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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE INTERNSHIP TRAINING REPORT A Study conducted at BHARAT ELECTRONICS LIMITED Submitted in partial fulfillment of the requirements For the award of the degree of Master of Business Administration Bangalore University Submitted by S.NARMADA REG NO. 09CQCMA061 Under the Guidance of Mrs. SHALINI. R Senior Lecturer DAYANANDA SAGAR COLLEGE OF MANAGEMENT & IT Page 1

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Page 1: Bel Internship Final

BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

INTERNSHIP TRAINING REPORTA Study conducted at

BHARAT ELECTRONICS LIMITEDSubmitted in partial fulfillment of the requirements

For the award of the degree of Master of Business Administration

Bangalore University

Submitted by

S.NARMADA

REG NO. 09CQCMA061

Under the Guidance ofMrs. SHALINI. R

Senior Lecturer

DAYANANDA SAGAR COLLEGE OF MANAGEMENTAND INFORMATION TECHNOLOGY

Shavige Malleshwara Hills, Kumaraswamy Layout, Bangalore – 560078.

2009-2011

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

CERTIFICATE

This is to certify that the Internship Project titled “An

Organizational study at BHARAT ELECTRONICS LIMITED, Bangalore”,

submitted in partial fulfillment of the requirements for the award of

degree of Master of Business Administration to Bangalore

University, and is a record of original work carried out by

Ms. S. NARMADA ( Reg No: 09CQCMA061) under the guidance of Mrs.

Shalini (Senior Lecturer) during the academic year 2009-2011. This

has not been submitted to any other university or institution for the

award of any degree/ diploma/ certificate.

Dr. Maruthi Ram. R

Dr. M. S.Ramachandra

Head- MBA, DSCMIT

Director- DSCMIT

Place: Bangalore

Date: 19-08-10

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

STUDENT DECLARATION

I hereby declare that the Internship Project Report titled “An

Organizational study at BHARAT ELECTRONICS LIMITED “is an

original work done by me, submitted in partial fulfillment of the

requirement for the award of the degree of Master of Business

Administration to Bangalore University, under the guidance of

Ms. S.NARMADA. This has not been submitted for the award of any

other degree/ diploma/ certificate.

Place: Bangalore S.NARMADA

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

Date: 19-08-2010 (Reg No:

09CQCMA061)

GUIDE CERTIFICATE

This is to certify that the Internship report titled “An Organizational

study at BHARAT ELECTRONICS LIMITED” submitted in partial

fulfillment of the requirement for the award of the degree of Master

of Business Administration to Bangalore University is a record of

original work carried out by Ms. S. NARMADA (Reg No:

09CQCMA061) under my supervision and guidance and that no part

of this report has been submitted for the award of any other

degree/diploma/certificate.

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

Place: Bangalore Mrs. SHALINI

Date: 19-08-10 Senior

Lecturer

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

PREFACE

Bharat Electronics Limited (BEL) established in 1954 with its corporate office at Bangalore

has nine units in the country. It is engaged in the design development and manufacture of

sophisticated state-of-the-art electronics equipments/components for the use of defence

services, Para military organisations and other governmental users like All India Radio,

Doordarshan, Department of Telecommunications, Police Wireless, Meteorological

Department, etc. The BEL is also the premier indigenous source for professional electronic

equipment.

Bharat Electronics Limited (BEL) is an India-based multi-product company. The

Company is engaged in manufacturing and supplying of electronic products primarily to

defence services. The Company provides products in three categories: defence, non defence

and system/turnkey solutions. Defence division offers products in various areas, such as

communications, radars, naval systems, opto electronics, electronic welfare system, tank

electronics and simulators. Non Defence division offers products in various areas, such as

switching equipment, television and broadcast, direct to home (DTH), telecom, Simputer,

electronic voting machine and electronic components. System/Turnkey solutions division

offers various services, such as command, control, communications, computers and

intelligence solutions (C4I), satellite communications (SATCOM) and vessel traffic

management system (VTMS). It also offers various services, including contract

manufacturing, and design and manufacturing services.

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

ACKNOWLEDGEMENT

This study of mine has taken the co-operation assistance and understanding of some

respectable and thinkable people. I express my sincere gratitude through this simple

acknowledgement to the participants of this study.

It is with great respect, I express my heartiest gratitude to my inspiring guide

Mrs.Shalini.R (Senior Lecturer) Dayananda Sagar College of Management & Information

Technology, Bangalore who absolutely showed great Deal of enthusiasm in this project

work by guiding, assisting and suggesting me in bringing out this report in time with a deep

sense of involvement and confidence.

It is with great respect. I express my heartiest gratitude to Mr.Bharathidasan (Deputy

Manager) and all the staff of BHARAT ELECTRONICS LIMITED for having devoted

much of their precious time in giving me valuable guidance and explaining the details

parting to my project work.

Finally, I wish to express my thanks to Dr. M. S. Ramachadra, Director of DSCMIT

and Dr. Maruthi Ram. R Head- MBA, DSCMIT and to my beloved parents who have

contributed for upbringing of this project.

S. NARMADA

REG NO: 09CQCMA061

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

CONTENTS

CHAPTER 1: INTRODUCTION

1.1 General Introduction

1.2 Objective of the Study

1.3 Industrial Background of the Study

1.3. 1Origin of the Industry

1.3. 2 Growth and Development of the Industry

1.3. 3 Present Status of the Industry

1.3. 4 Business Environment of the Industry

1.3. 5 Future of the Industry

CHAPTER 2: PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization

2.2 Growth and Development of the Organization

2.3 Vision, Mission and Goals of the Organization

2.4 Present status and Future of the Organization

2.5 Organizational Structure and Organization Chart

2.6 SWOT Analysis of the Organization

CHAPTER 3: DETAILED STUDY OF THE DEPARTMENT

3.1 Production Department

3.2 Quality Department

3.3 Finance Department

3.4 Human Resource Department

3.5 Marketing Department

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3.6 Information Technology Department

3.7 Human Resource Development Department, 3.8 Safety Department

CHAPTER 4: STUDY OF SPECIFIC MANAGEMENT PROBLEM

CHAPTER 5: RECOMMENDATIONS AND CONCLUSION

APPENDIX

BIBLIOGRAPHY

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CHAPTER 1

INTRODUCTION

1.1 General Introduction1.2 Objective of the study1.3 Industrial Background of the study1. Origin of the Industry2. Growth and Development of the Industry3. Present Status of the Industry4. Business Environment of the Industry5. Future of the Industry

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1. INTRODUCTION

1.1 GENERAL INTRODUCTION :

In history we learn that man hunt and plucked fruits for his living. He did it himself without any

assistance. Other male members of the family did the same. The women in the family had to stay

home as they gave birth to children and also had to look after them. This might be a beginning of

division of labour. Naturally, this division of labour was based on the principle of convenience,

which later became the family organization pattern.

What we call today an organization is a group which is or has got organized for a common

purpose. The group which has an organized structure came to be known as ‘organization’.

Organizations have become so much a part of our life that we do not notice that the hospital

where we were born, the school where we studied, the market where we buy vegetables, the

clothing which we wear, the roads that are built by local self Government have been made

possible by organized group efforts. The groups were given expressed or implied permission to

act as an organized body and, therefore, got converted to organizations.

So, organization can be defined as, “a social unit of people, systematically arranged and

managed to meet a need or to pursue collective goals on a continuing basis. All organizations

have a management structure that determines relationships between functions and positions, and

subdivides and delegates roles, responsibilities, and authority to carry out defined tasks.

Organizations are open systems in that they affect and are affected by the environment beyond

their boundaries.”

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IMPORTANCE OF AN ORGANIZATION:

a) Makes the management simple and efficient.

b) Encourages specialization

c) Improves techniques

d) Increases productivity

e) Accelerates the progress

CHARACTERISTICS OF AN ORGANIZATION:

Organization is an effective and necessary instrument for the attainment of predetermined goals.

The following are the main characteristics of the organization.

a) Organization is an instrument, used by the management for the attainment of the

preplanned objective Management guides and directs the organization.

b) Management guides and directs the organization.

c) A set of rules sub-rules and instructions are communicated to all connected to the

organization.

d) It denotes a group of personnel’s whose positions, rights; responsibilities are well defined

& classified according to the nature of the assignments.

e) it also denotes the process of classification and sub-classification of jobs, duties and

authority on the one hand and procedures of production and others performances

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1.2 OBJECTIVE OF THE STUDY:

.i. To familiarize the students with a business organization

ii. To familiarize them with the different departments in the organization and their

functioning.

iii. To enable the students to understand how the key business process are carried out in

organizations.

iv. Understand how information is used in organization for decision making at various levels

v. To relate theory with practice.

vi. Identity the important players within the organization, the “ stakeholders”.

vii. Identify other target groups of the organization, whether clients or suppliers.

1.3. INDUSTRIAL BACKGROUND OF THE STUDY

1.3. 1. ORIGIN OF THE INDUSTRY:

Set up in Bangalore in 1954, BEL has grown into India’s foremost defence electronics

Company, a Navratna Public Sector Unit under the ministry of defence.

BEL is a multi-product technology unit Conglomerate boasting of over 350 products in

the areas of Military Communication, Radars, Naval Systems, Telecom and Electronic

Warfare, Tank Electronics, Electro Optics, Professional Electronic Components and Solar

Photovoltaic.

BEL also provide turnkey System Solutions.

BEL’s Customers include the Army, Navy, Air force, Paramilitary, Police, Doordarshan,

All India Radio, department of Telecommunication.

BEL maintain technological leadership with its in- house Research and Development and

in association with DRDO Labs (Research Institute near HAL)

The Company spent 5.26 percent of its turnover on R&D supplies to the defence sector

constituted 85% of sales, balance 15% being supplies to Civilian Sector. All the nine

manufacturing units of the company have performed well and earned profits.

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EXPORTS:

The range of products exported includes HF Transreceiver, Bharats radar warning

receiver, Secure telephone, non eye safe and eye safe laser range finders, Solar

cells…………..

These exports were made to various countries including USA, UK, Israel, Malaysia

Singapore Philippines, and Switzerland………………

1.3. 2. GROWTH AND DEVELOPMENT OF THE INDUSTRY:

State-of-the-art manufacturing testing and quality assurance facility has been set up in all

units of BEL. On line computerization for materials management state-of-the-art test

facilities, facilities for carrying out environment and reliability checks electro-magnetic

interference/Electro Magnetic Compatibility Testing facility, Antenna Testing facility,

back-up support from Standardization Technical information and Documentation,

Computer Aided Design and Manufacture have made BEL a modern professional

Electronic Company. All manufacturing divisions/units of BEL have been accredited

with ISO 9002/ISO 9001.

Bharat Electronics Limited (BEL) designs, develops and manufactures state-of- the-art

products in the field of Radars, Defence Communications, Telecommunications, Sound

and Vision Broadcasting, Opto-electronics, Solar systems, IT products and Electronic

components. BEL has the expertise in engineering Radar, Telecom and Satcom networks,

providing network solutions to meet customer needs. These systems are supplied and

commissioned on turnkey basis.

With over four decades of manufacturing experience Bharat Electronics Limited has

pioneered the professional electronics movement in India. With continuous upgradation

of technology, commitment to quality and constant innovation, BEL has grown into a

multi product, multi unit, and multi technology company.

Bharat Electronics manufactures and supplies Communication equipments for the

Defence forces - covering ground, air and ship borne equipments and systems.

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BHARAT ELECTRONICS LIMITED (BEL)-BANGALORE

BEL manufactures a comprehensive range of Radars for defence as well as civilian

applications. Radar systems offered from BEL are for applications like Surveillance, Fire

Control, Tracking and Navigation. In the category of Land based Radars , BEL

manufactures systems for 3D Surveillance, Secondary surveillance, fire control and battle

field surveillance. For Naval applications Radars offered are in the Navigational, Fire

control and Surveillance categories. In Civilian category BEL offers radars for Air

Traffic Control. The frequency bands covered extend from C band up to Ka band. BEL

also offers Networking of Radars

1.3. 3. PRESENT STATUS OF THE INDUSTRY:

During the year 2006-07, BEL earned the distinction of becoming the first Defence PSU to

acquire operational MINIRATNA CATEGORY-I status. This enhanced status will provide BEL

certain operational autonomy in the areas of capital investment, establishment of Joint Ventures

etc.A number of initiatives were taken to diversify the business of BEL and secure orders. In

September 2007, BEL won a tender of Rs 18 crore from Andhra Pradesh Government towards

establishing a network (APNET) for state-wide broadcast and communication up to district/block

level. The hub has been commissioned and the terminals are in various stages of completion. The

Andhra Pradesh Government has now invited BEL to give a proposal for Phase II of the project

to cover the whole State. The value of Phase II will be around Rs.40 crore.

BEL has also been awarded a Satellite Network tender by Andhra Pradesh Beverages

Corporation Limited (APBCL). APBCL negotiated the price with BEL for using the common

infrastructure of APNET at the Hub. The main application is for consolidating the sales

transactions on-line by 31 remote centres with the APBCL headquarters on the BOOT model.

BEL has been selected through competitive tendering by the Ministry of Home Affairs to

establish a countrywide network called POLNET on turnkey basis. The project includes 11 M

Hub at Delhi, 40 high capacity VSAT terminals for the State Headquarters and major cities, 833

low capacity VSATs at District Headquarters and Block levels. The negotiations have been

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completed and the order valued at Rs 97 crore, is in the final stages of processing. POLNET will

enable effective communication among Police Forces of various states, exchange of police data

files and fingerprints and Video Broadcast & Conferencing.BEL secured a large number of

orders for the LED based Solar Traffic Signals in Bangalore, Hyderabad and New Delhi etc.

BEL and Indian Space Research Organization have entered into an understanding for cooperative

efforts to meet the growing demands of satellite manufacture in India. Satellite Electronics

Payload (Transponders)- a major part of any satellite will be manufactured by BEL for

integration with the satellites to be launched by ISRO. BEL has also commenced manufacture

and supply of solar-based mini power plants, the first of which has been installed in a technology

foundation in New Delhi.

1.3. 4. BUSINESS ENVIRONMENT OF THE INDUSTRY:

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The business environment of BEL includes both internal and external environment

The internal environment includes its manufacturing units in different locations and their

operations. They are:

NINE MANUFACTURING UNIT:

UNITS ESTABLISHED(YEAR) NO. OF EMPLOYEE

Bangalore 1954 5927

Ghaziabad 1974 2596

Pune 1979 411

Machlipatnam 1983 500

Panckula 1985 625

Chennai 1985 410

Kotdwara 1986 720

Hyderabad 1. 1986 490

NaviMumbai 1986 500

The external environment includes suppliers, customers, competitors, government and other

agencies.

I. COMPETITORS : Multinational companies like ITI, ECIL, IL, ALPHA, UTL, Siemens,

Fibcom, SCL, INTEL, Spectronics, Southern Electronics and Ashoka engineering.

II. CUSTOMERS : BEL’s Customers include the Army, Navy, Air force, Paramilitary,

Police, Doordarshan, All India Radio, department of Telecommunication.

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SUPPLIERS:

SUPPLIER’S NAME LOCATION PRODUCT NAME

MANJIRA MACHINE BUILDERSHYDERABAD AL-FORGINGS

RACHAMALLU FORGINGSHYDERABAD AL-FORGINGS

BAKER GAUGES (I) LTD PUNE AIR GAUGES

JINDAL AL. LTD BANGALORE AL RODS/TUBES

MAHAVEER PLASTICS HYDHYDERABAD

ACRYLIC FASB.

BVR BUSINESS FORMS HYDERABAD COMPUTERSTATIONARY

ALLIED ELECTRONICS HYDERABAD CONNECTORS

ZENITH IT LTD HYDERABAD CUTTING TOOL

MFR

SRI SRINIVASA ENGG.

INDUSTRIES

HYDERABAD FABRICATION

1.3. 5. FUTURE OF THE INDUSTRY:

Focused nurturing and monitoring of R&D is one of the top priority tasks at BEL. Allocation of

funds for R&D is being enhanced to cater for the new infrastructure requirements of R&D

divisions and for undertaking many proactive R&D projects. BEL R&D divisions will have

active interactions with DRDO, other Indian public & private design houses, academic

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institutions and also with foreign partners for joint development programmes. Planning and

monitoring process in R&D is being upgraded in order to improve the product and technology

development cycle times.

CHAPTER-2

PROFILE OF THE ORGANIZATION

2.1 Origin of the Organization

2.2 Growth and Development of the Organization

2.3 Vision, Mission and Goals of the Organization

2.4 Present status and Future of the Organization

2.5 Organizational Structure and Organization Chart

2.6 SWOT Analysis of the Organization

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2 PROFILE OF THE ORGANIZATION

2.1ORIGIN OF THE ORGANIZATION:

From a humble beginning to a NAVRATNA COMPANY.

BEL is a PSU, under Ministry of Defence, Government of India established in 1954.

BEL has more than 360 products in its range from small components costing a rupee to

huge equipment costing about Rs. 60 crore.

Starting with a single unit at Bangalore BEL now has nine units spread across the

country.

Nearly 80- 85% of the company’s annual sales turnover accrues from products sold to

defence services the balance from civilian customers.

With over four decades of manufacturing experience Bharat Electronics Limited has

pioneered the professional electronics movement in India. With continuous upgradation

of technology, commitment to quality and constant innovation, BEL has grown into a

multi product, multi unit, multi technology company

The company’s dividend payment has been continuously increasing and the company

paid a dividend of 170% for the year 2009-10.

During the year 2001-02, BEL earned the distinction of becoming the first Defence PSU

to acquire operational MINIRATNA CATEGORY-I status. This enhanced status will

provide BEL certain operational autonomy in the areas of capital investment,

establishment of Joint Ventures etc

BEL has been got Navratna status in JUNE- 2009

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BEL has state- of- the art infrastructure and a highly trained workforce at its 9 units.

The total manpower of company is 11,961 (as on 31.03.2009), comprising 4,476

executives, 728 technical Cadre personnel and 6,757 non-executives

(3,177- engineers& scientists) company has 2,507 women employees.

Nearly 85% of company’s annual sales turnover accrues from products sold to the

defence services.

BEL achieved exports of US $ 17.77 million in 2008-09. To increase exports, the

company is promoting contract manufacturing and tapping business opportunities

generated via offset implementation.

The company’s turnover has been on a steady rise. During 2008-09, BEL achieved a

turnover of Rs. 4624.09 crores.

BEL has been making profits continuously for more than four decades and recording its

shareholders with handsome dividends.

2.2 GROWTH AND DEVELOPMENT OF THE ORGANIZATION:

The Company was incorporated starting with Bangalore unit. The

Company Manufacture electronic communication equipments such as HF/VHF

Communication transmitters and receivers, HF/VHF microwave radio relays

And radars, electronic components needed mainly by Defence services and

also by the entertainment industry like radio, TV, etc. The Company received

progressive

Self reliance in the areas of radio communication radars, broadcasting components.

The Company devotes considerable effort to deliver state-of-the-art equipments to

defence users.

1985: 4,30,000 shares were issued to the President of India.

1986: 1, 10,000 shares issued to the President of India.

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1987: Some of the major accomplishments in the design and development activities were

Cyclone warning radar for Indian Meteorological Department, Multiple target field

artillery radar for Army.

Components like a vapour cooled 45KW transmitting tube, ICS and HMCs for

telecommunication applications and a variety of types of transistors were introduced in

the market. 1,10,000 shares issued to the President of India

1988: - The Company developed a 10KW TV transmitter, system design of the Central

Production Centre at New Delhi for Doordarshan, solid state FM transmitters and a new

generation of 10KW medium wave transmitters, 120 channel UHF digital radio relay

equipment for the Department of Telecommunications.

1989: - 1, 10,000 shares issued to the President of India.

1990: The Company entered into the Satellite Communication and simulators segments

of business and widened the export base both in terms of market and products.

The Company introduced indigenously developed automatic test equipment for the army,

ship handling simulators for the Navy, low capacity 40 line electronic exchange for rural

applications and high reliability semi conductor devices for space applications

50,000 shares issued to the President of India.

1993: During the year, Taloja, Machilipatnam, Ghaziabad, Kotdwara and Panchkula

units registered losses mainly due to lack of order from defence rector.

Production of Ghaziabad, Machilipatnam and Kotdwara has been affected due to lack of

orders from Defence Sector and DOT.

1994: The Company has signed a MOU with General Electric Company, USA for

forming a joint venture company for manufacture and supply of X-Ray Tubes.

The Company set up a joint venture 100% export oriented unit with Oldelft, Netherlands,

for the manufacture of image intensifiers.

Another joint venture was entered with HMT and KSIIDC for manufacture of watch

crystals.

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The Company also proposed a joint development programme with a Swiss company for

updating of radar.

1996: Machilipatnam and Kotdwara units incurred losses due to lack of orders from

Defence Services and DOT.

Taloja unit suffered due to fall in demand for 20 Black and White TV Glass Shells.- The

Company diversified its activities into related areas of like Energy Saver, Fish Finder,

Solar Cells & Systems, Emergency Communication Systems for Railways, Contract

Manufacturing etc.

1997: The Company is setting up facilities for the manufacture of Silicon Wafers at

Bangalore Complex with an investment of Rs 2000 lakhs.

The Company has entered into a number of collaboration agreements with leading

foreign companies for manufacture of State-of-the-art equipment and products.

The Company had set up a Central Research Laboratory (CRL) at Bangalore to undertake

research in frontier areas of technology.

Company proposed to establish second CRL at Ghaziabad which would focus on signal

processing computers, antenna and microwave engineering.

The Company entered into a joint venture with Multitone Electronics Plc of UK offering

mobile communication solutions for the workplace. Another joint venture was entered

with GE Medical Systems and formed GE BE Private Ltd., for manufacturing a High End

Rotating Anode Medical Diagnostic X-ray Tube called CT MAX used in CT Scanners.

The debentures were issued on private placement basis: 16,00,000-15% Non-convertible

debentures of Rs 100 each. (Redeemable at 5% premium in four equal annum

installments starting from 11.9.1992).

4,00,000-15% Non-convertible debentures of Rs 100 each. (Redeemable in four equal

yearly installments at a premium of 5% starting from 3.10.1992).

15,00,000-14% Non-convertible debentures of Rs 100 each.(Redeemable in equal half-

yearly installment at a premium of 5% at the end of 7th, 8th and 9th years from the date

of allotment, the earliest date of redemption being 28.10.1995).

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5,00,000-14% Non-convertible debentures of Rs 100 each. (Redeemable in three equal

yearly installments at a premium of 5% starting from 31.10.1995).

1,60,00,000 shares of Rs 10 each amounting to 20% of the subscribed and paid up capital

of Rs 80 crores was disinvested.

The public sector Bharat Electronics (BEL) is firming up a joint venture with Multitone

of the UK to offer closed user group (CUG) paging services for the first time in the

country.

Bharat Electronics Ltd. is talking to Raytheon for a teaming arrangement for airport

modernization systems.

BEL will be setting up its first radar surveillance unit at the Calcutta airport and in

Chennai airport.

The public sector Bharat Electronics Limited (BEL) unveiled its range of products

developed recently for the domestic market. The company has developed an alarm

system for unmanned level crossings, which would provide both audio and visual signals

of the arriving train.

BEL has also developed conquest, an energy saver device, in technical collaboration with

an US technology invention company Condyne Technology. BEL is India's first defence

and professional electronics company to be awarded the ISO 9002 certification, the

benchmark of international quality.

The public sector Bharat Electronics Limited (BEL) is now on the Internet, with the

website developed by the company's international marketing division.

The company makes electronics for rocket and launch vehicles used by the Indian Space

research Organization (ISRO). Bharat Electronics signed a joint venture agreement with

Multitone Electronics Plc of UK to set up a joint venture company which will offer

mobile communication products for the workplace.

The new company will be called BEL-Multitone Pvt Ltd. Bharat Electronics Ltd has

signed a joint venture with General Electric, a billion Fortune 500 company to

manufacture X-ray tubes and detectors.

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The venture company GE BEL launched its new X-ray 40,000 sq.ft tube facility at the

Export Promotion Industrial park, Whitefield on 19.11.97.

1998: Employees of Bharat Electronics Ltd. (BEL) in all the nine units nationwide went

on a one-day strike.

Public sector Bharat Electronics Ltd's (BEL), Ghaziabad unit has bagged a safety award

of merit from National Safety Council, USA.

This is for the first time any unit of BEL is winning this award. The company has

established a joint venture company with GE for the manufacture of medical systems.

BEL is also diversifying into manufacture of silicon wafers by setting up facilities in

Bangalore.

Bharat Electronics Ltd. (BEL) has entered into a strategic alliance with National

Semiconductor Corporation to build motherboards for personal computers around the

Media GX processor.

Global avionics systems major Sextant Avionics has signed an agreement to transfer the

technology for liquid crystal display (LCD) systems for MiG 21 aircraft to public sector

Bharat Electronics Ltd.

Hindustan Aeronautics Ltd. (HAL), and Bharat Electronics (BEL), Bangalore, are among

the six winners of the 1998 national awards for outstanding achievements in research and

development (R and D) in different areas of industry.

1999: BEL Multitone is a 51:49 joint venture company of Multitone Electronics, UK and

BEL. Bharat Electronics (BE) Ltd. is setting up an integrated circuit (IC) design centre at

its manufacturing unit in Jalahalli near Bangalore in associated with a US partner.

Bharat Electronics, a professional’s electronics company, which has found success in its

increasingly popular microprocessor-based electronic voting machine (EVM), has

supplied a state-of-the-art microprocessor based 1 kVA solar power supply unit to power

a rural information technology network.

BEL also set up an Integrated Circuit design centre and another plant to manufacture

polysilicon cell which harnesses solar energy during

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The past few months at its existing facility in Jalahalli.

The company has diversified its operations at the Taloja unit in Maharashtra which was

producing glass shells for black & White television tubes.

The company had tried to raise some funds for setting up the colour picture tube units

2.3 VISION, MISSION AND GOALS OF THE ORGANIZATION:

VISION:

“To be a world-class enterprise in professional electronics”

MISSION:

To be a customer focussed globally competitive company in defence electronics and in other

chosen areas of professional electronics, through quality, technology and innovation.

VALUES:

Putting customers first.

Working with transparency, honesty & integrity.

Trusting and respecting individuals.

Fostering team work.

Striving to achieve high employee satisfaction.

Encouraging flexibility & innovation.

Endeavoring to fulfill social responsibilities.

Proud of being a part of the organization

OBJECTIVES:

To be a customer focussed company providing state-of-the-art products & solutions at

competitive prices, meeting the demands of quality, delivery & service.

To generate internal resources for profitable growth.

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To attain technological leadership in defence electronics through in-house R&D,

partnership with defence/research laboratories & academic institutions.

To give thrust to exports.

To create a facilitating environment for people to realise their full potential through

continuous learning & team work.

To give value for money to customers & create wealth for shareholders.

To constantly benchmark company’s performance with best-in-class internationally.

To raise marketing abilities to global standards.

Company’s Goals:

Business Mission:

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

the field of field of Radars, Defence Communications, Telecommunications, Sound and

Vision Broadcasting, Opto-electronics, Solar systems, IT products and Electronic

components.. Utilize companies’ capabilities and resources to expand business into allied

areas and other priority sectors of the economy like defence, communication and

electronics.

Growth:

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

international operations.

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.

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.

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.

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.

To determine the role played by various departments for the growth of BEL, which was

found out after carefully examining each department and its role played for growth as a

whole.

To evaluate the performance and financial soundness of the company over last 5 years

through ratios.

BEL and GLOBAL COMPACT:

BEL has joined the “Global Compact” of United Nations and has committed to support it

and set up core values enshrined in its nine principles. The “Global Compact” is a

partnership between the United Nations, the business community, international labor and

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NGO’s. It provides a forum for them to work together and improve corporate practices

through co-operation rather than confrontation.

In a letter to UN Secretary General, Mr. Kofi Annan, CMD, BEL has committed to

support the Global Compact and set of core values enshrined in its nine principles in the

area of Human Rights, labour Standards and Environment.

Principles of the “Global Compact ”

Human Rights

Business should support and respect the protection of internationally proclaimed human

rights; and

Make sure they are not complicit in human right abuses.

Labour Standards

Business should uphold the freedom of association and the effective recognition of the

right to collective bargaining;

The elimination of all forms of forces and compulsory labour.

The effective abolition of child labour and Elimination discrimination

Environment

Businesses should support a precautionary approach to environmental challenges;

Undertake initiatives to promote greater environmental responsibility; and

Encourages the development and diffusion of environmentally friendly technologies.

Anti Corruption

Business should work against all forms of corruption, including extortion and bribery.

2.4 PRESENT STATUS AND FUTURE OF THE ORGANIZATION:

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2.4(1): Present status:

2000 : The aeronautics major Hindustan Aeronautics Ltd and the electronics heavyweight

Bharat Electronics Ltd have signed a memorandum of understanding, to bring snyergy in

their core competencies and to complement one another's capabilities. The Company has

bagged two awards for excellence in electronics for 1998.The Investment and Credit

Rating Agency has withdrawn the LAA (L double A) rating indicating high safety

assigned to the Rs 100 crore Bond programme of Bharat Electronics Limited.

2002: BEL has informed changes in the Board to the exchange which includes

appointment of Air Marshall V A Patkar as part time director in the place of Vice

Admiral A.S.Krishnan

Vice Admiral P.C.Bhashin appointed as the director of the Board by Government of

India.

BEL has become first defense PSU to acquire operational status of mini ratna category

BEL committed towards improving social sector through some project like Akshaya and

BEL Ladies Association.

Company sets a sales target of 2000 crs for the financial year 02-03.

GOI has appointed Mr.P.R.K.Haragopal as Director (finance) in place of Mr.P.Bhaskaran

Naidu.

Review of the unaudited financial results by the auditors for the financial year sept-2002.

The first batch of, indigenously produced invar filters by BEL have been handed over to

ISRO.BEL and PicoPeta Simputers pvt ltd are joining together to manufacture and

market a new range of hand-held indigenously developed simputers.

2003 -Mrs Rita Menon has been appointed as new official director of BEL.

GOI appoints Mr S.K.Mehta as Director on the Board of Bharat Electronics.

Company has recorded its highest ever turnover of Rs. 25710 million for 02-03, with an

increase of 32%.

BEL recorded 39% increase in its gross profit at Rs.395 cr as compared to Rs.285 cr last

year.

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Company has changed the name of its subsidiary from BE -Delft Electronics Ltd to BEL

Optronic Devices Ltd.

BEL became the first PSU to be adjudged 'The Best Company' for

2002-03 by the Bangalore Stock Exchange.

BEL received order from TN government to supply, install and commission the 2 GHz

120-channel Digital Microvave communication system on turnkey basis.

Company formulates its vision statement targeting to a turnover to 50,000 million.

Mr.S.Paneer Selvam, Senior Technical Assistant in BEL's Naval Systems Strategic

Business Unit has received Prime Minister's Shram Shri Award for the year 2003.

Dr V K Koshy, Chairman & Managing Director of the company resigned and GOI has

appointed Mr Y Gopala Rao as Chairman & Managing Director on the Board of

Directors

2004:

Bharat Electronics gives order worth Rs 8.9 Cr to Astra Microwave.

Bharat Electronics Ltd has informed that Mr. K. U. Limaye, Director, Electronics &

Radar Development Establishment, Bangalore has been appointed as part-time Director

on the Board of Directors of Bharat Electronics Ltd in place of Mr. N. Divakar, who has

since retired.

Bharat Electronics Ltd has informed that the Comptroller and Auditor General of India

(C&AG), has recently appointed the following firms as Statutory/Branch Auditors of the

company for the year 2003-04:

Statutory Auditors: M/s Suri and Co (Statutory auditors, HO, Consolidation of accounts

and auditors for Bangalore, Chennai and Hyderabad units).;

Branch Auditors: M/s Bubber Jindal & Co.,(auditors for Ghaziabad, Panchkula and

Kotdwara Units); M/s N V Sarmaand Co., (auditors for Machilipatnam Unit); M/s Joshi

& Sahney,(Auditors for Pune and Taloja Units).

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Shifts Registered office to new premises w.e.f. March 15, 2004. The address is as

follows: Bharat Electronics Ltd, Nagavara, and Outer Ring Road, Bangalore 560 045.

Tel: 080-2503 9300; Fax: 2503 9305.

2004: BEL, PicoPeta Simputers launch Amida Simputer, a hand-held computing device.

PicoPeta Simputers Pvt Ltd and Bharat Electronics Ltd (BEL) have launched the

Simputer handheld computing device for the enterprises called 'Amida Alchamy.'

BEL CMD wins Electronics Man of the Year award.

L&T and BEL join hands to develop radar for Army.

Bharat Electronics Limited (BEL) signs agreement with Wipro InfoTech for

companywide implementation of My SAP Business Suite,

2005: BEL inks contract of .6m with Suriname.

BEL declares 40% interim dividend for '04-05.

BEL gets prestigious ICWAI Award.

2006: Bharat Electronics secures order for Set Top Boxes.

2007: -Bharat Electronics Ltd has appointed Mr. N K Sharma as Director (Marketing) on

the Board of Directors of the Company. Prior to this appointment.

Mr. N K Sharma has been holding the post of General Manager, heading the Ghaziabad

Unit of the Company.

Bharat Electronics Ltd has promoted three of its general managers as Executive Directors

with effect from November 1

Mr D.A. Mohan, ED (Telecom & Broadcast Systems) at BEL-Bangalore; Mr Anand

Kumar is ED (BEL-Ghaziabad); and Mr V. Sundararaman, ED (Technology Planning) at

the Corporate Office in Bangalore.

Bharat Electronics bags IETE award for software development.

Bharat Electronics signs 2 MoUs on Day 1 of Aero India 2007

2008 : Bharat Electronics Ltd has informed that Government of India has appointed Lt.

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Gen P Mohapatra, Signal Officer-in-Chief, and Army Headquarters, as a part-time

official Director on the Board of Directors of the Company in place of Lt. Gen (Retd.) S

P Sree Kumar.

Bharat Electronics to open Product Support Centre at Kochi.

BEL receives SCOPE award.

BEL to display state-of-the-art defence electronics products & systems at DEFEXPO

2008 for global market

BEL signs term sheet, MoUs at Defexpo 2008

2009: BEL wins Raksha Mantri's Awards. BEL signs MoU with BHEL for Solar JV.

2.4(b) FUTURE STATUS: BEL and Indian Space Research Organization have entered into an

understanding for cooperative efforts to meet the growing demands of satellite manufacture in

India. Satellite Electronics Payload (Transponders) a major part of any satellite will be

manufactured by BEL for integration with the satellites to be launched by ISRO. BEL has also

commenced manufacture and supply of solar-based mini power plants, the first of which has

been installed in a technology foundation in New Delhi.

New Business Initiatives:

New business initiatives during the year include:

Appointment of M/s. KPMG, a global consulting firm, to help identify future market

opportunities for growth. Initial opportunities emerging from the KPMG study, for the

Company to venture into are:

Infrastructure – Railways, Ports, Airports Homeland Security Nuclear Power

Instrumentation

Energy Efficiency Solutions E-Governance Solutions.

The Company is discussing with reputed foreign / Indian players for forming Indian Joint

Ventures in the areas of defence electronics, viz., Missile Electronics &Guidance Systems,

Microwave Super Components, Electro Optics, Airborne Electronic Warfare etc. Some of

these proposals are in the advanced stages of finalization.

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MoU signed with Bharat Heavy Electricals Ltd., to explore formation of a Joint Venture for

solar photovoltaic business.

MoU signed with M/s. Boeing to jointly develop an analysis and experimentation centre in

India to offer customers the ability to make better-informed decisions in modernizing the

Country’s defence forces.

MoU signed with Astra Microwave Products Ltd., for setting up of a Joint Venture for

microwave components.

MoU signed with M/s. Selex Galileo for collaboration on Electronic Warfare programmes.

BEL has been selected by M/s. Northrop Grumman Corporation for the manufacture of

components for Fire Control Radar for its Fighter Aircraft programme.

BEL will also capitalize on existing Core Competencies to diversify into newer green field

areas like the energy sector (wind, solar, nuclear), infrastructure- Railways and parts and e-

governance for enhanced growth in the coming years.

New products introduced and supplied during 2009-10 include:

Advanced Naval Gun Fire Control System for P-28 class and ships.

Gap measuring device.

Perimeter Security Jammer

MAJOR MILESTONES:

1988- Plant inaugurated by Defence Minister.

1990- Self inspection status.

1993- Certification for ISO 9002:1987.

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1997- Golden Peacock Award for Quality.

1997- ELCINA award for manufacturing.

1998- Certification for ISO 9001: 1994.

1999- Excellence in professional Electronic, Department of IT, Government of India.

2002- Corporate Research & Development award for ULSB MKII.

2003- Certification for ISO 9001: 2000 and ISO 14001: 1996.

2003, 04, 05- Strong commitment to Excel in CII Exim Bank business Excellence.

2005- Platinum award in IMEA-2005 by Frost and Sullivan.

2006- Certification for ISO 14001: 2004.

2007- Sap implemented.

2008- Recommended for AS 9100.

2.5 ORGANIZATIONAL STRUCTURE AND ORGANIZATIONAL CHART

ORGANIZATIONAL STRUCTURE:

Formal and informal framework of policies and rules, within which an organization arranges

its lines of authority and communications, and allocates rights and duties. Organizational

structure determines the manner and extent to which roles, power, and responsibilities are

delegated, controlled, and coordinated, and how information flows between levels of

management. This structure depends entirely on the organization's objectives and the strategy

chosen to achieve them. In a centralized structure, the decision making power is concentrated in

the top layer of the management and tight control is exercised over departments and divisions. In

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a decentralized structure, the decision making power is distributed and the departments and

divisions have varying degrees of autonomy. An organization chart illustrates the organizational

structure.

Grouping of activities is an essential step in designing an organizational structure.

Grouping of activities into departments or other homogeneous units is known as

departmentation. Departmentation is the process of grouping tasks into jobs, the combining of

jobs into effective work groups into identifiable segment or departments.

In BEL 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 important Designations are:

Chairman and managing director.

Director (Personal).

Director (Finance).

Director (Research & Development).

Director (C& MS).

Director (Bangalore Complex).

Director (Other Units).

General Manager (Torque).

General Manager (Finance).

General Manager (Personal).

General Manager (International Marketing).

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Chief Vigilance Officer.

General Manager (Corporate Planning).

General Manager (Systems).

Addl. General Manager (Finance).

Addl. General Manager (Audit).

Addl. General Manager (Public Relations).

Addl. General Manager (Security).

Senior Deputy General Manager.

Deputy General Manager (Budget).

Sr. Deputy General Manager (HRD)

Company Secretary.

Manager.

Deputy Manager.

Asst. Manager.

Senior Security Officer, Personnel Officer. Accounts Officer, Personal Secretary.

Names of Departments/ Sections:

Personnel & Administration

Industrial Relations & Personal Policies

Finance

Corporate Planning

International Marketing

Research & Development

Audit

Internal Audit

Security

Licensing/ Legal

Public Relations

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Human Resource Development

Official Language Section

Public Deposits

Budget

Foreign Exchange

Pay Rolls

E. D. P

Library

Establishment

Purchase

Secretarial

ORGANIZATIONAL STRUCTURE

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GENERAL

MANAGER

AGM- PERSONAL

AGM- MARKETING

AGM- PRODUCTION

AGM-COMPUTER SYSTEMS

SENIOR DGM-QUALITY

AGM-CORPORATE PLANNING

AGM-FINANCE & AUDIT

AGM-PUBLIC RELATIONS

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ORGANIZATIONAL CHART BEL, BANGALORE (AS ON 1 MARCH 2010)

MOHAN RAM. A.A ED (NS- Sonar & Communication System)

AMOL NEWASKARGM (Military Communication)

NAGESHWAR RAO. C GM (Components )

RAMACHANDRAN S

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GM (Telecom & Broadcasting System)

BHADORIA. H.S(Director Bangalore Complex)

VIJAYARAGHAVAN. M GM (NS-Radar & Fire Control System)

SANMOY KUMAR ACHARYA GM (Electronics Warfare & Avionics)

2.5 SWOT ANALYSIS OF THE ORGANIZATION:

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GIRISH KUMARGM (Export Manufacturing)

JAIN. P. GM (Military Radar)

IS / CONYRO

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STRENGTH:

1. BEL has got modern manufacturing facilities with test instruments, set up at all units for

manufacture and supply of telecommunication equipment.

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2. Research & Development set up with qualified manpower, suitable for technology

development or absorption.

3. Known for quality and reliability of its products.

4. Known for its prompt after sales service.

5. Vast experience in the manufacturing of electronic equipment. The parent unit

established in 1954.

6. Highly trained, professionally qualified manpower trained to deal in the latest

technologies.

7. Well established organizational structure.

8. Availability of Central Research laboraties at Bangalore and Ghaziabad working.

9. Young and dynamic top management at corporate level, ensuring stability.

WEAKNESS:

1. The main weakness of BEL is its being owned government of India under ministry of

defence. This makes decision- making slow.

2. BEL has been predominantly in defence sector, which has been monopoly business.

Hence, it does not have experience in managing, a competitive business like

telecommunication, equipment manufacturing.

3. Lack of flexibility in manpower management, especially in pay scale, promotion,

recruitment policy. Thus resulting in brain drain.

4. Lack of bold decision making in the area of investment and others due to fear of various

audits, both statutory and government in the mind of management.

5. Lack of accountability in top management, as personal stakes are not related with the

performance of organization.

OPPORTUNITIES:

1. Liberalization leads to opening of huge market. E.g. ITI, HTL etc.,

2. BEL can go for the technology transfer ties up and JV due to liberalization.

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3. Various other companies are also modernizing hence creating new market for

telecommunication equipment railway, power sector, oil sector, Defence etc.,

4. Telecommunication Sector has been recognized as one of the important infrastructure

sector essential for the growth of the economy. This is resulting in the availability of

potential market in developing countries.

THREATS:

1. Entry of private sector and MNC in this field is making competition on very tough.

2. Due to overall reduction in import duties, the indigenous manufacturing and direct import

are competitive.

3. Imperfections in the market, leading to price wars and undercutting of prices, resulting in

sustained losses for telecommunication.

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CHAPTER 3

DETAILED STUDY OF THE

DEPARTMENT

3.1 Production Department

3.2 Quality Department

3.3 Finance Department

3.4 Human Resource Department

3.5 Marketing Department

3.6 Information Technology Department

3.7 Human Resource Development Department

3.8 Safety Department

Business department - a division of a business firm

Department, section - a specialized division of a large organization;

"you'll find it in the hardware department"; "she got a job in the

historical section of the Treasury"

Advertising department, advertising division - the division of a business that is responsible for

advertising

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Editorial department - the department of a publishing business that edits material for publication

Parts department - the division of a business (e.g. a service garage) that sells replacement parts

Building department, plant department - the division of a business responsible for building and

maintaining the physical plant

Purchasing department - the division of a business that is responsible for purchases

Sales department, sales division, sales force - the division of a business that is responsible for

selling products or services

Service department - the division of a business that provides customer services.

In other words, Departments are the entities organizations form to organize people, reporting

relationships, and work in a way that best supports the accomplishment of the organization's

goals. Departments are usually organized by functions such as human resources, marketing,

administration, and sales. But, a department can be organized in any way that makes sense for

the customer. Departments can also be organized by customer, by product, or by region of the

world. Departments are usually led by a Manager, a Supervisor, a Director, or a Vice President.

In BEL I have done a detailed study about various departments such as:

Production department

Marketing department

Accounting and Finance department

Human Resource department

Information Technology

3.1 PRODUCTION DEPARTMENT:

The act or process or producing, bringing forth, or exhibiting to view; as, the production

of commodities, of a witness. That which is produced, yielded, or made, whether

naturally, or by the application of intelligence and labor; as, the productions of the earth;

the productions of handicraft; the productions of intellect or genius. The act of

lengthening out or prolonging.

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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.

PRODUCTION DEPARTMENT IN BEL:

The key production process and its key characteristics are identified through PFMEA (Product

Failure Mode & Effect Analysis) technique which is followed all over the world.

OTHER PROCESS IN PRODUCTION DEPARTMENT IS:

a. Fabrication: Machining, Turning, Drilling, Welding, Tapping.

b. Electroplating : Ni, Cu, Zn, Tin plating, Chromatic conversion coating.

c. Painting : Epoxy painting, powder coating.

d. PCB Assembly : Hand soldering, wave soldering.

e. Electronic Assembly : Cable assembly, mechanical assembly.

f. Testing : Card testing, subsystem/ system testing.

g. Environmental Stress Screening : Hot and cold cycle, Bump test, Vibration test, Leak

test.

SIX-SIGMA:

A comprehensive and flexible system for achieving, sustaining and maximizing business

success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use

of facts, data and statistical analysis, and diligent attention to managing, improving, and

reinventing business processes.

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This is the definition that will provide the foundation for our efforts to unlock the potential of Six

Sigma for your organization. The types of “business success” you may achieve are broad

because the proven benefits of the Six Sigma “system” are diverse including:

Cost reduction

Productivity improvement

Market-share growth

Customer retention

Cycle- time reduction

Defect reduction

Culture change

Product/ service development.

In 1998 BEL had adopted Six Sigma technique: Some of the Six Sigma project is completed

during 2008-09 is listed below:

Reduction in cycle time for rejected item.

Improvement of internet connectivity in BEL.

Cycle time reduction for repairs of printers.

5S / Workplace Organization:

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The 5S System is a series of activities designed to improve workplace

organization and standardization. Standardization in the workplace

simplifies everyday activities leading to time-saving improvements. The 5S

activities include:

• Sort through all items and remove unneeded items

• Set in Order all remaining items, set limits, create temporary location

indicators

• Shine or clean everything and use cleaning as inspection

• Standardize the first 3 S’s by implementing visual displays and controls

• Sustain the gains through self-discipline, training, communication, and

total employee involvement

Kaizen Implementation Event:

IMEC will facilitate a group of your employees through the 5S process,

implementing the techniques learned in the workshop. Normally, everything

cannot be implemented during the two or three day Kaizen event. Therefore,

the team will develop an action plan with assigned responsibilities and

expected completion dates to insure that the necessary follow-up takes place.

Benefits of the 5S System

• Improve Quality

• Achieve work standardization

• Decreased changeover time

• Improved safety

• Reduced storage costs

• Reduced cycle time

• Reduced machine down time

• Boost employee morale as well as work environment.

In BEL-Bangalore 5s training was given to employees and the objectives

was

Workship Objectives:

This is a full day workshop that covers the basic 5S system (Sort, Set-in-

Order, Shine, Standardize, Sustain). Participants apply each “S” to a

simulated factory and measure the results of their efforts and experience first

hand how the 5S system reduces waste and improves productivity and

quality. This group training exercise is designed to precede a 5S

implementation, or Kaizen event.

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LIST OF SOME KEY MACHINE:

In circuit tester.

Reflow Owen.

Wave Soldering Machine.

CNC Machining Centre.

CNC JIG Boring Machine.

CNC Turret Punch Press.

Electroplating/ Painting Plant.

Walk in Chamber/ Environmental Stress Screening Equipment.

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ORGANIZATIONAL CHART OF PRODUCTION DEPARTMENT:

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THE PRODUCTS PRODUCED ARE CLASSIFIED AS:

A. DEFENCE:

Communications

Radars-3D mobile radar, low flying detection radar, Tactcol Control radar.

Naval Systems: radars, fine control system, communicator system.

Opto Electronics

Tank Electronics

Simulators

B. NON DEFENCE:

TV & broadcast

DTH

Telecom

Simputer

Electronic voting machine

Electronic components.

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PRODUCTS:

Products

BEL Weapon Locating Radar

BEL Battle Field Surveillance Radar (BFSR-SR)

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BEL designs, develops and manufactures products in the fields of:

Electronic Voting Machines

Radars

BEL Weapon Locating Radar

BEL Battle Field Surveillance Radar

Indian Doppler Radar

Samyukta Electronic Warfare System

Central Acquisition Radar (3D-CAR)

Telecommunications

Sound and Vision Broadcasting

Opto-electronics

Information Technology

Semiconductors

Missile

Akash missile

Sonar’s

CCS

FCS

Radar

Electronic Warfare Systems

Samyukta Electronic Warfare System

Simulators

Tank electronics

Combined day sight for Arjun MBT

Defence Communications

Data Link II communications system for the Indian Navy’s P-8I

Solar systems

Naval

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3.2 QUALITY MANAGEMENT DEPARTMENT:

Production is identified as a QMS process in the Quality Management System Manual. This procedure elaborates the process defined in the QMSM as shown below:

a) PROCEDURE:

Configuration Management Document will be maintained for projects as applicable The effective Foreign Object Debris (FOD) controls to identify prevent, detect and

eliminate Foreign Object Damage is exercised during the entire process of production as per BEL/ EWA/ FOD PP/ VO dated: 21. 12. 2009

According to the level of traceability required by contract or regulatory body, the organization shall provide for

Maintenance of Identification throughout the product life by means of log books. Maintenance of traceability of raw material. Components used. For given product maintenance of a sequential record of production (manufacture,

assembly, inspection & testing). Inspection/ testing documentation: Measurement requirements for product acceptance

shall be documented showing accept/ reject criteria, record of measurement results, type of measurement instruments required.

Continual improvement in all production processes are achieved through QCCs, Suggestions, Corrective Action Team & Six Sigma methodology as shown in continual improvement process chart.

Handling of material is as specified in relevant documents.

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b) MARKETING AND SALES:

Receipt of enquiry Vetting of enquiry (with the help of PC) Rate estimation (with the help of MS & CC) Conducting enquiry review and contingency plan to address risk Sending Quotation Follow up Quotation Receipt of indent / supply order. Verification of indent / supply order (with respect to quote) Conducting Contract review and contingency plan to address risk. Issue of Sale Order to concerned Dept (PC) Prepare & issue of dispatch schedule to concerned Dept monthly. Ensuring documents viz log books, UHB etc., accompany the product and same are

protected against loss or deterioration Dispatch of finished goods to consignee in proper packing case as applicable.

c) MANAGEMENT SERVICES (MS):

Provides rate estimate to enquiries Provides rate estimation for sub contract parts Generates reports Releasing of Divisional EW & A News Letter. Capital items Procurement Coordination MS prepares Load Vs capacity plan (in coordination with Head, Operations) Determine additional resource requirement Determine capacity required from sub contract.

d) PRODUCTION CONTROL:

Enquiry vetting Receipt and study of engineering documents with regard to reducibility Decide Make or Buy Prepare production plan (based on Quarterly / yearly dispatches & sale order)

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Issue production plan to concerned Dept. Generate gross requirement of parts and issue to concerned Dept. Preparation of process sheet (OARC) Plan for special tools, Jigs and fixtures, consumables, handling boxes required Issue material requirement plan to PCB and TR & CW. Prepare and issue launching documents to Fabn & Assy ( based on production plan) Raise sub contract request (for inadequate in- house capacity) Follow up and monitor (PP. PCB, TR & CW, SCPs, MPs & CMC items)

e) ASSEMBLY PLANNING:

Collect & Issue materials Kitting of parts as per list Launch items to Assembly Bin Assembled accessories and issue as & when required to QM for custom offering Issue / bin manufactured items / PCBs / TR & CW items.

f) MATERIAL CONTROL:

Provide inputs to purchase and sub contract for procurement (PR, SCR, and documents) based on gross requirement. Receive, store and issue accepted Purchase / Subcontract items.

g) PURCHASE:

Procure purchase parts as per production plan

h) SUB CONTRACT:

Procure sub-contracted parts as per production plan

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i) ASSEMBLY:

Receive launching documents and materials from assembly planning Receive and plan assembly as per production plan Assemble PCBs, sub assemblies, modules, cable forms, PCB riveting, cable assemblies,

main equipment as per production plan & process sheet (OARC) Identify resources to meet the specific product SOP requirement Periodically monitor consumables / chemicals for valid shelf life and consumption.

Hazardous materials shall be handed as per prescribed procedure. Stipulate criteria for workmanship I the work area Ensuring process validation for special processes.

j) TESTING:

Receive test documents from D & E Plan for test equipments, accessories for testing of PCBs, Modules, sub assemblies as per

ATP and PTP Subject equipment for Environment Stress Screening as per Product Quality Plan Perform final testing of equipment and accessories before offering to customer inspection

agency Offer tested equipment and accessories for inspection and acceptance by customer

inspection agency Identify resources to meet the specific product SOP requirement.

k) QUALITY MANAGEMENT:

Inspect parts (PPs, SCPs), Assembly, Sub assembly, Modules, Main Equipment accessories at various stages of production cycle (AI & MI)

Offer equipment, spares and accessories for inspection and acceptance by customer agency

Perform ESS activities ( passive) as per Product Quality Plan Identify resources to meet the specific product SOP requirement Hand over customer/QM cleared equipment to sales for dispatch

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Periodic Process Audits / Vendor Audits Maintenance of Equipment Configuration Conduct Defect Investigation and plan CA, PA Periodic performance checks of small tolls, ESD protection Aids/ Devices.

3.3 FINANCE DEPARTMENT:

At any moment business firm can be viewed as pool of funds. These funds come from a variety

of sources, investors or share holders, creditors who lend in money and past earnings retained in

the business. Funds provided from these sources are committed to a number of uses: fixed asset

used in production of a product or services, inventory used in the production and to facilitate

sales, accounts receivable owed by customers and cash and marketable securities used for

transactions and liquidity purposes. At a given moment, the pool of funds of the firm is static.

However this pool changes and these are known as funds flow. BEL since inception is a

profitable company. Its finance department is highly efficient and always looking for reducing

unwanted cost which leads to increase in the earning of the company turnover.

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System of accounting followed:

At BEL double entry system of accounting is followed by the professionally qualified

accountants.

In BEL to work more effectively the finance department is divided into 7 sections which

look after entire unit are as follows:

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.

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.

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.

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Bills Receivable Section :

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

product of BEL 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 BEL and is

identified by corporate office.

Performance during the past years:

Company achieved a record turnover of Rs. 46, 240. 9 million during the year 2008- 09 as

against Rs. 41, 025.4 million in 2007-08 registering a growth 12.71% over the previous years

Export:

Export turnover registered an increase of 15.17% from US $ 15.43 million in 2007- 08 to US

$ 17.77 million in 2008- 09. Export is a thrust area for BEL.

BEL’s relationship with global players like Boeing, Lockheed Martin and Thales is expected to

yield good business in the coming years.

Bankers:

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State Bank Of India HDFC Bank

State Bank Of Hyderabad Canara Bank

State Bank Of Patiala Syndicate Bank

State Bank Of Travancore Vijaya Bank

State Bank Of Mysore Bank Of Baroda

State Bank Of Bikaner & Jaipur Andhra Bank

Auditors:

Statutory auditors: M/S PKF Sridhar & Santhanam

Brand auditors: BR. Maheswari & Co

Argade Shyam & Co

N. Moteawara Rao & Co

Distribution of Value of production:

Operating results 2008-09 2007-08

Value of production 52,736.8 41,113.7

Turnover (Gross) 46,240.9 41,025.4

Profit before depreciation, 12,132.0 12,641.8

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interest & tax

Interest 107.7 2.4

Depreciation 1,056.0 926.4

Provision for tax 3,510.8 3,445.6

Profit after tax 7,457.6 8,267.4

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 BEL 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

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Particulars Amount

(Rs in million

Percentage

Materials 30,405.0 57.65

Employee Cost 7,557.9 14.33

Other Expenses ( Net) 2,641.8 5.01

Depreciation 1,056.0 2.00

Interest 107.7 0.20

Profit before tax 3,510.8 6.67

Total 52,736.8 100.00

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uniformity of the codes BEL follows this system. This is also concerned with preparation

of budgets.

Costing and material Account Section :

Coasting section in BEL 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.

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

Payment bank book

Receipt bank book

Payment cash book

Receipt cash book

Provident Fund Section :

In BEL 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

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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.

What is Audit?

The most general definition of an audit is an evaluation of a person, organization, system,

process, project or product.

Why Audit?

Audits are performance to ascertain the validity & reliability of information & also to

provide an assessment of a system’s internal control.

Goal of Audit:

Is to express an opinion on the person / organization / system etc., under evaluation based

on work done on a test basis.

How Audit is done:

Traditionally audits were mainly association to financial systems.

Recently auditing includes environment, quality etc.,

It is performed by competent, independent & objective person known as auditors or

accountants, they issue auditor’s report.

Due to practical constraints, to provide only reasonable accuracy the statements are free

from material error, it is true.

It provides assurance for third parties or external users.

What are the Audits in general (BEL Context)

Internal Audit: It is within organization or can be outsourced to audit the regular finance

functions of the department.

Statutory Audit: Appointed by CAG Auditors. They audit whether funds are utilized. It

is mainly concentrated on the Act, Laws, rules which are statutory and take care of the

shareholders interest.

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Government Audit: Government Auditors are appointed by CAG Auditors. The scope

of Government is proprietary in Nate i.e. fund allocation

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.

Need for Internal Audit:

i. Corporate governance

ii. Laws of the land- companies act, taxation, trade related laws, global act, SEBI, AS,

GAAP.

iii. Competitive markets & customer focus

iv. Rapidly changing technology

v. Multi unit, multi product, multi location

vi. Supportive role to External Audit

vii. Proprietary Issue

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Functions of a finance manager

Financial forecasting and planning.

Acquisition of funds.

Helping in valuation decision.

Maintain proper liquidity.

Estimation of the Financial Management.

Selection of the Right sources of funds.

Allocation of Funds.

Analysis and interpretation of financial performance.

Analysis of Cost Volume Profits.

Capital Budgeting.

Working Capital Management.

Profit planning & control.

Fair return to the investors, Maintain liquidity & Wealth Maximization

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ORGANIZATIONAL CHART OF FINANCE DEPARTMENT

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BEL- Growth profile of last decade (Rs in millions)

2006-07 2007-08 2008-09

Sales and service 39526.9 41025.4 46240.9

Value of production 40127.5 41113.7 52736.8

Salaries, wages &

benefits

5196.8 6591.7 7557.9

Profit before tax 10524.7 11713.0 10968.4

Provision for tax 3343.1 3445.6 3510.8

Dividend 1440.0 1656.0 1496.0

Equity capital 800.0 800.0 800.0

Reserve & Surplus 24923.1 31329.5 37036.8

Gross block 13248.0 14307.6 15799.0

Working capital 20099.6 26309.0 31355.6

Capital employed 23956.3 30443.8 36030.1

Net worth 25713.5 32129.5 37836.8

No. of employees 12357 12371 11961

Profit after tax 7181.6 8267.4 7457.6

Materials 21352.2 20688.9 30405.0

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TABLE SHOWING THE TURNOVER OF THE COMPANY

YEAR TURNOVER ( RS LAKHS ) PERCENTAGE

2003-2004 8985 100%

2004-2005 10500 116.85%

2005-2006 12350 137.45%

2006-2007 14000 155.81%

2007-2008 15500 172.50%

FINANCE HEAD (E6A)

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2003-2004 2004-2005 2005-2006 2006-2007 2007-20080

2000

4000

6000

8000

10000

12000

14000

16000

8985

10500

12350

14000

15500

Turnover (Rs Lakhs)

Turnover

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FINANCE HEAD (E6A)

BBBBBBBELFBBBBBIBBBFFFNANCE HEAD (E6A)

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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.

HRM MISSION

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

Contribution of people towards achieving excellence.

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.

Support and nurture an organizational culture and climate that encourage continuous

learning that enable the joint optimization of organizational goals and individual

potential.

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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.

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

BEL provide many awards and incentives like:-

Cash awards for acquiring higher/additional qualification

Sponsorship for higher studies.

Family planning incentives

WORK CULTURE IN BEL:

BEL believes that performing work culture can be nurtured by leading a learning

objective.

Series education, training, self development and career development programme are

done for HR development.

Various activities done BEL to promote continuous learning.

1) Individual Learning:

Internal / External Training, work experience, on the job training, job motivation.

2) Team Learning:

Improvement projects, task force for specific task, seminars / conference.

3) Organizational Learning:

Adoption of business Excellence model.

Best practices from other units / industries

Punctuality: Computerized attendance

Accent on cleanliness in the work environment

Engineering services department in all the units is responsible for ensuring good

housekeeping. Companies are certified to ISO 14001 environment management

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system. Besides, good practices such as 5s and housekeeping award schemes are

implemented to promote a culture of cleanliness.

Uniform dress code for workers & officers:

Officers right up to General Manager. The uniforms are provided by company which

includes washing allowance for maintenance.

Introducing practice like games / yoga common meal system for nutritious food is

provided at subsidized rates.

Various Innovation Methodologies To Improve Employee’s Response:

Unit has taken several initiatives for introducing innovative methodologies to improve

organizational response, customer satisfaction, enhancing productivity and morale of the

employees in continuous improvement activities.

Innovative Methodologies for HR Management:

Performance management system

Cross functional team

Job rotation

Self inspectors

Excellence Awards

QC circles

A four tier need identification system is institutionalized in the unit. Based on

assessment man power planning is done. Training records of all employees are

maintained in computer database.

Employees are sent for training to premier training institutes like XLRI, Administrative

Staff College, Tata Management Training Centre.,

A handbook of major personnel policies & rules

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Employment:

Recruitment at Induction levels for non- executives:

i. VIII standard & above but less than SSLC

ii. SSLC

iii. SSLC + In company training minimum of 6 months.

iv. SSLC + ITI Graduates

v. Engineering diploma / post graduates.

Recruitment at Induction levels for executives: Minimum qualification required to be

possessed for appointment in technical disciplines is degree in engineering. In respect of

non- technical it would be university degree plus relevant professional qualification in

concerned discipline (CA , MBA, MSW etc.,)

Promotion:

Non- Executives:

Assessment of suitability for promotion:

- Passing of trade tests, wherever prescribed

- Availability of next wage group under the career path

- Satisfactory merit ratings during the preceding 5 years.

Employees who do not qualify for promotion can be considered again on completion of 6

months.

Inter career path transfers, [only against specific vacancies noticed through internal

advertisements].

Tests prescribed for promotion in different career paths will be held once in 4 months

( April, August, December) for all eligible employees. Further, the employees who fail in

the prescribed test will be eligible to appear again in the test on completion of 6 months

and the promotion will be postponed according to that extent.

Executives:

Determination of merit maximum marks

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Average performance index 35

Educational qualification 30

Depth of services in grade 20

Suitability 15

Probation: Standard periods of probation, both in cases appointments and promotion for

executives is 1 year whereas in case of non-executives only during the initial appointment

probationary period is there for 6 months whereas in case of subsequent promotions no

probation period is existing.

BEL Conduct, Discipline and Appeal rules / standing order:

Scales of pay: Executives and Non Executives

Dearness allowance

Service weightage pay

Increment

House rent

House rent allowance

Leased accommodation

Company leased accommodation

Ceiling limits both in respect of plink area and monthly rental

Self leased accommodation

House rent recovery

City Compensatory allowance

Non- practicing allowance for company medical officers

Area Allowance

Conveyance Reimbursement: Conveyance allowance. Cycle allowance

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Special allowance to blind and orthopedically handicapped employee

Night shift allowance

Split shift allowance

Lunch allowance

Lunch Subsidy

Turnout allowance

Washing allowance

Children education allowance

Safe driving bonus

Attendance bonus

Payment towards subscription of newspaper to the executives

Travelling allowance rules: For journeys on official tours within India, Model of travel

and entitlements. Daily allowance, Entitlement for long duration work assignments.

Travelling Allowance on Retirement / Death of employee

EMPLOYEE BENEFITS:

a) Employee welfare fund: Established in all the unites with the object of undertaking

welfare.

Educational facilities for the employees & their family members.

The welfare fund management is managed by a committee consisting of representatives

of non- executives and management

Management also contribute equal contribution of fund

b) Fine Arts Club / cultural committees : To tap and develop artistic talent among

employees. The company had constituted fine arts club of BG Complex and cultural

committees at various other units.

c) Sports club : Develop sports talent among the employees sports club / committees have

been established in the BG complex

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d) Officers club : The company encouragement formation of officers club in the divisions to

facilitate the recreational and cultural activities of the officers and their family members.

Accommodation and other facilities are provided to the club. The company also provides

financial assistance for the functioning cities.

e) Supply of milk & vitamin tablets : Employees working in hazardous areas and as certified

by the plant medical officer are supplied with milk and vitamin tablets everyday.

SUPER ANNUATION:

Every employee shall be required to retire from service on attaining the age of 60 years. The

management may however on review retire any employee after he attains the age of 55years on

giving one and a half months notice or payment of the one and half month’s pay and allowance

in lie, thereof subject to necessary clearance including vigilance clearance

VERIFICATION OF CHARACTER AND ATTENDANCE

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

character and antecede

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.

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.

HOURS OF WORK

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

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

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 elsewhere 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

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Discharge and Termination Notices period;

Regular employees

All Executives: Three months on either side.

Others: One month on either side.

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.

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.

Apprentices / Trainees As per the provisional of the bond

Substitutes and Casual Employees with less than 240 days service, No

Notice on either side.

Recruitment & Selection:

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

the job in an organization.

Procedure for Recruitment:

BEL 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

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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

Source of Recruitment:

From employment exchange

From open market through advertisement in the press

By considering departmental candidates possessing the specified requirement

From reputed engineering/ management through college campus interview

Selection:

In BEL, selection of applicants is done through the central recruitment committee. The

committee constitutes of corporate personnel departments in consultation with the

respective division.

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.

Welfare:

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.

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In BEL, 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 BEL 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 BEL industrial complex and all workers are covered under BEL

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.

HOUSE RENT ALLOWANCE (HRA)

The HRA is given by the organization of the employees at the following rates:

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.

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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

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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.

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 BEL we can also find Trade Unions, which take care of employee

whenever issues are made against the employee. But the trade union in BEL 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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ORGANIZATIONAL CHART OF HUMAN RESOURCE DEPARTMENT:

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Employee Participation in BEL: BEL believes in involving and empowering through greater

participation by giving them various opportunities.

Major employee involvement programs are:

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Quality circle, Suggestion scheme

Some of the committees: Cultural, sports, safety, canteen, community centre, labour

welfare fund committee, death relief fund committee

Quality circle in BEL was started in 1991 & has taken deep root

Around 65 QC are active. The coverage of employees is highest among all units of the

company

More than 85% of employees are the member QC

Participation of QC in various competitions like yearly inter unit QC competition, CCI

competition & National QC competition give them immense opportunity to learn &

improve the process effectively

An attractive award scheme was introduced in year 2002 for QC presentation &

implementation of solution generated

Benefits and rewards for employees in BEL: Compensation and benefits plans of BEL are

comprehensive. BEL enters with wage negotiation with Negotiating trade union periodically

according to the guidelines issued by department of public enterprises. Some of the rewards are:

Appreciation or cash award for suggestion

Awards for outstanding performance

Gifts after completion of 15 and 25 year of service

Sponsorship for competition / seminars

Awards for achievements in safety QC and housekeeping.

List of some suggestion and awarded during 2009-10:

Name Suggestion given Savings in Rs lakh

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S.S.Bishit Use of rejected power supply

of SAW project

10.91

Prakash Repairs of OLD Thermal

strippers

4.90

Bhopal Sing Rectification of filter failure

during leak test of Stars V-FH

3.56

Prakash Reduction in rejection of

display card used in front

panel

2.54

JOB ROTATION: Unit has planned for rotation of 10% of its employee each year

3.5 MARKETING DEPARTMENT

PROCESS FLOW CHART OF MARKETING DIVISION:

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Visit customer & market

Tie- up with technology partner

Training & After sales support Quote / Tender Participation

Payment & collection Customer Techno commercial evaluation

Bill submission of customer Obtaining supply order

Dispatch of material Execution of PO / SO Finalization of contract & review

For any organization to carry out 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 BEL. In the field of ceramic components BEL 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

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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.

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.

On the other hand, if the technical details meet with the available product then the

engineering department will give a green signal for the transaction which will be carried out

by the marketing department.

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,

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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.

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.

In BEL, their main promotional tools are:

Seminar

Presentation

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

conferencing.

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.

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Global Presence:

BEL’s global presence is as follows

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ORGANIZATIONAL CHART OF MARKETING DEPARTMENT:

Marketing Strategy Implication at BEL:

It can be divided into following parts:

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Market Segmentation:

SEGMENTATION

Market Segment Customer Equipment % turnover(09-10)

Defence Army, navy,

Airforce, ordinance

factories

ULSB, STARS-

VSMACT,SAW,

PRC / VRC

70

Ministry of Home

affairs

BSF, CRPF, ITBP,

STF, STATE

POLICE, SSB

BEST, HART,

SMART

05

Civil BSNL, MTNL,

Rail-Tel, CAPART

CDOT Exchange 20

Other unit of BEL BEL-PK, BEL-

GAZ

MUX, FILLGUN,

Electronic warfare

15

Marketing Targeting:

a. Need based customer

b. Segment Attractiveness

c. Segment Profitability

d. Segment Positioning

Positioning:

Positioning is the act of designing the company’s product and image to occupy a

distinctive place in the minds of target market & customer to increase the sale of their

product. This goal is to locate the brand in the minds of consumer to maximize the

potential benefit to the firm at less time.

Promotion:

Advertising, Sales promotion, Direct marketing.

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Competitive Analysis:

Strategy may be of 3 types:

- Entry into new products

- Cost leadership

- After sales service

Diversification Strategy by BEL:

a) New Product Development:

BEL is always known for development of new product according to the need of the

customer. In order to develop near product BEL follow the general pattern

They gathered the information from the customer relating existing product and also about

their need and used it for the development of new equipment.

Upgradation of existing equipment & product

Planning and imparting operation and maintenance training to employees

Field visit of their technical personnel to impact in training & planning for early

deliveries of ordered equipments

Little equipment under development as a result of such interaction is S-RAXMKII,

ULSBMKII, IFDSS for T90 Tank

b) New Business Development Group:

In view of rapid expansion of mobile phone communication, disappearance of old

product which is the strength of BEL and increase of market challenges. New business

development group is formed during 2005-06 to enter into new business areas.

Therefore, advance technology partners are scanned and selected keeping in view their

product portfolio,, Research & Development strength & leadership position on Global /

Indian market.

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c) Strategic Challenges:

Fast changing technology

Management of obsolescence of material

Retention of competent engineers

Cost reduction

Timely delivery

Productivity improvement

Effective utilization of machines

Human resource

Motivation of employees Export marketing

Field Partner Core competency

Technology / R & D Tadiran-Israel,

NUTEH-Hyderabad,

Spectron-Pune

Switching, Data terminal,

hardware, software, power

supply, fire fighting system

Materials Amphenol, Framatome Connectors PCB’s

Manufacturing RHRC, DELTRON, RTC,

BANSANT, INDIA

Manufacturing of line, power

supplier, SMT Assembly

Human Resource MDI, IIMS, ASCI, COD-

Hyderabad

HR Development

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3.6 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 organization. Systems Department in BEL 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.

The different functions carried out by IT are:-

Collection of data from various departments & preparation of ceramic production

report

All servers hardware/software planning.

VPN & leased lines networking

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

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SAPABAP development

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.

ORGANIZATIONAL CHART OF IT DEPARTMENT

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3.7 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.

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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.

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

relationship in the organization.

The main functions of the HRD:

Identify the needs of employees.

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

Training budget is approved by the HOD

The required employees will undergo training.

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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

TRAINING:

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.

Scope :

This is essentially limited to the product quality (that is general management, behavioral

management, technical and skill oriented programs). Training for safety related aspects

are given by the safely department and for quality related by the quality department.

Responsibility :

The responsibility of identifying the training needs of all individuals lies with the concerned

controlling officers/HOD and group heads. The responsibility of consolidating and

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listing, in the order of priority, the program’s to be conducted, in order to impart the

necessary training lies the head of HRDC.

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.

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.

Project Training and Visits:

BEL 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.

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 BEL 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.

3.7 SAFETY DEPARTMENT

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

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

precautionary measures.

Safety Policy:

The following are the safety policies adopted by BEL 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.

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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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.

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 pil

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CHAPTER 4

STUDY OF SPECIFIC

MANAGEMENT PROBLEMProblem: Working capital crisis in BEL

4.1 Working capital level in BEL

4.2 Working capital trend analysis and observation

4.3 Current Assets and observation

4.4 Current Liabilities and observation

4.5 Changes in working capital

4.6 Statement of changes in working capital and observations

In BEL they are facing problem in maintaining working capital management. so, i have

made a detailed study by referring to last 5 yrs working capital.

4.1 Working capital level

The consideration of the level investment in current assets should avoid two danger points

excessive and inadequate investment in current assets. Investment in current assets should be just

adequate, not more or less, to the need of the business firms. Excessive investment in current

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assets should be avoided because it impairs the firm s profitability, as idle investment earns

nothing. On the other hand inadequate amount of working capital can be threatened solvency of

the firms because of its inability to meet its current obligation. It should be realized that the

working capital need of the firms may be fluctuating with changing business activity. This may

cause excess or shortage of working capital frequently. The management should be prompt to

initiate an action and correct imbalance

Table: Size of working capital: (RS. In millions)

Particulars 2005-06 2006-07 2007-08 2008-09 2009-10

A) Current Assets

Inventories 9180 10827 15437 18373 27430

Sundry Debtors 13346 16200 22304 28305 44051

Cash & Bank Balance 2228 1378 1127 22619 3566

Other Assets 1556 349 329 571 1010

Loan & Advances 7765 7341 7271 7577 10751

Total of A (Gross W.C.) 34065 36095 46468 77445 86808

B) Current liabilities

Current liabilities 14515 16572 20019 30789 43203

Provisions 138 308 369 3018 2594

Total of B 14653 16880 20388 33807 45797

Net W. C. (A-B) 19422 19215 26080 43638 41011

4.2 Working capital trend analysis: In working capital analysis the direction at changes over a

period of time is of crucial importance. Working capital is one of the important fields of

management. It is therefore very essential for an analyst to make a study about the trend and

direction of working capital over a period of time. Such analysis enables as to study the upward

and downward trend in current assets and current liabilities and it s effect on the working capital

position.

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Emphasizing the importance of working capital trends, Man Mohan and Goyal have pointed out

that analysis of working capital trends provide as base to judge whether the practice and

privilege policy of the management with regard to working capital is good enough or an

important is to be made in managing the working capital funds. Further, any one trend by itself is

not very informative and therefore Comparison with Illustrated their ideas in these words, an

upwards trends coupled with downward trend or sells, accompanied by marked increase in plant

investment especially if the increase in planning investment by fixed interest obligation.

Table: Working capital size

Years 2005-06 2006-07 2007-08 2008-09 2009-10

Net W.C.(A-B) 19423 19217 26081 43640 41013

W.C.Indices 100 98.94 134.28 224.68 211.16

Chart on Working capital indices:

2005-06 2006-07 2007-08 2008-09 2009-100

50

100

150

200

250

Series 1

Observations: It was observed that major source of liquidity problem is the mismatch between

current payments and current receipts from the Comparison of funds flow statements of BEL for

five years. It was observed that in the year 2008-09 current assets increased by around 29% and

current liabilities increased only by 19% which affect as working capital increased by 35%. In

the year 2008 to 2009 net working capital increased to Rs 43640 million from Rs. 26081 million,

the increase in working capital is close to 67%. While current assets increased by 66% and

current liabilities by 65%. It shows that management is using long term funds to short term

requirements. And it has fallen to Rs.41013 million in the year 2009 because current assets gone

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up by only 12%, current liabilities grown by 35%. This two together pushed down the net

working capital to the present level. The fall in working capital is a clear indication that the

company is utilizing its short term resources with efficiency.

4.6 CHANGES IN WORKING CAPITAL

There are so many reasons to changes in working capital as follow

Changes in sales and operating expenses:-

The changes in sales and operating expenses may be due to three reasons

There may be long run trend of change e.g. the price of raw material

Say iron may constantly raise necessity the holding of large inventory.

Cyclical changes in economy dealing to ups and downs in business activity will influence

the level of working capital both permanent and temporary.

Changes in seasonality in sales activities

Policy changes:- The second major case of changes in the level of working capital is because of

policy changes initiated by management. The term current assets policy may be defined as the

relationship between current assets and sales volume.

Technology changes:- The third major point if changes in working capital are changes in

technology because changes in technology to install that technology in our business more

working capital is required A change in operating expenses rise or full will have similar effects

on the levels of working following working capital statement is prepared on the base of balance

sheet of last two year.

4.7 Statement of changes in working capital

Statement of changes in working capital

Particulars 2008-09 2009-10 Changes in.

Increase

W.C

Decrease

A) Current

Assets

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Inventories 18373 27430 9057

Sundry Debtors 28305 44051 15746

Cash & Bank 22619 3566 19053

Other Assets 571 1010 439

Loan &

Advances

7577 10751 3174

Total of A 77445 86808

B) Current

Liabilities

Current

liabilities

30789 43203 12414

Provisions 3018 2594 424

Total of B 33807 45797

W,C,(Total A-

B)

43638 41011

Net Decrease in

Working

Capital

2627 2627

Total 43638 43638 31467 31467

Observations

Working capital decreased in the year 2009 to 2010 because

Sales increased by around 35%, where cost of raw material purchased

Increased by 42% and manufacturing expanses increased by 51%.

Cost of material and manufacturing expanses increased because of

Inflation, which was 6.63% in Feb. 2010 increased from 4%in 2009

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CHAPTER 5

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AND CONCLUSION

Recommendations:

One’s area of concern is a sundry debtors. It is recommended that either the operations in

the area to be toned up with introduction of skilled, trained & motivated work force or the

subcontractor of their operation to be done to outside agencies.

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Marketing department should be divided in different & each sub department will be

responsible for their work. In the complex market, the divisional heads are required to be

given total responsibility of the operations under them & be held accountable for that:

Targeting low margin high volume operation and diversification the product & business

Better HR policies to attract & retain the talent

Technological advancement

A library which offers a vast range of books, journals, magazines, newspapers and

internet facilities.

Conduct more efficient training programs this will help them not only in existing work

area, but also in developing the overall individual personality.

Strictly advice the workers to use the safety equipment at shop floor.

Reduce the excessive wastages after the kiln this in turn helps in reducing the cost.

Provide sign boards with in the units to facilitate easy identification of the department.

Conduct seminar on communication so that employees improve their communication

skills.

Provide proper place for disposal of waste materials.

Time taken to produce finished goods should be reduced in case of insulators.

Provide proper storage facilities for finished goods.

Conclusion

BEL being public sector unit manufacturing industrial and heavy electrical goods has been

technologically and managerially advanced in recent years. This division of BEL can be made as

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an example to other public sectors. As a processing industry, it should have proper

communication between all types of departments. Because they need to work together to achieve

the organization goal more effectively and efficiently. The management will receive feed-back

from employees. This is done in periodically by HR Department. In this if any employee having

better suggestion regarding the working improvement, it will be checked and if it is giving better

results it will be accepted. The person who has given the suggestion will be rewarded suitably.

Today BEL exceeds to keep up the pace of rapid development in its move for perfection. BEL

has fortified its drive for complete customer satisfaction preparing for the future with the sense

of commitment and confidence. It looks forward to continuing stage of dynamic growth

achievement and total service for energy.

The employees of the BEL are given Medical Facilities till their death and even to family

members. Hence this has been a stimulating force for the employees as well it has increased their

loyalty and morale towards the organization. I never felt that I am doing my project in a PSU as

the management was similar to that of a Private Company. Hence, my total scenario towards the

PSU has totally changed. I would be lucky to get employment in BEL. The internship program

was extremely beneficial, where I was exposed to the various activities in a work environment. I

gained a wide knowledge about the various departments like the production process,

computerized accounting system, the salary benefits, training program help for workers, work

satisfaction of employees, marketing and commercial, Material management and many more.

These experiences I am sure is going to prove as an asset to me in my future Endeavors. I really

had a great experience in the company which gave me a chance to know the functioning of the

organization, therefore, it can definitely be said that this opportunity has improved my

knowledge about the management and various other concepts.

APPENDIX

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BIBLIOGRAPHY

Books:

BEL magazine,

Ford magazine,

Personal magazine of various departments,

BEL yearly diary.

Reports:

Annually, Quarterly report of BEL

Websites:

www.bel.co.in

www.moneycontrol.com

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www.google.com

www.wikipedia.com

www.scrib.com

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