OVERVIEW OF B.H.E.

It was a great opportunity for Indian Government to establish Public Sector Undertakings to boost Indian economy after 200 years of long British colonial rule. Mr. Jawaharlal Nehru, the first Indian prime minister established many Public Sector Undertakings and at present there are about 246 public sector undertakings working under government of India and among them Bharat Heavy Electrical Ltd. is one of the largest engineering enterprises. Establishment of Public Sector Undertakings (PSU) had two main reasons one was to provide employment and second was to become a savior of Indian economy. After Independence private organizations provided lesser opportunity for employment. However, due to thrust on Public Sectors and due to excessive job security it was a challenge before Management of PSU to deliver results. The work assessment of all cadres of workers, supervisors and executives was of topmost priority. THE NINE JEWELS:-NAVRATNA declared by Indian government are SAIL, VSNL, ONGC, IOC, HPCL, BPCL, NTPC, and IPCL. Therefore, BHEL (BHARAT HEAVY ELECTRICALS LIMITED) is one of the NAVRATNA (PSU) of Indian government and is the largest engineering and manufacturing enterprise of its kind in India with excellent track record of performance. The company is engaged in engineering development and manufacturing of a wide variety of energy and electrical power. The company today enjoys national and international presence featuring in the fortune international 500 and is ranked among the top 12 companies in the world for manufacturing power generation equipment. The first plant is of what is today known as B.H.E.L was established more than 50 year ago Bhopal and was the genesis of the heavy electric equipment industry in India. In1956, the government of India took a major step towards the established of its heavy engineering industry when heavy electrical (India) limited the first heavy electrical manufacturing unit of the country was set up in Bhopal. In a period of about 25 years the BHEL has grown into one of the largest engineering and manufacturing organization in the country with nine manufacturing plants and matching services division. BHEL now offers a spectrum of products and services in the field of power industry. BHEL is today the largest engineering enterprise of its kinds of India, with a well recognized track record performance making profits continuously since 1971-72 it achieved a sales turnover of Rs.86100crores with a pretext profit of Rs.8150crores in 2005-06. BHEL caters the core sector of the Indian economy viz power industry, transportation, defense etc. The wide network of BHEL has 14 manufacturing units, 13 Regional Operation Divisions and more than hundred "service-at-sites" facilities spread all over India. BHEL offers comprehensive service to its customers in Conventional and Non-Conventional Energy, Industry, Transportation, Telecommunication and Oil sectors. BHEL has also bagged export orders from 40 countries around the world. BHEL has acquired certifications to Quality Management Systems (ISO 9001), Environmental Management Systems (ISO 14001) and Occupational Health & Safety
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Management Systems (OHSAS 18001) and is also well on its journey towards Total Quality Management. The companys inherent potential coupled with its strong performance over the year, has resulted in it being chosen as one of the NAVRATNA PSEs which are to be supported by the government in their endeavor to become future global players. Today BHEL is the largest engineering and manufacturing enterprise in India in the energy-related/infrastructure sector. 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 well-recognized track record of performance. The company has been earning profits continuously since 1971-72 and paying dividends since 1976-77. BHELs operations are organized around three business sectors, namely Power, Industry - including 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 in the market. BHEL's vision is to become a world-class engineering enterprise, committed to enhancing stakeholder value. The company is striving to give shape to its aspirations and fulfill the expectations of the country to become a global player. The greatest strength of BHEL is its highly skilled and committed 42,600 employees. Every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and participative style of management, all these have engendered development of a committed and motivated workforce setting new benchmarks in terms of productivity, quality and responsiveness. In the post independence era when India was moving towards industrialization the major thrust of the govt. was in the core sector and this sector and this sector was Given to the public sector, with this objective Heavy Electrical (I) Limited was setup in Bhopal in august, 1956 with a view to reach self-sufficiency in the industrial Product and power equipment. There more plants were subsequently setup in Trichy, Hyderabad and Haridwar with Soviet and Czechoslovakian assistance in May 1956, Dec 1965 and Jan 1967 respectively. As there was a need for an integrated approach for the development of Power equipment to be manufactured in India Heavy Electrical Ltd. Bhopal was merged into BHEL in 1974.

BUSINESS AREAS
BHEL covers a wide range of business. These areas are mentioned below:POWER: Provide a gamut of equipment for Thermal Hydro and Nuclear Power Plants range includes products and system for power generation, transmission and utilization. TRANSMISSION: BHEL is manufacturing transmission equipment for all voltage rating including the 400 KV class transformers switch gears, control and relay panel, insulators, capacitors other substation equipments. INDUSTRY: It offers a comprehensive range of electrical, electronic and mechanical equipment for a host of industries fertilizers, petrochemicals, refineries, paper, sugar, rubber, cement, coal, steel, aluminum and mining. TRANSORTATION: BHEL offers a variety of transportation equipment to meet the growing needs of country. 65% of Indian Railways are equipped with BHEL manufactured traction equipment. Underground metro also runs on drives and controls supplied by BHEL. BHEL has taken up the manufacturing of locomotive to provide pollution free transportation. BHEL also offers a battery operated passenger van to Delhi Government. OIL AND GAS: Equipment for oil and gas exploration and transportation is manufactured by BHEL. The range covers super deep drill figs with matching fireworks and hosting equipment. NON CONVENTIONAL: BHEL has entered the field of telecom with electronics PABX system based on indigenous technology from C-DOT. MANUFACTURING TECHNOLOGIES: BHEL has 14 manufacturing plants, which are spread different of the country having unique Manufacturing and testing facilities, CNC machines, turbine blade shape system banner, 8000-ton hydraulic press, heavy-duty lathe milling machines and many more are available.

MANUFACTURING UNIT OF BHEL

FIRST GENERATION UNITS

1) Heavy Electrical Plant (Bhopal) 2) Heavy Electrical Equipment Plant (Haridwar) 3) Heavy Electrical Power Equipment Plant (Hyderabad) 4) High Pressure Boiler Plant (Trichy)
SECOND GENERATION UNITS

5) Transformer & Locomotive Plant (Jhansi) 6) Central Foundry Forge Plant (Haridwar) 7) Steam Steel Tube Plant (Trichy)
UNIT THROUGH ACQUISITION AND MERGER

8) Electronic Electro Porcelain Division (Bangalore)

NEW MANUFACTURING UNITS

9) Boiler Auxiliaries Plant (Ranipur) 10) 11) 12) 13)

Insulator Plant (Jagdishpur) Component & Fabrication Plant (Rudrapur) Energy System Division (Bangalore) Industrial Valve Plant (Goindwal)

OTHER FACILITIES Heavy Equipment Repair Plant (Varanasi) Research & Development (Hyderabad) Electrical Machine Repair Plant (Mumbai)

MAJOR COMPETITOR

ALSANDO ASEA BROWN BEEHTEL BLOCK &NEATH CNMI & EC COSTAIN ELECTRIM ENERGOSTIO ELECTRO CONSULT FRANCE TOST FUJI GEC ALSTHOM GENERAL ELECTRIC HITACHI MITSBISHI MITSUI NEI RAYTHEON ROLLS ROYEE SANGHAI ELECTRIC CO. SIEMENS AG SKODA TECHNOPROMOSH EXPORT TOSHIBA LARSEN SUZLON ENERGY BEML ALFA LAVAL

ITALY SWITZERLAND U.S.A U.S.A CHINA U.K POLAND RUSSIA FRANCEITALYE FRANCE JAPAN UK U.S.A JAPAN JAPAN JAPAN U.K U.S.A GERMANY CHINA GERMANY CZECH REPUBLIC RUSSIA JAPAN INDIA INDIA INDIA SWEDEN

DIVISION OF BHEL
MAIN REGIONAL OFFICES (POWER SECTORS) 1.) 2.) 3.) 4.) NEW DELHI KOLKATA NAGPUR CHENNAI (NORTHERN REGION) (EASTERN REGION) (WESTERN REGION) (SOUTHERN REGION)

BUSINESS OFFICES BANGALORE BARODA BHUBANESHWAR MUMBAI KOLKATA CHANDIGARH GUAHATI JABALPUR JAIPUR LUCKNOW CHENNAI NEW DELHI PATNA SECUNDRABAD

ORGANISATIONS VISION, MISSION & VALUES

VISION

A world-class engineering enterprise committed to enhancing stakeholder value.

MISSION

To be an Indian multinational engineering enterprise providing total business solution through quality product, systems and services in the field of energy, industry, transportation, infrastructure and other potential areas.

VALUES

Zeal to excel and zest for change Integrity and fairness in all matters Respect for dignity & potential of individual. Strict adherence to commitments. Ensure speed of response. Faster learning, creativity and teamwork Loyalty and pride in the company.

ORGANIZATION STRUCTURE CHAIRMAN & MANAGING DIRECTOR

BOARD OF DIRECTORS

EXECUTIVE DIRECTOR (Unit Head) REGIONAL HEAD (Power Sector)

GENERAL MANAGER (Either functional or product head)

ADDITIONAL GENERAL MANAGER (Product if GM is functional & vice versa)

Sr. Dy GENERAL MANAGER

Dy GENERAL MANAGER

Sr. MANAGER

MANAGER

Sr. ENGINEER

ENGINEER

SUPERVISOR

WORKER
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INTRODUCTION OF B.H.E.L (JHANSI)

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By the end of 5th five-year plan, it was envisaged by the planning commission that the demand for power transformer would raise in the coming years. Anticipating the countrys requirement BHEL decided to set up a new plant, which would manufacture power and other type of transformers in addition to the capacity available at BHEL, Bhopal. This unit of Jhansi was established around 14 km from the city on the N.H. No. 26 on Jhansi Lalitpur road. It is called second generation plant of BHEL set up in 1974 at an estimated cost of Rs. 16.22crores inclusive of Rs. 2.1crores for township. Its foundation was laid by Late Mrs. Indira Gandhi the Prime Minister on 9th January 1974. The commercial production of the unit began in 1976-77 with an output of Rs. 53 Lacks since then there has been no looking back for BHEL, Jhansi. This plant of BHEL is equipped with the most modern manufacturing processing and testing facilities for the manufacture of power, special transformer and Instrument transformers, Diesel shunting Locomotives and AC/DC Locomotives. The layout of the plant is such that it is well streamlined to enable smooth material flow from the raw material stages to finished goods. The raw materials that are used for manufacture are used only after thorough material testing in the testing lab and with strict quality checks at various stages of productions. This unit of BHEL is basically engaged in the production and manufacture of transformers of various types and capacities. In 1987-88, BHEL has progressed a step further in undertaking the production of AC Locomotives and subsequently it is manufacturing AC/DC Locomotives also. SECTIONS OF BHEL JHANSI UNIT BHEL has many departments, while production and Administrative departments are separate. Broadly speaking BHEL, Jhansi has two production categories:

Transformer Loco

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OBJECTIVES OF BHEL, JHANSI

BUSINESS MISSION To maintain a leading position as supplier of quality equipment, system and service in the field of conversion, transmission, utilization and conservation of energy for application of energy for application in the areas of Electric Power, Transportation, Oil & Gas Exploration and Industries. Utilize companys capabilities and resources to expand business into allied areas and other priority sector of the economy like defense, communication and electronics. GROWTH To ensure a steady growth by enhancing the competitive edge of BHEL in existing business, new areas and international market so as to fulfill national expectation. PROFIT ABILITY To provide a reasonable and adequate return on capital employed, primarily through improvements in operational, efficiency, capacity utilization and productivity. Generate adequate internal resources to finances the companys growth. FOCUS To build a high degree of customer confidence by providing increased value for his money through international standards of product quality, performance and superior customer service. PEOPLE ORIENTATION To enable each employees to achieve his potential, improve his capabilities perceive his role and responsibilities and participate and contribute to the growth and success of the company. To invest in human resources and continuously and be alive to their needs. TECHNOLOGY To achieve technological excellence in operation by development of indigenous technologies and efficient absorption and adoption of imparted technologies to suit business and priorities and provide competitive advantage to the company. IMAGE To fulfill the expectation of stakeholders like government, employees, customers and the country at large have from BHEL.

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ROTATION REPORT

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FABRICATION: Fabrication is all about production. It comprises of 03 bays i.e., Bay0, Bay1 &Bay 2. BAY-0: It is the preparation shop while the other two bays form the assembly shop. This section has the following machines: o Planner machine To reduce thickness o Shearing machine o CNC / ANC Flame Cutting Machine To cut complicated shaft items using Oxy-Acetylene flame. o Bending machine o Rolling machine o Flattening machine o Drilling machine o Nibbling machine o Pentagraph flame cutting machine BAY-1: It is an assembly shop where different parts of tank come from Bay0. Here welding processes are used for assembly, after which a rough surface is obtained. Grinder operating at 1200 rpm is used to eliminate the roughness. BAY-2: It is an assembly shop dealing with making different objects mentioned below. 1 - Tank Assembly 5 - Cross Feed Assembly 2 - Tank Cover Assembly 6 - Core Clamp Assembly 3 - End Frame Assembly 7 - Pin and Pad Assembly 4 - Foot Assembly Before assembly, short blasting (firing of small materials i.e., acid picketing) is done on different parts of jobs to clean the surface before painting. After assembly some tests are done known as NON DESTRUCTIVE TEST 1. Ultrasonic Test: To detect the welding fault on the CRO at the fault place high amplitude waves are obtained. 2. Die Penetration Test: Red solution is put at the welding and then cleaned. After some time white solution is put. Appearance of a red spot indicates a fault at the welding. 3. Magnetic Crack Detection: Magnetic field is created & then iron powder is put at the welding. Sticking of the iron powder in the welding indicated a fault. 4. X-Ray Test: It is same as human testing and the fault is seen in X-ray film. BAY-3: Here are basically three sections in the bay: 1. Machine Section 2. Copper Section 3. Tooling Section

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MACHINE SECTION: The operations to form small components of power and traction transformer are done in this section. The shop consists of following machines: CENTRAL LATHE TURRET LATHE CAPSTAN LATHE RADIAL ARM DRILLING MACHINE HORIZONTAL BORING MACHINE MILLING MACHINE COPPER SECTION: All the processes related to copper are done here. TUBE SLITTING MACHINE SHEARING MACHINE DIE AND PUNCHING MACHINE HYDRAULIC BENDING MACHINE SHEARING MACHINE FLY PRESS MACHINE BEND SAW MACHINE WATER COOLED BRAZING MACHINE LINCING BELT MACHINE HYDRAULIC PRESS MACHINE SOLDER POT MACHINE TOOLING SECTION: In this section the servicing of tools is done: BLADE SHARP MACHINE MINI SURFACE GRINDER MACHINE TOOL & SURFACE GRINDING MACHINE DRILL GRINDING MACHINE BAY 4: It is the winding section. TYPES OF WINDING Reverse Section Winding. Helical Winding Spiral Winding Interleaved Winding Half Sectional Winding There are four TYPES OF COIL fixed in a transformer, they are: Low Voltage Coil (LV) High Voltage Coil (HV) Tertiary Coil Tap Coil The type of winding depends upon job requirement. Also, the width and thickness of the conductors are designed particulars and are decided by design department. Conductors used for winding is in the form of very long strips wound on a spool, the conductor is covered by cellulose paper for insulation.
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For winding first the mould of diameter equal to inner diameter of required coil is made .The specification of coil are given in drawing. The diameter of mould is adjustable as its body is made up of wooden sections that interlock with each other. This interlocking can be increased or decreased to adjust the inner diameter of coil. The moulds are of following types:Belly types Link types Cone type

BAY-5: It is core and punch section. The lamination used in power, dry, ESP transformer etc for making core is cut in this section. CRGO (cold rolled grain oriented) silicon steel is used for lamination, which is imported in India from Japan, U.K. and Germany. It is available in 0.27 and 0.28mm thick sheets, 1mt wide and measured in Kg. The sheets are coated with very thin layer of insulating material called carlites. For the purpose of cutting and punching the core three machines are installed in shop: 1. SLITTING MACHINE: It is used to cut CRGO sheets in different width. It has a circular cutter whose position can be changed as per the requirement. 2. CNC CROPPING LINE PNEUMATIC: It contains only one blade, which can rotate 90 about the sheet .It is operated automatically. 3. CNC CROPPING LINE HYDRAULIC: It is also used to cut the CRGO sheet. It contains two blades, one is fixed and the other rotates 90 above the sheet. It is operated hydraulically .M4 quality sheet 0.23-0.33mm thickness is used BAY-6: Single-phase traction transformer for AC locomotives is assembled in this section. This Freight Locomotive Transformers is used where there is frequent change in speed. In this bay core winding and all the assembly and testing of traction transformer is done. Three-phase transformers for ACEMU are also manufactured in this section. The supply lines for this transformer are of 25 KV and power of the transformer is 6500 KVA. The tap changer of rectifier transformer is also assembled in this bay. Rectified transformer is used in big furnace like the thermal power stations / plants (TPP). BAY-7: This is the insulation shop. Various types of insulations used in B.H.E.L are: 1-AWWW: All Wood Water Washed press paper. The paper is 0.2-0.5mm thick cellulose paper and is round on the conductors for insulation. 2-PRE-COMPRESSED BOARD: This is widely used for general insulation & separation of conductors in the forms of blocks. 3-PRESS BOARD: This is used for separation of coils e.g. L.V. from H.V. It is up to 38mm thick. 4-UDEL: Indemnified Electrical Laminated wood or Perm wood
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This is special type of plywood made for insulation purpose. 5-FIBRE GLASS: This is a resin material & is used in fire porn areas. 6-BAKELLITE 7-GASKET-It is used for protection against leakage. 8-SILICON RUBBER SHEET-It is used for dry type transformer. The machines used for shaping the insulation material are:1. Cylindrical Machine 2. Circle Cutting Machine 3. Scaring Machine 4. Punching Press Machine 5. Drilling Machine 6. Guilletin Machine 7. Bench Saw Machine 8. Jig Saw Machine 9. Circular Saw Machine 10. Linesin Machine BAY 8: It is the Instrument Transformer and ESP Transformer Manufacturing section. INSTRUMENT TRANSFORMER - These are used for measurement. Actual measurement is done by measuring instruments but these transformers serve the purpose of stepping down the voltage to protect the measuring instrument. They are used in AC system for measurement of current voltage and energy and can also be used for measuring power factor, frequency and for indication of synchronism. They find application in protection of power system and for the operation of over voltage, over current, earth fault and various other types of relays. They are of two types: 1- Current Transformer (CT) 2- Voltage Transformer (VT) ESP TRANSFORMER - The Electrostatic Precipitator Transformer is used for environmental application. It is used to filter in a suspended charge particle in the waste gases of an industry. They are of particular use in thermal power stations and cement industry. The ESP is a single-phase transformer. It has a primary and secondary. The core is laminated and is made up of CRGOS. It is a step up transformer. An AC reactor is connected in series with primary coil. The output of the transformer must be DC this is obtained by rectifying AC using a bridge rectifier (bridge rectifier is a combination of several hundred diodes). One side of the transformer output is taken and other side has a marshalling box which is the control box of the transformer.

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BAY-9: In this bay power transformer are assembled. After taking different input from different bays 0-9 assembly is done Power transformer is used to step and step down voltages at generating and sub-stations. There are various ratings manufactured, they are a) b) c) Generator transformer System & Autotransformer

A transformer in a process of assemblage is called a job. The design of the transformer is done by the design deptt. & is unique of each job; depends on the requirement of customer. The design department provides drawing to the assembly shop, which assembles it accordingly. The steps involved in assembly are: 1. 2. 3. 4. 5. 6. 7. 8. Core Building Core Lifting Unlacing Delacing and end-frame mounting High voltage terminal gear and low volt terminal gear mounting Vapor phasing and oil soaking Final servicing and tanking Case fitting

STORE: There are three sections in store: Control Receiving Section Custody Section Scrap Disposal Section FUNCTIONS: List of material coming in stores is prepared and Quality Control people are called for inspection. If material is found as per standard, SRV (Store Receipt Voucher) is issued for each material. A total of 08 SRVs are prepared. Some materials such as Silicon Oil, Transformer Oil, Insulating Material etc are directly stored in the Bays.

TRANSFORMER ENGINEERING (TRE): The transformer manufactured in BHEL Jhansi range from 10 MVA to 250 MVA and up to 220 KV. The various transformers manufactured in this unit are:Power Transformer a) Generator transformer b) System transformer c) Auto transformer
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Special Transformer a) Freight loco transformer b) ESP transformer c) Instrument transformer d) Dry type transformer All above types are oil cooled except dry type, which are air-cooled. The generated voltages at the power station are 6.9 KV, 11 KV and 13.8 KV but due to certain advantages like economical generation 11 KV is the most widely used. For this voltage needs to be stepped up. Transmission at high voltage is desirable because it results in lesser losses, needs thinner wire and hence is economical. If the current is kept high the copper losses become very high but iron losses are practically constant. In certain cases the required voltage may be less than the output voltage, so in order to obtain it we require a tapping circuit. The output voltage may have a certain percentage variation, which may be tapped in 4 or 6 equal steps. The type of tap changer depends on the application of the transformer. Where a continuous power supply is not required an Off Circuit Tap Changer (OCTC) may be used where a continuous power supply is a must (e.g. at a substation in cities etc.) Load Tap Changer (OLTC) is used. TRANSFORMER COMMERCIAL (TRC): The objective of the department is interaction with the customers. It brings out tenders and notices and also responds to them. It is this department that bags contracts of building transformers. After delivery regarding faults, this department does failures and maintenance. All such snags are reported to them and they forward the information to the concerning department. One of the major tasks of this department is to earn decent profits over all negotiations. Transformer Industry has become very competitive. The company offering the lowest price gets the contract but this process may continue does the work on very low profits. To avoid such a situation, a body by the name of Indian Electrical and Electronics Manufacturers Association (IEEMA) was set up. This association helps to maintain a healthy competitive atmosphere in the manufacturing of electrical appliances. The main work of the TRC is classified as: Tenders and notices Interaction with Design Department Place of the work Approximate cost of the work Earning money The place and time where contract documents can be seen The place and time where tender documents can be obtained The time up to which the tender documents will be sold The amount if any to be paid for such documents The place and the date and the time when tenders are to be submitted and are to be opened.

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LOCOMOTIVE PRODUCTION (LMP): There are two products Alternating Current Locomotive (AC Loco) WAG-5H AC./D.C. Loco o WCAM-2P o WCAM-3 W - Broad Gauge A - Running in AC Mode C - Running in DC Mode G - Hauling Goods Train P - Hauling Passenger Train M - Hauling Passenger & Goods train Diesel Electric Locomotive Shunting (DESL) 350 HP 700 HP o Single Power Pack (SPP): One 700 HP m/c is made as a single unit. It is a meter gauge locomotive. o Twin Power Pack (TPP): 2,350HP m/c is combined in 1 engine & can be operated individually or in combination depending on the load. 450 HP 1400 HP 1150 HP 1350 HP 2600 HP 1150 HP and 1350 HP DESLs are non-standard locomotives and are modified versions of 1400 HP DESL based on requirement of customer. Under mention are the new non-conventional products designed and developed for Indian Railways based on their requirement. OHE (Overhead Electric) recording and testing cars UTV (Utility Vehicle) RRV (Rail cum road vehicle) DETV (Diesel electric tower car) BPRV (Battery power road vehicle) BCM (Blast cleaning machine) 200 T Well wagon for BHEL, Haridwar Metro Rail - Kolkata Metro Railways LOCOMOTIVE MANUFACTURING (LMM): This section deals with manufacturing of locomotives. The main parts of the locomotive are Under Frame: The frame on which a locomotive is built Super Structure: The body of locomotive is called superstructure or Shell and is made of sheet of Mild steel DC Motor Alternator Compressor Flower
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Static Rectifier-MSR Static Converter-SC Exchanger Bogie-The wheel arrangement of a loco is called a bogie. A bogie essentially contains 1 - Wheel Axle Arrangement 2 - Suspension 3 - Brake Rigging Traction Transformer: It is fixed on under frame and gets supply from an overhead line by equipment called pantograph. The type of pantograph depends on supply. This transformer steps down voltage and is fitted with a tap changer. Different taps are taken from it for operating different equipment. One tap is taken and is rectified into DC using MSR and is fed to the DC motor.

Railways has two types of power supplies -25 KV, 1 Phase, 50Hz AC -1500 V DC An AC/DC loco is able to work on both of these supplies (e.g. WCAM-3) WORK ENGINEERING & SERVICES (WE&S) This department looks after the commissioning and maintenance of all the machinery used in the factory. It also has 3 two-stage air compressors for supplying compressed air to the various bays. The department has 03 different divisions: Electrical Engineering Electronics Engineering Mechanical Engineering ELECTRICAL ENGINEERING: This division looks after all the electrical machinery and power distribution of the factory. Snags detected in the system are immediately reported to this dept by the concerning dept. WE&S takes prompt action to rectify it. The factory has a feeder of 11KV .The total load sanctioned for the factory is 2500MVA But the maximum demand reaches the range of 1700-2000 MVA. There are various substations (SS) inside the factory, for distribution of power to different sections. SS - 1 Supplies Bay-6 to Bay-9 SS - 3 Supplies Bay-1 to Bay-4 SS - 4 Supplies Boiler and Loco Plant SS - 5 Supplies Bay-5 SS - 6 Supplies Administrative Building TECHNOLOGY: This department analyses the changes taking place in the world and suggest changes accordingly. This is very important because the products must not get obsolete in the market otherwise they will be rejected by the customer.

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FUNCTIONS: Technology functions can be classified as: Processing Sequence: The sequence of process of manufacturing is decided for timely and economic completion of the job. Operation Time Estimate: It includes incentive scheme management. Allowed Operation Time: It includes incentive amount Facilities Identification: It includes looking for new equipment or plant or tools to increase productivity Special Process Certification: Special processes are the ones requiring expertise for example identifying errors, cracks, air bubbles in welding Special Tools Requirement: Special tools are allotted, if possible, when required else the design has to be reconsidered. Productivity Projects Compilation: It includes the initial analysis of the problem and their appropriate solution to enhance productivity. The principle of working is that IF YOU DO NOT MAKE THE CHANGES IN YOUR COMPANY, THE CUSTOMER WILL CHANGE YOU CENTRAL QUALITY SERVICE: This is where all the finished goods are inspected, checked, sent back for rectification to the testing department depending upon the customers wish. QUALITY It is the extent to which products and services satisfy the customer needs. QUALITY ASSURANCE All those plants and systematic action necessary to provide adequate confidence that a product or service will satisfy the given requirement is called quality assurance. QUALITY CONTROL The operational technique and activities that are used to fulfill requirement for quality are quality control. QUALITY INSPECTION Activities such as measuring, testing, gauging one or more characteristics of a product or service and comparing these with specified requirement to determine conformity is termed quality inspection. TESTING: This is the area where products are tested on the request of the customers. This type of testing costs additional money to the customer.

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DEPARTMENTAL STUDY

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FINANCE DEPARTMENT

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OVERVIEW OF FINANCE DIVISION

A sound financial management is the crux of the efficient management of a business enterprise and financial management on scientific and sound lines is a prime consideration of BHEL. The Finance /Accounts department of the company controls all financial operations .That is directed at improving profitability and internal resource generation through optional utilization of men, material, money, tools and machine. Account to its various function the Finance / Accounts Department is divided into following sections; 1. 2. 3. 4. 5. 6. 7. 8. 9. Supply Bill Price Stored Ledger Cost Miscellaneous and Revenue Establishment Cash Books and Budget Internal Audit Export Incentives

SUPPLY BILLS SECTION It deals with the payment of suppliers bill. This department receives the following documents; - Purchase order from purchase department - Store Receipt Voucher - Bills from Suppliers Purchase order form specifies the quantity, rate of material order SRV is issued by the stores department on receipt, inspection and acceptance of the material. SRV is seal of PSL of Hundis. Then it comes to the supply section. Based on these documents payment is made to supplier directly. Payment through bank is made against LSC or Hundis. In such cases suppliers note their document i.e. original copy of invoice and LR through that bank. PRICE STORE LEDGER The main objective of PSL section is to maintain records of each transaction regarding material and to control the inflow and outflow of material. Each material consume in the unit is given a material code of 12 digits, including alpha. PSL section does pricing of SRV with the help of P.O. terms and sends that to supply section for payment. In some cases material is issued to ancillaries for fabrication work. Materials are issued on three bases: 1. Free Issue Basis or Labour Basis 2. Sale Basis 3. Loan Basis
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In all these cases external SIV is issued and it is priced in PSL. Besides this, PSL prepares monthly Management Information Report (MIR), regarding the Inventory condition and sends it to corporate head office. COSTING SECTION This section is assigned the work of collecting cost at work order (WO) with the detail of material, labour, factory and engineering overheads and then accumulated to product group level each WO is identified by a number given by the commercial department. Material cost for each product group (PG) is collected through PSL system which values the material on weighted average system labour cost for each WO. Direct labour hourly rate is calculated quarterly by taking 2000 hrs per annum as working hours, labour cost for each WO is arrived by multiplying direct labour with the direct labour hourly rate. At the yearend actual cost is compared with budgeted amount and then analyzed and variance is calculated, if variance is significant it is booked to cost otherwise it is charged off through profit and loss account. SALES It deals with accounting of sales. The activity of this department starts when work order is issued by commercial department. The work order is issued in three parts. 1. Technical 2. Financial 3. Shipping dispatch In sales section mainly following activities are involved. Billing Records of cash collection Accounting relating thereto Preparing MIR Basic documents for billing are Advice notes from Clearance Dispatch Cell (CDC), Excise invoice, packing list and any test certificates if required. Here care is taken that particulars furnished in these documents match with those given in work order part 2. Then invoices are sent to customers either directly or through financial agencies like banks. Collection is done either directly by the unit or by regional operation division of BHEL scattered all over India. The proceeds collected are deposited in centralized account from which withdrawal is not permitted by unit or ROD .It can be done only by officer concerned at the corporate office. MIR is furnished as regards collection from customers outstanding with them (Age wise), billing is done on customers (product wise), export turnover and also billing is done on account of price variation etc. WORKS The works account section deals with various items of work like scrutiny of proposals for sanction of works and contracts, passing of bills for payment and maintenance of accounts/ records of expenditure on work carried out by civil engineering and electrical installation and Maintenance Service departments including works of erection of plant and machine. FOREIGN PURCHASE
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There are certain items, which are to be imported; license is required for such items .The license can be acquired from DGTD. There is also a provision for forward cover. CASH This section is responsible for banking of all the money worth received by the company from customer and disbursement of all authorized payment on behalf of the company to suppliers, contractors in form of cheques, cash, drafts, postal order etc. It is also concerned with the payment of salaries, wages, and other personal payments of employees. Cash section prepares these statements for management information. Daily Cash Inflow > Daily Collection of Sales. Weekly Cash Inflow > Out Flow During Week Statement of pending bills of cash section, status of margin money. Monthly Cash flow forecast for 3 months Operating Results Statement Statement of outstanding letter of credit and bank guarantee.

PAY SECTION It is assigned the job of payment of salaries and other personal payments to employees. It looks after provident fund, gratuity and bonuses insurance facilities extended to employees. BOOKS, BUDGET AND MIS General Ledger is the consolidated list of general entries .As soon as the general voucher is received, the general ledger is prepared .In the general ledger, receipt and expenditure both are recorded. This section prepares section wise and monthly trial balance. After the preparation of general ledger, trial balance, P &L A/c and the balance sheet are prepared in accordance with the companys act. BUDGET Budget is a target setting for operations. Two types of budget are prepared 1. Revenue Budget 2. Capital Budget MANAGEMENT INFORMATION SYSTEM Three types of information system are generated: 1. Internal for the unit 2. For the Corporate Office 3. Government COST SECTION This section is responsible for accounting and reporting of costs. It determines direct labour rates and engineering rates and overheads recovery factors of manufacturing, engineering commercial and administration for cost estimation. The cost accounting is done to record and collect cost for work order and product level information. It prepares material, labour, overheads, and cost consumption statements. It furnishes cost reports to management about: 1. Profitability Product wise, Order wise 2. Variance- Estimated and Actual Cost 3. Performance- Efficiency and Operating
27

MARKETING DEPARTMENT

28

The Marketing Department in BHEL is known as Commercial & Marketing Department As every organization for the purpose of promoting its product and brand does promotion. BHEL is also having a marketing department which takes care of the promotion of different products the unit is producing. It also takes care of the promotion of the brand image of the BHEL in the world. The importance of marketing department in BHEL increases because in spite of being in Heavy Electricals sector it is not alone. BHEL is also having lot of competitors. This department takes care of: a) Website: The marketing department of BHEL, Jhansi also takes cares of their own website which is a main source of information for customers, suppliers & also for those peoples who aspire to join BHEL group. The website tells about the research & development programmes going on in the company and what is the new project on which the company is working. It is the first source of information for the outsiders.

b) Advertisements: The marketing department is also doing advertisements to promote the BHEL and also to make customer aware about the BHEL and its products. This department focuses on the quality of the product & the achievements of the BHEL (like ISO certifications and other certificates) while doing advertisement.
29

This department plays an important role in BHEL. As a public sector unit BHEL continuously faces lot of problems with respect to marketing but in spite of those entire problem the brand image and the place BHEL captured in the market is appreciable. c) Tenders: The BHEL uses tenders by two ways: Inviting Tender: Whenever the company needs any supply of material they invite tenders from different suppliers for supplying raw material to BHEL. After getting all the tenders from all the interested suppliers the company opens their tenders and gives contract to the supplier. The decision is taken on the basis of various factors. Filing Tenders to Take Orders: The next thing that the marketing department in BHEL does is they file tenders for taking orders from various organizations. As BHEL produces heavy electrical machineries so almost every organization needs heavy machinery at the time of set up and continuously when they upgrade their technology. They also need continuous maintenance of the machineries. These processes need heavy investment so each organization invites tenders & than they select the one with most suitable offerings. So the marketing department main work is to find out such opportunities and then take actions accordingly.

30

HUMAN RESOURCE DEPARTMENT

31

OVERVIEW OF HUMAN RESOURCE DIVISION

The Human Resource Division of B.H.E.L takes care of the Human Resource needs of the organization. It ensures that every time the organization should have right number of employees, at the right place, in the right time. The HR Division in BHEL, Jhansi is divided into two parts: 1.) Administration Block 2.) Human Resource Development Centre

Administration Block:
The Administration Block consists of these departments: 1.) Labour Welfare Department: The Labour Welfare Department of BHEL takes care of the welfare activities in favor of the workers working in BHEL. It takes care that the motivation of the employees should always be high. It primarily takes care that in the company nothing would be done which is against law & the company should provide medical, housing & all other facilities to the workers which they deserve. Under the term Labour Welfare BHEL is providing: 1.) Canteen facility 2.) Rest rooms 3.) First aid facility 4.) Employee provident schemes 5.) Employee related insurance schemes 6.) Employee pension schemes 7.) Employee gratuity fund 8.) Payment of bonus 9.) Leave and holidays a) Casual Leave b) Half pay Leave c) Maternity Leave 10.) Loans a) Housing loan b) Festival advance 11.) House rent allowance 12.) Hindi encouragement (motivation) allowance

32

2.) Industrial Relation Department: This department takes care of the relation of the organization with its stakeholders. The Industrial Relation Department of BHEL deals with:

External Environment 1. Customer: BHEL focuses on the customer satisfaction by keeping contact with them after the sales of the product & providing them quality services. BHEL also consults the customer about any problem faced by the customer in operating the product. 2. Supplier: BHEL is having a strong supplier relationship. As the demand of raw material in BHEL is continuous it is very important for BHEL that their supplier should supply the raw material on time so that the product can be delivered to the customer without any delay. 3. Government: The Industrial Relation Department also takes care of the relation with the government. As the government policies plays a significant role in the working and profits of the BHEL.

Internal Environment 1. Employee Employee: This department also takes care of the relation of an employee with his/her peer employee. This is very important that in a big organization like BHEL the coordination between the workers need to be good for good productivity. 2. Management Trade Union: This type of relation are very important as trade union is an important part of any organization. It gives some power to workers to raise their voices against exploitation. But sometimes they use it unethically for their benefits. So this relation management needs lot of attention & it really makes the IR Executives busy & to work hard. 3. Management Employee: This type of relation can be seen in each & every organization. In BHEL especially the executives were asked to make healthy relations with the employees. Thats makes a positive environment for workers to work. This is also taken care by IR Department.

33

3.) Recruitment Department: The recruitment department of BHEL takes care of the present & futures demand & need of the human resource. It does the recruitment & selection for the empty vacancies and continuous monitors the human resource level in the organization. The man power planning & human resource planning is also done by the same department. The recruitment decision is taken by the Head Office & then the information is forwarded to each and every BHELs Recruitment department. Then the recruitment is done by the concerned department. The recruitment for most of the jobs in BHEL is done on all India bases which provide them options to choose the best human resource available to them. This department also takes care of the reservations according to different laws of government. 4.) Performance Appraisal Department: The Performance Appraisal Department takes care of the performances of different workers in different traits. It ensures that the performance of each & every employee of the organization should be measured. This department finds out that the workers employed by the organization are performing or not. As the organization is paying them huge money so in respect of that organization wants returns in terms of high efficiency & productivity. This department measures the performance of a worker and then finds out that weather the worker is productive or not. If the worker is not productive then the training & development department will help the worker to enhance his productivity. 5.) Law Department: This department is the most important department of the organization as it continuously monitors the internal & external environment. It handles all the disputes which arises in the organization having some legal validity. The main work of this department is to apply all the laws applicable to the organization. It also checks that there should be no breach of law in the organization. In the case of any dispute in the organization the Law Department deals with that problem and provides solution.

34

 Human Resource Development Centre:

The most praised asset of BHEL is its employers. The Human Resource Development Institution and other HRD centers of the company help in not only keeping their skills updated and finally honed but also in adding new skills, whenever required Continuous training and retraining, a positive work culture and Participative style of management, have engendered developed of a committed and motivated workforce, leading the enhanced productivity and higher levels of Quality. The Human Resource Development Centre takes care of: 1.) Training & Development Department: This is the department comes under Human Resource Development Centre. It focuses in the development of the worker. This department ensures that optimum training should be given to all the workers according to the performance appraisal and also on the basis of the requirement of the organization. This department also ensures that if there is any new technology available about which the company is thinking than the training & development department needs to provide training to workers about that technology. This department always keeps contact with the top management and also with the performance appraisal department. 2.) Employee Satisfaction Department: This department also comes under the Human Resource Development Centre. It ensures that the worker should always remain satisfied so that the productivity & efficiency of the worker always be higher. The employee satisfaction in an organization matters a lot as it directly affects the productivity of the company. So the organization needs to focus this. On this basis BHEL is having a separate department for employee satisfaction to concentrate on all the factors affecting employee satisfaction.

35

SHORT STUDY ON PERFORMANCE MANAGEMENT IN BHEL, JHANSI

36

PERFORMANCE APPRAISAL
Performance appraisal is one of the oldest and most universal practices of management. It refers to all the format procedures used in working organization to evaluate the personalities and contribution and potential of group members. Performance appraisal is the systematic, periodic and impartial rating of the employees excellence in matter pertaining to his present jobs in relation to established standards, and the communication to that assessment to employees. Performance appraisal is defined as structured formal interaction between an employee and his sub-ordinate that usually take the form of a periodic interview (annual or semi- annual or any other periodicity fixed by the management) in which the work performance of the sub- ordinate as well as opportunities for improvement and skill development is examined. The above said definition specifies a check over the working capabilities or subordinates. Due to this regular check on the employees there can be an analysis over the proper functioning of the organization as a whole. A good performance appraisal system binds all the key managerial activities being carried out in a organization effectively. Performance appraisal is known as an important tool of personnel management since it reflects an evaluative judgment of the traits, characteristics as well as work performance of the employees on their jobs. Therefore the performance appraisal of an employee within an organization is of vital importance from the point of view of employees, subordinates and supervisors as well as the organization. These appraisal plans serve as a basis for counseling employees about their strength and weaknesses for improving their productive efficiency and for better superior employee relations by developing material confidence. Appraisal plans are also of great importance in the area of training, development, compensation, handling grievances and disciplinary cases.

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PURPOSE OF PERFORMANCE APPRAISAL

Performance Appraisals is used by many organizations due to the following reasons:1) Administrative- Performance Appraisal commonly serves as the administrative tool by providing employers with the rationale for making many personnel decisions. 2) Employee Development- Performance Appraisal for employees development purpose provides feedback on employees performance. Appraisal data can also be used for employee development purpose by identifying specific training need for individuals. 3) Programme Assessment- Programme Assessment requires the collection and storage of Performance Appraisal data for number of uses. The records can show how effective recruitment, selection and placement have been supplying a qualified workforce. 4) To create and maintain a satisfactory level of performance. 5) To bring about better operational and business needs. 6) To facilitate fair and equitable compensation based on performance. 7) To help the superiors to have a proper understandings about their subordinates. 8) To provide information useful for manpower planning by identifying the employees with the potential for advancement. 9) To facilitate for testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks.

38

METHODS OF PERFORMANCE APPRAISAL IN BHEL

Performance appraisal practice is one of the oldest and most universal practices of management. It refers to all formal procedures used in working organizations to evaluate the personalities, contribution and potential of group members. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisal in BHEL is done through these ways:1) Annual Confidential Report(ACR) 2) Balance Score Card (BSC) 3) MAP (Moving Ahead with Performance) BHEL have always been in favor of an appropriate performance system. It uses the definite plan to appraise its employee.

Cascade of Performance Measure

Cascade refers to the process of aligning organizational goals to individual goal in a series of step. This is done by translating the goal that are identified at organization level in to business sectors, unit functional and departmental level scorecard and onward in the form of KRA to individuals who form a part of these unit. Cascade of unit /department level goals to individual KRA ensures alignment and that the individual and group objectives and results contribute directly to achievement of organizational results.

39

BHELs Performance Measure & Targets

Financial Internal Process
Unit Performance Measure & Target

Customer Strategic Capability

Sector Performance Measure & Target

Financial

Customer

Financial

Customer

Process

Capability

Process

Capability

Departmental measure and Target

Product Group
Financial

Materials

Planning

Customer

Financial

Customer

Financial

Customer

Process

Capability

Process

Capability

Process

Capability

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ANNUAL CONFIDENTIAL REPORT (ACR)

From the time of its establishment BHEL has adopted the system of Annual confidential Report. As from the name it is understood that it is an annual report about an employees annual performance which is kept confidential. The basic intention was to keep a systematic record of the employee traits behavior and performance towards his job and the organization as a whole. This is the form of the appraisal system which is used to evaluate the Performance appraisal of the: Workers working in the organization Their supervisors. In the system of ACR there are three parties: Appraiser Reporting Officer Reviewing Officer Appraiser is the employee himself, whose assessment is to be done. It is the person who is going to be rated. Reporting Officer is the immediate boss of the appraiser and he gives rates to the employee. Reviewing Officer is the Reporting officers appraiser, who appraises the reporting officer work. EXAMPLE:If the performance appraisal of an executive is to be done, he will be assessed by his immediate supervisor or the reporting officer who will grade him on the basis of the abilities which can be the following: Administrative Technical Personality Integrity On the basis of the above qualities/abilities/traits anyone in the following categories Outstanding Very Good Good Fair Poor
41

Reporting officer grade the employee and puts his signature and seal, after this report to his immediate boss i.e., the reviewing officer. The reviewing officer carefully consider and states weather he was accepted or not. Finally the report is passed to the final accepting officer whose acceptance is necessary for the report. ACR for different category is different and there grading systems also differ to the same extent depending upon their traits (both personal as well as working).

OBJECTIVES OF ACR
To know about the strength and the weakness of the individual. To evaluate the managerial behavior and its impact on performance of the industry Advice the employees so they can make themselves better. To uncover both suitable and unsuitable personnel. To examine the level of performance of the personnel in BHEL. To evaluate the performance of employees at their working place. Creating and maintaining a satisfactory level of performance of employees in their present job. Fixation of salary, allowances, incentives and benefits.

DRAWBACKS OF THE ACR SYSTEM:

The Annual confidential report demands and depends too much on supervisors. Sometimes certain standard ratings tend to vary widely and unfairly. Some raters can be tough, and some lenient. Some departments have highly competent people whereas others have less competent people.

Personal bias can replace organizational standards. Because of the bias, some non competent employees may get a favored treatment.

Sometimes there tends to be lack of communication. The employees may not even know they are being judged. No performance appraisal system can be effective if the appraisee do not know the criteria under which they have been appraised and judged.

This system cannot substitute for sound selection, placement and training programs. A constructive congenial relationship should exist between the supervisor and his subordinate. Performance appraisal programs tend to emphasize the superiority of the supervisor which may be particularly damaging in organizations which strive at participative organizational climate.
42

BALANCE SCORE CARD (BSC)

The Balanced Scorecard (BSC) is a strategic performance management tool for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. By focusing not only on financial outcomes but also on the operational, marketing and developmental inputs to these, the Balanced Scorecard helps provide a more comprehensive view of a business, which in turn helps organizations act in their best long-term interests. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit to organizations align business

worldwide

activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. The Balance Scorecard is used for the executive class in BHEL.
Fig. showing the balanced scorecard

Objectives of the Balance Scorecard:

Implementing Balanced Scorecards typically includes four processes: 1. 2. 3. 4. Translating the vision into operational goals; Communicating the vision and link it to individual performance; Business planning; index setting; Feedback and learning, and adjusting the strategy accordingly.

The Balanced Scorecard is a framework, or what can be best characterized as a strategic management system that claims to incorporate all quantitative and abstract measures of
43

true importance to the enterprise. According to Kaplan and Norton, The Balanced Scorecard provides managers with the instrumentation they need to navigate to future competitive success. Drawback of Balanced Scorecard A criticism of balanced scorecards is that the scores are not based on any proven economic or financial theory, and therefore have no basis in the decision sciences. The process is entirely subjective and makes no provision to assess quantities (e.g., risk and economic value) in a way that is actually or economically well-founded. Another criticism is that the balanced scorecard does not provide a bottom line score or a unified view with clear recommendations: it is simply a list of metrics. However, this critique only applies to the earlier, KPI-based version of the balanced scorecard rather than later versions that use a strategy map to derive the metrics. Some people also claim that positive feedback from users of Balanced Scorecards may be due to a placebo effect, as there are no empirical studies linking the use of Balanced Scorecards to better decision making or improved financial performance of companies.

44

PERFORMANCE MANAGEMENT SYSTEM

The performance process is the sequence of the actions that supervisors and managers take when interacting with the employees about their performance. The three parts of the process are:a) Planning b) Managing c) Appraising

a) PLANNING- At the beginning of the work cycle, the supervisors and the employees shall meet to develop the employees work plan. It is the supervisors responsibility to explain the performance management process to the employees that the employee understands the importance of his role in the organization. The purpose of this planning meeting is to discuss and record the employees current

responsibilities/results and behavior/skills, the expectations that describes successful completion of each one, & the tracking sources. Behavior/skills are the actions, proficiencies or abilities and employee need to use to achieve specific results. b) MANAGING- This part of the performance management process includes the day to day tracking of the employees progress toward achieving the performance expectations. The supervisors and the employee track performance using the sources & frequency of these in monitoring. It also includes the interim review and other feedback given to the employee through coaching and reinforcing discussions. These discussions should be held at the discretion of the supervisor any time throughout the work cycle when performance changes. The overall rating must be discussed but does not have to be recorded. During the monitoring process, the work plan results, behavior/skills or expectations should be adjusted when it is determined that they have changed or are beyond the employees control to perform throughout the work cycle, the supervisor continues to coach and reinforce employees because this is the vital part of the performance management process.

c) APRRAISING At the end of work cycle, the supervisor shall meet with each
employee to discuss and record the actual result and behavior for each expectation. The supervisor must then rate each responsibility and record the rating on the work plan. If dimensions are used by the organization, the supervisors must also record the actual behavior for each expectation and the rating for each dimension on the work plan.
45

Performance Cycle at a Glance

A performance Cycle refers to the year or which your performance is being evaluated. The performance cycle of MAP is one year coinciding with BHELs financial year. MAP follows an April March cycle and consist of three phases: Performance Planning Mid-year Review Final Review

Performance Planning- It is the Planning of the Performance Plan for the year in the organization. It requires the involvement of the three i.e., Appraiser, Appraisee as well as the reviewer. Mid-Year review- It needs the involvement of both appraisee as well as the Appraiser. It is done during the period of Nov- Dec. in a year. Final Review- It requires the involvement of the three i.e., Appraiser, Appraisee as well as the reviewer. It is done during the period of April- May. Interdependencies the set of outputs and factors internal to BHEL that impact achievement of a KRA by a team or individual are taken care in a holistic manner.

46

In MAP, the process of cascade has been used due to: Breakdown targets from the organization level to business sector/unit to department and individual level. Identify the result area so KRAs applicable to unique roles in URR templates.

Feedback and Coaching The process of continuous Feedback and Coaching is inherent and critical part of MAP. The Midyear and the Final reviews are specifically focused on Feedback and Coaching and require the appraisee and the Appraiser to have a formal feedback session. For Feedback and Coaching to be truly effective, it should be provided and received on and on- going basis, when used effectively. Feedback and Coaching is a powerful means of positive impacting performance. Feedback and Coaching helps an Appraiser in both obtaining information and providing inputs on how an appraisee is performing and whether or not he/she is headed in right direction. Feedback is of various types: Positive Feedback Corrective Feedback Feedback focused on identifying obstacles to performance Feedback for the purpose of sharing information.

Obtaining Agreement While implementing MAP, occasions might arise when there are different points of view between the Appraiser and the Appraisee. In such situation, the Appraiser and the Appraisee will achieve a consensus through a process of discussion. In most cases, the Appraiser is expected to arrive at an outcome that satisfies both Appraiser and the Appraisee. In case the Appraiser feels the need, he/she can approach the reviewer for the appropriate inputs. The reviewer and the Appraiser would arrive to a solution through a process of discussion that would align the points of view of the Appraiser and the Appraisee. The Appraiser would discuss the same with the Appraisee to close the issue. The unlikely event of the need for future escalation, the issue can be taken to the reviewer for a threeparty discussion on a case basis. The Reviewer would have a joint discussion with the Appraisee and the Appraiser where the decision taken by the reviewer would be final.

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CREATING PERFORMANCE PLAN

1) Select KRAs Key Result Areas or KRAs refer to general areas of outcomes or outputs for which a role is responsible. They simply describe the areas for which one is responsible for results. These are based on the URR (unique roles and responsibilities) of the employee in an organization. A typical role targets in BHEL can extent up to 15 KRA. 2) Set Targets and Action Plans for KRAs For each KRA

to identify their KRAs. So all on a team have clarity regarding outputs o reach them

Specific Targets must be defined by the appraisee that quantifies or verities the extent of achievement in a given time frame. The targets thus defined should correspond to rating 3 meets expectations on the 5 point rating scale. 3 Assign Weights The overall weightages between KRAs and routine responsibilities for a particular URR have been predefined. The appraiser will propose weightages for each KRA and routine responsibilities. The weightages for each of the section on KRAs and routine responsibilities should total upto 100% respectively. Weightages should be allocated keeping in mind the criticality of the measure and effort required to accomplish the same. 4) Creating Development Plan Development planning in MAP focuses on building individual capability using competencies. Competencies relevant to a roll are predefined in this URR along with desired proficiency level. From the list of competencies identified for the roll, the appraiser and the appraisee will identify the maximum of three competencies as development that forms the basis of the appraisers development plan. The development plan will be drawn up by the appraisee in discussion with appraiser and will consist of learning initiatives such as training, crossfunctional exposure, short-term assignments etc.

48

FINDINGS

49

FROM EXECUTIVES
Que 1: How

much time do you spent for performance appraisal?

a) Less than 2 hour b) Between 2 to 3 hours c) More than 3 hours

Time Spent on Performance Appraisal

30 25 20 15 10 5 0 a b

27

17

No of Respondents

6
c

Inference:

The responses given by the executives clearly shows that they prefer to spent less time for doing Performance Appraisal of their subordinates.

Que 2: Is MAP System is helping to improve the performance of the organization? a) Always b) Sometimes c) Not at all

Improvement in Performance
30 25 20 15 10 5 0 a b

25

18 7
c

No of Respondents

Inference:

On the basis of the responses of the participants we can say that the MAP is playing important role in improving the performance of the organization.

50

Que 3: Do you receive feedback of your performance? a) Yes 43 Inference: b) No 7

This shows that maximum number of executives get feedbacks on their performance by their respective appraiser.

Que 4: Do you think the assessment should be confidential? a) Yes 17 Inference: b) No 33

The result related to this question clearly says that maximum no of executives want that there assessment should be disclosed to them. As by this they will come to know about their weakness and the strengths and also the areas where they are lacking.

Que 5: Do you think the performance measured is actually based on your performance and not on external elements (like bias, favoritism etc)?
a)

Yes 23

b)

No 27

Inference:

The result for this question shows that there is combined view of executives on this question. Some think the measurement is biased and some dont.

Que 6: Is the system of Balance Score Card helpful in motivating the employees? a) Yes 43 Inference: b) No 7

Executives in this question seem to be very clear that the BSC helps them to get motivated and perform more effectively in favor of the organization as BSC makes their goal very clear to them.

Que 7: Does performance appraisal increases the morale of the employee? a) Yes 41 b) No 9

Inference: Here also executives were very clear that yes the performance appraisal really increases the performance of the employee. On the basis of their experience they made their decisions. But still some new executives were also there who are not sure about it.
51

Que 8: Does any dispute with the subordinate/superior affect the rating? a) Always b) Sometimes c) Never

No of Respondents

13

22

a b c

15

Inference:

In this question majority of executives think that any dispute with subordinate/ superior will anyhow affects the rating. They believe that a dispute with subordinate/ superior gives a negative effect.

Que 9: Does performance appraisal play an important role in decisions like Transfer, Motivation and Promotion etc? a) Always b) Sometimes c) Never

No of Respondents
25 20 15 10 5 0 a b c

23 18 9
No of Respondents

Inference:

Maximum no. of executives think that the performance appraisal plays an important role in transfer, promotion as it tells about the ability of an employee.
52

Que 10: What method you adopt for appraising the performance of an employee? a) Reward System b) Promotion c) Incentives d) Oral Appreciation e) Bonus

No of Respondents a
50 47

b
46

c d e

45
50

Inference: In this question all the executives opted almost all the options. As they do all these activities for performance appraisal of any employee.

Que 12: Why the performance appraisal is done in BHEL. a) Compensation Decision d) Promotion Decision b) Personal Development e) Training & development c) Checking the results

No of Respondents
45 40 35 30 25 20 15 10 5 0 a b c d e

29

32

37

31

39

No of Respondents

Inference:

Here we can say that the executives are using mixed approach as everyone is

having their own reasons to do this.

53

FROM EMPLOYEES
Que 1: Do you know when is your ACR form filled up? a) Yes 37 Inference: b) No 13

This tells us that maximum no of employees know when there ACR form is going to be filled. Only few dont know about that.

Que 2: Are you in condition to know that which supervisor fill up your ACR form? a) Always b) Sometimes c) Never

No of Respondents
5
16

a b c

29

Inference: This result shows that most of the employees anyhow came to know about who will fill their ACR. Some of them sometimes know that any sometimes not.

Que 3: Do you feel the period of filing up of ACR form is appropriate? a) Yes b) No

39
Inference:

11

By this result we can say that most of the people are satisfied with the period after which the ACR is filled by the employees superior.

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Que 4: In your opinion ACR rating depends upon which of the Quality a) Good working capability b) Behavior with peers and subordinates c) Honesty d) Relation with superior e) Punctuality f) Your past performance

No of Respondents
60 50 40 30 20 10 0 a b c d e f

50

43 39 43 39 37
No of Respondents

Inference:

These responses of employees show that all the employee are aware of the qualities on which basis the ACR is to be filled. It also tells us that the employees know about the qualities the superior will look while doing appraisal.

Que 5: Do you think that yearly appraisal is sufficient for filing up ACR or periodical appraisal should be better? a) Yearly Appraisal 43 Inference: b) Periodic Appraisal 7

This question tells that the workers prefer yearly appraisal. Only a few want to be appraised periodically. They want to get appraised only once in a year.

55

Que 6: Does any dispute with the subordinate/superior affect the rating? a) Always b) Sometimes c) Never

No of Respondents
29
30 25 20 15 10 5 0 a b c

18 No of Respondents 3

Inference:

The diagram here directly shows that maximum people are saying that the dispute with subordinate/ superior affects the rating.

7) Is the system helpful in motivating the employees? a) Inference: Yes 41 b) No 9

This response clearly shows that the Performance Appraisal system helps the system to motivate employees.

8) Do you receive feedback on your performance? a) Yes 34 Inference: b) No 16

This questions tells us that only about 1/3 of the employee get feedback on their performance. The rest dont get which is a matter of concern.

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LEARNINGS
In spite of being a public sector enterprise the BHEL is continuously getting profits. As in an organization different workers do different type of job. On the basis of a common performance appraisal technique we cant measure their performance. BHEL uses different techniques for different levels of employees. It uses ACR for workers & supervisory level and MAP & BSR for executives levels. We cant rely on a single performance appraisal result as there are possible chances that the appraisal got affected by the personal relations. In a big organization like BHEL it is very important to take care of employeemanagement relations as any dispute can cause huge loss in terms of money & time. As the size of the organization increases the management becomes very difficult because no of peoples & departments also increases with the size. By making the working environment a little bit open we can increase the productivity a lot.

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SWOT ANALYSIS

58

STRENGTH (S): Sound engineering base and ability to assimilate Relatively stable industrial relationship Access to contemporary technologies with the support from renowned collaborators. Ability to set up power plants on turnkey basis, complete know- how for manufacture of entire equipment is available with the company. Ability to manufacture or procure to supply spares. Fully equipped to take capital maintenance and servicing of the power plants. Largest source of domestic business leading to major presence and influence in the market. Ability to successfully overhaul and renovate power stations equipment of different international companies. Low labour cost. For non- BHEL products, services and spares are not easily available and if they are, price charged are very high. Sound financial position in terms of profitability and solvency. Low debt equity ratio (even lower than 0.5:1) for all the years under study, enabling company to raise capital.

WEAKNESSES (W): Difficulty in keeping up the commitments on the product delivery and desired sequence of supplies. Larger delivery cycles in comparison with international suppliers of similar equipment. Inability to provide suppliers credit, soft loans and financing of power projects. Lack of effective marketing infrastructure. Due to poor financial position of state electricity boards, which are the major customers of BHEL in India, liquidity position of BHEL is not satisfactory. Being a public sector company BHEL is suffering from sub optimality of control due to: Displacement of social objectives by political objectives, which may lead to redundant costs and also rising costs. Direct political intervention in managerial decision over an arm length relationship that would restrict governments task of setting appropriate managerial incentive structure. Private goals that lead to budget growth and employment growth. Internal inefficiencies in bureaucratic activity.

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OPPORTUNITIES (O): Demand for power and hence plant equipment is expected to grow. Private sector power plants to offer expanded market as utilities suffers resource crunch. Ageing power plants would give rise to more spares and services business. Life expansion program for old power stations. Export opportunities. Easy processing of joint ventures/ collaboration/import/ acquisition of new technology. Financial and operational autonomy for profit making public sector enterprises. To make the public sector more efficient government has decided to grant enhanced autonomy and delegation of powers to the profit making public sector enterprises. THREATS (T): Increased competition both national and international. Multilateral agencies reluctant to lend to power sector because of poor financial management of S.E.Bs More concessions to private sector and not to government owned utilities like NTPC or S.E.Bs, so future power projects would be opened up in private sector. Level playing ground not available, foreign companies spending much more on business promotion tactics. Technical suppliers are becoming competitors with the opening up of the Indian economy.

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CONCLUSION
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employees abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. A proper and systematic appraisal of an employee in an organization is not only necessary at the time of his/her recruitment, selection and placement but it is very useful and desirable to make an appraisal of performance of such an employee on an continuing basis during his/her working life. Performance Appraisal system of the company is very minutely designed and implemented. This is helpful in making all the organizations decision such as promotion, transfer identification of training and development needs and individual planning. To conclude we would say that the changes are for the betterment of the organization. The employees in the organization are rated on the basis of different area of job work. In BHEL we have seen that over a period of years different policies are adopted starting with ACR which is meant for the employees and fully manual in which appraisee has no say over his assessment. The ACR system is fully confidential and its rating is not revealed to the employees except the performance of the employee is below Good. The annual confidential report of the employee is formulated by his/her immediate boss. Another system for appraisal of the executives is the BSC along with map that is moving ahead through performance, with the assistance of a US based company m/s Hevett. This is the online system of appraisal which is used in the organization by the appraisee. This is the transparent assessment of the employees as the appraisee can review his performance rating of his appraiser as well as the reviewing officer. The Organization (BHEL) has always been in favor of appraising its employees through one or the other means. But it have also been taken care of that that the appraisal of the employee is done on the fair and just means and it does not hurts the sentiments of its employees.
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BIBLIOGRAPHY
Books/Journals/Magazines: In-house magazines of the organization Data sheet given by the Executives

Websites: http://www.bhel.com/home.php http://www.indiatoday.intoday.in/site/Story/65466/Cover%20Story/BHEL:+Heavy+ Duty.html http://www.bheljhs.co.in/

Personal Interview: Personal talk with different department executives

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