixed insulators (disc) at an order of 180 +/- 20 kg/cm² for

insulators ranging from 70KN to 210 KN and of order 200 +/- 20 kg/cm² for 320 KN disc

insulators.

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 90º 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 20º 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.

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.

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 it fails in the test or it punctures and thus

rejected.

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 disc insulators are sent for dispatch after

packing. To do all these works there are artisans separately for assembling & testing, above

them is Senior Engineer & above them is Senior Manager.

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The following is the flow chart of insulator Manufacturing process

DISC INSULATOR PRODUCTION PROCESS

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Storage of Raw Materials

Crushing Plant

Ball Mill

Slip Agitation

Filter Pressing

Pug Mill

Throwing & Jiggering

Drying

Oil Inspection

Tunnel Dryer

Glazing & Sanding

Kiln (Firing)

Routine Test

Assembling

Final Test (Electrical)

Packing & Dispatching

Blank Dryer

Turning (Vertical lathe)

Tunnel (Model) Dryer

FOR HOLLOW INSULATORS

7. SAFETY DEPARTMENT

Precaution from accidents and taking suitable precautionary measures is the main activity of

this department; EPD has separate section called HSE section. It takes in to account all the

precautionary measures.

7.1 Safety Policy:

The following are the safety policies adopted by BHEL-EPD unit:

Compliance with applicable Legislation and Regulations.

Continual improvement in the safety management systems performance.

Enhancement of safety awareness amongst employees, customers and suppliers by

proactive communication and training.

Periodical review of safety management systems ensuring its continuity, suitability,

adequacy and effectiveness.

Communication of this policy to all employees and interested parties.

Co-ordination with concerned government agencies/regulatory bodies engaged in

safety activities.

7.2 Functions:

Accident preventions.

To provide Personal Protective Equipments (PPE’s), like safety shoes to protect from

piercing metals, contact from acids, electric shock etc., welding shields, safety belts etc.

to employees and crash helmets are provided to those employees and crash helmets are

provided to those employees who are working in kilns section to protect from head

injuries.

Safety Education.

This unit has board exhibiting details regarding the production processes and safety

measures to be taken by each and every sections of the production department to enable

the employees to function smoothly.

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7.3 Ways to Prevent Accidents

Material should be lifted with the leg muscles, keeping the back straight and knees

bent.

When handling long objects, hold front end high and the rear end low.

Take the help of crane, hoist or other mechanical device when heavy material is to be

handled.

Check for potholes and unevenness in floors when using pallet carts & wheelbarrows.

Do not over pile material such that it obstructs the visibility of the person handling.

When using wheelbarrow load should be placed well forward, so as to make it easier to

lift and push.

Concentrate on the job you are handling.

7.4 General Safety Procedures

Fire prevention and protection: Leakage of Oil should be stopped.

Housekeeping & cleaning in the work area to be maintained.

Electrical safety precautions should be implemented to prevent electric shock.

Fencing / Guarding of rotating parts of the machineries to be ensured.

Any other Safety Measures relevant to the Jobsite to be ensured.

Job specific PPE & safety devices to be provided.

Reverse horn to be provided for all vehicles used within the premises

Close supervision should be provided from day one.

Trained ‘First Aiders’ with first aid station should be ensured.

Contingency plan for all the catastrophes should be prepared.

Emergency preparedness and response plan should be prepared and implemented.

Job safety analysis to be prepared for critical activities.

Flashers and red reflective tapes to be provided on Driven piles.

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8. HUMAN RESOURCE MANAGEMENT

Manpower is the main resource for an organizations success in the market. And it is necessary

for a company to work efficiently for its success. The company management should keep the

employees happy so that the function of the company moves on without any problem. For

keeping the employee happy there are several benefits like allowances, welfare measures,

incentives, etc.

But in a current competitive scenario the manpower is substitutes by the machine to decrease

the manufacturing cost. But by removing the employee the company may lose its reputation

and it leads to decrease in the goodwill of the company. So the company should maintain the

suitable manpower.

In order to keep the employees of the company happy BHEL have introduced several measures

and they have segregated the employees in various categories in order to serve them better.

8.1 HRM MISSION

To continually evolve new bench marks, resources, practices for ensuring effective

contribution of people towards achieving excellence.

8.2 BROAD OBJECTIVES:

Attract, retain, develop, and remain effective and motivate human resource with the

required skills and competencies to meet organizational needs in tune with changing

business profiles and technological requirements.

Maintain good industrial relations with high level of employee for better participation,

productivity and quality at work.

Moving towards the concept of ‘variable compensation’ it would be effective by

developing and implementing new schemes for performance related pay, rewards and

benefits in line with comparable organizations and employees aspiration.

26

Support and nurture an organizational culture and climate that encourage continuous

learning that enable the joint optimization of organizational goals and individual potential.

Making the human resource functions more effective and customer oriented using

Information Technology enabled systems.

Bring in cost effectiveness in all human resources related operations and become self

sustaining in long run.

To propagate, support and implement the principles of “Global Compact” to United

Nations.

8.3 GENERAL TERM AND CONDITIONS OF SERVICE:

The following general terms and conditions of service apply to all the employees, besides

other rules and regulations that may be framed and notified by the Classifications of

employees.

The employees shall generally be classified as under

Regular

Temporary

Casual

Probationer, Apprentice/ Trainee under BHEL schemes.

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.

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.

Casual employee is an employee whose employment is of an occasional or casual nature.

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Probationer is an employee who is provisionally employed with a view of being considered

for appointment on the regular establishment of the company.

Trainee is a learner who is paid stipend or placed a grade as may be decide by the

management, during the period of apprenticeship

BHEL provide many awards and incentives like:-

Cash awards for acquiring higher/additional qualification

8.4 EMPLOYEE BENEFITS:

Leaves

Encashment Earned Leave.(EEL)

Leave Travel Concession.(LTC).

Group Saving Linked Insurance Scheme.

The BHEL Group Saving Linked Insurance Scheme with effect from April

1987 provides an insurance cover for all employees and promotes savings to provide financial

assistance to the employee/beneficiaries at the time of retirement or insurance cover in the

event of death while in service.

8.5 PAY STRUCTURE:

In BHEL, the employee/workers are paid on the following basis:-

Salary

Dearness Allowances.(DA)

House Rent Allowances.(HRA)

City Compensation Allowances.(CCA)

Reimbursement of Medical Expenses

Traveling and Daily Allowances Rule.(TA)

8.6 VERIFICATION OF CHARACTER AND ATTENDANCE

Appointments to only post in the company shall be subject to the satisfactory verification of

character and antecede

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8.7 SENIORITY

It shall be determined by the merit order assigned by the selection board. The seniority of the

person whose services are obtained on deputation and who is substantially absorbed in the

service of the company without break shall be determined with reference to the date of his

joining and the existing post initially on depuration.

8.8 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.

8.9 HOURS OF WORK

Every employee of the company shall be requires to work 48 hours a week.

8.10 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, the work done,

adequate compensation by way of compensatory of overtime payment will be allowed of at the

discretion of the management.

8.11 Promotion Policy and Rules:

As part of the performance appraisal BHEL recognize the work of the employees and

motivates them to work better and better. They want to see that assigned work is being

completed in an efficient and effective manner. Therefore BHEL identifies and promotes them

to next level, so this is done as a part of performance appraisal. The objectives of promotion is

To provide all employees with broad Equality of opportunity in growth and career

prospect.

To ensure fair, equitability, consistency and uniformity in the matters of promotion of

employees in all the Units Division of the company.

To sustain the high morale of the employees by informing them about the promotion

opportunity existing in the organization.

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8.12 Discharge and Termination of Services:

Expect as may be specifically provided in the contract of service or in the standing

orders, the management may at any time discharge an employee from services by giving

notice. Similarly, the employee will be required to give the same notice in the event of

his intention to leave the service of the company.

The services of an employee may also be terminated by the company on the following

grounds, among others:

On abolition of the post

On being declared unfit for further service on medical ground.

Conviction by a court of law for criminal offence amounting to moral turpitude.

Employee engaging himself in other employment without the written permission of

the management or if he is found to have been working else where during the period

of leave or off duty.

Absence by an employee on grounds of sickness for a continuous period of more than

18 months if suffering from tuberculosis, leprosy, mental or malignant disease or

fracture of lower/upper extremity and six month or more if suffering from any other

disorder on the basis of the opinion of the medical board.

8.12.1 Temporary employees

On expiry of stipulated period of appointment: - No notice on either side.

If no period of appointment is stipulated or the appointment is required to be terminated

before the expiry of the stipulated period for which there should be a provision in the

letter of appointment then one month on either side.

8.12.2 Probationers i.e., those appointment on probation one month on either side

in the case of executives and 14 days notice on either side for other categories.

8.12.3 Apprentices/Trainees As per the provisional of the bond.

8.13 Recruitment & Selection:

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It is the process of searching for prospective applicants and simulating them to apply for

the job in an organization.

8.13.1 Procedure for Recruitment:

BHEL has developed a standard form of procedure for recruiting the applicants them to

apply for the job in an organization.

Requisition form to employment exchange

Call letter for selection

Call letter for trade/ technician Apprentices

Offer of training for trade/ technical apprentices

Offer for temporary employment

Offer of appointment

Offer of appointment for supervisors

Acceptance form

Joining Report

Confirmation order for completion of probation

8.13.2 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

8.13.3 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.

8.13.4 Recruitment Policy:

Recruitment was based on the order issued by the government of India. Reservation

was made available for physically challenged ex-servicemen, schedule caste/tribes

and other minorities.

8.14 Welfare:

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Welfare includes anything done for the intellectual, physical, moral, economic betterment of

the workers. It is normally done by the organization, over and above what is laid down by the

law of what is normally expected.

In BHEL, lot of importance is given to the welfare of the employees. Welfare facilities

provided to the employees are:

Uniforms and masks were given to employees and apprentice/trainees

Special incentives for family planning scheme

Overtime facilities

The most important resource of BHEL is its employees. They are provided with safe work

condition, detailed training in technical aspects of their jobs and also imparted knowledge in

areas like first-aid, fire fighting etc. A medical center with an ambulance service is attached to

BHEL industrial complex and all workers are covered under BHEL

8.14.1 Group Insurance Policy:

The company also organized a number of programs in team building, organizational

development, productivity techniques and company information through a well-

equipped HRD center. Employees are provided with housing facilities just outside the

factory, a learning center and a canteen which serves nutritious and hygienic food.

Employees are kept informed about various activities through a monthly house journal.

Payment of HRA at the above rates would be subject to the provision that the employee

will have to bear the 10% of their pay towards their house rent. Employees who live in

houses owned by themselves 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

City compensatory allowances

Non practical allowances to medical

Late night snacks allowances for night shift employees

Messing allowances

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Free uniforms accommodation

Free electricity

Kit allowances to employees deputed abroad

vehicle allowance

Welding allowance to high pressure welders

Transport subsidy

Convenience allowance to blind and physically handicapped employees

Washing allowance

Educational assistance

Re-imbursement of tuition fees

Subsidiary to apprentices or trainees

Traveling allowance

Daily allowance

8.14.2 Canteen

Food which is basic necessity of human being is served in the company over the years

at a subsidized rates say about Rs 3 per day and it also serves nutritious and hygienic

food. And a special feature is that each and every employee has to wipe 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 concern. This canteen also provides Tea/Coffee at least twice a day.

8.14.3 Trade Union

In any industry we can see Trade Unions among workers. Trade Unions are a voluntary

organization of worker or employees formed protect and promote their interest through

collective actions. In BHEL we can also find Trade Unions, which take care of

employee whenever issues are made against the employee. But the trade union in

BHEL includes many educated workers so that the issues are settled within the factory.

Top management and trade union leaders come together and try to settle problem

within the factory premises.

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9. HUMAN RESORUCES DEVELOPMENT

The culture of the corporate world is changing dramatically. The sources of power have shifted

from capital resource to human resource, from natural resource to knowledge resource.

We live in a world wherein there exists a perceivable gap between the present state and desired

state is it in the personal, professional and organizational scenarios.

The pivotal role of HRD lies in helping management and employees alike in identifying and

narrowing the above gap through appropriate training. This constitutes the core of

contemporary HRD practice.

So HRD is the process by which people are assisted in a continuous and planned manner to

develop their job competence, personality and other capabilities. It is the total all round

development of the people, so that they can contribute their best to the organization.

HRD in the organization context is a process by which the employees of the organization are

helped continuously and planned way to:

Acquire or sharpen the skills required to perform their present and expected future roles

effectively.

Develop the general capabilities to discover and explore their own potential for their

own organizational developments.

Develop an organizational culture that encourages team work, mutual trust and freedom

to express one’s feeling and opinion so as to contribute to professional well being to

employees and organization.

BHEL considers its work force to be an asset of the company. It takes care of human

relationship in the organization.

9.1 The main functions of the HRD:

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Identify the needs of employees.

Based on the need, training and development programme is undertaken.

Training budget is approved by the HOD

The required employees will undergo training.

9.2 Objectives:

To conduct applied research on various aspects of ceramic materials

Upgrade technology from laboratory to pilot plant scale prior to commercial production

Provide consultancy engineering services

Establish facilities for characterization and testing of ceramic materials

9.3 TRAINING:

9.3.1 Purpose:

To impart necessary training, to continuously update the skills and knowledge of all

those managing, performing and verifying the quality of services. To impart resources

into company program’s for all the developmental programs. To consolidate into

company programs for the training needs identified from all the departments/section.

9.3.4 Development Programmes:

Developmental programs are conducted for all categories of employees i.e., Executive,

Supervisors and Artisans. The company for this purpose invites faculty from outside.

9.3.5 Counseling Programmes:

Counseling programs are undertaken for employees who are irregular to work,

uninterested in the work, etc. for this purpose, the company encourages suggestions,

group work etc., and hence motivate the employees.

9.3.6 Project Training and Visits:

EPD encourages project training to students from different disciplines. This provides

training not only for the students, but the company also gets benefited through their

research work carried out as their curriculum.

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9.3.7 Performance Appraisal:

Performance appraisal is a process of supporting the use of human resources in an

organization effectively and efficiently. It is possibly management’s most powerful tool

in controlling performance and productivity of human resources in the organization.

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.

For example:

10 points – poor performance

20 points – excellent performance

Evaluation done based on many factors such as punctually, discipline creativeness,

leadership,communication,etc..

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10 FINANCE DEPARTMENT

In BHEL-EPD to work more effectively the finance department is divided into 7

sections which look after entire unit are as follows:

Establishment Section

Bills Payable Section

Bills Receivable Section

Books Sections

Costing and materials Accounts Section

Cash Section

Provident Fund Section

10.1 Establishment Section:

This department is concerned with wages, salaries, medical reimbursement,

conveyance reimbursement, tour advance settlement, and air fare settlement, payment

of medical expenses of retired employees, provident fund and gratuity.

Apart from these activities the department is also concerned with recording and

maintenance of attendance, leave taken and over time work 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.

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10.2 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,

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. Where in inspection department will certify and then clear the stores receipt

vouchers. The cleared stores receipt will then come to material management who will

value it. After this it is forwarded to bills payable section. They will release the

payment.

10.3 Bills Receivable Section:

This is the unique section which usually does not exist in money organizations. As

the product of EPD is made to order, the organization should make a follow up of

customers after sales.

Thus the function of this section is mainly:

Maintenance of customer accounts.

Follow up of after sales procedure.

The payment/amount which has to be received by the customer is checked by this

section. After the sales is done that is after the dispatch of products is over which is

done by commercial department, the sales department follow the invoice raised by

commercial department and collects the amount from the customers. Each customer is

identified with a unique customer code. This code is common to all the branches of

BHEL and is identified by corporate office.

With reference to the invoice raised by the commercial department this section raises

the bill. It is also concerned with speedy recovery of period barred debtors as early as

possible. This section has to maintain a debtor’s ledger that will periodically be

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reviewed in terms of recoveries, whether customer is paying regularly or not, whether

there is any outstanding, and reasons for that.

10.4 Book Section:

This main work of this section is maintenance of general ledger and coordination with

other sections. It is also entrusted with passing journal entries, transfer entries passed

by the various sections of finance, and to ensure that proper code are used while

passing the codes. Because BHEL follows the common code system for all its units,

so that consolidation of accounts will not be a big problem for them. In order to

maintain the uniformity of the codes BHEL follows this system. This is also

concerned with preparation of budgets.

10.5 Costing and material Account Section:

Coasting section in EPD is a part of finance department. The main task of this

department is to classify, accumulation assignment and control of cost. The

information supplied by this department has a great importance to the management in

decision making. By cost splits the management will be in a position to know where

exactly wastages is 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 to looks after the capital payments.

10.6 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 employee’s salary,

contract labors wages, supplier’s amount and receipt of customer’s payment all are

through this section.

Here the books maintained for cash and bank transaction are:

Cheque drawn register

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Payment bank book

Receipt bank book

Payment cash book

Receipt cash book

10.7 Provident Fund Section:

In BHEL there is separate department to maintain the provident fund of employees.

Company also contributes 12.5% in addition to the employee’s contribution. This

department maintains the records that whether the employee has taken loan or no, if

an employee has taken loan the loan amount is deducted from the total provident

fund. If he has not taken the employee gets the lump sum amount at the time of his

retirement.

10.8 Internal Audit:

It acts as a watch dog of the various functions by continual observations and

evaluation of records, both financial as well as others. This section mainly functions

as a service to 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.

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Organizational Chart of Finance Department

41

Finance Head (E6A)

Books, Bills, Budget &Capital Expenditure Section (E2)

Sales, Excise, Purchase, VAT Cell Section (E4)

Cash, Cost & Imports Section

(E3)

Cash Section (E1)

Sales, Accounting & Collections Section (E2)

Purchase Finance Section (E3)

Finance-Establishment Section (E1)

11. MARKETING DEPARTMENT

For any organization to carryout its sale activity efficiently and more effectively what

they need is a good marketing department. Marketing department deals with the all the

activities carried out by BHEL-CBU. In the field of ceramic components BHEL has a

good stand in the country and its sales are more. The duty of marketing department 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.

The activities carried out by marketing department are:

Enquiry from the customer

Acknowledge to that enquiry

Offer-quoting of tender

Negotiation

Order

Internal order allocation

Market Exploration

Order Booking

Bidding

Preparing the Annual Budget

Projections

Billing, Invoice and Dispatch

In enquiry there will be a qualifying requirement, which specifies certain condition for

any company to qualify for the offer that is capacity, assets involved etc, enquiry consists

of both commercial as well as the technical requirement terms.

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Enquiry will go to engineering department for recommendation and approval of the

technical specification. If the engineering department thinks it is not possible to

manufacture according to that specification then marketing department will exchange a

word of mouth with the customers regarding issue and comes to a conclusion.

After the order is accepted the production is carried out according to the desired

specification. After production is over the company calls the customers for the inspection,

which may be conducted by the customers representatives or they may insist for the

company to go for internal inspection or they may send third party for the inspection.

After the inspection is over and if the product is found to be according to the required

norms then the customers will give the packing and dispatch instruction according to

which the company should go for the dispatch of the materials.

Once the dispatches of the products are sent according to their requirements then the

marketing department will follow up the payment if it is fewer amounts. If the amount is

more finance department will follow up. The marketing department also will keep in

touch with the customer to maintain good rapport.

11.1 Marketing Strategies:

This section provides broad overview of the plan for achieving the marketing

objectives, and ultimately, the organizational goals. Marketing strategy focuses on

defining a target market and developing a marketing mix to gain long run competitive

advantages. Marketing strategy guides the firm’s direction in relationships between

customers and competitors.

11.1.2 Pricing Policy

In BHEL, they are different pricing policy in the market, they are

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Penetration Price: it is intended to help the product penetrate into market to hold a

position. This can be done only by adopting low price in the initial stage or till such

time the product is finally accepted by the customers. This is done to capture the

market.

Hot and Cold Pricing: in this, the pricing is fixed on the basis of quality ordered

i.e., higher the quality ordered, lower will be price fixed, whereas less the quality

ordered then high price is charged.

Follow Leader: in this, the pricing is fixed by following to the leaders in the

market.

Skimming the Price: it involves setting a very high price initially and reduces the

price, gradually as competitors enter the market. Usually this method of pricing is

used while introducing a new product into the market.

Promotion Tools: promotion consists of those activities that are designed to bring

a company’s goods and services to the favorable attention of customers.

11.1.3 In BHEL, there main promotional tools are:

Seminar

Presentation

They promote their product by conducting seminars and presentation through video-

conferencing.

11.1.4 Customer Satisfaction Level:

Customer is the central point and all the marketing activities revolve around him.

Manufacturer produces what the customer wants. Consumers behave in a particular

manner as directed by his inner motive. The marketers to study and analyze the

consumer behavior in order to sell and improve the product.

In BHEL, they conduct a customer perception survey, which reveal the satisfaction

level of the customer.

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12.1.5 Global Market:

Global market means doing business globally, BHEL as entered the global market

and they market their products through trade and merchants exporters.

Figure: Global Market of BHEL

45

FLOW CHART OF MARKETING DEPARTMENT

46

Offer Submission

Tender Opening

Negotiation

Order Placement

Scrutiny

Clarification

Acceptance Allocation ofOrder

By Customer

Conditional

By Marketing Scrutiny

Commercial offer

Price Delivery & Schedule

Cost Estimate from Finance

Shop Loading

Technical Offer

Complete the Offer

Either by Marketing/ Engineer

By Marketing

Tender Notification

Procurement of Tender

Enquiry Negotiation

Enquiry Forwarding to Engineer for technical offer

Organizational Chart of Marketing Department

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Marketing & Planning Head (E7)

Marketing Ceralin & New Products Section (E6)

Ceralin Insulators, Exports & New

Products Section (E3)

Marketing Insulator Section (E6)

Exports & TBG Section

(E2)

(E2)Disc, Solid

Core & Composite

(E2)Disc, Solid

Core & Composite

13. Commercial Department

This department deals with the customers and suppliers and therefore it is rightly called as heart

of the organisation. It helps in getting orders from different customers. The main function of this

department is customer satisfaction. It aims at providing good quality product at reasonable

prices and dispatches them within a specified period. This department also takes care of its

suppliers from whom raw materials required for production are supplied and ensure them prompt

payment. The section is responsible for execution of orders secured for insulators manufactured

in the unit.

Functions of Commercial Department

Contract review

Issue of work order

Preparation of turn over plans, Based on internal orders and shop floor capacity, turnover

plans is prepared.

Every month flow up has to be done

Periodical monitoring (weekly) that is monitoring the achievement and comparing that

whether they are doing as per schedule

Billing invoice and dispatch: This department issues dispatch and billing instructions,

based on the above instructions, invoices will be prepared

Packing of insulators

Customer’s complaint

Dispatch and invoice

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Organizational Chart of Commercial Department

49

Head Commercial (E6)

Bushing Packing & Dispatch (E3)

Ceralin & INDL Ceramics (E3)

Disc, Post &Pin, Solid Core, Line Hardware

(E5)

TBG & Exports(E2)

Disc, Post, Composite, Non TBG

(E4) Note:

INDL => Industrial

TBG => Transmission Business Group

14. Material Management Department

The material management department functions within the framework of quality assurance

manual provided by the quality department and purchase policy laid down by thee corporate

office (situated at New Delhi). The main functions of this department is to procure the material

require with available funds.

The responsibilities of the material management department are:

Selection and qualification of vendors.

To ensure that the required quality are purchased.

Plan, store and provide requisite material components to suit schedule.

To provide safe working environment.

Import management.

14.1 Functions of material management are as follows:

Material planning, activity and budgeting

To organize for keeping an appropriate stock so as to feed the production

uninterruptedly.

To register the purchase indent before reaching various groups in purchase section.

Identify direct material requirement for the succeeding financial year based on sales

forecast.

Preparation of material budget taking into account the price allocation.

Identify the requirement of direct material, consumables, material based on pervious

requirement and consultation with various departments.

The entire revenue budget is working out taking the prevailing price and anticipation

escalation in consideration. This is worked out at the unit level.

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14.2 Purchase Activity:

This section mainly deals with procurement of material at the right time, from the right

place, at the right price and makes it available to the right department.

In case of purchase of capital item, the concerned department is to make a project report

specifying the requirement and send it to the corporate office. On studying the report, the

corporate office decides whether to purchase the item or not. Once the sanction to

purchase the item is received, immediately specification are given and tender are invited

from each tender, L1 is selected.(L1 = first tenderer)

Tender system has been adopted to produce material at competitive rate. The kind of

tender in vogue are:

14.2.1 Open Tender: Such tender restored when adequate number of approved

vendors are not listed. On known source shall be addresses to the enquirer.

14.2.2 Limited Tender: Limited tender shall be addressed to a few handful

vendors. The vendors are already identified to supply the material.

14.2.3 Single Tender: Single tender is invited from a particular vendor. Single

response to an open tender or limited tender shall be treated as Single tender.

The unit procures the materials from its sister unit also, when and where there are

requirements, and materials are available in excess on either side.

14.3 Store Department:

Goods are received into the store after inspection and they are held and issued into

production as and when required. The stores department renders service mainly to the

production and finance department.

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14.3.1 In EPD the stores department are divided into 3 sections:

Metal parts stores

Oil stores

General Stores

14.3.2 Functions of the Stores department:

To ensure steady supply of material to the required department.

To keep proper account of material in its custody so that the capital of the company is

properly utilized.

To preserve the material in custody from deterioration, loss or pilferage.

To keep inventory to the minimum and to ensure that non-moving items are speedily

disposed. This ultimately results in reduction of inventory carrying cost.

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Organizational Chart of Material Management Department

53

MM Head (E7)

Procurement Disc, MP, Packing Ceralin, Stores,

Sub-Contract, SAP,ISO-System (E5)

Maintenance Capital, Medical,

DGFT (E3)

Tender Cell, RM, INDL, Metals (E3)

Ceralin MP, Packing & Disc MP (E3)

Non-Disc MP, Line, Hardware (E2)

Stores & Scrap (E3)

MP Stores, Sub-Contracting (E3)

Note:

RM => Raw Material INDL => IndustrialDGFT => Director General of Foreign Trade MP => Metal Parts

SAP => System Application Product Data Processing ISO => International Standard Organisation

15. INFORMATION TECHNOLOGY DEPARTMENT

Since the IT sector has been introduced to the world it has become a key part in the day to day

functioning of the organisation. Systems Department in BHEL-EPD provides service to

production and other department in turn which helps in network infrastructure, mail transaction

and virtual private networks to connect other units and provides on-the-job training to

employees.

15.1 The different functions carried out by IT are:-

Collection of data from various departments & preparation of ceramic production report

All servers hardware/software planning.

Consumables

Antivirus and hardware related issues

PC& printer maintenance coordination

Stationery & consumables

Stock position maintenance including indenting

General office administration & other miscellaneous work

Intranet site development

Website development

Network server & backup

SAP BASIS administration

ERP issues coordination

The company implemented SAP in the year 2004. SAP stands for “Systems Applications and

Products in Data Processing”. Since then the units function has gradually changed from

traditional way of working to the usage of the systems. The implementation of SAP using given

resources in various levels and in different departments has made the functioning smooth, since

IT maintains the systems around the clock.

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GM / EPD

SDGM / FINANCE & IT

Engineer / IT

SAP BASIS ADMINALL SERVERS HARDWARE/SOFTWARE PLNGVPN & LEASED LINES NETWORKINGCONSUMABLESANTIVIRUSH/W RELATED ISSUES

AOS / ITPC & PRINTER MAINTENANCE COORDINATIONSTATIONERY & CONSUMABLESSTOCK POSITION MAINTENANCE INCLUDING INDENTING GENERAL OFFICE ADMINISTRATION & OTHER MISC WORK AMC RENEWALS

Sr. IT Operator / IT

(COLLECTION OF DATA FROM VARIOUS DEPARTMENTS & PREPARATION OF CERAMIC PRODUCTION REPORT)

Sr. IT Operator / IT

(COLLECTION OF DATA FROM VARIOUS DEPARTMENTS & PREPARATION OF CERAMIC PRODUCTION REPORT)

Sr. ENGINEER / IT

SAP BASIS ADMINISTRATIONSAP ABAP DEVELOPMENT ERP ISSUES COORDINATION INTRANET SITE DEVELOPMENTWEBSITE DEVELOPMENTNETWORK SERVER & BACKUP

INFORMATION TECHNOLOGY DEPARTMENT

16. QUALITY DEPARTMENT

Quality refers to meet and anticipate customer’s requirements, stated or implied at a given

time and over a period of time and at a price the customer can afford and is willing to pay.

Introducing new and better products into the market faster than competitor and continuously

bringing down the cost of manufacturing.

A quality assurance programme taking into account the requirements of this part can be

used, after agreement between the purchaser and the manufacturer, to verify the quality of the

insulators during the manufacturing process.

In the production operation, the quality department will check for product characteristics

after suitering operation. It is only after the kiln operation the quality department verifies the

conference of the product to customer requirement. Once the product is fully manufactured

and tested by the production in charge, it will be inspected and product is accepted for

dispatch to customers.

16.1 Various Functions Carried by Quality Department:

16.1.1 Verifying the Compliance of Raw Materials: All incoming products and raw

materials are inspected prior to the release to the production or for further processing. Items

received from suppliers or sub-contractors of EPD at stores are released for production either

based on verification of supplier’s inspection/test reports or after test/inspections by quality

department. Goods delivered are inspected and segregated based on the decision there of as

to acceptance/rejection and identified by tags, paint, markings or display of boards. Rejected

goods are segregated and suitably identified as non – conforming. Quality control reports of

acceptance/rejection are maintained for all items.

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17.1 Facilitating with Customers for Inspection:

The customer satisfaction is prime objective of the organisation. There will be

certain situations when customers want to conduct certain tests on their own for

their satisfaction regarding quality of product. This department helps the customer

to carry out this operation insight or at BHEL-EPD itself as mentioned in the

contract.

17.2 Quality Circle:

The organization with a commitment to participative management or interested in

exploring its possibilities as means of realizing its productivity and quality goals, the

quality circle process can be a valuable tool. Quality circles themselves are relatively

simple. A circle consists of small group of people within the company who do similar kinds

of work. This group meets on a regular basis that is once in a week to identify, analyze and

solve problems in its member work area.

As a problem solving forum the Quality circle is to select problems within the member’s

work area to study and solve. In the early stages of circles life time it is important that

member’s relatively easy problem to solve. Quality circles are not permitted to work on

problems whose causes are outside of their area of responsibility.

17.3 BHEL Unified Quality System

17.3.1 Impacting on Customer Satisfaction:

Shop product non-conformance handling & processing (NCR)

Field non-conformance handling & processing (MDR/SAR/CAR/SDR)

Corrective and preventive actions

Implementing special contract requirements-contract review

Design control-review, verification and validation

Vendor/Subcontractor management

Customer complaint handling, Control of inspection, measuring and test equipment.

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17.3.2 Impacting on Business:

Improvement projects

Evaluation of process capability

Quality audits and management reviews

Collaboration technology implementation

Document and record control

17.4 Total Quality Management:

The company is implementing TQM i.e. total quality management since 2001. TQM can

be descried as “Management approach of an organisation, centered on quality, based on

the participation of all its members and aiming at long-term success through customer

satisfaction and benefits to all members of the organisation and to society”.

The company has chosen to adopt the European Quality Award Model for TQM-

activities.

17.4.1 Basically developed on 9 criteria such as:

Leadership

Policy & Strategy

People Management

Resources

Processes

People Satisfaction

Customer Satisfaction

Impact on Society and Business Result

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18. ENGINEERING DEPARTMENT

This department outlays designs, drawing and sketches required by the production

department and keeps track of recent changes in the technology thereby diversifying the

product produced by the organization in the modern era of computation.

18.1 Engineering Department Consists of:

Ceralin Engineering

Insulator Engineering

18.2 The Main Functions of the Engineering Department are:

Design of product

Type testing

Technical offers

18.3 Design of Product:

A design is a sketch or a plan in outline, together with details regarding the type of

materials to be used, the method of manufacture, the shape of various parts and

their function.

18.4 Type Testing:

Here the design, outline is coordinated with the specific requirements of the

customer needs.

18.5 Technical Offer:

Maintenance of the drawing

Shop floor coordination

Shrinkage follow-ups and immediately corrective active actions are taken.

Once the work order is been issued, manufacturer information is prepared.

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Organizational Chart of Insulator Engineering Department

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Insulator Engg. Head (E7)

Section In charge (E5) (Insulator Engineering)

Testing In charge (E3)Special Articles (E2)STD Articles (E4)

Asst. Testing (E1)

Note:

STD => Standard

19. SECURITY AND VIGILANCE DEPARTMENT

19.1 Security:

Security is safeguarding the property of the organization against any malpractices. The

security department ensures that the workers arrive at the right time to the premises and

the entry of trespassers into the premises is checked. The visitors and suppliers etc., has

to seek permission of the security before entering the premises and are given pass to

enter into premises.

19.1.1 Functions:

To collect information for effective performance.

Preventive Vigilance.

Punitive or taking stern actions erring employees

Reformative/ educating the employees.

Monitor the guidelines.

19.1.2 The procedures followed are:

19.1.2.1 Men Movements: It is an Access Control System which records in and out time,

purpose of all employees. The kinds of passes are:

Personal pass – in Red colour

Official pass (on duty pass) – in Yellow colour.

Supervisors and Heads have different pass.

19.1.1.2 Material Pass:

It checks the purchase order numbers, references. Any doubts regarding Materials

are referred to a concerned department and then entered into the log book & then

materials are allowed inside the factory.100% checking is done.

Any materials rejected will be sent back with Returnable Gate Pass (RPG). For this

returnable follow log book is maintained and the material rejected are sent back.

Totally rejected materials are sent with Non-Returnable Gate Pass (NRGP).

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19.1.1.3 Excise Goods Pass: For protection of production with proper security and check

books.

19.2 Vigilance:

Vigilance department investigates any illegal acts done within the organization. All

government sectors should have Central Vigilance Commissioner. Vigilance has no

boundary for itself. It starts with departmental procedures and files and specific

purchase policy. All executives are bound to follow the policy. Works instructions are

provided to all departments.

19.2.1 The main functions of the department are as follows:

To collect source of information.

To undertake preventive vigilance that is surprise check, random check etc.

Constructive vigilance for executives, supervisors.

Punitive actions to be provided wherever necessary.

Reformative action also provided.

Causes of Corruption and Measures to Eradicate

19.2.2 Preventive Vigilance Activities in BHEL-EPD

Lecture on Moral Ethics

Routine checks

Surprise checks

Scrutiny of Purchase/Contract files

Scrutiny of Annual Property Returns

Scrutiny of Personal files

Suggestions or Feedback

Follow up of Job rotation

Every year 31 st October to 5 th November vigilance week is celebrates. During this week,

various training programs, seminars and other activities are conducted for the employees.

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Mckinsey’s 7s frame work with reference to organization

The entire profile of the organization is in accordance with Mckinsey’s 7s models: Here are seven basic dimensions, which represent the core of managerial activities. These are the layers which executes use to influence complex and large organizations. Obviously, there was a concerted effort on the originator of the model to coin the managerial variables with words beginning with the letter S so as to increase the communication power of the model.

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Shared values

System Strategy

Structure

Skill

Style

Staff

The model starts on that an organization is not just structure but consist of seven elements.

Structure:-The design of the organization structure is critical task of the management of an organization. Organization structures perform four major functions.

1. It reduces internal uncertainty arising out of variable unpredictable, random human behavior within the organization through control mechanisms.

2. It reduces external uncertainty through forecasting, research and planning in the organization.

3. It undertakes a wide variety of activities through devices such as division of labour, dapartmentation, specialization and delegation of authority.

4. It enables the organization to keep its activities coordinated and to have focus in midst of diversity in the pursuit of its objectives.

Skills: - the employees at BHEL possess a highly qualified technical engineering, communication and problem solving managerial skills. For the employees both on the job and

off the job training is given: Artisans Coaching by senior or senior technicians.

Internal faculty or experts give lectures based on any topic of there expertise.

Supervisors Internal faculty or experts give lectures based on any topic of there expertise.

Executives Internal faculty or experts give lectures based on any topic of there expertise.

Off the job training:-Artisans Visit to other industries for the purpose of learning.

Seminar conducted in other places.Supervisors Visit to other industries for the purpose of learning.

Seminar conducted in other places.Executives Executives are sent abroad to learn about new technologies and

participation in seminars and conferences.

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Style: - the style of an organization according to Mckinsey frame work becomes evident through the patterns of actions taken by members of the top management team over a period of time. BHEL being a PSU there no opportunity for grievances while making decisions regarding any problem on project. Here employees i.e. artisans are consulted for the ideas view points regarding any problems. Here there is no autocratic style of leadership. BHEL believes in participative style of decision generated is favorable to everyone and it could be one of the best.

Strategy: - strategy refers to the determination of purpose and the basic long term objective of an enterprise and the adoption of course of action and the allocation of the resources necessary to these aims.

Pricing strategy:

Pricing of the insulator product is market driven. In ranges where insulators are in direct competition pricing strategy are evolved with the objective of ensuring retention of market in key ranges and preventing overseas bidders from capturing domestic market. BHEL also adopts de marketing strategies with the confidence of its clients and assuring on delivery levels and reasonable prices. In the view of the dynamics situation the market strategies are made to suit the environment prevailing.

Systems: - BHEL is an organization which is systematic in doing its day to day work. This is evident from the facts. BHEL has well managed HR department systems and management information system.

System followed in HR department:- Performance evaluation method:- every authority maintains an annual confidential

report of all his subordinates with the performances recorded very often. It is kept highly confidential and is available only to the senior authority and the personal department. During the time of performance appraisal, the various positive and negative factors discussed by HODs. Appraisal’s for executives in BHEL EPD is known as moving ahead through performance. it is a self appraisal and it is online.

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Staff: - Human resource for the organization is vital and assuring that they have the potential to contribute to the achievement of the organization goal. BHEL generally prefers to have highly qualified engineers and dedicated management professionals in case of staffing process at BHEL. Every executives, supervisors, workers need to be technically sound.

Executive E1 Engineers or MBA’s Executive E2 Senior engineer Executive E3 Deputy manager Executive E4 Manager Executive E5 Senior manager Executive E6 Deputy Senior managerExecutive E7 Additional general manager Executive E8 general managerExecutive E9 Executive director

Shared values:-1. Integrity and fairness in all matters: - we must conduct our business fairly with

honestly and transparency. Everything we do must stand with public scrutiny. It shows transparency in its deal and there is no chance for misappropriation and while issuing the tender a person who quotes lowest and specification which matches company’s technical specification will be placed an order. BHEL shall prepare and maintain accounts fairly and accurately in accordance with the accounting and financial standards and the books of accounts are kept open or public scrutiny.

2. Respect for dignity and potential of individuals: - we must be caring. Show respect and humanity for our colleagues and customers around the world and always work for the benefits of our nation

3. Ensures speed of response: - if a client asks for any information regard products of the company. No individual can make organization to succeed but what required is group effort, any discussion to be taken regarding particular problem each and every employee will be consulted through their heads of department.

4. Loyalty and pride in the company:- each and every employee in the organization will be loyal to his organization and they are proud of their organization.

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21. SWOT ANALYSIS

21.1 Strengths:

The greatest strength of BHEL-EPD is its highly skilled and committed employees.

Company following ethical and transparent business practices.

BHEL has acquired Quality certification namely ISO 9001, ISO 14001 and ISO

18001.

Organisation is decentralized which encourages employees’ participation.

Good industrial relations.

Ability to raise funds.

21.2 Weaknesses:

Excess labour force, majority of the profit will be given in the form of salary, bonus,

allowances etc.

More causal labours than permanent labours.

Government intervention is more in strategies design making which create difficulties

to under take business decisions

100% employee participation is not adopted

21.3 Opportunities:

The company must give more emphasis on team building and quality circle for better

performance and results.

Increase profit margin through automation of work.

Increase in market share by expanding business through globally.

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21.4 Threats:

Competition from private manufacturers. JAYASHREE INDUSTRIES-KOLKOTTA

MODERN INSULATORS LIMITED-RAJASTHAN

W.S.INDUSTRIES-CHENNAI

SARAVANA INDUSTRIES- KUDALORE

IECE INDUSTRIES-BHOPAL

LAXMI INSULATORS

Pay scale of lower level employees can bring unrest and turnovers, which may affect

the work in progress.

Stiff prices competition for insulators.

Competition from its own sister units.

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22. LEARNING EXPERIENCE AND SUGGESTIONS

Company should improve the facilities of crèche, as most of the employees are uncertain

about these facilities.

It is also suggested that company should provide better rest rooms.

Although the company provides welfare facilities to the employees for their betterment, the

management should take certain measures to improve the welfare facilities. And the

satisfaction leads to better performance.

Proper rules have to be followed in recruiting contract labors as this contract labours after

some period may convert into permanent labours.

A suggestion box can be maintained by the HR department which helps the employees to

give their suggestions.

Provide signboards within the factory premises to facilitate easy identification of the

department.

Conduct seminars on communication, so that employees can improve their communication

skills.

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Increase market share in existing and new products.

Entering new country for business

25. BIBLIOGRAPHY

BOOKS:

Personnel Manual of various Departments

Porcelain Insulators & how they grew by Brent Mills

JOURNALS:

Ceramic

REPORTS:

Annual Reports of BHEL-EPD 2006-07

WEBSITES:

www.bhel.com

www.bhelceramics.com

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http://www.bhelceramics.com/

http://www.bhel.com/

Organisation Study on BHEL Company by Atul

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