Organisational Study at Bhel

Organization Study EDN INTERNSHIP REPORT ON ORGANISATIONAL STUDY AT BHARATH HEAVY ELECTRICALS LIMITED& MICROSCOPIC STUDY OF QUALITY MANAGEMENT & CONTROLING Submitted in partial fulfillment of the requirements of The M. B. A Course of Bangalore University Submitted By Veeresh (REGD. NO. 05XQCM6106) Under the Guidance and supervision Of Prof. Sumithra Sreenath M. P. Birla Institute of Management Associate Bharatiya Vidya Bhavan Bangalore-560001 2006-07 M P Birla Institute of Mgmt 1 Organization Study EDN DECLARATION

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I here by declare that the “Internship report on Organization study & Microscopic Study on Quality Management & Controlling” at BHARATH HEAVY ELECTRICAL LIMITED, Bangalore is a record of independent work carried out by me, towards partial fulfillment of the requirements for MBA course of Bangalore University at M . P. Birla Institute of Management. This has not been submitted in part or full towards any other degree or Diploma. Date: Place: Bangalore Veeresh 05XQCM6106 M P Birla Institute of Mgmt 2 Organization Study EDN PRINCIPAL’S CERTIFICATE

This is to certify that this report entitled “An Internship Report on Organization study & Microscopic Study on Quality Management & Controlling” at BHARATH HEAVY ELECTRICAL LIMITED, Bangalore has been prepared by Veeresh bearing register number 05QXCM6106 under the guidance and supervision of Professor Sumithra Sreenath of MP Birla Institute of Management, Bangalore Place: Bangalore Date: Dr. N. S. Malavalli (Principal) M P Birla Institute of Mgmt 3 Organization Study EDN GUIDE CERTIFICATE This is to certify that the report entitled “An Internship Report on Organization study Microscopic Study on Quality Management & Controlling” at BHARATH HEAVY ELECTRICAL LIMITED, Bangalore done by Veeresh bearing registration No. 05 XQCM6106 is a bonafide work done carried under my guidance during the academic year 2006-2007 in partial fulfillment of the requirement for the award of MBA degree by Bangalore University. To the best of my knowledge, this report has not formed the basis for the award of any other degree. Place: Bangalore Date: Prof. Sumithra Sreenath (Internal Guide) M P Birla Institute of Mgmt 4 Organization Study EDN

M P Birla Institute of Mgmt 5 Organization Study EDN ACKNOWLEDGEMENT “The Marvelous richness of human experience would lose some thing of rewarding joy if there were no limitations to overcome. The hilltop hour would not be half so wonderful if there were no dark valleys to traverse” This project is a product of the invaluable insights, facts and experience I had with the industry people. The learning experience was more than what was visualized as. A special note of gratitude goes to Mr. Kalyana Sundaram HR Manager of BHARATH HEAVY ELECTRICAL LIMITED,.

The interaction with the industry People improved our human skills to a tremendous extent. I am indebted to my parents. They have been my guiding light in my passage of this mortal world. My faculty guide Prof. Sumithra Sreenath has helped me by reviewing the project. I would like to thank her for her time. VEERESH M P Birla Institute of Mgmt 6 Organization Study EDN Contents 1. Student Declaration 2. Certificate 3. Certificate 4. Acknowledgement 5. Executive Summary 6. Industrial background 7. Company profile 7. 1 Product Profile 8.

Functions of various 8. 1 Human Resource department 8. 2 Marketing Department 8. 3 Finance Department 8. 4 Safety Department 8. 5 Security & Vigilance 8. 6 Factory Service Department 8. 5 Planning and development 8. 6 Production Department 8. 7 MIS Department 8. 7 Material Management Department Section B Microscopic Study of Quality Management & Controlling. 9. 1 Quality Management System 9. 2 Statistical Quality Control 9. 3 Quality Assurance Manual 9. 4 Quality Management 9. 5 Quality Circle 9. 6 Guidelines 9. 7 Findings 9. Suggestions Bibliography Page I II III IV 1 3 18 departments 24 26 28 31 33 34 35 36 42 43 No 9. 45 47 54 67 73 78 82 83 84 10. M P Birla Institute of Mgmt 7 Organization Study EDN EXECUTIVE SUMMARY General Introduction This project is done in B. H. E. L-EDN as a part of MBA curriculum with an objective of knowing the working and the systems that are followed in the practical world. This report gives details of all the major departments that are in B. H. E. L-EDN, Mysore road, Bangalore. The report is organized based on the importance given to various departments by the firm.

Reasons for selecting B. H. E. L-EDN This is right time to disclose the reasons for choosing B. H. E. L-EDN for internship. B. H. E. L has been disclosed as Navaratna of the public sector by the govt of India. It is known that there are more than 250 companies declose profits. One of the reasons for me to select B. H. E. L-EDN was to know the attributes that contributes towards inking B. H. E. L an outstanding among public sectors. Another reason was to understand the areas where PSUs require improvement. Last but not the least to study the contributions of B. H. E.

L-EDN to social welfare. Need for the study As a part of the M. B. A curriculum. I am required to undertake internship training before the commencement of the second year of the course. Where all the functions of the organizations are dealt in the first year of the course i. e. only theoretical. This internship training provides me the exposure to the real world. It also bridges the connection between the theoretical and the practical world. This exposure helps us in adapting the practical work situation with easy. M P Birla Institute of Mgmt 8 Organization Study EDN INDUSTRY PROFILE

BHEL manufactures and supplies major capital equipment and systems like captive power plants, centrifugal compressors, drive turbines, industrial boilers & auxiliaries, waste heat recovery boilers, gas turbines, pumps, heat exchangers, electric machines, valves, heavy castings and forgings, to a number of industries other than power utilities, like metallurgical, mining, cement, paper, fertilizers, refineries and petro-chemicals. BHEL has also emerged as a major supplier of controls and instrumentation systems especially distributed digital control systems for industries, and simulators for various applications.

BHEL is supplying X’mas tree valves and well heads up to a rating of 10,000 psi to ONGC and Oil India. It can also supply on-shore drilling rigs, sub-sea well heads, super deep drilling rigs, desert rigs and heli-rigs. TRANSMISSION BHEL supplies a wide range of transmission products and systems of up to 400 kV class. Those include: high-voltage power and distribution transformers, instrument transformers, dry-type transformers, SF6 switchgear, capacitors and ceramic insulators. Equipment for high-voltage direct current (HVDC) systems are also supplied, for economic transmission of bulk power over long distances.

Series and shunt compensation systems are also manufactured to minimise transmission losses. BHEL has developed and commercialised the country’s first indigenous 36 kV Gas Insulated Substation and has also developed 145 kV Gas Insulated Substation (GIS) which has undergone successful testing at CESI, Italy. BHEL has also established its capability in the area of Flexible AC Transmission systems (FACTS). TRANSPORTATION Most of the trains of the Indian Railways are equipped with BHEL’s traction and traction control equipment.

India’s first underground metro at Calcutta runs on drives and controls supplied by BHEL. The Company has developed and supplied broad gauge 3900 HP AC locomotives, 5000/4600 HP AC/DC locomotives, diesel shunting M P Birla Institute of Mgmt 9 Organization Study locomotives of up to 2600 HP, battery powered road vehicles, including electrics & EDN control electronics. BHEL has acquired the technology for 6000 HP 3-phase AC Locos and started manufacturing the electrics & controls as well as those for 3-phase AC EMUs, Diesel EMUs and OHE cars. TELECOMMUNICATION

BHEL manufactures telecom switching equipment based on C-DOT technology, the major products being MAX-XL of up to 40,000 lines capacity and Single Base Module RAX for rural applications. RENEWABLE ENERGY Technologies have been developed and commercialised for exploiting nonconventional and renewable sources of energy. These include photovoltaic cells and modules, solar lanterns, grid-interactive PV Power Plants and solar heating systems. BHEL has emerged as a major manufacturer of wind electric generators of up to 250 kW unit size. The Company has set up its own wind farms of 3000 kW capacity (12×250 kW) at Ramgiri (A.

P. ) and another of 4000 kW capacity (16×250 kW) at Kadavakkallu (A. P. ). Bharat Heavy Electrical Limited (BHEL) is one of the most leading and the largest Engineering and Manufacturing Enterprises in India in the energy related/infrastructure sector today. BHEL was Established more than 40 years ago ushering in the indigenous Heavy Electrical Equipment Industry in India, a dream that has been more than realized with a wellrecognized track record of performance. It has been earning profits continuously since 1971-72 and paying dividends since 1976-77 COMPANY PROFILE

M P Birla Institute of Mgmt 10 Organization Study EDN Bharat Heavy Electricals Limited is one of the premier public sector companies in India, which plays a major role in the power sector of modern India. BHEL entered electronics as it is a high growth area. Bharat Heavy Electricals Limited registered all time high turnover or Rs. 641 crores for the financial year 2001-02 representing a growth of 17 per cent over the previous years turnover of Rs. 548 crores. Earning a profit before tax of Ts. 47 crores, these units achieved a jump of three times as compared to rs. 5 crores during the previous year a BHEL release said. Strategic measures taken by the Bangalore units of BHEL paid rich dividends in the form of Rs. 623 crores record order booking during the year marking a growth of 24 % over the previous year. At the end of the financial year, the outstanding order book position of these units was Rs. 628 crores. At the company level, BHEL achieved a turnover of RS. 7257 cores and a profit before tax of Rs. 631 crores during financial year 2001-2, the released added. The first plant of BHEL was set up at Bhopal in 1956.

BHEL is involved in the manufacture of over 180 products under 30 major products groups. BHEL’s range of services extends from project feasibility studies to After-sales -service successfully meeting diverse needs through turnkey capability. With corporate Head quarters at New Delhi, BHEL’s operations are organized around three Businesses sectors viz. power, industry and international functions and operations. Various corporate the operating/manufacturing units in turn support the business sectors, all of which function in a well-orchestrated manner in order to meet market/customer needs.

BHEL has acquired certifications to Quality Management Systems – ISO 9001, Environmental Management Systems – ISO 14001 and Occupational Health & Safety Management Systems – OHSAS 18001 and has also adopted the concepts of Total Quality Management. BHEL has M P Birla Institute of Mgmt 11 Organization Study EDN Installed equipment for over 90,000 MW of power generation – for Utilities, Captive and ? Industrial users. Supplied over 2,00,000 MVA transformer capacity and sustained equipment operating in ? Transmission & Distribution network up to 400 kV – AC & DC. Supplied over 25,000 Motors with Drive Control System to Power ?

Projects. Petrochemicals, Refineries, Steel, Aluminum, Fertilizer, Cement plants, etc. ? Supplied Traction electric’s and AC/DC locos to power over 12,000 Kinds of Railway ? network. Supplied over one million Valves to Power Plants and other Industries. ? BHEL’s operations are organized around three business sectors, namely power including Industry Transmission, Transportation, Telecommunication & Renewable Energy and Overseas Business. This enables BHEL to have a strong customer orientation, to be sensitive to his needs and respond quickly to the changes the market.

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

BHEL’s vision envisages further growth for EDN, transforming it into a world class enterprise providing comprehensive solutions to customers, while exploring new frontiers in software and hardware applications to fulfill the growing needs and expectations of the global market. Overseas business: M P Birla Institute of Mgmt 12 Organization Study EDN BHEL ranking among the major power plant equipment suppliers in the world is one of the largest exporters of engineering products & services from India.

Over the years, BHEL has established its references in around 60 countries of the world, ranging from the United States in the West to New Zealand in the Far East. BHEL’s export range covers individual products to complete Power Stations, Turnkey Contracts for Power Plants, EPC it Contracts, HV/EHV Substations, O&M Services for familiar technologies, specialized after-market-services tike Residual Life Assessment (RLA) studies and Retrofitting, Refurbishing & Overhauling, and supplies to manufacturers & EPC contractors.

BHEL have acquired, assimilated and updated/adopted the state-of-the-art-technologies in the Power and Industrial equipment sector from world leaders. BHEL has successfully undertaken turnkey projects on its own and possesses the requisite flexibility to interface and complement international companies for large projects, and has also exhibited adaptability by manufacturing and supplying intermediate products to the design of other manufacturers and OEMs.

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

Calibration and testing laboratories of BHEL are accredited under the National Accreditation Board for Calibration and Testing Laboratories (NABL) scheme of Laboratory Accreditation, which has got mutual recognition with APLAC and ILAC. As a result of its thrust on quality and technology, BHEL enjoys national and international recognition in the form of Product Certification by International Bodies like ASME, API etc. and Plant Approvals by agencies like Lloyds Register of Shipping, U. K. , Chief Controller of Explosives India, TUV Germany etc.

In its movement towards Business Excellence and with the objective of achieving International level of Quality, BHEL has adopted European Foundation for Quality Management (EFQM) model for Business Excellence. Through this model and annual selfassessment exercise BHEL is institutionalizing continuous improvement in all its operations. M P Birla Institute of Mgmt 13 Organization Study EDN Research and development: To remain competitive and meet customers’ expectations, BHEL lays great emphasis on the continuous up gradation of products and related technologies, and development of new products.

BHEL’s commitment to advancement of technology is reflected in its involvement in the development of futuristic technologies like fuel cells and superconducting generators. BHEL’s investment in R is amongst the largest in the corporate sector in India. Products developed in-house during the last five years contributed about 7% to the revenues in 2002-03. Safety And Health: BHEL has joined the “Global Compact” of United Nations and has committed to support it and the set of core values enshrined in its nine principles. The “Global Compact” is a partnership between the United Nations, the business community, international labor and NGOs.

It provides a forum for them to work together and improve corporate practices through cooperation rather than confrontation. BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages, free medical camps/charitable dispensaries, schools for underprivileged and handicapped children, ban on child labor, disaster/natural calamity aid. Employment for handicapped. Widow Resettlement employment for Ex-serviceman, irrigation using treated sewage, pollution checking camps, plantation of millions of trees, energy saving and conservation of natural resources through environmental management.

BHEL shares the growing concern on issues related to Environment and Occupational Health & Safety (OHS), and is committed to protecting Environment in and around its own establishment, and to providing safe and healthy environment to all its employees. For fulfilling these obligations, an Environmental Policy and an Occupational Health & Safety Policy has been formulated and implemented through management systems. In recognition of this BHEL has been awarded the ISO 14001 Environmental Management M P Birla Institute of Mgmt 14 Organization Study EDN

Systems Certification and OHSAS 18001 Occupational Health & Safety Management Systems Certification from M/s Det Norske Veritas (DNV). Under UNDP program for specialized services in the area of Environment BHEL has set up a Pollution Control Research Institute (PCRI). BHEL also has a Model Centre for Occupational Health Services, which is a pioneer in this field in India. Today it offers a wide range of occupational health care as well as expertise in work Environment monitoring. Toxicology, Ergonomics and in organization of OHS to multitude of industries form different sectors in India.

Few ILO sponsored candidates from African countries have undergone training at this Model center. BHEL is a member of CoRE (Corporate Roundtable on Development of Strategies for Environment) launched by The Energy Research Institute (TERI). CoRE is envisaged as a means to facilitate a proactive and catalytic role for industry in addressing me environmental problems plaguing India and helping the industry towards sustainability paradigm. CoRE is now a partner organization to me WBCSD (World Business Council for Sustainable Development). It has signed a memorandum of nderstanding with WBCSD, now called as CoRE-BCSD, India. Interfaces between companies such as BHEL, TERI and the WBCSD would provide an important link to address issues of sustainable development at a global level and to learn and exchange experience of Ac participating companies. BHEL’s commitment to environmental issues can be seen as an integral part of its core business. In the field of Non-conventional and Renewable Energy, BHEL has successfully launched products like wind electric generators, solar heating systems, solar photovoltaic systems, solar lanterns and battery powered road vehicles.

Technology up gradation has been done to minimize environmental impact of fossil energy products by way of low-NOx oiV gas burners, circulating fluidized bed combustion boilers etc. Registered office: BHEL House, Siri Fort, New Delhi, INDIA-110049. M P Birla Institute of Mgmt 15 Organization Study EDN REGIONAL OFFICES (POWER SECTOR) 1. 2. 3. 4. New Delhi (Northern Region) Kolkata (Eastern Region) Nagpur (Western Region) Chennai (Southern Region. BUSNIESS OFFICES: 1. Bangalore 2. Baroda 3. Bhubaneshwar 4. Mumbai 5. Kolkata 6. Chandigarh 7. Guiwehali 8. Jabalpur 9.

Jaipur 10. Lucknow 11. Chennai 12. New Delhi 13. patna. 14. Ranchi. 15. secundrabad. MANUFACTURING UNITS: 1. Bangalore 4. Haridwar 7. Jhansi 2. Bhopal 5. Hyderabad 8. Ranipet 3. Goindwal 6. Jagdishpur. 9. Rudrapur. M P Birla Institute of Mgmt 16 Organization Study EDN PRODUCT KEY COMPETITOR KEY CUSTOMERS CONTROL EQUIPMENT ABB, Siemens, GE, Honeywell, Alsthom, Yokagawa, Bombardier. NTPC, SEB’s, Railways, IOCL, NPC, NHPC, RIL, PDO, Oman etc. Tata BP solar, CEL, REIL, PHOTOVOLTAIC SYSTEMS Maharishi Solar. WBREDA, Lakshwdweep Admn, PEDA, ISOR, SE Project-Italy.

Eupec, ABB, Semikron, SEMICONDUCTOR DEVICES Usha Rectifiers, Hind Rectifiers OEMs, BHEL Sister units. BHARATH HEAVY ELECTRICAL LIMITED EDN, BANGALORE. M P Birla Institute of Mgmt 17 Organization Study EDN Electronic division, BHEL, was set up in October 1976 as a result of the take over of Radio and Electrical Manufacturing company ltd. , (REMCO), a sick unit from the Karnataka government. By making use of the available infrastructure, BHEL, established the control equipment division. In May 1987, it was renamed as Electronics Division to give more emphasis to electronics.

The Bangalore units, as part of future growth plan, have embarked on adding modern facilities at an investment of over Rs. 25 crores. Its quick progress is aided by the collaborations with international leaders in the field. However, it was BHEL-EDN’s relentless efforts and unwavering commitment to in-house solutions that have really contributed to its rapid growth and success. Even in the midst of stiff competition posed by the world leaders and domestic private manufacturers, the unit has successfully maintained its growth rate and become a major force to reckon with in power and industrial electronics.

In recognition of its commitment to the quality systems and procedures, the unit is certified for ISO 9001 since July 1993. To fulfill its role of a responsible corporate citizen envisaging protection and conservation of the environment and ensuring that its products and systems are also environment friendly, BHEL has finalized a Corporate Health, Safety & Environment Policy. Accordingly, the Electronics Division has also become the first Electronics Industry in Bangalore to get ISO 14001 Environment Management System Certification and OHSAS 18001 Certification.

BHEL has also joined United Nations “Global Compact” and has committed to support the set of core values enshrined in its nine principles in the area of Human Rights, Labour Standards and Environment. BHEL has also joined hands with the Indian Space Research Organization (ISRO) for making solar photovoltaic panels for satellite application. As part of the agreement with ISRO, BHEL has already set up ultra-clean and modern facilities at an investment of Rs. 2. 5 crores at its Electronic City plant in Bangalore to assemble and test solar panels to the stringent quality norms.

With these prestigious projects, BHEL has reached a new high in its solar photovoltaic M P Birla Institute of Mgmt 18 Organization Study EDN business by doubling its production and turnover. During the year, the company has added about 1,700 KW of solar power to the country’s power generating capacity. On the export front BHEL Bangalore units executed a number of projects worth Rs. 121 crores to various countries, registering an increase of 30% over the previous year. The exports turnover, thus, formed 19% of their total turnover. The units also received export order Rs. 5 crores from Germany, Iraq, Sri Lanka, USA, bad Kazakhstan for solar modules, gas turbine controls, steam turbine controls, ceralin bends and SF6 hollow insulators. VISION: BHEL’s vision is to become a world class, innovative, competitive and portables engineering enterprise providing total business solutions. MISSION: To be leading Indian engineering enterprise providing quality products, systems and services in the field of energy, transportation, industry infrastructure and other potential areas. VALUES Meeting commitments made to external and internal customer fast learning ? and ensure speech of response.

Respect for dignity and potential of individual. ? Loyalty and pride in the company team playing. ? Zeal to excel. ? Integrates and fairness in all matters. ? creativity M P Birla Institute of Mgmt 19 Organization Study EDN OBJECTIVES: To optimize ? Competitive edge of product / service by building and improving key processes. ? Value addition by reducing cost of quality. ? Delivery and response. ? Quality of supply by improving supply performance. ? Corporate environment: Strive to be an environmental friendly company in its activity, products and services through compliance with applicable environment legislations.

Continual improvement in environmental management system to protect our nature environment and control pollution. Promotion of activity for conservation of resources by environmental management. Enhancement of environmental awareness amongst our employees, customer & supplier. Concern for society: Striving for the growth of the nation, BHEL-EDN Bangalore has always been contributing for the upliftment of the backward sections of the society. Three villages near Bangalore have been adopted by BHEL-EDN and no. f social welfare programs like solar electrocutes, lowcost housing, education of medical acidities in dressing water facilities have been implementing resolution in remarkable transformation in the loving conditions of the villagers poorer. BHEL has joined the “Global Compact” of United Nations and has committed itself to support it and the set of core values enshrined in its ten principles. The “Global Compact” is a partnership between the United Nations, the business community, international labour and NGOs. It provides a forum for them to work together and improve corporate practices through co-operation rather than confrontation.

BHEL’s contributions towards Corporate Social Responsibility till date include adoption of villages, free medical camps/charitable dispensaries, schools for the underprivileged and M P Birla Institute of Mgmt 20 Organization Study EDN handicapped children, ban on child labour, disaster/natural calamity aid, Employment for handicapped, Widow resettlement, Employment for Ex-serviceman, irrigation using treated sewage, pollution checking camps, plantation of millions of trees, energy saving and conservation of natural resources through environmental management.

BHEL shares the growing concern on issues related to Environment and Occupational Health & Safety (OHS), and is committed to protecting Environment in and around its own establishment, and to providing safe and healthy environment to all its employees. For fulfilling these obligations, a Health, Safety & Environmental Policy has been formulated and implemented through management systems. In recognition of this, BHEL has been awarded the ISO 14001 Environmental Management Systems Certification and OHSAS 18001 Occupational Health & Safety Management Systems Certification from M/s Det Norske Veritas (DNV).

Under UNDP programme for specialized services in the area of Environment, BHEL has set up a Pollution Control Research Institute (PCRI). BHEL also has a Model Centre for Occupational Health Services at Trichy, which is a pioneer in this field in India. Today it offers a wide range of occupational health care as well as expertise in work Environment monitoring, Toxicology, Ergonomics and in organization of OHS to multitude of industries for different sectors in India. Few ILO sponsored candidates from African countries have undergone training at this Model center.

BHEL is a member of CoRE (Corporate Roundtable on Development of Strategies for Environment) launched by The Energy Research Institute (TERI). CoRE is envisaged as a means to facilitate a proactive and catalytic role for industry in addressing the environmental problems plaguing India and helping the industry towards sustainability paradigm. CoRE is now a partner organization to the WBCSD (World Business Council for Sustainable Development). It has signed a memorandum of understanding with WBCSD, now called as CoRE-BCSD, India.

Interfaces between companies such as BHEL, TERI and the WBCSD would provide an important link to address issues of sustainable development at a global level and to learn and exchange experience of the participating companies. BHEL’s commitment to environmental issues can be seen as an integral part of its core business. In the field of Non-conventional and Renewable Energy, BHEL has successfully launched products like wind electric generators, solar heating systems, solar photovoltaic M P Birla Institute of Mgmt 21

Organization Study EDN systems, solar lanterns and battery powered road vehicles. Technology up gradation has been done to minimize environmental impact of fossil energy products, by way of low/NO oil/ gas burners, circulating fluidized bed combustion boilers etc. Quality Policy: M P Birla Institute of Mgmt 22 Organization Study EDN Towards meeting its Quality Policy, BHEL is using the vehicle of Quality Management Systems, which are certified to ISO 9001:2000 series of Standards by Internationally acclaimed certifying agency, BVQI.

Corporate Quality and Unit level Quality structure enables requisite planning, control and implementation of Company-wide Quality Policy and Objectives, which are linked to the Company’s, Vision statement. Corporate Quality derives strength from direct reporting to Chairman and Managing Director of the Company. M P Birla Institute of Mgmt 23 Organization Study Other than traditional Quality functions, today the focus is on: ? Propagating Quality Management Systems and Total Quality Management. EDN ? Formulating, implementing and monitoring, “Improvement Plans” with focus on internal and external Customer Satisfaction. Investigations and preventive actions on Critical Quality Issues. LAND MARKS ON THE WAY A number of installations in various locations across India have elevated BHEL-EDn’s expertise to commanding heights, from where it moves on to even more challenging ventures. The customers are well aware of BHEL-EDn’s commitment to any project undertaken, which does not stop at the formal commissioning of the project, instead extends to a lifelong postinstallation care. Instances of many repeat orders, received from reputed organizations amply prove this point.

MANY FIRSTS India’s functionally and geographically first DDC System commissioned at Khaperkheda, ? 2×210 MW project of MSEB. India’s first Combined Cycle Power Plant with DDC at Vatwa, 100 MW project of AECO. ? India’s Unified DDC for Boiler, Steam turbine and Station auxiliaries at Dahanu 2 x 250 ? MW projects of BSES. India’s first VFD system for ID Fans for Trombay 500 MW project of Tata Electric ? Company. India’s first VFD system for Boiler Feed Pumps at APSEB’s Kothagudam 2×250 MW ? project. India’s first “Single Push Button” based automation of Hydro Power Plant at APSEB’s ?

Pochampad 3×9 MW project. India’s first Digital Static Excitation System (SEE) for KPCL’s Sharavati HEP (10 x 109 ? M P Birla Institute of Mgmt 24 Organization Study MW) and Digital Brushless AVR with 150 EDN India’s first Brushless AVR with black start facility for Reliance Industries’ Patalganga Gas ? Turbine Power Plant. Supervisory Control and Data Acquisition (SCADA) System, also successfully tested at ? M/s. ABB, Sweden, in operation at MSEB’s HVDC Converter Stations of Chandrapur & Padghe and Low Distribution Centre at Kalwa, India.

Export ofmark4 gas turbine controls to GE, USA ? Export of mark 5 gas turbine controls to Oman Cement Company and ministry of electricity ? and water (MEW), Rusail project, Oman Supply of mark 5 gas turbine control for the first advanced gas. ? Turbines 6FA to be installed in India at kovilka-1 appeal combined cycle power project. ? INFRASTRUCTURE STRENGTH BHEL is a recognized manufacturer by the Department of Telecommunications (DoT). BHEL-EDN has a strong team of highly efficient and experienced engineers to carry out nstallation & commissioning works as well as site support activities. The team is always on its toes for the emergency calls from customers not only in India but also from every nook and comer of the globe. Restoration of operations in shortest possible period at Srisailam HEP (AP) submerged in flood waters, fire ravaged Kothagudem TPS (AP) and SEE sets submerged in flood waters at Tenompangi HEP (Malaysia) are just few examples of commitment of BHEL engineers, which have been highly acclaimed by the customers. M P Birla Institute of Mgmt 5 Organization Study EDN PRODUCT PROFILE Established in the late 50’s, Bharat Heavy Electricals Limited (BHEL) is, today, a name to reckon with in the industrial world. It is the largest engineering and manufacturing enterprise of its kind in India and one of the leading international companies in the power field. BHEL offers over 180 products and provides systems and services to meet the needs of core sectors like: power, transmission, industry, transportation, oil & gas, non-conventional energy sources and telecommunication.

A wide-spread network comprising 14 manufacturing divisions, 8 service canters, 4 power sector regional canters, 18 regional offices, besides a large number of project sites spread all over India and abroad, enables BHEL to be close to its customers and cater to their specialized needs with total solutions -efficiently and economically. An ISO 9000 certification has given the company international recognition for its commitment towards quality. With an export presence in more than 60 countries, BHEL is truly India’s industrial ambassador to the world. PRODUCT RANGE Power ? Air pre heaters ?

Boilers ? Control relay panels ? Electro static precipitators ? Fabric niters ? Fans ? Gas turbines ? Hydro power plant ? Piping systems ? M P Birla Institute of Mgmt 26 Organization Study Pulverizes ? Pumps ? Seamless steel tubes ? Soot blowers ? Steam generators ? Steam turbines ? Turbo generators ? Valves ? EDN Industry: Capacitors ? Cerulean ? Compressors ? Desalination plants ? Diesel generating sets ? Industrial motors and alternators ? Gas turbines ? Oil field equipment ? Solar photovoltaic ? Power semi conductor devices ? Seamless steel tubes ? Soot blowers ? Steel casting and forging ?

Steam generators ? M P Birla Institute of Mgmt 27 Organization Study Steam turbines ? Turbo generators ? Valves ? EDN Transmission: Bushings ? Capacitors ? Control relay panels ? Dry-type transformers ? Energy meters ? HVDC transmission system ? Insulators ? Switch gears ? Power semiconductor devices ? Power system studies ? Control shunt reactors ? Transportation: Battery powered road vehicle ? Electric rolling stock ? Electric’s for rolling stock ? Electric’s for urban transportation system ? M P Birla Institute of Mgmt 28 Organization Study EDN Telecommunication 265 port RAX ? High capacity exchange ?

Non-conventional energy source Battery powered road vehicle ? Wind electric generators ? Mini/micro hydro sets ? Solar lanterns ? Solar photo voltaic ? Solar water heating systems ? R Products Fuel cells ? Surface coatings ? Automated storage and retrievals ? Load sensors ? Power Generation Systems Transmission systems ? Transportation systems ? Industrial systems ? M P Birla Institute of Mgmt 29 Organization Study EDN SYSTEMS AND SERVICES Power Generation Systems Turnkey power stations. ? Combined-cycle power plants. ? Cogeneration systems. ? Modernization and rehabilitation of power stations. Erection commissioning, operation and maintenance services. ? Spares management. ? Consultancy services. ? Transmission Systems Sub-stations switchyards. ? HVDC transmission systems ? Shunt and series compensation systems. ? Power system studies. ? Erection commissioning, operation and maintenance services. ? Consultancy services ? Transportation Systems Traction systems. ? Urban transportation systems. ? Erection commissioning, operation and maintenance services. ? Consultancy services ? M P Birla Institute of Mgmt 30 Organization Study EDN Industrial Systems Industrial drives and control systems. Erection commissioning, operation and maintenance services. ? Spares management. ? Consultancy services ? DEPARTMENTS IN BHEL-EDN There are various departments in the organization. The major departments are: ? ? ? ? ? ? ? ? ? ? ? ? Human Resource Department. Marketing Department. Finance Department. Health and Safety Department. Factory Service Department. Planning and Development Department. Quality Control Department. Production Department. Research and Development Department. Management Information System Department. Security and Vigilance Department. Material Management Department.

M P Birla Institute of Mgmt 31 Organization Study EDN HUMAN RESOURCE MANAGEMENT DEPARTMENT BHEL – EDn has a very effective HRM department. It derives its strength from its strong and dedicated workforce of 2000 employees. Sustaining and developing a dynamic work culture, which enables joint optimization of organizational goals and Individual potential and taking care of changing aspirations of the people are the key focus areas of BHEL-EDn. With the changing business scenario, BHEL _ EDn is alive to the challenging before it in terms of new approach to HRM. HRM department

Personal & administration department Human resource development department Structure of Human Resource Management Department At BHEL – EDN, HR department is divided into 2 sub – departments Personnel department (P & A) and Human Resource Development (HRD) Department. M P Birla Institute of Mgmt 32 Organization Study EDN Distributed HR department at BHEL: BHEL has a corporate HR department at Delhi. Also, each unit of BHEL has a separate HR department of their own which administers the HR functions at unit level. Corporate HR Controls all other unit level HR departments.

Personal and administration department Establishment Administration Industrial Relation. Welfare M P Birla Institute of Mgmt 33 Organization Study EDN MARKETING DEPARTMENT Functions: Market exploration ? Order booking ? Offering ? Bidding ? Preparing annual budget ? Projections ? Exploration of market is very important for new products as well as old products. Planning Commission forecasts as well as based on the projections of the working group, annual plans will be prepared by this Department and in turn it will be always tracking the laying of the new electric line and tenders.

Cost estimates will be given by Finance department, which makes the work easy for this department for quoting to a bid. Approach to marketing is different at BHEL as the customers are usually known and orders are of large size and value. The main function of Marketing Department is to procure manufacturing order in coordination with thee commercial group. The central manufacturing agency is located at the corporate office in Delhi. It breaks a composite project and assigns to the required manufacturing units. BHEL usually adds a profit margin about 10-12% of the order.

BHEL-EDN has a separate marketing department for each product group. BHEL has been a leader in the power sector for a long time. Its Turnkey capability gives it a Competitive edge. After Liberalization BHEL is acing tough competition from MNC’s like Semen’s, ABB, Cegetec, and C-DOT etc. BHEL-EDN exports its products to Iran, Malaysia. Some other customers are Tisco, MRL, and Jindal power Company Limited. M P Birla Institute of Mgmt 34 Organization Study The process of sanctioning a project goes through the following stagesPro-active Marketing ? Tendering ? Post- tender follow up. The following are the ways of getting an order? Direct enquiry ? EDN Bidding after floating an enquiry, tenders are procured technical viability studies and ? commercial analysis is done to select the Best one. Global competitive bidding BHEL has bagged more than 80% of the orders floated for the ? competitive bidding. M P Birla Institute of Mgmt 35 Organization Study EDN FINANCE DEPARTMENT Various Sections in Finance Department. Book and Budget ? Sales ? Bills payable ? Costing ? Establishments ? Internal audit. ? Price stores ledger. ? 1. Book and Budget Collection of accounts from different sections ?

Preparation of trial balance and final accounts ? Co-ordination with auditors ? Helping statutory auditor ? 2. Sales: Invoice generation ? Billing ? Collection ? M P Birla Institute of Mgmt 36 Organization Study 3. Bills Payable EDN This section handles the payment to be made to the suppliers. This includes the receiving of stores receipt vouchers, purchase order and their verification in terms of quality and quantity. Once the claims are found satisfactory, the payment is made as per the terms. 4. Costing Sets the cost that is used by commercial group to add profit margin to set the price. . Establishment This section handles all the payment to the employees such as Salary ? Provident Fund ? Incentives ? Loans and advances ? Medical reimbursement ? 6. Internal audit: After preparing the balance sheet, the internal auditors will audit & they send audited balance sheets to the government auditors to audit the balance sheet. 7. Price stores ledger: Maintenance of accounts of stores in monetary terms. Features: BHEL is the first Government Company to publish accounting policies. They have centralized cash credit control and centralized Cash Management.

BHEL units cannot borrow directly from outside but from centralized component account. The surplus funds of any BHEL unit are allocated to other units and interest is charged on them. There are 80 employees in the finance department to take care of all transactions from top to bottom. M P Birla Institute of Mgmt 37 Organization Study EDN Executive Director AGM (asst general manager) Sr DGM (deputy general manager) Sr DGM DGM DGM Sr manager Sr manager Manager Manager Fig. Finance department structure: M P Birla Institute of Mgmt 38 Organization Study EDN SAFETY & HEALTH DEPARTMENT

BHEL’s safety department takes every possible step to minimize accidents by taking the necessary measures at the various stages of planning and designing BHEL follows the motto ‘safety/first’. Though the frequency of accidents is extremely low the management is taking keen interest to reduce the accidents as far as possible by engineering methods and personal protective equipment at various stages. Safety day is celebrated around March every year and apart from this surprise site visits are carried out to check whether the employees are following the safety measures.

The Management is committed to be an environmentally sound company in its activities, products, services and to provide safe and healthy working environment covering its employees, products and services as an integral part of business performance through: Compliance with applicable Legislation and Regulations. ? Setting objectives and targets to eliminate / control / minimize environmental pollution, ? risks due to Occupational Health and Safety Hazards. Promotion of activities for conservation of resources by environmental management ? with focus on oil, electrical energy and chemicals.

Enhancement of Environmental, Safety and Occupational Health awareness amongst ? employees, customers, suppliers, contractors by pro-active communication. Regular evaluation and pro-active measures for prevention and control of environmental ? pollution / accidents / occupational diseases. Appropriate training of employees and interested parties on Health, Safety and ? Environmental (HSE) aspects. Periodic review and audit of HSE Management System to ensure its continuing ? suitability, adequacy and effectiveness. Communication of HSE Policy to all employees and interested parties. Co-operation with concerned agencies / regulatory bodies engaged in HSE activities. ? M P Birla Institute of Mgmt 39 Organization Study Safety precautions in BHEL-EDn Bangalore: Safety committee ? Safety steward committee ? Safety training for executive supervisor and artisans ? Issue of safety equipment ? Accident investigation reporting systems ? EDN Safety department Sr manager Manager safety Ex foreman safety Sr. engineer safety M P Birla Institute of Mgmt 40 Organization Study EDN SECURITY AND VIGILANCE DEPARTMENT Security Safeguarding the property of the company by the security persons ppointed to guard against theft, robbery, etc. The security department is maintained to ensure that workers arrive on time to the premises and the entry of trespasses into the premises is checked. The visitors and the supplier’s etc have to seek the permission of security before entering the premises. Vigilance: ‘Vigilance’ means to guard. This department’s task is to guard against the white collared crimes, malpractices, malfunction, misuse if power and position to ensure that the activities of employees are in compliance with rules and regulations, procedures and policies of the organization.

Functions of this department: To collect information for effective performance ? Preventive vigilance ? Punitive or taking stem action against erring employees ? Reformative/educating the employees ? Monitor the guide line ? At EDN vigilance awareness week is celebrated from October 31st to November 5* to commemorate the birthday of IRON MAN of India, the late- Sardar Vallabhai Patel. M P Birla Institute of Mgmt 41 Organization Study FACTORY SERVICE DEPARTMENT Functions: Maintenance services Power and transport service Maintenance of information technology systems (PC’s) Canteen, gardening, lifts, etc.

Manufacturing tools and fixtures Design and fabrication special type of machines Operation and maintenance of vehicles Maintenance at township Transportation Section: EDN In EDn, there are 4 Fork lifters, 3 tractors, 2 trucks and 3 cars. Additional cars for the moment of Executives will be hired. Maintenance and service of all these vehicles comes under the purview of this department. BMTC buses are hired for facilitating the employees to reach factory and back home at the beginning and of each shift. Drivers will be given identity cards except these; other people are not permitted to drive in the vehicles into the premises.

Water, Power, Telephone services: In EDN, water is used in the production and in the daily consumption of the plant for all purposes including canteen, gardening, drinking purposes. The service section looks after electrical problems at the plant as well as at the township. Maintenance of Telephone system is also a part of this service section. Township: In Bangalore, there are i69 flats allotted on the basis of seniority. Maintenance of these flats also comes under this department. Civil maintenance bore well maintenance; this department will look after sports club maintenance etc.

M P Birla Institute of Mgmt 42 Organization Study EDN PLANNING & DEVELOPMENT DEPARTMENT Planning and Development Department acts as an information center where all information regarding EDN will be available and also it acts as a control room for all activities of BHEL- It acts as a tool, to communicate between EDN and corporate office. Functions: Planning ? Revenue Budgeting ? Capital Budgeting ? Monitoring activities ? Correspondence with corporate office ? Management Information System ? Co-ordination with union chief. ? Preparation of short term plan (up to 3 years) ? M P Birla Institute of Mgmt 3 Organization Study EDN PRODUCTION DEPARTMENT The various products produced from BHEL can be broadly classified as: Control Equipment ? Semi-conductor photovoltaic ? Energy meters ? Tele communication ? Defense ? AC drive system? DC drive system ? Excitation systems ? Static starters ? Energy Meters BHEL Electronics Division’s Induction type energy meter range includes single and three phase versions for both domestic and industrial applications. The unit to its credit has delivered over 15 million energy meters, a feel unparalleled among various energy meter manufacturers of India.

The improved designs of the Electronic Energy Meters have additional anti-fraud features like Phase reversal and Earth loading. The new generation of Software based Trivector Meters with Maximum Demand Indication, Differential Tariff, and Time of Day; down loading are some of the new features being offered to customers. M P Birla Institute of Mgmt 44 Organization Study EDN Plant Automation Any power plant is a mini industrial cosmos with a variety of control elements with intricate inter-relationships.

BHEL Electronics Division offers a large variety of control equipment for power stations ranging from simple control systems to single push-button automation for power plants of any size. Automation systems for controlling steam/water turbines, boilers and generators employing state-of-the-art Distributed Digital Control Systems (DDC) concepts are amongst the products that are offered. The DDC systems for power plants include CRT-based Man-Machine Interface and Computer based Information Management and Optimization systems. DC Drive Systems:

BHEL-EDn’s Thyristorised Digital Converters are used for DC Drives with constant power or constant torque control. Many such converters are already in service at rolling mills and process lines in industries like steel, aluminum, rubber, cement, coal and copper. Converters up to 10,000 a ratings with digital controls have been supplied by BHEL-EDn. AC Drive System: BHEL-EDn’s adjustable speed AC Drive System with Load Committed Inverter is a highly energy efficient system for controlling Synchronous Motors used for flow Control Applications like Fans, Pumps and Compressors in Power Plants and Industries.

Speed control of squirrel cage Induction motors with GTO (Gate Turn-off) thrusters is cost effective, requires low maintenance and finds widespread application in industries. Power Supplies: BHEL-EDN offers state-of-the-art, digitally controlled, highly efficient low Voltage and high current DC Power Supplies (Typical rating: up to 90KA and 950V DC) with water cooled thyristors Rectifiers to Industries like Caustic Soda, Aluminum / Copper smelters and others.

Solutions also exist for high voltage power supplies (Typical rating: up to 100A and 20KV DC) using air-cooled thyristor suitable for broadcasting transmitters, test plants and many other applications. M P Birla Institute of Mgmt 45 Organization Study EDN BHEL-EDN has also supplied forced Air Cooled Inverters using IGBT devices, suitable for medium frequency induction heating equipment, for controlled preheating of X20 special alloy tubes for welding and stress relieving at higher temperature (Typical rating: up to 3 kHz and 120 kV). Static Starters: BHEL-EDn has designed and manufactured special purpose Digital Static

Starters for soft starting of hydro generators and synchronizing with the grid either as a pump or as a synchronous condenser. The system provides an easy interface with plant C&I and has protections like over voltage, over current, earth fault etc. Static starters of 18. 5MVA/13. 8KV and of 3. 3KV/1. 2MW ratings have been supplied. Semiconductor Devices: BHEL-EDN manufactures Power Thyristor Devices and Diodes of various ratings to meet the requirement of high power electronic systems used for various applications in Power, Industry and Transportation systems.

While high power thyristor devices are used in high current rectifiers for Industrial projects, high voltage thyristor devices are used in HVDC applications. Power semiconductor devices manufactured by EDN have earned a reputation for high reliability. As testimony to this, the unit has won the prestigious ELCINA award thrice and has been recognized by the Department of Electronics as a ‘Center of Excellence’ in this area. M P Birla Institute of Mgmt 46 Organization Study EDN Production department structure GM Production AGM Control AGM Equipment

AGM SC & PV AGM Defense Equipment AGM Meters & Capacitors Fabrication PPC Main Assembly Sub Assembly Testing M P Birla Institute of Mgmt 47 Organization Study EDN Manufacturing Process The marketing section procures orders from customers, through advertisements, Propaganda’s and promotional methods. A copy of this order is passed to the commercial section. The commercial section prepares a manufacturing order on the basis of the customer specifications. The Engineering section makes a note of these specifications and tries to design the product.

At the same time, a copy of the order is issued to the material management section so that the required materials can be made available at the stores for production. Once the products are produced, they need to be tested by the testing section before being issued or transported to the customer’s sites. Transmission High order to improve the efficiency of power transmission system, high voltage DC transmission technology was introduced. On an experimental basis, the first project taken up by BHEL was the 100MW/100KV National HVDC project between Barsoor (Madhya Pradesh) and Lower Sileru (Andhra Pradesh) with indigenous technology.

Based on the successful completion of the first phase, the second phase taken up to upgrade the system to 200MW/200KV using state -of- the -art technology. BHEL has also executed commercial HVDC projects of Rihand – Delhi and Chandrapur – Padghe of rating 1500MW, +/- 500kV each in collaboration with ABB Power System, Sweden. Static VAR Compensation SVC Systems: With quality of power supply-gaining prominence both in utilities and industries, BHELEDN offers indigenously developed technology for reactive power management by way of Series Compensation Systems and Shunt Compensation Systems.

A number of systems have been supplied for both utility and industrial applications for improvement of voltage, reactive power controls etc. BHEL- EDN manufactures thyristor valves and controls for the SVC. To cater to the need of LT loads, solid state switched capacitor systems using Thyristors or Triacs are also offered for improving the power factor, reducing the reactive power demand. M P Birla Institute of Mgmt 48 Organization Study EDN The Team: With the advent of the ‘knowledge’ millennium, BHEL-EDN’s team of highly qualified and experienced professionals is fully geared to face new Challenges.

Each one of them, a talented individual performer and a committed team player, is proud of the BHEL-EDN ethos. The environment at EDN has a whiff of freshness about it, carrying an exciting mix of tradition and innovation. Many of them have been trained abroad at the collaborators’ establishments in critical areas like design, production, quality assurance and commissioning. Periodic In-house training sessions, seminars and other programs ensure that the team is always at the leading edge of the latest technological developments and managerial concepts.

Behind the success of BHEL-EDN lies a major contribution of its people, me prime assets. All the employees are motivated and encouraged to take active part in improving efficiency and performance, through Suggestion and Productivity Schemes. M P Birla Institute of Mgmt 49 Organization Study EDN MANAGEMENT INFORMATION SYSTEM DEPARTMENT MIS Transaction Processing System (TPS) Management reporting System. (MRS) Decision support system. (DSS) Office automation System. (OAS) MIS Sub Systems: Computerization in BHEL-EDn commenced at the very inception of the company in the seventies…

Today, computers are being developed in all facts of the company’s operations both for business and for engineering applications. In data communication area, all the units are linked through a Wide Area Corporate Data Network-BHEL NET. Each of the major units have also set up its campus wide backbone network supported by the LAN for inter office / department ‘ connectivity for systems integration. M P Birla Institute of Mgmt 50 Organization Study EDN MATERIAL MANAGEMENT DEPARTMENT Department Structure AGM AGM Purchase AGM Material Planning & Control SDGM Stores

DGM DGM DGM DGM DGM Sr. Mgr Sr. Mgr Licensing & Clearance Imports Indigence Items Indenting Goods Inwards Inventory Control Holding Stores M P Birla Institute of Mgmt 51 Organization Study EDN SECTION – B MICROSCOPIC STUDY OF QUALITY MANAGEMENT & CONTROLLING M P Birla Institute of Mgmt 52 Organization Study EDN QUALITY MANAGEMENT SYSTEM IN BHEL 1. Introduction In the phrase “Quality control” the word “QUALITY” does not take the popular meaning of “Best” in an absolute sense. To industry, it means best for certain customer conditions. Important among these customer onditions, are (a) the actual end user and (b) the selling price of the product. If true these condition are reflected within the plant in 3 additional conditions; specification of dimension and of operating characteristic, manufacturing and engineering cost and production under which the article is manufactures. It is neither practical nor economic for these conditions to have perfection as their aim is – “that is why we have tolerance”. There aim is, rather that level of quality which establishes the proper balance between the cost of the product and the service it renders that to the cost of the product.

Quality control in words of scientific techniques is used as a method of usage for the purpose of ensuring the quality of manufactured goods as per the requirements. Quality control presents the appearance of a bad quality product after manufacture. The most effective way that has so far been developed for getting at the fact about Quality characteristics is to use statistical methods. Often the statistical methods are referred to as tools for delaying quality problems. As a matter of fact these are much more that. M P Birla Institute of Mgmt 53 Organization Study EDN AGM (QS) Sr. Mgr Sr. DGM DGM Sr. Dy. Mgr Sr. Mgr Sr. Mgr Mgr

Eng Eng Mgr Eng Eng Eng Eng Fig. Quality control Department Structure. M P Birla Institute of Mgmt 54 Organization Study EDN STATISTICAL QUALITY CONTROL BASIC CONCEPTS The primary objective of any organization is to manufacturing the products to meet the user’s requirements. Through this objective, other objectives such as profitability higher output, rapid development of economy; etc. , are achieved. It has been demonstrated would over all the industrial developed nations that Quality product would not only enhance the reputation of the organization, but also increase its business in both national and international markets.

In essence, survival of any organizations depends on quality. Definition of Quality Quality – is defined as fitness for use, the specifications being, a good approximation for meeting the requirements the specifications include dimensions, performance characteristics, life and reliability aspects, aesthetic features, operating conditions cost, etc. , Quality of design The quality of design of a product is concerned with the tightness of the specifications for manufacture of the product. For ex:- a part which has a drawing tolerance of +0. 001mm would be considered to have a better quality of design than another with a tolerance of 0. 1mm. Quality of conformance The quality of conformance is concerned with how well the manufactured product conforms to the quality of design. When a design has been established, it is the task of all responsible for production planning and manufacturing to obtain a high level of quality of conformity, the measure of truth fullness with which the product conforms to the design specifications. M P Birla Institute of Mgmt 55 Organization Study 1. Quality performance EDN The quality of performance is concerned with how well the manufactured product gives its performance.

It depends upon: Quality of design Quality of conformance 2. Quality Objective and policy: Objective: The quality of BHEL is to achieve and sustain a reputation for quality at competitive prices in the national and international markets for the entire product range. Policy: The above objectives shall be achieved through Adequate attention at design stage to customer’s Quality requirements (including fictional aesthetic and life characteristics) and economy of manufacture Strict adherence to specifications with emphasis on defect prevention during manufacture, dispatch, erection and commissioning.

Use of scientific vendor selection, development, evaluation, surveillance and assistance techniques in the Materials Management activity. Planned and systematic customer education on the proper usage of our products. 3. Organization As in all modern large organizations and engineering enterprises, BHEL has a corporate set up, with several manufacturing Units and Services Divisions. To provide the corporate level on matters relating to quality, the pivotal role is given to the executive Director (Quality), reporting to chairman and managing Director (CMD).

ED (Q) is given the responsibility to set up the Quality policies and lead the quality management activities for the company at the highest level. M P Birla Institute of Mgmt 56 Organization Study Each of the units and divisions including site management has been organized to function with total responsibility for operation within the framework of policy and budgetary controls. The chief Executives of each units is held as much responsible for EDN quality of products and services as for other targets of achievements through their respective products & managers.

For complete organization of quality related function in any unit, the quality assurance, quality control, laboratory, testing and other services groups have all been placed under one common chief who is directly responsible to the chief executive of the unit for an unified policy direction, all the heads of quality are also functionally responsible to ED(Q) corporate level. 4. Plant Quality Committee For achieving the quality objectives, it is necessary to organize for the total quality function. An improvement of the plant.

This purpose is served through the plant Quality Committee. The plant committee is an apex body headed by the Chief Executive of the plant and convened by the head of head of quality other members of the committee include product manager. Scope and activities of the committee are To lay down plant quality policies and objectives To guide quality programmers of the plant To review activities of the quality control and quality assurance department To review quality performance and advised follow up action. M P Birla Institute of Mgmt 57 Organization Study EDN 5.

Role and Function of various groups within manufacturing divisions. A. Quality assurances Role: To provide required evidence to all concerned for generating confidence that the equipment manufactured and supplied by the plant provide full customer satisfaction in respect of quality at an economic cost. Evidence will concern adequacy of, Adherence to the written down quality systems and procedures and inspection at predetermined check points and certification of the final product. Functions 1) Site complaints and performance analysis 2) Trouble shooting and special studies. ) Quality Audit 4) Quality Reporting and review 5) Quality training education and motivation 6) Quality Planning 7) Quality systems. B. Quality control Role: To assist operations in ensuring desired quality of products and to attest quality at all stages from procurement to dispatch of materials. To sure desired Quality of all the products at economic cost through effective participation in prevention activities. M P Birla Institute of Mgmt 58 Organization Study EDN Function: I. Inspections of incoming material including sub-contract jobs. II. Manufacturing infection including tool room. III. Dispatch inspection IV.

Preparation of required protocols. V. Periodic calibration of gauges/measuring instruments excluding those coming under the purview of M & S (Instrumentation)/Central Labs. VI. Action on non-conformities. VII. Maintaining NDT and central gauging centers. VIII. Quality co-ordination. IX. Feed back and reporting. C. Commercial Role: To act as a fountain-head of all information on customer’s quality requirements and quality problems to all concerned within the plant and acquaint customer on correct usage of products. Function Ascertaining and communication complete customer quality requirements to esign. Registration of all customer complaints and initiating immediate and long term corrective action. Action to avoid faults attributable to handling, storage, erecting and operation at site. D. Design: Role: Translating the customer’s quality requirements into achievable specifications and to continuously improve product usually improve product quality and reliability based on the information feed-back on product performance. M P Birla I

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