A PROJECT REPORT ON INVENTORY CONTROL AND MANAGEMENT* UNDERTAKEN AT BHARAT HEAVY BLECTRICAL LIMITED, HARIDWAR SUBMITTED. BY: GAGAN DHARWAL US.N, 1HMOIMBAGS IND Ni INTERNAL GUIDE: EXTERNAL GUIDE MrBASAVRAIU Mr BC, SHARMA Faculy of MBA DEPT, Co-ordiatce HRIHRDC) MMSIT BEL. Hondwar Submitted in the partial fulfillment for the requirement of Master of Bushuess Administration VISVESVARA YA TECHNOLOGICAL UNIVERSITY. BELGAUM Department ofmaragement studies ILM.S. INSTITUTE OF TECHNOLOGY ited, Kyathsandra,tummkur-S721 04 MAY —2011a PROJECT ON INVENTORY CONT IROL AND MANAGEMENT AT BHEL HARIDWAI There has been & great ux in the subject mutter of francis mmagement. About thee decade seo. the scope of financial was restricted to the faishig of fads whenever meded & title sigridesne used to the financlal decision problem song. The modern thinking in the finuscial management gives great kmpoxtimce to management decsion-making pobeies. Todsy nancial manger occupes a key postin ix lop munagement and plays a dynamic rok in solving complex management problems ‘The comepiual kiowkdge acquired by mampetienl studeais is best sunilestod in the projects and tmining they undergo, AS a part of curieukm of MBA, | have got ‘a chuace to andergo practical tainng in. HEEP (BHEL) Haridwar. The present project ghes a pertict vert to my undkrstanding of the financial marge ment specially the most modem comept af “Eoonomic Vale Added” and ongnization behavior “The project report emted” A study on Imentory Control and Management is bowed on theme of BHEL Haridwar performunce on the bask of economic vie addition imide by the BHEL in the last 5 years. The nport wil provide all the ‘infomation teginding the INVENTORY CONTROL AND MANAGEMENT and ther importance in HEAVY ELECTRICAL EQUIPMENT PLANT-BHEL, HARIDWAR, HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 2reogect on evTony covraot num wandceata ar wnt, wnsupwan EGE Shorma, for his guidance, encouragement, advice and cooperation in presentation of relevant data during this project. Tam also thankfil wo the rest of the staif of the INVENTORY, PURCHASE SALES. BOOKS & BUDGET sections for ther vabible suggestion and cooperation Lam very mach thinkful » Mr BC to achieve the task T stall express omy hesitiest thanks wo all my fellow studerns for their help andl ‘co-operation in preparing this project report. (GAGAN DHARWAL} MBA HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 3PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT aHEL wARDWaR Kok PARTS PART A PAGE No. cS CORR ROLE A. BACKGROUND & INCEPTION OF THE COMPANY B.NATURE OF THE BUSINESS © VION MISSION.AND QUALITY POLICY DPRODUCT PROFILE E AREA OF OPERATION F OWNERSHIP PATTERN | COMPETITORS INFORMATION FOINFRRASTRUCTURAL FACILIMES T ACHIEVEMENTS AND MILES STONES 7, WORK FLOW MODEL KC FOTURE GROWTH AND PROSPECTUS: ‘SWOT ANALYSIS —TERRNING EXPERIENCE FINANCIAL STATEMENT ANALYSIS; PART-B INVENTORY CONTROL & MANAGEMENT GENERAL INTRODUCTION RESEARCH DESIGN 1 STATEMENT OF THE PROBLEM Ty ORIECTIVE OF THE STUDY T SCOPEOF THE STUDY T METHODOLOGY 1 LIMITATIONS OF THE STUDY ANALYSIS AND INTERPRETATION HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 4PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT @HEL naRIDWAR Kak FINDINGS CONCLUSIONS RECOMMEDATION — & SUGGESTIONS: BIBLIOGRAPHY HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 5EXECUTIVE, SUMMARY The ative study bas divided into two pams, Pat -A deserbes the organization Study which covers industry profiles, detaded! company profie, mekensy's?s model . swot analysis, leaning experience and brief amass of fimincial statements. ‘This stuly helped the researchers to carry out project on INVENTORY CONTRO AND MANAGEMENT ‘The duration of study is 10 weeks of which 6 weeks spend fir camied the pioject work comidering the hage fictions ina area of france and aiier ‘conpulitio a with the experts the studly has chosen on budgetiag area. ‘The project study allcates the chapter has general introduction research design, anabss and fterpretatiod and conchaled with fixings, suagestion aid overall comhsions Secondary data research mettod i adopted 10 sous the objectives af to osere and understand the imentory system to find the reason for variations in the iver fire Financial staiement and other documents are colketed for the sake of umbysis and imerpretstion, The analysis has made with suppon of anos statigical techniques lice barchart, pie chart, ratio analysis ete ‘The major outcome of study are, i review the & done lull yearly and nine monthly in year ani the oweral performance of working capital i at satictory vel, Ths study ubimaicly eps the researcher ip undersiand the research activities practical and soe the organization wo implement the valuable suggestions given the vepan. Definitely this wil hep the organization to inplemem the new strategy and the Formubie the new poles changing the procedure ete HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 6PROJECT ON IIVENTORY CONTROL AND MANAGEMENT AT. HEL MAREDWAL PART A HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 7PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT awEL wanDwan EGLlood 1. INDUSTRY PROFILE Heavy Hlectrical Industry Heavy Ekctrial Industry i on important manufacturing sector. catering 10 the neal of energy sector & ober iniusiral sectors, Major equipments lke boilers, turbo genemtor turbines, ansfinmers confensers, switch gears and relays and reba accessories are manufactured by Heavy Electrical Equipment mamificiurers, The Goverment of India ins an ambitions mbsion of ‘Power sor all by 2012" and planned power capacity adkltion of 78.877 MW in the Ith ive year plan (2007-12), Infustry is augmenting its instaled capacity to meet the ambitious 1th Plan target ‘und fimure growth of installuion of muclear reactors in the counuy. Gas turbines up 10 260) MW Unit capacity and Tramwmision und Disirbution equipment up to higher soluge class of 765 KV are abo being manufactured by Indian Industry. ‘Turbines arnt Generator Sets Figures in Rs Crore Product 007.08 2008.09 2009-10 \(April-October) ‘Turbine ststeam » hydra 35.18.15 4193.00 2108.66 Electric Generators 1474.16 1778.10 on Boilers Figure in Rs, Crome 2009-40 Product 2007408 2008-09 [Apa Ociober) Boiler 82M 336 eas ‘Transformers Figure in Rs. Crom MS INSTITUE OF TECHNOLOGY, TUMKUR: Page 8a PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT BHEL HARIDWAI 00910 prot eer -aeae yearae (April-October ‘Tramforacr 125 71.9% 403 Switchgear and Castrol Gear Product 2007-08 2008.09 2009.10 (Nest Wo) (Apeil-Ceto bee} Switchgear ani Comaol gear 18038508 1705938 13485801 ‘The industry has been upericing the existing teclaobgy and is how capable of taking up tumkey contracts ako for export markets. Te inductry hax been delcemed Forsign collaborations are allowed with 100 percent FDLThe country planning to ‘xi 150.000 MW power generation capacity in the neat 10 years, Th will generate substantia! demand for heavy electrical equipments ‘The present share of the Indian industry is about 66 percent of the country’s Power generation capacity. In 2009-10, the size of the clectre-al equipment industry stood at Ry $25 billon. The electrical equipment industry grew at 11.3 per cent uring 2009-10, OVERVIEW OF HEAVY ELECTRIC INDUTRY Production Industry Unit (Apel. (Apa Growth November) November) Re 2008-08 2010 (a Industria! Machinery Re bbs S2487.1 AS60521 M38 Mactine Tools Re bkhs 1605772 48H 7.58 Boilers Turbines Rs. bkhs 5395022 621715... 15.24 Turbaes (Sieamv/Hydra) Rs. Akhs 2120375 240910. 1h Hissin Generates Rs, bike $905.7 113688,9 2628 pe en pos S16 24062 Tekcommunicstion cables Mik My, SOML7 40085 .21.32 HMS INSTITUE OF TECHNOLOGY, TUMKUR\OJECT ON IMVENTORY CONTROL AND MANAGEMENT AT BEL HARID\ OWNERSHIP PATTERN TYPE OF COMPANIES COMPETITIVE POSITION WoW STRUCTURES LTD. AERVA & D INDIA, LD POWERS Dec-09 HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 10im PraweRsiTD iue-t0 WARRVA TR D INDALTO Deco w suzy entney 110. Mario ss onstaveTs msi. poere) HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 11NTORY CONTROL AND MANAGEMENT AT GHEL MARIDWA 2. COMPANY PROFILE BHEL is India’s largest engewerng company und om of is kind in thie part of the hemisphere. It munufictures a wide rang: of state of the art power generation cqupmem and system besides equpmemt for industry, transmission, defence, tekcommunication and oll business ‘The fist phint of BHEL was set yp in Bhopal in 1956, which signaled the dawn of the heavy electrical industry in India, Inthe carly 60's three moe major plants were set up in Harddusr, Hyderabad amt Tiuchrapali, The company now bes 14 minufacturing diviiom, 10 services cebiers and power sectors regonal chiens besides project sles spread all over Ini, and also abroad! provide prompt and cficctive service to customers. BHEL's business broadly covers conversions, transmision, tuations ant comervation of energy in core sedors of economy that fill vial infastructine meeds ‘of the country, [is praduet have eatab shed an enviable reputation of high quality snd reliaifty, which is krgely due to emphasizes placed all abrg om coniemporary some ‘of the best technol ges of the work! ftom the leading companies in U.S.A. BUROPE, and JAPAN together with technologes ftom ts own R&D cemers techbges BHEL ims comistently upgraded its design ant ounulacturing facilities 0 iniermitiona| stantards by acquiring and assimilating HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 12PRajecr on NTORY CONTROL AND MANAGEMENT AT GHEL MARIDWA a. BACKGROUND AND INCEPTION OF THE COMPANY ‘The conctrusion of heavy ekewieal equpmen Flat commenced i Oct 196 tater indo-soviet techiteal co-opecainn agreement: in Sept.1959. The fit product to roll ‘out from the plat was an electric moIOr in January 1967.This was folbwed by frst 100 MW Steam Turbire in Dec.196Yand frst 100MW ‘Turbo Genersior in August 1971.The platt’s “break even” was achieved in March 1974. BHEL went in for ‘echnical colboratin with M/s Siemens, Germany to undertake design and mumufacture 1 bugs sige them! sets up to a unit rating of 1000 MW in the year 1976, First 200 MWTG set wax commissioned at Obra in 1977. The coatinum of ‘nchnolbgeal advancement subsequently saw the conmistionng of 500 MW TG set in 1984. ‘The tectnical cooperation of Gas Turbine sranfacture was also signed with, Mis Siemens Germany. First 150 MW ISO tating gas Tubime was exponed to Germaity in Feb"1995" Our 250 MW thermal set up at Dahan Plant of BSES rade a history by comitbous operation for over 150 days and wovching up a record plist lod fictor geater than 100%.. b. NATURE OF THE BUSINESS CARRIED BHEL's opetatioms are onganiad around three business sectors, namely Power Industry ~incioding Transmission. Telecommunication & Renewable energy —and ‘Overseas business, ¢. VISION, MISSION AND QUALITY POLICY “A work! chs, imoustive, competitne and profitable engineering enterprine providing weal business sosions’ HMS INSTITUE OF TECHNOLOGY, TUMKURIoRcT on wvevTony conTaok ano Manace Mtv Arann, wuowan EEE Mission To be the fending Indion engmeering, enterprise providing qualty products and services in the fick of energy, ransportatinn inffustracture and other powitial areas, SQastiny poley Th ts quest to be work! class, BHEL purses continal improvernent in the qualay of iis Products, Senices ond Performance leading to Total Customer Sativaction and Business Growth throwh dedication. commiment and team work of all empbyees. @ PRODUCT PROFILE OF BHEL STEAM TURBINE ‘TURBO GENERATOR AC. & DC MOTORS HYDRO TURBINES HYDRO GENERATORS feer ee GAS TURBINES HEAT EXCHANGE «, AREA OF OPERATION HEL is manufacturing tx products in regional, national and global level ‘The list of its operational areas are mentioned below. Smal, Medium and Large DC/AC Motors fiom BHEL, Harikhwar Capacitors fom BHEL, Bhopal Switchgear thom BHEL, Hyderabad HLT, Transfiriners and Reactors from BHEL, Shaisi 2360 MW Turbine Gonerstors & surdiary equipment for Dekirara Power Station, Malta HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 14Fajr OLAVEVTONY CONTROL AND MANAGEMENE AT ML, HARIDWAR 2x60 MW Turbine Generator & ausiiory equipment fix Dhekcelin “B’ Station Cypra. Boilers for 2330 MW AkAtbh Power station in Egypt ‘Supply of critical components for bugs generatirs 1 Siemers. Germany Wearredistan cerain ling system for coal mills for-a French company Supply of muri-ate high-temperature application castings and conlenser for SOOMW sets to Russis ‘Tumkey execution of 2x120 MW Trpoli West Power Station in Libya Main ine Diesel Bectic Locomotives far Sudan Raiways-this is the fira ever onder for locomotives. HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 15PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT @HEL HARIDWAR Kak £ MAJOR COMPETITORS OF BHEL COMPANY NAME, TOCATION 1. ANASALDO ALY [2 AECTRO CONSULT [ITALY ABB SWITZERLAND [= BEER CST USS [5 BLOCK @ NEATCH [USA GENERAL HLECTRIC [USA RAYTHEON tk % WESTINGHOUSE USA 3 CNMI AEC CHINA, W SANGHAT ELECTRIC [CHINA CO. 1, COSTAIN UK 1. GEC-ALSTHO UK 1S. NET UK 1. BLECTRIM POLAND 15. FRANCO TOST FRANCE ie Pow JAPAN 1, AITECHT TAPAN FISUBISHT TAPAN 1 MIISUr JAPAN 3. TOSHIBA JAPAN 37, ROLIS ROVCE GERMANY 2 SIEMENS GERMANY HMMS INSTITUE OF TECHNOLOGY, TUMKUR Page 16ECT ON INVENTORY CONTROL AND MANAGEMENT AT BHEL HARID\ & OWNERSHIP PATTERN BHEL & a Puble Limited Co. BHEL Ins a capital base of Rs: 244.8 crore and its curent market capitalization i Rs. 8451.12 crore. ‘The company has 24.48 crore stares outstanding. The fee flast avaible in the market fir trading is only 6% of the total shires oubiunding. Indian sPvermMeM fos a Age aMoUE Of stakes im the company whiel bimestod ib the nour fitire ing to be President of India ao? OF lls Is Clinchan nsti./Mut. Funds Free Float Page 17JECT ON INVENTORY CONTROL AND MANAGEMENT AT MHEL HARID\ fh INFRASTRUCTURAL FACILITIES BHEL. Hardwar complex comists of two mnufacturing units, namely Heavy ketal Equipment Plas (HEEP) and Central Foundry Forge Pant (CFFP), The apprersimste total area of these plas are: HEEP: 845 sq Km CFFP: 1.0.3q. Km > About 40% of the area im HEEP and 14F6 in CEFP is coveral by bulla. and testis > occupied by patlways, rosds ant greerietts, > Aiming to schiew and sustain product excellewe, BHEL hus cut no comers establishing comprehensive worl! clas ficities for ks emire range of produ. ‘The min assembly shops, HVDC est Ibborstories and other manufacturing shops are well equipped with stat--oFthe-art facilities for relabk munuficturing and testing operations, The fabrication shop with CMC nmectines transforms sheet meul imo parek ready for assembly as catbines. ¥ in-crcuit tester and environmental chumbers for thermal. cycling. A cumber of specétlsed setups exist for fimctional testing of electrome contral systens though simulation ~ mounted compone mts % A Sub awembhy Engmering group provides vial support for design devebpmnent and proweype testing of eectionic nmxdules as per system engimering requirements. © BHEL has a strong team of highly efficiem and experienced engineers 10 carry ‘out installation 4 commissioning works, as well a ste supper activities, BHEL & a recognised manufacturer by the Department of Telecommunic ation (De), a office ee. HMMS INSTITUE OF TECHNOLOGY, TUMKUR, ‘The facilities in the test area include Computeried testing of components using ‘A modern Surface Mount Teclmology (SMT) fine with screen primer pick & phice michine, reflow oven inspection stotina tas been estabished to augment faclities fir matuicturing electrone modules with High density. surface Stare Bank of Inia, Natioaal Higwway. easy raw material availabilty, post Page 18,PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT HEL HanHbWar Eabébod A fall edged T&S Centre has established a Local Area Network conweting over 1000 nodes trough optic fine Inked fk servers which are extensively wed for Data Processing and Mamgemem Information System HEEP is ‘comevted wither units, > 45,000 tained and efient emphyees, > BHELS aesiment in R&D is omprgst the largest in the corporate sector in Indi, During the year 2009-10, BHEL imeste! Rs. 829 Crore on R&D efforss which comespond to 2.43% of turnmer of the company. » BHEL fied 263 poems and copyrplts enhancing the company’s intelectum! capital to 1126 patents and copyrights fled L ACHIEVEMENTS AND AWARDS ACHIEVEMENTS + Attained ISO - 9001 certification * BHEL have been upgraded to the best 180-001-2008 version + BHEL have been awarded ISO -1 4000 cemtfcation. for Emironmental mmgement systems: and OHSAS-18001 Cenification for eccupatkinal Hewkh and sty manage met sien, Fist Publ Sector Company in the county Wo win the coveted “PRIZE' through ts Haridwar unit under the C1 EXIM Aveard Scleme bused on ghbally recognized model of Ewopean A.USS? 3billon Engincering & Mafuficturing emerprie offts kind India A ‘Navaratna’ company and a Major Integrated Power Pht Equipment Manufacturer in the Wort Profi Makire Company since 1971-72 Consistent Dividend Payng Company: for over thirty years (PY 1976-77 omards) References ih over 70 countries Tailed ase of more than 1,00,000.MW 1S Manuficturing Units Insta equipment for over 90,000 MW of power generation HM INSTITUE OF TECHNOLOGY, TUMKUR Page 19PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT MHEL, MARID| Suppled over 225.000 MVA tramiormer expacity and other equipment operating in ‘Transmission & Disiribution network up t0400 kV (AC & BC). Supplied over 25,000 Mowrs with Drve Conul System in Power projects, Petrochemicals, Relinetics. Steel, Aluminum, Fertibaer, Cement plans. ete Supplied ‘Traction ebetres and AC/DC beos to power over 12,000 km Ruitway network, Suppled over one milion Vales to Power Plus ant other Industries AWARDS = Prime Minister's Shram Awards From the prestigious “Prim Minkter’s Shram Awards” (namely Shram Bhushin, Shram Vir and Sharm Stari,3 Awards have been won by 5 workmen of BHEL, for the year 2002, out of 17 awards deciured by ministry of labour, © Vishakarms Rashtriya puruskars Nine Vishwakarma Rashtriya Pumskars ime been won by 7 empbyees of BHEL for the year 2005 and thee awards have been won 6 empbyees of BHEL for the year 2005, = National Safety Awards: ‘Two BHEL Unis vic. Thichy and Ekctones Division- Bangibre nve Won Uuree awards for the year 2001, AB0: Trichy Unit ns three awards fir the year 20085, * National Awards for the welfare of persons with disabilities Shri RC-Parskh AGM fiom Bhopal unit received shis award thom president fof India for his combuien 1 technological devebpmem af transformer product in Bhopal HMS INSTITUE OF TECHNOLOGY, TUMKUR. Page 20vaopecr on uvexToRy COrTROL to andar int 41 enn wantpvian EEE 3 WORK FLOW MODEL HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 21PROJECT O§ INVENTORY CONTROL AND MANAGE MINT AT SHEL HARIDWAR K-FUTURE GROWTH AND PROSPECTUS Preparing for future : Strategic Plan 2012 Cc) i titi: met HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 223. MC.KENSY’S 7TSFRAME WORKrojecr ow vevTony conTROL Aun MaNacE MevT At owe, waupwan ERED STRATEGY © SHARED VALUES SKILLS Page 24PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT aHEL wantbwar Eobedod DW, EXECUTIVE DIRECTOR HEEP & CFFP PRODUCTION HEEP& GROUP GENERAL MANAGER COMMON PURCHASE, GENERAL MANAGER ENGG & CC GENERAL MANAGER ENGINEERING. GENERAL MANAGER FINANCE ‘CENTRAL PLANNING GENERAL MANAGER GENERAL MANAGER TURBINE MFG GRI& POR! GENERAL MANAGER GENERAL MANAGER Rad HUMAN RESOURCE GENERAL MANAGER GENERAL MANAGER SHIPPING DEPT.GENERAL MANAGER SERVICE DEPT. GENERAL MANAGER HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 25PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT BHEL HARIDWAI LINKAGE OF FINANCE DEPARTMENT WITH OTHER DEPARTMENTS INTEGRATION MODEL Saks Ook 4 Cusomer \. Sint | Seas Weta ally Cres Tretanc Regirerart So sel i Peng Praca Dt Sidieseu speed erenable Ale, Cath Peceat FINANCE DEPARTMENT HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 26LOJECT OW IMVEN TORY CONTROL AND MANAGEMENT AY RHEL MARIDWA ‘The finance Department of BHEL & responsible for © Acquistion of tims * Albeation of funds towards various products © Preparation & maintenance of accounting records as per the accounting. standards * Submision of truncal statements to the concerned authority as well as to. tke wap manage me nt HUMAN RESOURCE DEVELOPMENT DEPARTMENT STRUCTURE SENIOR MANAGER ana (LEGAL) as (REGRET MMS INSTITUE OF TECHNOLOGY, TUMKUR Page 27ie Iv. a PROJECT ON INVENTORY CONTROL AND MANAGEMENT AT BHEL HARIDWAL PRODUCTION DEPARTMENT Production in HEEP is dated into Smajoe product groups They are ‘Control Equimemt (CE) Power semi conductor devices Energy meters Sub assembly telecon Defense electronics GENERAL MANAGER ADDITIONAL MANAGER DEPUTY GENE RAL CHE! A GER CHIEF MANAGER SENDOR MANAGER DEPUTY MANAGER: HS INSTITUE OF TECHNOLOGY, TUMIU IE Page 28JECT ON INVENTORY CONTROL AND MANAGEMENT AY ANEL HARIDWAR, © Mothutional skill Steps taken by the organization to impart the knowkdge about abow skis + Conducting workshop from professional bodies. © Semimr & comfered 10 all empbyees abou the leadership and communication skill © Condveting. the cultural program to remmse indiference gap between subordimie ai superior ‘Technical tring is imparted to all the Trainees in the folewing subjects © Hand tools and is implications, © Mactine tools, * Lubrication sd transtission devices. ‘They provile both on the job & off the job taining lo their empbyees, ‘To an operator evel supersbory and engineers they prefer 19 ghe a taing program Uacough on - the jobiraining methads. ‘This nudes Coaching fob insruction ‘Apart from the above methods, ofganiation ako wed off-the job training: methods for adminsteative and muuketing departments employees such as communication lasses, denbrsiration semimr on emerging topes ele Organizations differ from each otler in their styles of working, It-may be refers to the eporting rebtionship between the superiors and the subordinates and reporting relationship wil comey: the style of the orginization Organization follows top down and bottom up syle: © The company ‘bbs a fortul relatiomhip wih their subondimtes and demncratic leadership style HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 30vy y JECT ON INVENTORY CONTROL AND MANAGEMENT AY AWEL ARID) © The workers are known as operators ©The difference in puyis based on the level of responsibility” and performence. © conveys the fw of commanication © The human resource sequined for the orginizton and evahmting their poteitial toconitibute to the achisweme its of the organicatiom goal ‘Top down: Company follows a kadership sivle of participative in muy sues and. authoritarian im muy strecegie decison. Sime Execute Daecior bus the lighest suthortative power in tht BHEL. be takes all the major dociinm like Jong. term inwestient find rising, and diversification of business, ‘The General Manager takes the responsibilty of all other activites. His work is mnintenance off imhustrn! relations, induction, and proper planning etc. the hierarchy folinwed by BHEL is Executive diectar followed by General Manager, succeeded by the heads of the diflerent departments, Bottom up: In this style the decision multng process flows from lower level to higher level, The organization also uses ballow-up approach in case of workers problems, compli, suggestions. relating. to work matter Strategy refers w a set of ucts that you start wilh ami must makin, {1 includes imegated vision ani direction of the company in which i desires, articulate, sormmunicates and implement ‘Ta Sintain Leadership in Power Sector & Capture Emerging Growth Areas Capacity enhancement Dnersification ‘Cost competitiveness Accelerated project exacuinn Engreering & techno bgy oe HhS INSTITUE OF TECHNOLOGY, TUMKURopecr on mvETonY covTao4 ann manace MET aroun, warupwan ERED ERVICE DEPARTMENT GM & AGM feading this deparinent imvoved nthe mainiemnce of the entire factory premises inching machines, nd and building. Annual Maintenance Contract (AMC) is ether phiced with the Manufacturer or other service provider COMMON PURCHASE DEPARTMENT Headed by AGM. i mnin’y involved in the procurement of required material inputs W the emtie product goup department bath fiom indigenous and imports, The department respomsible fbr accounting ani purcases. mde by i and submisinn of bi sutemens wehe fami! departmern on date SHIPPING DEPARTMENT Headed by AGM, ths a common department that is responsible for the shipment activities of the products In its customers. It is abo responsible for packing and dispatching of the moteriak, B&D DEPARTMENT Headed by DGM wits in turn bas 10: report io the GM (HID) Ths departments does the research: ant development jab. It i respomible fbr developnent of Technology & design ‘SKILL ‘The orgunizatinn skill marx consist) of following skis These skis ume fated below + Manuficwiring skill © Administrative skis + Cotrmiunication skis © Marketine stil © Problem sohing. sil © Leadership skids HMS INSTITUE OF TECHNOLOGY, TUMKUR Page 29JECT ON INVENTORY CONTROL AND MANAGE MENT_AT RNEL HARIDWAR SYSTEM BHEL ued various systems for the beneiis for an organization in doing its day to day work. Proem BHEL his well munaged MIS (Mamgemem Inlormition System) ‘Taining Design System & SAP. The folowing are the variuw major system followed in the organi tow Invertory covtrol system Performance apprakal system PERFORMANCE APPRAISAL SYSTEM BHEL uses performance apprakal sysiem 10 camy Career Devebpment at all keveb snd promotions for the eible employees. Anal Performnce appraisal i carried oul for employees, which Ibis isk thy career advancement deciions, in adkdiion tm quilifeation. experience and suitability. SIAIF ‘The mest sGbable aset of BHEL i its 48000 empbyees. including over 10,000 qualified profesionah CATEGORY WISE MANPOWER STRENGTH OF HEEP AS ON [* JULY 2011 CATEGORY ‘Administrative Staff: Ths staff conccttmies om the adminiirative functions, ‘The duics ant rexspoosibilies of thee siaff rehie wih planning siafing, directing. and controling, budgeting, polis, pincedurs, stratsgecs ete, the executives both in stath and te managers of diferent departments fill under these stall category, Production. staff: This staff concentrates on the production activties. These staff bel! responsible for production planning and cortrol, Concentrate on scheduling dispatch, Hits INSTITU OF TECHNOLOGY, TUMKU Page 32