bharat eectronics limited- a study on working of different department
DESCRIPTION
working of different department of Bharat Electronics LtdTRANSCRIPT
A STUDY ON WORKING OF DIFFERENT DEPARTMENT OF
BHARAT ELECTRINICS LIMITED BY-
RAHUL CHAUHAN 08MBA077
UNDER GUIDANCE OF Ms. A.ANEETHA
Assistant Professor, VITBS
CONTENTS
• Company Profile-BEL• Unit Profile-BEL-KOT• Mission Vision Value &Objective of BEL-KOT• Organization Structure• Major Milestones of BEL-KOT• Product of BEL-KOT• HR Department• Marketing Department• Strategic Challenges• Finance Department• Production Department• Development & Design Department• SWOT Analysis• Recommendations
COMPANY PROFILE
• From a humble beginning to a Navratna Company• BEL is a PSU, under Ministry of Defense, Government of India established on 1954.• BEL has more than 360 products in its range from small components costing a
rupee to huge equipment costing about Rs.60 Cr.• Starting with a single Unit at Bangalore, BEL now has nine Units spread across the
country. • Nearly 80-85% of the company’s annual sales turnover accrues from products sold
to Defence Services and the balance from Civilian customers.• The company’s dividend payment has been continuously increasing and the
company paid a dividend of 170% for the year 2007-08. • BEL became a Mini Ratna Category I company in February 2002. Subsequently BEL
has been got Navratna status in June 2007
UNITS ESTD. (YEAR)
No. of
Employee
BANGLORE 1954 5927
GHAZIABAD 1974 2596
PUNE 1979 411
MACHLIPATNAM 1983 500
PANCKULA 1985 625
CHENNAI 1985 410
KOTDWARA 1986 720
HYDRABAD 1986 490
NAVI MUMBAI 1986 500
NINE MANUFACTURING UNIT
PRODUCT MANUFACTURED BY BEL
BANGALORE • Communication equipments – HF/VHF Man pack, Mobile & static Trans-receiver/TransmittersGHAZIABAD• Antenna for primary & secondary radarsPUNE • Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide Battery packsMACHILIPATNAM• Passive night vision devices- Goggles, Binoculars, Periscopes, KOTDWARA • ULSB, BEST, SMART, HARTPANCHKULA • VHF/UHF Ground to ground to air communication equipmentNAVI MUMBAI• Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipmentCHENNAI• Gun control & Drive System for Armored Fighting VehiclesHYDERABAD• Electronic warfare equipment
INTRODUCTION OF UNIT BEL KOTDWARA
• Established in 1985-86 coincided with the formation of C-DOT in August 1984 for development of electronic switching equipments in India
• BEL-KOT is the 9th and the youngest Unit in the family of BEL. • Soon after its inception, the Unit undertook manufacturing of Radio Relay
Equipment, a very complex equipment• The Unit entered in the highly competitive market of telecom and became one of
the leading suppliers of C-DOT switching equipments.• It also received CII-EXIM Bank Excellence recognition for strong commitment to
TQM/Excel for three consecutive years: 2003, 2004 & 2005.
Mission ,Vision, Values and Objective Of BEL- KOT
Vision• To be a world-class enterprise in a professional electronics.
Mission• To be a customer focused globally competitive company in defence electronics and
in other chosen areas of professional electronics, through Quality, Technology and Innovation.
Values• Putting customers first.• Working with transparency, honesty & integrity.• Trusting & respecting individuals.• Fostering team work.• Striving to achieve high employee satisfaction.• Encouraging flexibility and innovation.• Endeavoring to fulfill social responsibilities.
INTRODUCTION OF UNIT BEL KOTDWARA Contd..
OBJECTIVES OF BEL-KOT
• To be a customer focused company providing state-of-the-art products & solutions at competitive price, meeting the demands of quality, delivery & services.
• To generate internal resources for providing growth.• To attain technological leadership in defence electronics through in-house
R&D, partnership with defence/research laboratories & academic institutions.• To give thrust to exports.• To create a facilitating environment for people to realize their full potential
through continuous learning & team work.• To give value for money to customers & create wealth for shareholders.• To constantly benchmark company’s performance with best-in-class
internationally.• To raise marketing abilities to global standards.• To strive for self-reliance through indigenization.
Organization Structure of BEL-KOT
GM
AGMD&E
AGMMKT
DGMPROD
DGMCS
Sr DGMQ&MS
MGRMM
MGRF&A
MGRP&A
MGRP&S
DGMO&T
MAJOR MILESTONE OF KOTDWARA UNIT
• 1988 Plant inaugurated by Defence Minister• 1990 Self Inspection Status • 1993 Certification for ISO 9002:1987• 1997 Golden Peacock award for quality• 1997 ELCINA award for manufacturing• 1998 Certification for 1SO 9001: 1994• 1999 Excellence in professional Electronics, Deptt. of IT , Govt of India• 2002 Corporate R&D award for ULSB MKII• 2003 Certification for ISO 9001:2000 & ISO 14001:1996• 2003,04 & 05 Strong Commitment to Excel “ in CII Exim Bank Business
Excellence “• 2005 Platinum award in IMEA-2005 by Frost & Sullivan• 2006 Certification for ISO 14001:2004• 2007 SAP implemented• 2008 Recommended for AS 9100 Rev B
PRODUCT OF BEL- KOT WITH COMPETITOR
PRODUCT PRODUCT DETAILS COMPETITORS
SMART, BEST, HART Data terminals with encryption facility for use with radios
Not till date, but MNCs like TADIRAN may come
ULSB MKII 15 line Automatic EPABX ITI
SLSB MKIII 50 line Battalion level state of the art Exchange for Indian army
ITI, ECIL, IL, ALPHA
SARX MKII 600 line EPABX for application at command level -
MAX XL AND SPARES
Land line exchange based on C-DOT design ECIL, ITI, IL, UTL
STM1/4/16 SDH based transmission equipment in Telecom network ITI, Siemens,
Fibcom,SCL&
Terracom SACU Encryption Data terminal with simultaneous
transmission ( TOT with M/s Elbit) -
PRC-6020 HF Radio trans receiver with encryption, TOT with M/s TADIRAN
-
IFDSS Microprocessor based fire detection & suppression system for tracked vehicle with detection & suppression in less than 140 seconds
INTEL, Spectronics, Southern Electronics and Ashoka Engg
HUMAN RESOURCE DEPARTMENTWork culture in BEL KOT• BEL KOT believes that performing work culture can be nurtured by being a
learning organization• Series education, training, self development and career development
programme are done for Human resources development.Various activities done in BEL to promote continuous learning are:Individual learning• Internal/ External Training, Work experience, On the job Training, Job
RotationTeam Learning• Improvement projects , Task force for specific task, Seminars/ ConferenceOrganizational Learning• Adoption of Business Excellence Model• Best practices from other units/ industries
Various innovative methodologies to improve employee’s response
Unit has taken several initiatives for introducing innovative methodologies to improve organizational response, customer satisfaction, enhancing productivity and morale of the employees in continuous improvement activities.
Innovative methodologies for HR Management• Performance Management System• Cross Functional team• Job Rotation• Self inspectors• Excellence awards• QC circles A four tier need identification system is institutionalized in the unit. Based
on assessment manpower planning is done. Training records of all employees are maintained in computer database
Employees are sent for training to premier training institutes like XLRI, Administrative Staff College, Tata Management Training Centre, MDI etc.
Employees involvement and participation in BEL-KOT
BEL KOT believes in involving and empowering people through greater participation by giving them various opportunities .
Major employee involvement programs are:• Quality circle, Suggestion scheme• Some of the committees:• Cultural , sports, safety, canteen, community centre, labor welfare fund
committee , death relief fund committee• Quality circle in BEL was started in 1991 and has taken deep root.• Around 65 quality circles are active. The coverage of employees is highest
among all units of the company.• More than 85% of employees are the member of QCC.• Participation of QCC in various competitions like yearly Inter Unit QCC
Competition, CCI Competition and National QCC Competitions give them immense opportunity to learn and improve the process effectively.
• An attractive award scheme was introduced in year 2002 for QCC presentation and implementation of solution generated
2005 2006 20070
2
4
6
8
10
12
14
16
No.of QCCs
Awards won
QCC represented in CII, QCFI and Awards won
Benefits and Reward for Employees in BEL KOTDWARA
Compensation and benefits plans of BEL are comprehensive.BEL enters with wage negotiation with Negotiating Trade Union periodically according to the guidelines issued by Department of Public Enterprises
Some of the rewards are:• Appreciation or cash award for suggestion• Awards for outstanding Performance• Gifts after completion of 15 and 25 year of service• Sponsorship for competition/ Seminars• Awards for achievements in safety QCC and Housekeeping.List of some suggestion and awarded during 2007-08
Name Suggestion Given Saving in Rs lakh
S.S. BISHT Use of rejected power supply of SACU project 10.91
VED PRAKASH Repairs of OLD thermal Strippers 4.90
BHOPAL SING Rectification of Filter Failure during leak test of STARS-V FH 3.56
VED PRAKASH Reduction in rejection of display card used in front panel assay of PRC
2.54
Job RotationUnit has planned for rotation of 10 % 0f its employee each year
(04-05) (05-06) (06-07) (07-08) AVG0
1
2
3
4
5
6
7
8
9
10
% 0f Job rotation of EMP.
% 0f Job rotation of EMP.
MARKETING DEPARTMENTORGANISATIONAL CHART
. GM (KOT)
MKT-1 MKT-2 Training, Demo & Exhibition FGS & Excise Sales A/C
Defence
Telecom
Paramilitary New Projects
ARC
New Market
Excise FGS
PROCESS FLOW CHART OF MARKETING DIVISION
VISIT CUSTOMER & MARKET
TIE-UP WITH TECHNOLOGY PARTNER
QUOTE/TENDER PARTICIPATION
TECHNO COMMERCIAL EVALUATION
OBTAINING SUPPLY ORDER
FINALIZATION OF CONTRACT & REVIEW
EXECUTION OF PO/SODESPATCH OF MATERIALS
BILL SUBMISSION OF CUSTOMER
PAYMENT COLLECTION
TRAINING & AFTER SALES SUPPORT
CUSTOMER
MARKETING STRATEGY IMPLICATION AT BEL KOTDWARA
It can be divided into following parts:• Market Segmentation • Targeting• Promotion Strategy• Positioning Strategy• Competitive Analysis• Diversification strategy
SEGMENTATION
MARKETSEGMENT
CUSTOMER EQUIPMENT %TURNOVER(08-09)
DEFENCE ARMY, NAVY, AIR FORCE,
ORDINANCE FACTORIES,
ULSB, STARS-V SMART, SACU,
PRC/VRC
68
MINISTRY OF
HOME AFFAIRS
BSF, CRPF, ITBP, STF, STATE
POLICE, SSB
BEST, HART, SMART 03
CIVIL BSNL, MTNL, RAIL-TEL,
CAPART
CDOT EXCHANGE, STM 17
OTHER UNIT OF
BEL
BEL-PK, BEL-GAD, BEL-BG MUX, FILLGUN, ELOCTRONIC
WARFARE ( SANKET)
12
MARKETING TARGETING
• Need based customer:• Segment Attractiveness• Segment Profitability• Segment Positioning
POSITIONING
• Positioning is the act of designing the company’s product and image to occupy a distinctive place in the minds of target market and customer to increase the sale of their product.
• This goal is to locate the brand in the minds of consumer to maximize the potential benefit to the firm at less time.
Brand or
company
Target
customer
Benefits Value Proposition
BEL-
KOT
Defence,
Civil,
Reliable, best
coverage and
service
A company which is highly
reliable, have branches all
over India, and gives service
on their product for 15 year
Promotion
• Advertising• Sales Promotion• Direct Marketing
COMPETITIVE ANALYSIS
Strategy may be of three types:-• ENTRY INTO NEW PRODUCTS:- • COST LEADERSHIP:-• AFTER SALES SERVICES
SEGMENT COMPETITORS EQUIPMENT
Telecom Market
(BSNL)
ITI, PCL, IL, SIEMENS, FIBCOM, ICOM,
ORDYNE, TERRACOM
Switching &
Transmission
Defence Market ITI, ERRICSION, TADIRAN, HBL NIFE,
ALFHA, ECIL, SPANCO, PRECISION
ELECTRONICS, SPECTRONICS, INTEL,
ASHOKA ENGG
EXCHANGE,
ENCRYPTION &
IFDSS
EQUIPMENTS
DIVERSIFICATION STRAGY BY BEL-KOT
• a) NEW PRODUCT DEVELOPMWNT• BEL-KOT is always known for development of new product according to
the need of the customer .In order to develop new product BEL follow the general pattern:• They gathered the information from the customer relating existing
product and also about their need and used it for the development of new equipment.
• Up gradation of existing equipment and product.• Planning and imparting operation and maintenance training to employees.• Field visit of their technical personnel to impart in-situ training and
planning for early deliveries of ordered equipmentsLittle equipment under development as a result of such interactions is• S-RAXMKII• ULSBMKII• IFDSS for T90 Tank
DIVERSIFICATION STRAGY BY BEL-KOT Contd……
b) NEW BUSINES DEVELOPMENT GROUPIn view of rapid expansion of mobile phone communication, disappearance of old
product which are the strength of BEL and increase of market challenges, New business development group is formed during 2005-06 to enter into new business areas.
Therefore, advance technology partners are scanned and selected, keeping in view their product portfolios, R&D strength and leadership position in Global/ Indian market.
As a major step in diversification, BEL-KOT has started interaction with Nuclear Power Corporation of India Ltd. IGCAR for manufacturing of Nuclear Instrumentation .
Some of BEL major partners are :
FIELD PARTNER CORE COMPETENCY
Technology/ D&D TADIRAN-Israel, NUTEK- Hyderabad, SPECTRON-Pune,
NID- Ahemdabad, CDOT, UDAY, CORAl
Switching, Data terminal, Radio, software,
Power supply, Fire Fighting Sys.
Materials AMPHENOL, FRAMATOME, AT&S Connectors, PCBs
Manufacturing RHPL, DELTRON, RTL, BASANT INDIA, Local
Subcontractor
Manufacturing of line, Cards & Power
Supplies, SMT Assembly
Human Resources MDI, IIMS, NITIE, ASCI, COD HYDRABAD Human Resources Development
STRATIGIC CHALLENGES
• Strategic challenges of BEL Kotdwara include:• Fast changing technology• Management of obsolescence of material• Retention of competent engineers• Cost reduction• Timely delivery• Productivity improvement • Effective utilization of machines• Human resource• Motivation of employees• Export marketing
FINANCE DEPARTMENT• BEL Kotdwara since inception is a profitable company. Its Finance department is highly
efficient and always looking for reducing unwanted cost which leads to increase in the earning of company
• Turn Over:For last five year turnover of the unit and PBT given in following fig. respectively. 2006-07
saw a quantum jump in turnover to 415.73 Cr and PBT to 70.24 Cr due to convergent Billing and CRM project of MTNL. In year 2007-08 turnover went down to delay in placement of some of major orders by various customers.
(04-05) (05-06) (06-07) (07-08) (08-09)0
5000
10000
15000
20000
25000
30000
35000
40000
45000
ActualBudgetd
Inventory ,Sundry Debtors PBT
• The rise in Inventory in 2007-08 was due to low level of direct sales. Orders could not be released by Gov. i.e. for CAPART, STM etc. Hence inventory piled up in anticipation of orders.
• In 2004-05 unit has achieved low sundry debtors turnover of 41 days. Thereafter sundry debtors figures shows increasing trend due to lower turnover.
• In 2006-07 profit increased due to supply of equipments for MTNL project which had 9% margin thus even if we exclude Rs 25 Cr contribution of MTNL project, profit of the unit shows steady trend. Year 2007-08 was exceptional in nature due to low direct sales.
(04-05)
(05-06)
(06-07)
(07-08)
020406080
100120140
Inventory
Inventory
(03-04) (04-05) (05-06) (06-07)0
1000
2000
3000
4000
5000
6000
7000
8000
ActualBudgeted
(04-05)
(05-06)
(06-07)
(07-08)
0
50
100
150
200
250
Sundry debtors
Sundry debtors
Cost reduction, Cash Flow and Depreciation
• Cost reduction technique has been deployed in a big way to achieve significant cost reduction .Cost reduction of Rs 1175 lakhs have been achieved in 2004-05
• The net cash flow of BEL KOT has been fluctuating. From high of Rs 64 Cr in 2004-05, it dipped to net flow of Rs 190 Cr in 2006-07 due to payment of vendors of MTNL project. In 2007-08 due to sundry debtors collection in MTNL project net cash flow touched to Rs 100 Cr.
• The depreciation bas been increased from Rs224 lakh in 2003-04to Rs 353 lakh in 2007-08. The increase in depreciation shows the additional investment done to ensure adequacy of technology and infrastructure.
(03-
04)
(04-
05)
(05-
06)
(06-
07)
(07-
08)
0
200
400
600
800
1000
1200
1400
Cost Reduction
Cost Reduction
(04-05)
(05-06)
(06-07)
(07-08)
050
100150200250300350400
Depreciation
Depreciation(04-05) (05-06) (06-07) (07-08)
-250
-200
-150
-100
-50
0
50
100
150
Cash Flow
Cash Flow
P R O D U C TIO N D EPA R TM EN T
• Key production process and its key characteristics are identified through PFMEA (Product failure Mode and Effect Analysis) technique which is followed all over the world.
Other Process in Production Department:• FABRICATION- Machining, Turning, Drilling, Welding, Tapping• ELECTROPLATING- Ni, Cu, Zn, Tin plating, Chromate conversion coating• PAINTING- Epoxy painting, Powder coating• PCB ASSEMBLY- Hand soldering, wave soldering• ELECTRONIC ASSEMBLY- Cable assembly, Mechanical assembly• TESTING- Card testing, Sub system/ system testing• ENVIROMENTAL STRESS SCREENING- Hot and cold cycle, Bump test, Vibration
test, Leak testSIX-SIGMA:IN 1998 BEL had adopted Six Sigma techniqueSome of the six-sigma project s completed during 2007-08 are listed below:• Reduction in cycle time for rejected item• Improvement of Internet connectivity in BEL- Kotdwara• Cycle time reduction for repairs of printers
LIST OF SOME KEY MACHINE
• In circuit tester• Reflow Owen• Wave soldering machine• CNC machining centre• CNC JIG Boring machine• CNC Turret Punch Press• Electroplating/ Painting Plant• Walk in chamber/ Environmental Stress Screening Equipment
DEVELOPMENT AND ENGINEERING DEPARTMENTPRODUCT AND SERVICES ARE DESIGNED AND DEVELOPED BASED ON
CUSTOMER• To have in depth understanding of customer needs and expectation, BEL
has a policy of recruiting experienced retired defence personals• when customer requirement is immediate, technology transfer is taken
from global companies. During the development of design, changes suggested by the customer are discussed by and implemented on mutual agreement.
• Similarly marketing and design groups keep close interaction with paramilitary forces to understand their requirement.
• The needs of civilian customers are known primarily from market research.
The process flow chart for design and development process is given below
Development discussion
With customer by D&E and MKT
Receipt of requirement
1) GSQR/QR2) TECH specs3) Specs from
market research
Design & Development
planning
Compilation & review of
design inputs
Product design
Design Changes
Definition Validation & review
Provisional Engineering document
Final Design Documentation
Inputs from
market research
Customer and production
Released to production
Repair & Maintainability
Technology Inputs
Statutory & Regulatory Requirement
SWOT ANALYSIS OF BEL KOTDWARA
STRENGTH1) BEL has got modern manufacturing facilities with test instruments, set up at
Kotdwara for manufacturing & supply of telecommunication equipments.2)R&D set up with qualified manpower, suitable for technology
development/absorption.3)Known for quality & reliability of its products.4)Known for its prompt after sales service, 5) Vast experience in the manufacturing of electronic equipment. The parent unit
established in 1954.6)Highly trained, professionally qualified manpower trained to deal in the latest
technologies.7)Well established organizational structure.8) Availability of Central Research Laboratories at Bangalore & Ghaziabad, working .9) Young & dynamic top management at corporate level, ensuring stability.
SWOT Contd……..
WEAKNESS1) The main weakness of BEL is its being owned Govt. of India under ministry of
defence. This makes decision-making slow.2) BEL has been predominantly in defence sector, which has been monopoly business.
Hence, it does not have experience in managing a competitive business like telecommunication equipment manufacturing.
3) Lack of flexibility in manpower management, especially in pay scales, promotion, recruitment policy, etc., thus resulting in brain drain.
4) Lack of bold decision making in the area of investment & others due to fear of various audits, both statutory & Govt. in the mind of management.
5) Lack of accountability in top management, as personal stakes are not related with the performance of organization.
SWOT Contd…………..
OPPORTUNITIESThe following are the major opportunities available for BEL Kotdwara:-1) Liberalization leads to opening of huge market. e.g. ITI, HTL, etc.2) BEL can go for technology transfer, ties up & JV due to liberalization3) 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.
THREATS1) Entry of private sector & multinationals in this field is making competition very tough.2) Due to overall reduction in import duties, the indigenous manufacturing & direct
import are competitive.3) Imperfections in the market, leading to price wars & undercutting of prices, resulting in
sustained losses for telecommunication manufacturer.4) Margins are under pressure due to competitive market situation.5) Lack of infrastructure facilities like power, roads, etc. making indigenous manufacturing
costly.6) High investment required in this sector.
RECOMMENDATIONS
• One s area of concern is a sundry debtor. It is recommended that either the operations in this area be toned up with introduction of skilled, trained & motivated work force or the subcontracting of this operation to be done to outside agencies.
• Marketing department should be divided in different & each sub department will be responsible for their work. In the complex market, the divisional heads are required to be given total responsibility of the operations under them & be held accountable for that.
• They should advertise their product through media.• Targeting low margin high volume operations and diversifying the
product and business.• Better HR policies to attract and retain the talent. • Technological advancement.