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ANAND THORAT- 07
VENKAT SURESH-
40
NANDITA SADANI- 48
HYDERABAD
INDEX
2. INTRODUCTION TO NTPC 4
PRODUCTION AND OPERATIONS MANAGEMENT PROJECT ON NTPC
SIMHADRI
2.8. DIVERSIFICATION 17
2.9 SUBSIDIARIES 18
5. ARTICLE 43
6. CASE STUDY 48
7. CONCLUSIONS/RECOMMENDATIONS 50
8. BIBLIOGRAPHY 50
access and keep pace with the country’s growing demand for
electricity.
India has the fifth largest generation capacity in the world with an
installed capacity of 152 GW as on 30 September 2009, which is about
4 percent of global power generation. The top four countries, viz., US,
Japan, China and Russia together consume about 49 percent of the
total power generated globally. The average per capita consumption
of electricity in India is estimated to be 704 kWh during 2008-09.
However, this is fairly low when compared to that of some of the
developed and emerging nations such US (~15,000 kWh) and China
(~1,800 kWh). The world average stands at 2,300 kWh. The Indian
government has set ambitious goals in the 11th plan for power sector
owing to which the power sector is poised for significant expansion. In
order to provide availability of over 1000 units of per capita electricity
by year 2012, it has been estimated that need-based capacity
addition of more than 100,000 MW would be required. This has
resulted in massive addition plans being proposed in the sub-sectors
of Generation Transmission and Distribution.
The Ministry of Power is the apex body responsible for the generation
and development of power in India. This ministry started functioning
independently from 2 July, 1992; earlier, it was known as the Ministry
of Energy. The Union Minister of Power at present is Sushilkumar
Shinde, who took charge of the ministry on the 28th of May, 2009.
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2. INTRODUCTION TO NTPC :-
Recognizing its excellent past performance and its vast potential, the
Govt. of the India has identified NTPC as one of the 'Navratnas'- a
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Based on 1998 data, carried out by Data monitor UK, NTPC is the 6th
largest in terms of thermal power generation and the second most
efficient in terms of capacity utilization amongst the thermal utilities
in the world.
others.
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As on date, NTPC's total installed capacity is 27, 904 MW. NTPC's coal
based power stations are at: Singrauli (Uttar Pradesh), Korba
(Chattisgarh), Ramagundam (Andhra Pradesh), Farakka (West
Bengal), Vindhyachal (Madhya Pradesh), Rihand (Uttar Pradesh),
Kahalgaon (Bihar), NTCPP (Uttar Pradesh), Talcher (Orissa), Unchahar
(Uttar Pradesh), Simhadri (Andhra Pradesh), Tanda (Uttar Pradesh),
Badarpur (Delhi), and Sipat (Chattisgarh). NTPC's Gas/Liquid based
NTPC has been operating its plants at high efficiency levels. Although the
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rest is held by Institutional Investors and the Public. The issue was a
resounding success. NTPC is among the largest five companies in India in
terms of market capitalization.
At NTPC people before Plant Load Factor is the mantra that guides all HR
related policies. NTPC has been awarded No.1, Best Workplace in India
among large organizations and the best PSU for the year 2009, by the
Great Places to Work Institute, India Chapter in collaboration with The
Economic Times.
The concept of Corporate Social Responsibility is deeply ingrained in
NTPC's culture. Through its expansive CSR initiatives NTPC strives to
develop mutual trust with the communities that surround its power
stations.
1975
Incorporated in November
1977
TPC acquired the first patch of land at Sanghrauli
1978
Takeover of management of the Badarpur project.
Construction of the first transmission network Sanghrauli- Korba-
Kanpur of 400 KV systems started.
1982
Power Management Institute, Delhi, a centre for education was
established
1983
In the very first year of commercial operation , NTPC earned a profit
of Rs 4.51 crore in the financial year 1982-83
1985
This year marked the completion of decade (1975-1985) of NTPC’s
existence. NTPC achieved a generating capacity of 220 MW by
commissioning 11 units of 200 MW each at its various projects in
country.
1987
10
NTPC took over the 460 MW Talcher Thermal power Station from
Orrisa State Electricity Board.
1997
Achieved 100 million units generation in one year.
1998
Commissioned the first Naphtha based plant at Kayamkulam with a
capacity of 350 MW.
2000
Commenced construction of a first hydro- electricity power project
of 800 MW capacity in Himachal Pradesh
2002
Three wholly owned subsidiaries viz. NTPC Electric Supply Company
Limited, NTPC Hydro Limited, NTPC Vidyut Vyapar Nigam Limited
incorporated.
2004
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NTPC made its debut issue of euro bonds amounting to USD 200
million in international market.
2005
2008
To realize this vision, NTPC has drawn up a detailed Corporate Plan for the
period 1997-2012 which represents the company's collective optimism
and enthusiasm, inspired by a glorious past, a vibrant present and a
brilliant future. The Plan has been prepared in-house in consultation the
committed, competent and confident members of the NTPC family. The
road map that has been charted out was after a thorough scan of the
strengths and weaknesses within the organization as well as opportunities
and threats in the environment. Considering multidimensional
opportunities in the energy sector, NTPC will adopt a multi-pronged
growth strategy for capacity addition through Greenfield sites, expansion
of existing stations, takeovers and joint ventures. The capacity addition
plans that NTPC have drawn up for the fifteen-year period using all the
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High agreement among the employees, for what NTPC stands for.
All these point to the fact that strong cohesiveness, loyalty and
organization commitment exist in NTPC lowering he attrition Rate.
Fax 243092
14
Email
Near Pittavanipalem Village,Dist.
Location
Vishakhapatnam, Andhra Pradesh
Govt. approved date 24.07.1997 (Zero date 8.7.1997)
Approved
Capacity/Installed 1000 MW
Capacity
Plant Configuration 2X500 MW
Land Availability 3384.24 acres (entire land)
The Project was developed near Parawada and 3384 acres of land was
allocated for the construction of the Thermal plant. The height of the
Chimney is 275-feet - a record in Asia for being the tallest factory
chimney. Near to this are the 165-meter two cooling towers. The Coal for
the project will be coming to the plan with a special rail line setup for this.
Coal will be drawn from the Mahanadi Coal Fields in Orissa drawing over 6
Million tones of coal every year. The Coal transport for the NTPC Simhadri
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The water intake for the project for cooling is done by sea water drawn
from 8.9 kms away from the Bay of Bengal through an intake-well sized
9100 cubic meters. This intake-well is again the biggest well constructed
in the entire India. The project also gets Sweet water from the Yeluru
canal.
The 500 MW First Boilers at the NTPC Simhadri, Boiler was ignited
on November 6, 2001. This is a mile stone in the history of NTPC Simhadri.
CORE VALUES
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This corporate plan provides details of the overall agenda for NTPC. The
successful delivery of this agenda would require a committed work force
that identifies with and supports the vision. To ensure realization of this
corporate agenda, a set of core values should be central to, and govern
each activity of the organization. Known as one of the NAVRATAN‟S of the
PSU‟S NTPC has its following core values. They are known as (BCOMIT) as
follows:-
B-Business Ethics
C-Customer Focus
O-Organizational & Professional pride
M-Mutual Respect and Trust
I- Innovation & Speed
T-Total quality for Excellence
STRENGTHS
• Largest market share in domestic power generation and a broad
customer portfolio across the country.
• Navaratna status
WEAKNESS
• Low risk-diversification of business portfolio consists primarily of
generation assets.
• Fragmented IT architecture.
OPPORTUNITIES
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• Expand services for EPC, R&M and O&M activities in the domestic
as well as international markets.
THREATS
• Limited experience of operating in a truly liberalized environment
with competition.
2.7 DIVERSIFICATION
NTPC’s quest for diversification started with its foray into Hydro Power. It
has, since then, been moving towards becoming a highly diversified
company through backward, forward and lateral integration. The company
is well on its way to becoming ‘an Integrated Power Major’, having entered
Hydro Power, Coal Mining, Power Trading, Equipment Manufacturing and
Power Distribution. NTPC has made long strides in developing its Ash
Utilization business. In its pursuit of diversification, NTPC has also
developed strategic alliances and joint ventures with leading national and
international companies.
2.8 SUBSIDIARIES:-
Board. This company was formed to renovate the existing unit and run the
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reduce the cost because without being the cost leader they can’t
dominate the market. So as a market leader they are always aiming
at reducing the cost.
transmission.
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a From the coal handling station, coal is either stored in Stock Yard or
directly sent to Coal Crushing mill, which crushes coal to 20mm size.
a Through Conveyor belts, coal is sent to bunkers.
a From bunkers it is sent to Coal mill where coal is milled to powdered
state.
a The powdered coal is mixed with air and sent to Coal Gun.
a From Coal Gun, it is sent to the Coal Furnace.
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water.
DM water is supplied from Boiler Drum to Coal Furnace which is
more than 165 meters high from Coal Furnace.
Coal is supplied through coal gun.
Initially, the coal is burnt with the help of Diesel. Two kinds of Diesel
are used: HSD (High Speed Diesel) and LSD (Low Speed Diesel).
First LSD is used and then HSD is used. Later, Oil supply is stopped
and coal is left for burning.
In order to ignite the furnace, DC supply is given by the DC
inverters.
The heat generated by the coal furnace is more than 1200 degrees
centigrade.
When water comes through the water walls, it gets heated upto 540
degrees and turns into steam.
This steam flows to turbines at various pressures.
These turbines are linked with generators which generate power
and these generators supply power to power stations from where it
is sent to power grid.
After the Coal is burnt, it turns into Ash. Bottom Ash is collected at
Bottom Ashing and the Fly ash at the Induction Fans (IDF). Ash flows
through IDF to ESP (Electro Static Priscribrators). In this ESP, 99% of
Ash is sent to bottom Ashing. Less than 1% of the Fly ash goes
through Chimneys which is 275 meters high. So, there is very less
Air pollution.
pressure) turbine.
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➢ Resource management :
The company will look to continue with their stringent
recruitment and retention policy which has provided it with
the best minds in the country.
➢ Environment management :
Being the leader in its trade the company will look towards
fulfilling its corporate social responsibility and contributing
towards the environment.
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CUSTOMER FOCUS
• To foster a collaborative style of working with customer
growing to be a preferred brand for supply of quality
power.
• To expand the relationship with existing customers by
offering a bouquet of services in addition to supply of
power e.g. trading, energy consulting, distribution
consulting, management consulting, management
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practices.
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AGILE CORPORATION
• To ensure effectiveness in business decisions and
responsiveness to change in the business environment by
• Adopting a portfolio approach to new business development.
• Continuous and coordinated assessment of the business
environment to identify and respond to opportunities and
threats.
• To develop a learning organization having knowledge based
competitive edge in current and future businesses.
• To effectively leverage information technology to ensure
speedy decision making across the organization.
PERFORMANCE LEADERSHIP
• To continuously improve on project execution time and cost in
order to sustain long run competitiveness in generation.
• To operate & maintain NTPC stations at par with the best-run
utilities in the world with respect to availability, reliability,
efficiencies.
• To aim for performance excellence in the diversification
businesses.
• To embed quality in all systems and processes.
FINANCIAL SOUNDNESS
• To maintain and improve the financial soundness of NTPC by
prudent management of the financial resources.
• To continuously strive to reduce the cost of capital through
prudent management of deployed funds, leveraging
opportunities in domestic and international financial markets.
• To develop appropriate commercial policies and processes
this would ensure remunerative tariffs and minimize
receivables.
• To continuously strive for reduction in cost of power
generation by improving operating practices.
SUSTAINABLE DEVELOPMENT
• To contribute to sustainable power development by
discharging corporate social responsibilities.
• To lead the sector in the areas of resettlement and
rehabilitation and environment protection including effective
ash-utilization, peripheral development and energy
conservation practices.
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RECRUITMENT
NTPC believe in the philosophy of 'Grow your own timber'. Our 'Executive
Trainee' scheme was introduced in 1977 with the objective of raising a
cadre of home grown professionals. First Division Graduate Engineers/
Post graduates are hired through nation-wide open competitive
examinations and campus recruitments. Hiring is followed by 52 weeks of
fully paid induction training.
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DEVELOPMENT.
QUALITY OF WORK-LIFE
NTPC is proud of its systems for providing a good quality of work-life for its
employees. In addition to providing beautiful and safe work places, NTPC
encourages a culture of mutual respect and trust amongst peers,
superiors and subordinates.
and recreation facilities including schools, hospitals and clubs are provided
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at the townships to enhance quality of life & the well being of employees
and their families. An entire range of benefits, from child care leave to
post retirement medical benefits are extended to employees to meet any
exigency that may arise in a person's life.
SEEKING FEEDBACK
NTPC actively seek and encourage employee feedback to ensure that our
HR interventions and practices remain relevant and meaningful. NTPC
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Surveys.
AWARDS
NTPC derive immense satisfaction from the awards NTPC receive and the
resulting recognition they bestow. The awards are key indicators and
milestones on our HR journey, and reinforce our HR philosophy and
practices. NTPC has been awarded No.1, Best Workplace in India among
large organizations for the year 2008, by the Great Places to Work
Institute, India Chapter in collaboration with The Economic Times.
NTPC has formulated a long term Corporate Plan up to 2017. In line with
the Corporate Plan, the capacity addition under implementation stage is
presented below:
PROJECT STATE MW
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Coal
1. NCTPP II ( 2 x 490) Uttar Pradesh 980
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Ambarish N Dave.
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Of the two 500 Mw units planned to be added at Simhadri, one unit would
be ready by November 2010 while the second would come up in the
subsequent phase. The Simhadri power plant expansion is estimated to
cost about Rs 5,130 crore.
Andhra Pradesh would get about 35 per cent power from the new capacity
addition at Simhadri. The remaining would be distributed in the southern
region according to the agreements with the respective states. The entire
power currently generated by the 1,000 Mw Simhadri plant is being used
by the state.
In Tamil Nadu, the company would add another 500 Mw once its 1,000 Mw
plant at Vallur is complete. The plant is being set up at an estimated cost
of Rs 5,123 crore in joint venture with the Tamil Nadu Electricity Board.
Feasibility studies for multiple locations for a 500Mw wind power project in
Karnataka too would be conducted soon.
NTPC was in talks with Gas Authority of India Limited for supply of
liquefied natural gas (LNG) to the Rajiv Gandhi Combined Cycle Power
Project at Kayamkulam in Kerala. The company would take up Stage II
expansion of the project upon availability of fuel (LNG) at a viable cost.
The proposed expansion would not require additional land.
Ash Utilization is one of the key concerns at NTPC. The Ash Utilization
division, set up in 1991, strives to drive maximum usage from vast
quantities of ash produced at its coal based stations. The division
proactively formulates policies, plans and programmes for Ash Utilization.
It further monitors the progress in these areas and works at developing
new fields of Ash Utilization.
collection systems have also been set up at the existing stations where
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As the emphasis on gainful utilization of ash grew, its usage over the
years also increased. From 0.3 million tons in 1991 – 1992, the level of
utilization during 2008 – 09 stood at over 24.40 million tons.
Quantity (in
Area of Utilization
Million Tons)
Cement
7.04
Industries
Ready Mix
0.33
Concrete
Asbestos 0.20
Clay Ash/ Fly Ash
1.64
Bricks
Land Fill 5.74
Ash Dyke Raising 6.24
Road/
1.30
Embankments
Mine Filling 1.14
Agriculture 0.002
Export 0.73
Others 0.02
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Total 24.40
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NTPC Ash Utilization Division has published multiple literatures on the use
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BROCHURES:
FILMS:
1. ARTICLE
Assembly Lines –Past and Present Scenario wrt Effective Cost
1. History
2. Concept
Assembly lines are widely used for the mass production of consumer
goods and components in large volume production systems. Design of
these lines warrants taking into consideration not only cycle time and
precedence constraints, but also other restrictions.
Precedence Relationship
It specifies the order in which tasks must be performed in the assembly
process.
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When Task Times are longer than workstation Cycle Times, the Solution is
to -
5. Work overtime
6. Redesign
Deena D. Kushner)
Operator costs and inventory costs are the components of the cost
function. The operator costs are based on the operations to which
operators are assigned and are calculated for the entire work week
regardless of whether an operator is given only a partial
assignment which results in idle time. It is assumed that there is no
variation in station speeds, no learning curve effect for operators'
performance times, and no limit on the number of operators
available for assignment. The costs associated with work-in-process
One study shows that while most simple assembly line balancing
problems can be solved optimally, presence of additional
restrictions such as task assignments makes them inherently more
difficult. Insights into this aspect. (Ram Rachamadugu)
The cost evaluation method for dynamic balancing enables a
manager to compare the costs of assigning operators to work
stations. Using this method to calculate the operator and inventory
costs, a number of different heuristics for assigning operators in
dynamic balancing can be evaluated and compared for various
configurations of the production line. The least cost solution
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Kushner)
In order to evaluate candidate line layouts, a total cost model is
developed. Total cost is the sum of normal operating cost—which is
simply a function of the number of work stations—and the cost of
repairing products containing incomplete tasks. Because this latter
cost is a random variable for a given balance, the expected value is
used to evaluate a candidate layout. The cost associated with one
or more workers exceeding the cycle time is the product of the
probability of this happening and the expected cost of off-line
repair.
The heuristic method for generating feasible balances builds
workstations from continually updated lists of precedence
satisfying tasks. Qualifying tasks are added to the station as long
as the probability of the station exceeding the cycle time remains
below a pre-specified threshold. The methodology requires
systematically varying this threshold to permit a lowest total cost
solution to emerge. The process of generating a large number of
balances for a particular threshold is efficient. Evaluating the total
costs of the resulting balances takes the majority of the
computational time.
Even for large-scale problems, the computational cost is
infinitesimal in the context of assembly line balancing, where very
small improvements in productivity can mean substantial
increments to profitability. (John C. Carter* and Fred N.
Silverman*)
5. Conclusion
RBS Meadow
6.CASE STUDY
AT&T decided in 1991 to replace with state-of-the art technology the Troy
brand of check printers that were being used in two of its operations sites.
These sites printed checks for Payroll, Accounts Payable, Employee
Reimbursements, and Billing Customer Refunds. Total annual print volume
was estimated to be 13 million checks for 1992 and growing.
The team then assigned a point value (10 being the highest score), for
each printer for each situation. Their final tabulation is shown on the next
page.
Criteria Siemens Delphax Xerox IBM NCR
Features 9.9 6.6 5.2 7.7 8.2
User Ratings 8.0 8.3 6.7 8.6 8.6
Pros/Cons 10.0 1.0 5.0 8.0 8.0
Cost 10.0 6.0 4.0 2.0 8.0
MICR Quality 9.7 5.4 6.0 9.4 9.4
Print Quality 9.7 5.7 8.0 8.4 8.6
TOTAL 57.3 33.0 34.9 44.1 50.8
RANKING 1 5 4 3 2
DISCUSSION QUESTIONS
1. Is it appropriate taht in the final analysis MICR Quality was given the
same weight as Cost?
2. Recompute the comparisons, using the following weight factors:
Features 15%, User Ratings 15%, Pros/Cons 15%, Cost 30%, MICR Quality
12.5%, Print Quality 12.5%. Does this change the end result?
7. CONCLUSIONS/RECOMMENDATIONS
a NTPC Simhadri plant has created a benchmark in technology
utilization, efficiency and effective utilization of resources.
a It has been achieving records right from its synchronization.
a It is the only Power plant in India where maximum Automation is
done in its operations.
a It is the first power plant which uses sea water as a coolant.
a It has also achieved great environment standards through its
infrastructure facilities like Tallest Chimneys in Asia (275m), Tallest
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friendly.
a It been maintaining excellent CSR(Corporate Social Responsibility)
by providing jobs to the land losers along with good compensation,
providing employment for the locals on a contract basis,
construction of roads, drainage systems, drinking water supply,
hygienic conditions, hospitals, schools, etc all within 8 Kms of the
NTPC plant.
8. BIBLIOGRAPHY
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