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A PROJECT REPORT ON
CONTENTS
CHAPTER-I
PAGE. NO.
INTRODUCTION
NEED FOR THE STUDY
SCOPE OF THE STUDY
OBJECTIVES OF THE STUDY
RESEARCH METHODOLOGY
LIMITATIONS OF THE STUDY
01-33
CHAPTER-II
REVIEW OF LITERATURE
34-41
CHAPTER-III
COMPANY PROFILE
42-55
CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
56-71
CHAPTER-V
FINDINGS, CONCLUSIONS, SUGGESTIONS
BIBILIOGRAPHY
APPENDICES
72-74
CHAPTER-I
INTRODUCTION
1.0 INTRODUCTION:
Organization development is an effort (1) Planned (2) Organization wide and (3) managed
from the top, to (4) Increase Organization effectiveness and health through (5) Planned
Interventions in the organizations process using behavioral-science knowledge.
-Richard Beckhard
Organizational Development requires a plan approach to change based on meeting the
needs of both the people in the organization
-Kilion &Harrrison(1990)
Due to globalization and redefining in the field of information Technology, the
advancement and applicability of Organizational Development has changed. Luckily,
most of the organizations
If executives recognize that there are inadequacies within organization which can be
corrected by OD activities, it is necessary to find out the professional and competent
people within the organization to plan and execute OD activities. If competent people are
not available within the organization the services activities are to be taken. The
consultants adopt various methods including interviews, questionnaires, direct
observation, analysis of documents and reports for diagnosing the problem.
Survey method is used to collect the data and information for determining organizational
climate and identifying the behavioral problems.
Data collected are analyzed and reviewed by various work groups formed from this
purpose in order to mediate in the areas of disagreement or confrontation of ideas or
opinions and to establish priorities.
The interventions are the planned activities that are introduced into the system to
accomplish desired changes and improvements. At this stage the suitable interventions are
to be selected and designed.
The consultants encourage the employees throughout the process to form into groups and
teams by explaining the advantages of the teams in the OD process, by arranging joint
meetings with the managers, subordinates etc.
The consultants encourage the inter group meetings, interaction etc., after the formation
of groups/teams.
The organization finally has to evaluate the OD programs, find out their utility, and
develop the programs further for correcting the deviations and/or improved results. The
consultants help the organization in this respect. All the steps in the OD processes should
be followed by the organization in order to derive full range of OD benefits.
The following a few of most common OD Interventions, that most
of the companies
practice:
sharing its experiences and organizing National Seminars in association with other
National Bodies and thus the Q.C movement started catching up.
Family.
Organization.
Departments.
Informal Groups
Five salesmen from marketing department meet once a month for lunch to discuss
mutual concerns and to seek relief from tedious aspects of their job.
Four computer programmers form a jogging club that meets three days per week
at lunch time to run two miles.
All employees of a section meet and discuss how to improve and beautify office
layouts.
Seven workers of a production shop floor meet once a week to solve their
technical problems.
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Usually the members of a particular team (quality circle) should be from the same work
area or who do similar work so that the problems they select will be familiar to all of
them. In addition, interdepartmental or cross functional quality circles may also be
formed.
An ideal size of quality circle is seven to eight members. But the number of members in a
quality circle can vary.
Small Groups
Action Circles
Excellence Circles
Productivity Circles
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Each meeting lasts for approximately one hour, though variations are possible.
Apart from the frequency of the meetings, what is important is the regularity of
the meetings.
Analyzing problem(s).
12
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1. BRAIN STROMING:
Stimulating generation of ideas in a group is done through brain storming, which more
effective then is trying to generate ideas alone brain storming helps to realize the creative
power of the group. It is also helps effective group participation. Its effectiveness would
increase with the skill of application by the leader.
Brain storming generally usually three stages by quality circles.
1. While listing out the problem,
2. While listing out the probable causes influencing the effect,
3. While listing out the suggestions /recommendations,
Guidelines for brainstorming:
Each member, by rotating, is asked for ideas (this continues unit all ideas are exhausted),
only one idea is offered by individual per turn,
Member having no idea, just says Pass
No idea should be treated as stupid (criticizing or ridiculing any idea would in habit free
flow of ideas
Rigid formality may be avoided good natured humor would enthuse members to open up
freely,
Leader should help in summarizing an idea and guide members in clarity of expression,
No evaluation of ideas is done during brain storming,
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A black-board or a large sheet of paper could be used for listing out ideas.
Brain storming technique can be fruitfully used to identify problems effecting the work
area; factors which help prevent potential problem causes responsible for problems,
solutions to problems to etc.
2. DATA COLLECTION:
Data is nothing but collection of act in terms of figures, which gives a clear picture of any
work situation allows for comparison. data collection forms the first step in statistical
analysis of a problem. it would also form a sound basis for decision making and
corrective action. The analysis and solution would depends on the correctness and
accuracy of data must be related to the problem under review
Types of data
Generally data can be of two types one variable i.e. which is measurable, eg.length,
weight, time, etc, and the other attribute .i.e. which is countable data, is a example:
smooth running of a machine small etc,(attribute).
Source of data:
There are two sources f data, past data(previous record, previous feedback) and live data
(current observations).
Past data:
In many cases the required data will be ready available with some agency or the recorded
through a feedback system. The data so available is termed as Past data. The past data
helps to have a preliminary study and to understand the causes of the problem.
15
Live Data:
Where such a recorded data is not available we have to systematically collect data
through observation over a period of time and this is termed as Live data.
Collection of data:
Before the start of the data collection, one should be clear in his mind about the
parameters or characteristics and their periodicity for which data is to collected. For easier
collection of data, a Pre-designed checklist/format/ check sheet or any designed format as
per the requirement could be used. This would simplify the process of analysis.
SI.
No
Name of the
machine
Type of
operation
Vertical Boring
Bring
Horizontal Lathe
Turning
Coil Winding
Final Taping
Grinding
Final
Grinding
Cutting
Length
Cutting
No of components made
Accepted
Rejected
Any special
Reminder
Analysis of data
After the data is collected, it is analyzed and information is extracted by applying
statistical method. Decision making or further course of action should be based on
analyzed data.
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3. STRATIFICATION:
The technique of data segregation based on segregated element is called stratification data
collected should be properly classified for giving meaningful and correct inference.
The stratification of data is nothing but segregation of are groping the data. machine wise,
operator wise, shift wise etc,. for identifying the influencing the factors
Material Base:
data is stratified n the basis of the supplier of the materials, delivery lot of the materials,
preliminary process etc, by this the effects of the materials have on the quality of the final
product.
Quality Base:
Data is stratified by kinds f products specification etc. if phenomenon inherent to a
special group of product can thus be traced.
Work Base:
Stratification on the basis of worker is often very effective.
Time base:
Data is stratified by the seasons, day-and-night, atmospheric conditions such as
temperature, humidity and physiological conditions of the workers differ from time to
17
time. the influence of these elements on quality is sometimes founded by time based
stratification .
Surrounding conditions:
The quality of product may be influenced by such surrounding conditions as weather,
productions schedules, tightness r slowness of the market etc.
Processing:
Element such as production equipment, measuring instrument, manufacturing methods
etc. There are more stratification bases other than the listed above.
4. PARETO ANALYSIS:
Pareto was an Italian economist who discovered a universal relationship between value
and quantity and he used this technique for assessing uneven distribution of wealth.
Pareto analysis helps in the identification of the vital few trivial many at a glance hen
projected, using the column graph named after Pareto diagrams are frequently used to
select the few important problems out of many.
What is Pareto Diagram:
Pareto diagram is a column graph, drawn after data collection for the purpose of:a. Differentiating the major factors (vital) that contributes most to the
unsatisfactory situation from other minor ones (trivial).
b. Trackling the major factors responsible for any problem.
How to prepare Pareto diagram:
Stratify the problem points according to purpose (by causes, by phenomena, by
equipment) and represent them numerically,
18
Preferably data should be expressed in monetary values rather than quantity, counts or
percentage,
Select a data period proper for the purpose,
Arrange the stratified items in descending order of value and bar chart ,in descending
order of value and draw a bar chart,(on a graph paper)
PARETO CHART
Simple example of a Pareto chart using hypothetical data showing the relative frequency
of reasons for arriving late at work.
A Pareto chart is a special type of bar chart where the values being plotted are arranged in
descending order. The graph is accompanied by a line graph which shows the cumulative
totals of each category, left to right. The chart is named after Vilfredo Pareto, and its use
in quality assurance was popularized by Joseph M. Juran and Kaoru Ishikawa.
Typically on the left vertical axis is frequency of occurrence, but it can
alternatively represent cost or other important unit of measure. The right vertical axis is
19
the cumulative percentage of the total number of occurrences, total cost, or total of the
particular unit of measure. The purpose is to highlight the most important among a
(typically large) set of factors. In quality control, the Pareto chart often represents the
most common sources of defects, the highest occurring type of defect, or the most
frequent reasons for customer complaints, etc.
The Pareto chart was developed to illustrate the 80-20 Rule that 80 percent of the
problems stem from 20 percent of the various causes.
The Ishikawa diagram (or fishbone diagram or also cause-and-effect diagram) are
diagrams, that shows the causes of a certain event. A common use of the Ishikawa
diagram is in product design, to identify potential factors causing an overall effect.
Overview
Ishikawa diagrams were proposed by Kaoru Ishikawa in the 1960s, who pioneered quality
management processes in the Kawasaki shipyards, and in the process became one of the
founding fathers of modern management.
It was first used in the 1960s, and is considered one of the seven basic tools of quality
management, along with the histogram, Pareto chart, check sheet, control chart,
flowchart, and scatter diagram. See Quality Management Glossary. It is known as a
fishbone diagram because of its shape, similar to the side view of a fish skeleton.
20
Mazda Motors famously used an Ishikawa diagram in the development of the Miata
sports car, where the required result was "Jinba Ittai" or "Horse and Rider as One". The
main causes included such aspects as "touch" and "braking" with the lesser causes
including highly granular factors such as "50/50 weight distribution" and "able to rest
elbow on top of driver's door". Every factor identified in the diagram was included in the
final design.
Causes
Causes in the diagram are often based on a certain set of causes, such as the 6 M's, 8 P's
or 4 S's, described below. Cause-and-effect diagrams can reveal key relationships among
various variables, and the possible causes provide additional insight into process
behavior.
Causes in a typical diagram are normally grouped into categories, the main ones of which
are:
The 6 m's
Machine, Method, Materials, Maintenance, Man and Mother Nature (Environment)
(recommended for the manufacturing industry).
Note: a more modern selection of categories used in manufacturing includes Equipment,
Process, People, Materials, Environment, and Management.
The 8 p's
Price, Promotion, People, Processes, Place/Plant, Policies, Procedures, and Product (or
Service) (recommended for the administration and service industries).
THE 4 S'S
Surroundings, Suppliers, Systems, Skills (recommended for the service industry).
Causes should be derived from brainstorming sessions. Then causes should be sorted
through affinity-grouping to collect similar ideas together. These groups should then be
21
labeled as categories of the fishbone. They will typically be one of the traditional
categories mentioned above but may be something unique to your application of this tool.
Causes should be specific, measurable, and controllable. Appearance
A generic Ishikawa diagram showing general (red) and more refined (blue) causes for an
event.
Most Ishikawa diagrams have a box at the right hand side, where the effect to be
examined is written. The main body of the diagram is a horizontal lines from which stem
the general causes, represented as "bones". These are drawn towards the left-hand side of
the paper and are each labeled with the causes to be investigated often brainstormed
beforehand and based on the major causes listed above.
Off each of the large bones there may be smaller bones highlighting more specific aspects
of a certain cause, and sometimes there may be a third level of bones or more. These can
22
be found using the '5 Whys' technique. When the most probable causes have been
identified, they are written in the box along with the original effect. The more populated
bones generally outline more influential factors, with the opposite applying to bones with
fewer "branches". Further analysis of the diagram can be achieved with a Pareto chart.
6).HISTOGRAM:
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Examples
As an example we consider data collected by the U.S. Census Bureau on time to travel to
work (2000 census, [1], Table 2). The census found that there were 124 million people
who work outside of their homes. This rounding is a common phenomenon when
collecting data from people.
Check sheet
The check sheet is a simple document that is used for collecting data in real-time and at
the location where the data is generated. The document is typically a blank form that is
designed for the quick, easy, and efficient recording of the desired information, which can
be either quantitative or qualitative. When the information is quantitative, the check sheet
is sometimes called a tally sheet.
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Classification:
A trait such as a defect or failure mode must be classified into a category.
Location:
The physical location of a trait is indicated on a picture of a part or item being evaluated.
Frequency:
The presence or absence of a trait or combination of traits is indicated. Also number of
occurrences of a trait on a part can be indicated.
Measurement Scale:
A measurement scale is divided into intervals, and measurements are indicated by
checking an appropriate interval.
Check List:
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The items to be performed for a task are listed so that, as each is accomplished, it can be
indicated as having been completed.
7).CONTROL CHART
26
The control chart, also known as the Stewart chart or process-behavior chart, in
statistical process control is a tool used to determine whether a manufacturing or business
process is in a state of statistical control or not.
Overview
If the chart indicates that the process is currently under control then it can be used
with confidence to predict the future performance of the process. If the chart indicates
that the process being monitored is not in control, the pattern it reveals can help determine
the source of variation to be eliminated to bring the process back into control. A control
chart is a specific kind of run chart that allows significant change to be differentiated from
the natural variability of the process.
This is a key to effective process control and improvement. On a practical level the
control chart can be seen as part of an objective disciplined approach that facilitates the
decision as to whether process performance warrants attention or not.
Types of Control charts: A Control chart form Varies According to Kind of data it
contains .For variable data the following charts are used
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1. P-chart=Fraction defective,
2. np-chart=No. of defectives,
3. c-chart=No. of defects.
Co-ordinator
To organize 2 day training program for all Newly joined members and also to organize
refresher program to existing members.
1. All the Ne Members shall be given a 2 day class room training on simple problem
solving Tools, Presentation techniques.
2. As per training need identified by area co-ordinator, one day refresher programs
shall be organized to members of Existing Circles.
3. Organizing appreciation programs t area coordinators, Facilitators.
4.
Training Shall be planned based on the requirement as at pint 4 above, and get
incorporated in HRDC Calendar.
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To plan the budget and obtain financial concurrence towards Delegation fee for Quality
Circles participation in External conventions, and for organizing AUQCC for the year. To
plan, get approved for the procurement of mementos for distribution to eligible quality
circles as per norms.
To plan the budget and obtain financial concurrence towards inter unit Quality
Circle Convention f BHEL (On rotation of Major Units of BHEL,BHEL Hyderabad may
have to host once in 5 years)
Leader: Quality circle leader organizes and conducts quality circle meetings /activities
as per schedule and records meeting notes in the meeting register. Leads the team in all
activities.
Dy.Leader: In the absence of leader, Dy.Leader will take over as leader role.
Members: All members including leader, Dy.Leader are equal in sharing, discussing
problems, coming out with solutions and implementations of solution for the problem
with the consent of concerned work centre in-charge. Through the Quality Circles are
voluntary, they have responsibility of functioning with in a frame work of rules of
company for the improvement.
Executive Guide: The person chosen to guide the team possessing-work area job
knowledge, Basic SQC skills and PPT skills. Executive Guide shall support the circle in
implementation of solution, providing technical inputs, preparation of presentation etc.
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Approve the guide lines for measuring the effectiveness of Quality Circles
Self development.
Recognition.
Achievement satisfaction.
First annual unit Quality circle convention was held in august 1985.
BHEL, Hyderabad as adjudged as the Best organization for promoting Quality circles
for seven consecutive years from Andhra Pradesh productivity council (1997-2003).
Best organization for promoting quality circles from QCFI from 2003 onwards
BHEL, Hyderabad initiated student quality circles first time in schools of township.
BHEL, Hyderabad circles participated in international Quality circles conventions held at
Bangkok (2004), Bali (2006-Silvel medal) Beijing (2007-Gold medal) and Singapore
(2008)
2.
3.
4.
RESEARCH METHOLOGY
As the organization identified human resource as their asset, taking care of them is very
important to make them motivate for the achievement of the goal. How welfare activities
to be structured so that it should be up to the satisfactory level of the employees is very
critical.
Quality Circles are to know the Quality circle activities and hoe it is practiced, and to
know whether the employees are aware of it and availing the benefits.
35
The main objective of Quality Circles is self and mutual development, cohesive team
work and engaged in continuous improvement activities, thus improving their quality of
work life.
METHODOLOGY:
The methodology used in this project has been that of unstructured interview of the guide,
which has facilitated the extractions of information. Although there has been a structured
questionnaire to capture the information.
DATA COLLECTION
Primary data
Collected through responses of employees related to the topic with the help of the
structure questionnaire.
Secondary data
Collected through Broachers news magazines, Hand Books, corporate journals and apex
manuals, web sites.
2.Aware
6.Sometimes
10.To some extent
13strongly disagree
3.only basics
4.Not aware
7.rarely
8.Never
11.satisfied
14.Important 15. Very important
SAMPLING
Population
Sample size
ANALYTICAL APPROACH
The assumption has been carried out with the help of chi square method, presuming
hypothesis for each question. Pie chart representation shows the percentage responses
received from the questionnaire.
ASSUMPTIONS
36
The study assumes that the information revealed by the respondents is authentic and not
misleading.
The experimenters had no control over the extent to which managerial support of
the QC programs differed in the work groups and organizations under the study
experimenters had no control over any differences in training emphasis and/or technique
to which the various QC were exposed.
37
CHAPTER-II
REVIEW OF LITERATURE
38
39
Metz (1980) and Cole ((1980) have warned that failure to include and /or educate
middle management personnel when QC programs are initiated can lead to oppositional
when QC programs are initiated can lead to oppositional and obstructional attitudes and
behaviors on the part of supervisors. these attitudes and behaviors stem from the belief
the circle activities are an infringement on their ( the supervisors) own job
responsibilities and/or QC suggestions are a reflection of their own inadequate job
performance (and hence represent a threat to their job security) Burck (1981) points to
the importance of a trusting relationship between management and employees as a
necessary ingredient for QC success. Cole (1980b) further emphasizes the importance of
financial incentives and recognition as additional motivators for QC members.
40
Sullivan (1981) that assessing QC effectiveness may cannot be possible or cost effective
in the near term because of the difficulty in isolating the effects of one relatively small
component of an integrated organizational structure, research must be conducted in to the
area if the QC concept is to be anything more than merely a passing fad (Ouchi, 1981)
Only four studies QC outcomes presently appear in the literature. The first, an
uncontrolled field experiment conducted by general dynamic Pomona Division (Hunt,
1981) reports the results of a six month pilot program, the purpose of which was to
provide information for management as an aid for the evaluation of the long range
potential of QCs within the firm. Several morale, motivation and performance criteria
were monitored with before and after comparisons made for Quality Circle members
and other employees. No mention was made of controls for possible differences between
members of the QC group and the other employees comparison group; nor were there
indications of controls made for changing group composition. Though the author noted
that Quality circle members demonstrated superior performance on measures of product
Quality, error reduction job involvement and problem-solving capabilities when
contrasted with other employees, these conclusions must be viewed with caution due to
the limitations of the experimental design.
In noting the need for QC program evolution, Donovan and Van Horn (1980) have
provided the following suggestions:
41
42
43
data collected six-months prior to entry in to a QC group is compared with data collected
six months following initial circle membership. A similar analysis is conducted on
performance. Information collected on employees not joining circles within the same time
frame under study for circle members. Therefore, for both circle and non circles
employees, data are collected for staggered, but identical, time intervals thud controlling
for the fact that circle members join and resign QC group at difference times during the
life of the program. Circles effectiveness can then be analyzed by calculating the
difference with in circles members six-months before and six-months after entry in to the
QC program while concurrently performing a similar analysis of non circle members over
the identical six months intervals. Group and individual comparisons can then be made.
Employee attitudes, as measured by a survey, were assessed When the work attitudes of
those who had participated in QC activity for at least six-months were concurrently
compared with the work attitudes of untrained QC members,the formed were found by
Tortorich et al. to demonstrate a number of more positive work attitudes. For the year
1980, significant differences (P=.05) were found between the comparisons groups for the
following job related attitudes: employee supervisor relations, satisfaction which
supervisor, employee influence, internal motivation, job satisfaction, team climate,
growth satisfaction and job performance. In short, the results suggested that QC groups
can provide potentially help full inputs to the managerial decision making process as well
44
The
45
control groups before the intervention is initiated A statistical correction adjusting for
pretest differences was then made group differences on the posttest were evaluated in
order to compensate for pre-existing group differences. The data were analyzed
employing stepwise hierarchical regression analysis with the result that no significant
increases in R2 were observed for the 23 OAP attitudinal measures. This suggests that QC
participation did not significance impact employee work attitude through the authors
state that the following methodological limitations severely impacted study results:
1. Because QC groups were formed at staggered intervals, some did not have enough
time to reach maturity prior to post test data collection. Three of the six QC groups
functioned for less than one month when post test data was collected.
2. Experimental mortality (discussed above)
3. Several significant demographic differences existed between the treatment and control
groups at the studys outset.
4. Behavioral and group effectiveness outcomes of QC participation were not measured.
5. The sample size was small: the treatment condition contained only 14 functional work
units, enhancing the likelihood of Type II errors.
The interpretability and generalized of findings are restricted by these limitations, yet this
study is important from a historical perspective. It is the first research reported by these
limitations, yet this study is important from a historical perspective. It is the first research
reported in the QC literature that assesses attitudinal outcomes of QC activity while
employing an experimental design that incorporates control group comparisons and
statistical control for non Equivalent of matched groups.
Whereas research regarding the outcomes associated with the QC approach to employee
participation in decision making is quite in both its scope and methodology, much work
has been coming the more general area of participative decision making. It is to the body
46
CHAPTER-III
COMPANY PROFILE
47
COMPANY PROFILE
BHEL (Bharat Heavy Electricals Limited) is the largest engineering and manufacturing
enterprise in India in the energy-related/infrastructure sector.
2.1 Manufacturing
Establishments in the Manufacturing sector are often described as plants, factories, or
mills and characteristically use power-driven machines and materials-handling
equipment.
Manufacturing establishments may process materials or may contract with other
establishments to process their materials for them. Both types of establishments are
included in manufacturing.
BHEL was founded in 1950s.Its operations are organized around three business sectors:
Power.
Industry-including Transmission, Transportation, and Telecommunication & Renewable
Energy.
Overseas Business.
2.2 Industry
BHEL has also emerged as a major supplier of controls and instrumentation systems
especially distributed digital control systems for industries, and simulators for various
applications.
BHEL is supplying X'mas tree valves and well heads up to a rating of 10,000 psi to
ONGC and Oil India. It can also supply on-shore drilling rigs, sub-sea well heads, super
deep drilling rigs, desert rigs and heli-rigs.
48
2.3 Transmission
BHEL supplies a wide range of transmission products and systems of up to 400 kV
class. Those include: high-voltage power and distribution transformers, instrument
transformers, dry-type transformers, SF6 switchgear, capacitors and ceramic insulators.
Equipment for high-voltage direct current (HVDC) systems are also supplied, for
economic transmission of bulk power over long distances. Series and shunt
compensation systems are also manufactured to minimize transmission losses.
BHEL has developed and commercialized the countrys first indigenous 36 kV Gas
Insulated Substation and has also developed 145 kV Gas Insulated Substation (GIS)
which has undergone successful testing at CESI, Italy.
BHEL has also established its capability in the area of Flexible AC Transmission
systems (FACTS).
2.4 Transportation
Most of the trains of the Indian Railways are equipped with BHELs traction and
traction control equipment.
India's first underground metro at Calcutta runs on drives and controls supplied by
BHEL.
The Company has developed and supplied broad gauge 3900 HP AC locomotives,
5000/4600 HP AC/DC locomotives, diesel shunting locomotives of up to 2600 HP,
battery powered road vehicles, including electrics & control electronics.
BHEL has acquired the technology for 6000 HP 3-phase AC Locos and started
manufacturing the electrics & controls as well as those for 3-phase AC EMUs, Diesel
EMUs and OHE cars.
49
2.5 Telecommunication
BHEL manufactures telecom switching equipment based on C-DOT technology, the
major products being MAX-XL of up to 40,000 lines capacity and Single Base Module
RAX for rural applications.
50
The company recorded revenues of INR331, 544.8 million ($6,962.4 million) during the
financial year ended March 2010 (FY2010), an increase of 25.2% over FY2009.
The operating profit of the company was INR55, 957.7 million ($1,175.1 million)
during FY2010, a decrease of 8.3% compared to FY2009.
The net profit was INR43, 269.2 million ($908.7 million) in FY2010, an increase of
38.9% over FY2009.
Bharat Heavy Electricals Limited (BHEL) - SWOT Analysis examines the company's
key business structure and operations, history and products, and provides summary
analysis of its key revenue lines and strategy.
2.8 Strengths
The company has 180 products under 30 major product groups that cater to the needs of
the core sector like power, industry, transmission, transportation, defense,
telecommunications and oil business.
BHEL's ability to acquire modern technology and make it suitable to Indian conditions
has been an exceptional strength of the company.
Strong relationship with NTPC is strength as NTPC is planning a capacity expansion of
Rs. 52 bn and based on the past, 85% of NTPC projects have been bagged by BHEL.
The company also enjoys purchase price preference.
Huge investment in R&D.
Merger & Acquisition The Company has taken over the Management & Control of
Bharat Pumps & Compressors Ltd and completely taken over M/s- Bharat Heavy Plate
& Vessels Ltd.
2.9 Opportunities
The power sector reforms are expected to pick up in the near future in India, which
would directly benefit BHEL.
Increase in defense budget will increase the top line for the company.
NTPC is planning additional capacities to the tune of 2,800 MW, at a cost of Rs 52 bn.
51
BHEL could benefit a lot as it has happened in the past that significant portion of the
project of NTPC is handled by BHEL. Nearly 85% of the NTPC projects were assigned
to BHEL only.
Huge order for setting up of nuclear power plant
L&T
SUZLON
BEML
BGR ENERGY
AIA ENGINEERING
ALFA LAVAL
PRAJ INDUSTRIES
SANGHVL MOTORS
WALCHAND NAGAR
VISION
A World-class Engineering Enterprise Committed to enhancing Stakeholder
Value.
MISSION
To be an Indian Multinational Engineering Enterprise providing Total Business
Solutions through Quality Products, Systems and
other HRDCs of BHEL but also as an important Training and Development Centre in the
twin cities of Hyderabad [Andhra Pradesh].
VALUES
Zeal to Excel and Zest for Change
Integrity and Fairness in all Matters
Respect for Dignity and Potential of Individuals
Strict Adherence to Commitments
Ensure Speed of Response
Foster learning, Creativity and Team-Work
Loyalty and Pride in the Company
OVERVIEW OF BHEL
Established in the mid fifties, Bharat Heavy Electricals Limited-BHEL, has today
emerged as the largest engineering and manufacturing enterprise of its kind in India and
ranks amongst the top ten power generation equipment manufacturers in the world. BHEL
has diversified its product base over the years and today caters to the needs of almost all
the key sectors of the economy. In addition to the power generation equipment, BHEL
products cater to a wide spectrum of customers encompassing various fields of operation,
like Fertilizers & Petrochemicals, Refineries, Oil Exploration and production, steel and
53
metals, cement, sugar and paper plants, transportation and non-conventional energy
sources etc.
With a massive network of 14 manufacturing Units located at various important
centers all over India, BHEL manufactures almost all critical high technology products
required for power sector like Gas Turbines, Steam Turbines, Turbo generators, Boilers,
Pumps and Heat exchangers, Pulverizes and electrical switch gears.
With strategic alliances and technological collaborations with world leaders for its
products, BHEL's technological strength is today on par with the best in the world.
The BHEL, which set up its first in Bhopal was established in the year 1956. It is
the first and largest industrial undertaking in the country manufacturing power equipment.
It has now 4 Regional Centers,
The
corporate head-quarters is located in New Delhi. In the early sixties three major plants
were set up at Haridwar, Hyderabad and Tiruchirapalli. Its products cover a wide range
like power, transmission, industry, transportation, oil and gas, telecommunication etc.,
besides non-conventional energy systems. The other areas covered by the BHEL includes
defense and civil aviation. Its services extend from Project Feasibility Studies to after
sales service including undertaking turn-key projects. Its credibility and standing in the
industrial scene of the country is evident from the report of the World Bank as the Indian
Public Sector wherein it is described as One of the most efficient enterprises in the
industrial sector, at par with international standards of efficiency. BHEL has acquired the
ISO-9000 Certification for most of its operations.
According to the organizations vision 2002, it aims to become a world class,
innovative, competitive and profitable engineering enterprise providing total business
solutions. Its declared mission is to acquired the status of leading engineering enterprise
54
providing quality products, systems and services in the field of energy, transportation,
industry, infra-structure and other areas covered by the electricity industry.
The value system of the organization envisages meeting commitments to
customers, both internal and external, faster learning experiences and creativity among
the work force, maintain the dignity of the individuals working in the organization as well
as customers and outsiders, promote loyalty and a sense of pride among the workers,
encourage team spirit, create a zeal to excel and follow a policy of fairness among all
those with whom it deals.
The leadership styles in the organization are oriented towards fostering and
sustaining organizational values, empowering everyone with responsibility but ensuring
accountability at all levels. The leadership styles include a vision, courage, credibility,
versatility with due importance given to recognition of merit, acting on feedback from the
lower levels and counseling those who need it, adopt a system of information sharing and
consultation. In short, it would like to project itself as a role model for others.
The organizational objectives of BHEL has been carefully and judiciously formulated to
ensure study growth in the current global environment of competition, secure a
reasonable and adequate return on the capital invested, ensure a high degree customer
satisfaction, to motivate its employees for performance of improvement and aim as a
career growth within the organization to achieve technological up gradation and to fulfill
the expectations of its share holders, customers and the BHEL manufactures wide range
of transmission equipment such as transformers, reactors, switches, control relay panel,
insulators, capacitors, instrument transformer sets etc. It has developed capability to
provide a wide variety of electrical, electronic and mechanical equipment for industrial
requirements particularly fertilizers, petrochemicals, coal mining etc. Its role in the
55
transportation sector as today over 60% of the Indian Railways is equipped with the
traction equipment manufactured by the BHEL. Its investment in the development of oil
and gas industry in the country, both on shore and off shore is considerable. Its entry into
the telecommunication industry has given India an Electronic Private Automatic Branch
Exchange (EPABX) system, the Rural Automatic Exchange (RAX) based on indigenous
technology from C-Dot. The latest digital switching used in these exchanges and their
network capability opens up endless possibilities.
BHELs engineering and R&D efforts are focused on improving the quality of its
products, upgrading the existing technologies, accelerating the process of indigenization
and diversifying its products.
It is a matter of pride to the country that BHELs products and services are used in
over 50 countries all over the world. It caters to export orders ranging from individual
specified products to complete power stations.
BHELs future plans include up gradation of its product engineering manufacturing
technology through induction of the state of the art technologies and absorption of
knowhow and know why its collaborators form.
BHELs strength lies in its dedicated work force, of about 63,000 employees who undergo
entry and on the job training to promote appropriate work culture through participatory
management techniques to meet the challenges of the current millennium.
56
heat exchangers, switch gears etc. Around 7000 employees work in the Hyderabad unit
of whom about 1500 are executives, 1200 supervisors and 4300 others.
As a member of the prestigious 'BHEL family', BHEL-Hyderabad has earned a reputation
as one of its most important manufacturing units, contributing its lion's share in BHEL
Corporation's overall business operations.
The Hyderabad unit was set up in 1963 and started its operations with manufacture of
Turbo-generator sets and auxiliaries for 60 and 110 MW thermal utility sets. Over the
years it has increased its capacity range and diversified its operations to many other areas.
Today, a wide range of products are manufactured in this unit, catering to the needs of
variety of industries like Fertilizers & Chemicals, Petrochemicals & Refineries, Paper,
sugar, steel, etc.
BHEL-Hyderabad unit has collaborations with world renowned MNCs like M/S
General Electric, USA, M/S Siemens, Germany, M/S Nuovo Pignone, etc BHEL is the
largest
engineering
and
manufacturing
enterprise
in
India
in
the
energy-
related/infrastructure sector, today. BHEL was established more than 40 years ago,
ushering in the indigenous Heavy Electrical Equipment industry in India - a dream that
has been more than realized with a well-recognized track record of performance. The
company has been earning profits continuously since 1971-72 and paying dividends since
1976-77.
BHEL manufactures over 180 products under 30 major product groups and caters
to core sectors of the Indian Economy viz., Power Generation & Transmission, Industry,
Transportation, Telecommunication, Renewable Energy, etc. The wide network of
BHEL's 14 manufacturing divisions, four Power Sector regional centres, over 100 project
sites, eight service centers and 18 regional offices, enables the Company to promptly
serve its customers and provide them with suitable products, systems and services --
57
efficiently and at competitive prices. The high level of quality & reliability of its products
is due to the emphasis on design, engineering and manufacturing to international
standards by acquiring and adapting some of the best technologies from leading
companies in the world, together with technologies developed in its own R&D centers
Product Profile:
Gas turbines
Heat Exchangers
Steam turbines
Pumps
Pulverizes
Turbo generators
Compressors
Switch Gears
Gear Boxes
Oil Rigs
Project Engineering
BHEL HRDC
BHEL has been a pioneer in the area of Human Resource Development, being the first
Public Sector Undertaking of its kind, in India, to have setup an extensive HRD
infrastructure as way back as the early sixties. Human Resource Development Centre
(HRDC) of BHEL R.C.Puram, Hyderabad occupies a significant place not only among
other HRDCs of BHEL but also as an important Training and Development Centre in the
twin cities of Hyderabad [Andhra Pradesh].
Since its inauguration (earlier known as Technical Training School) on 8th July
1963 by Sri K.Kamaraj, the then Chief Minister, Madras, today's HRDC, R C Puram,
Hyderabad has come a long way, bagging the prestigious Golden Peacock National
Training Award .
We organize and conduct different kinds of Training and Development programs for our
employees, customers, suppliers, and others. The spirit at our HRDC is continuous
learning and "the learning" which move towards focussed Individual and Organizational
Growth.
BHEL has a Human Resource Development Center the provision of knowledge, skills and
appropriate attitudes among its work force.
(ii)
(iii)
(iv)
(v)
Its track record can boast of continuous profits from 1971 and paying dividends from
1976.
BHEL has installed equipment for over 62000 mw of power generation for utilities,
captive and industrial users. Supplied 2,00,000 MVA Transformer capacity and sustained
equipment operating in transmission and distribution network up to 400 kv AC and DC.
Supplied over 25,000 motors with drive control system to power projects, petrochemicals,
refineries, steel, aluminum, fertilizers, cement plants, etc. Supplied traction electrics and
AC/DC locos to power over 17000 km railway networks. Supplied over one million
valves to power plants and other industries.
59
The capital employed rose from Rs.23,707 millions in 1995-96 to Rs.35,985 millions in
1999-2000. The value of sales increased from Rs.48,335 millions to Rs.66,340 millions
during the same period. Thus, while the capital employed rose by about 52% the sales
rose by only 31%. The Companys profit was Rs.5, 994 millions after tax in 1999-2000
while it was only Rs.3, 502 millions in 1995-96 thus registering an increase of over 70%
(71%). In 2000-01 the companys after tax was Rs. 3,126 millions. It will be seen that
the profits of the company declined 2000-01 compared what it earned in 1995-96 and
1999-2000.
These in brief study of BHEL an electrical industry of international repute and a bright
jewel among the public sector undertakings in the country.
to interface and compliment international companies for large projects, and has exhibited
adaptability by manufacturing and supplying intermediate products to the design of other
manufacturer and original equipment manufacturers (OEMs)
The success in the area of rehabilitation and life extension of power projects has
established BHEL as a reliable alternative to the OEMs for such power plants.
CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
61
Q.1 Since how many years have you been working with this organization?
S. No
Opinion
No. of
respondents
Percentage
0-5 Years
28
28
5-10 Years
47
47
10-15 Years
14
14
More than 15
Years
11
11
100
100
Total
62
INFERENCE:
1. 0-5 Years (28%)
2. 5-10 Years (47%)
3. 10-15 Years (14%)
4. More than 15 Years (11%)
S. No
Opinion
No. of
respondents
Percentage
Fully Aware
44
44
Partially aware
31
31
only basics
21
21
Not aware
100
100
Total
63
INTERPRETATION:
Most of the employees are aware of the Quality Circles.
Q.3 Do you involve in Quality circles teams working in your work area?
S. No
Opinion
No. of
respondents
Percentage
Frequently
28
28
Some times
47
47
Rarely
14
14
Never
11
11
100
100
Total
64
INTERPRETATION:
The Majority of the respondents i.e. 47% agree and only 11% disagree with the statement
S. No
Opinion
No. of
respondents
Percentage
Yes
67
67
No
33
33
100
100
Total
65
INTERPRETATION:
Most of the employees are having membership in Quality Circles
S.
No
1
2
Opinion
Improvement in
Human Relations
Promotion of Work
Culture
No. of
respondents
Percentage
19
19
Improve Productivity
13
13
Enhance Problem
Solving Capacity
12
12
66
Total
53
53
100
100
INTERPRETATION:
The majority of the respondents i.e. 53% agree and only1% of respondent wants to make
some improvement in human relations.
Q.6 Do you think quality circle develops a participative environment in the
Organization?
S. No
Opinion
No. of
respondents
Percentage
Fully agree
55
55
To Some extent
38
38
Does not
Not aware
100
100
Total
67
INTERPRETATION:
Regarding feedback 55% of the employees are fully agree where as 3% of the employees
are not aware of quality circles.
Q.7 Do you think that quality circles team can solve the problems of your
work area?
S. No
Opinion
No. of
respondents
Percentage
Fully agree
39
39
To Some extent
55
55
Never
100
100
Total
68
INTERPRATATION:
Most of the employees are agree to take active part in quality circles team to solve the
problems in that work area
Q.8 Do you think that Quality Circles are helpful in Cost Reduction?
S. No
Opinion
No. of
respondents
Percentage
Fully agree
59
59
To Some extent
37
37
Never
100
100
Total
69
INTERPRETATION:
Out of 100 employees 59% of the employees are agree to belive Quality Circles are
helpful in Cost Reduction.
Q.9 Do you think that Quality Circles are helpful in increasing Productivity?
S. No
Opinion
No. of
respondents
Percentage
Yes
66
65
To Some extent
32
32
Never
100
100
Total
70
INTERPRETATION:
Out of the 100 employees 66% percent of the employees are agree to declare Quality
Circles are helpful in increasing Productivity
Q10. Do you think that Quality Circles are helpful in building a Positive
Work Culture?
S. No
Opinion
No. of
respondents
Percentage
Yes
70
70
To Some extent
28
28
Never
71
Total
100
100
INTERPRETATION:
Regarding feed back 70% of the employees are satisfied whereas 2% of the employees
are not satisfied with this statement.
Q11. Does the management keep track on the activities of Quality Circles?
S. No
Opinion
No. of
respondents
Percentage
Yes
56
56
To Some extent
41
41
Never
100
100
Total
72
INTERPRETATION:
Out of 100 employees 56% of the employees are agree to say the management keep track
on the activities of Quality Circles
Q12. Are you satisfied with the Quality Circle Movement in your
organization?
S. No
Opinion
No. of
respondents
Percentage
Highly satisfied
25
25
Satisfied
70
70
dissatisfied
100
100
Total
73
INTERPRETATION:
Out of 100 employees are 70 % of the employees are Satisfied with the Quality Circle
Movement in BHEL, Hyderabad.
Q13. Rate the statement Top Management is interested in motivating the
employees through Quality Circles
S. No
Opinion
No. of
respondents
Percentage
Strongly agree
22
22
Agree
61
61
Disagree
14
14
74
Can't say
Total
100
100
INTERPRETATION:
The majority of respondents i.e 61%agree and only 3%of the employees are not able to
satisfied with this statement.
Q14. Do you think quality circles are important for the growth of the
company?
S. No
Opinion
No. of
respondents
Percentage
Very important
45
45
Important
51
51
Not important
75
Can't say
Total
100
100
INTERPRETATION:
The majority of respondents i.e 51% agree and only 2%of the employees are not able to
satisfied with this statement.
Q15. Rate the statement Top Management Rewards the Quality Circle
Members for their Achievements
S. No
Opinion
No. of
respondents
Percentage
Strongly agree
28
28
Agree
66
66
Disagree
76
Can't say
Total
100
100
INTERPRETATIONS:
Out of the 100 employees 66% of the employees are agree and 28% of the employees are
strongly agree to say Top Management Rewards the Quality Circle Members for their
Achievements
Q16. Do you think involvement in Quality Circles is un-productive or waste
of time?
S. No
Opinion
No. of
respondents
Percentage
Strongly agree
Agree
Disagree
91
91
77
Can't say
Total
100
100
INTERPRETATION:
The majority of the respondents i.e.91% disagree and only 4% of the respondents agree
with this statement.
78
CHAPTER-V
FINDINGS, CONCLUSIONS, SUGGESTIONS
FINDINGS
Out of 100 employees 70% percentage of the employees agree, Quality Circles are
helpful in building a Positive Work Culture
Out of 100 employees 56% of the employees are fully agree &41% of the employees
are think To some extent to say the management keep track on the activities of Quality
Circles
Out of 100 employees are 70percentage of the employees Satisfied &25% of the
employees are highly satisfied with the Quality Circle Movement in BHEL, Hyderabad.
Most of the emplyees think Top Management is interested in motivating the employees
CONCLUSION
Helps develop ability to work in teams and appreciate others point of view
If all those who are interested in the healthy propagation of the philosophy in the
country take every opportunity to stress What Quality Circles are not?, as
enumerated above, because there are quite a few instances
80
Where Quality Circles failed to take off due to such misconceptions prevailing
in the minds of the Management personnel
Quality Circles are relevant for factories, firms, schools, hospitals, universities,
research institutes, banks, government offices etc.
SUGGESTIONS
81
Role clarity of each position should be defined and based on that individuals can
plan their work accordingly.
There are regular review and comparison of current & past performance to detect
gradual deterioration in the strategy
82
BIBILIOGRAPHY
BIBLOGRAPHY
Text Books
1. K.Aswathappa (1997), Human Resources and Personnel management Tata
McGraw-Hill publishing Company Ltd, New Delhi-110001
2. John M.Ivancevich (2003), Human Resources and Personnel management Tata
McGraw-Hill publishing Company Ltd, New Delhi-110001
83
3. C.R.Kothari
(2001)
Research
Methodology
of
wishwa
prakashan
Publishing,Chennai-17,Edition
4. C.B.
Mamoria
and
S.V.Gankar
(2001),
Personnel
Management
Text
Websites:
www.citehr.com
www.managementparadise.cm
www.scribd.com
www.wikipidia.com
www.qualityofworklife.com
84
ANNEXURE
Questionnaire
Q1. Since how many years have you been working with this organization?
A) 0-5 Year
85
D) Not aware
Q3. Do you involve in Quality Circle teams working in your work area
A) Frequently
B) Sometimes
C) Rarely
D) Never
B) No
Q6. Do you think quality circle develops a participative environment in the organization?
A) Fully Agree B) To some extent
Q7. Do you think that quality circles team can solve the problems of your work
area?
A) Fully
B) To some extent
C) Never
86
Q8. Do you think that Quality Circles are helpful in Cost Reduction?
A) Yes
B) To some extent
C)Never
Q9. Do you think that Quality Circles are helpful in increasing Productivity?
A) Yes
B) To some extent
C) Never
Q10. Do you think that Quality Circles are helpful in building a Positive Work Culture?
A) Yes
B) To some extent
C) Never
Q11. Does the management keep track on the activities of Quality Circles ?
A) Yes
B) to some extent
C) Never
Q12. Are you satisfied with the Quality Circle Movement in your organization?
A) Highly-Satisfied
B)Satisfied
C)Dissatisfied
Q13. Rate the statement Top Management is interested in motivating the employees
through Quality Circles
A) Strongly Agree
B) Agree
C) Disagree
D) Cant say
Q14. Do you think quality circles are important for the growth of the Company?
A) Very Important
B) Important
Q15. Rate the statement Top Management Rewards the Quality Circle Members for their
Achievements
A) Strongly Agree
B) Agree
C) Disagree
87
D) Cant say
B) Agree
C) Disagree
88
D) Cant say