MBA Project

BEML limited.

Kristu Jayanti College Page 1

A PROJECT REPORT ON

ORGANIZATION STUDY

CONDUCTED AT

BEML LTD

BANGALORE COMPLEX, BANGALORE

THIS REPORT IS SUBMITTED AS FIRST HAND KNOWLEDGE OF THE

ORGANIZATION BEFORE THE COMENCEMENT OF THE COURSE OF

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY:

VENKATA SURESH KUMAR

UNDER THE GUIDANCE OF

INTERNAL GUIDE EXTERNAL GUIDE

Prof. SHIVALINGA PRASAND Mr. SYED SHOAIBUDDIN KZ

(KRISTU JAYANTI COLLEGE) (HR-BEML LTD.)

BEML limited.


DECLARATION

I hereby declare that the in-plant training entitled “The organization study in

BEML” submitted to KRISTU JAYANTI COLLEGE as first- hand knowledge

about the organization in the beginning of my course is a record of my original hard

work.

I further declare that this report has not been submitted to any other university or

institution for the award of any degree.

Date:

Place:

(VENKATA SURESH KUMAR)

BEML limited.


ACKNOWLEDGEMENT

This project is a product of the valuable insights, facts and experience I had with

various people. The experience was more than what was visualised. It’s my pleasure

to express my deep sense of gratitude to Mr. GANGADHAR (Asst. General

Manager) and Mr. SYED SHOAIBUDDIN KZ (HR DEPARTMENT) for

permitting me to undergo an in plant training in their esteemed organization & being

my external guide. I thank them for their co-operation & valuable suggestions

throughout the period of in-plant training. And also I am grateful to the entire staff

and professionals of “BHARAT EARTH MOVERS LIMITED.”(BEML)

BANGALORE, for their guidance and constructive co-operation in completion of

this project.

I also extend my sincere thanks to Prof. SHIVALINGA PRASAD my mentor

in KRISTU JAYANTI COLLEGE for being my internal guide & for his guidance

and support. Without his support and guidance it would have been impossible for me

to complete this study. I am extremely grateful and thankful to him for the brilliant

guidance in this endeavour.

It is a sin on my part if I forgot to convey heartful thanks to my parents for

their support, encouragement & help without which this report could not have been

successfully completed.

Finally, it is my bound duty to thanks all my friends who have helped me

directly or indirectly for the smooth completion of this report.

Place: Bangalore

Date:

(VENKATA SURESH KUMAR)

BEML limited.


TABLE OF CONTENTS

CHAPTER NO. PARTICULARS PAGE NUMBERS

1. Introduction

2. Research Design

3. Industrial Profile

4. Company Profile

Overview

Background & Inception of

company

Nature of Business carried

1.Construction & mining

2.Defence & Civial aviation

3.Metro & Railway

Company vision

Company mission

Company objectives

Quality policy

Product profile

Area of operation

5. Ownership Pattern

Share holding pattern

Competitors of BEML

Products and Collaboration

Bankers

6. Infrastructure Facilities

BEML limited.


7. Other Complex

8. Achievements and Awards

9. EHS policy

10. Organization Chart

11. Work chart

12. Various Departments

Financial Department

HR Department

Marketing Department

Material Department

Production Department

R&D Department

Maintenance Department

Quality Department

Safety Engineering Dept.

Trade Union

13. Security & Vigilance Dept.

14. SWOT Analysis

15. Findings & Suggestions

16. Conclusion

17. Learning Experiences

18. Bibliography

BEML limited.


INTRODUCTION

Organization is the process of dividing and combining efforts of working

group of making such joint efforts more productive, effective and fruitful

organization allocates duties to managerial staff.

“Organization is the group of people who are co-operating under the direction

leadership for the accomplishment of a common end”.

CHARACTERISTICS OF ORGANIZATION:

It is a group of individuals, which may be small or large.

It refers to the structure of duties and responsibilities.

The group in the organization work under the direction of executive’s

leadership.

It consists of directing authorities, which controls the collective efforts of the

group.

There are two form of organization:

Formal organization.

Informal organization.

FORMAL ORGANIZATION:

It is the type where responsibility rights and authority are clearly defined

procedure is laid down; methods are evolved, discussed and put before the personnel

in clear terms.

INFORMAL ORGANIZATION:

In this nothing is clearly laid down. It is a developing process, which develops

on the basis of work performance and mutual relationship between personnel’s jobs,

duties and authority.

OBJECTIVES OF THE ORGANIZATION:

To serve society.

To administer economy in production organization and systems.

BEML limited.


As a student of management education, study of business organization provides

one with an opportunity to correlate practice with theory. It also enables to get the

required insight into processes and functioning of managing an organization with

this as the primary objective in mind the study was undertaken at BEML Ltd.

BENEFITS OF THE STUDY:

PRACTICAL KNOWELEDGE:

Practical study of the organization revels the knowledge regarding various

aspects of the company such as planning, organizing, staffing and controlling etc.

PRESENTATION SKILLS:

The project study helps in improvising the presentation skills and

communication skills of a student.

INDUSTRIAL EXPOSER:

The project study also helps in getting knowledge regarding functional

activities of various department of the organization such as marketing, finance,

human resource, production etc.

BEML limited.


RESEARCH DESIGN

TITLE OF THE STUDY:

“A detailed study of the organization structure of BEML”

SCOPE OF THE STUDY:

This study is an attempt to study the organization as a whole and to study the

different department in detail so that I get a detailed knowledge about the

organization from different angle and to study the functions of the different

department which constitute the organization so as to suggest effective measures

such that organization achieves its objectives.

The study focuses on the department and their functions and the methods to

improve the organization; hence this study provides a wide scope for the students to

gain an insight into the practice aspects of the working of an organization and thus

increases managerial skills.

OBJECTIVES OF STUDY

To understand the various departments procedure in the company.

To gain insight into the new trends in the management of the company.

To study methodologies used by the organization to compete with others.

To study on SWOT analysis.

SCOPE OF DATA:

PRIMARY DATA

The report has been framed out of the primary data source. It basically deals

with the inspection done by me with the management and supervision of various

departments.

SECONDARY DATA

The data was collected through website, company profile, broachers, journals,

reference to previous studied, report, reference books etc.

BEML limited.


LIMITATIONS OF THE STUDY

Limited time provided for the study.

As BEML, is into manufacturing products for the Ministry of Defence, certain

areas of the organization were restricted and some information about the

organization was disclosed.

BEML limited.


INDUSTRIAL PROFILE

BEML is a public limited company, which was incorporated by the

Government of India in May 1964. It was placed under the administration control of

the Indian Ministry of Defence (DPSU); for the purpose of manufacturing earth

moving equipment’s to catch the needs of the Defence ministry. BEML commenced

its operation in 1965 with the transfer of rail coach division of the HINDUSTAN

AIRCRAFT LIMITED (HIDUSTAN AERONAUTICS LIMITED) at

Bangalore. Today’s BEML one of the premier ISO 9001-2000 certified company in

India and the second largest manufacturing of earth moving equipments in Asia

BEML has been the manufacturing of integrated rail coaches for postal vans,

luggage’s etc. which are built to hi-tech standards incorporating anti-telescope

framework as measures of safety to passengers.

The company diversified its operations and offers products for various

sectors of economy such as coal, mining, steel, limestone, power, irrigation,

construction, road building, aviation, defence, metro and railway. The major

products of BEML are in Mining and Construction, Defence and Rail &Metro

industries. In addition to that the company has involved in three service area namely

technology division for providing engineering solution to the customers in the

company as well as aboard, trading division for dealing non company products and

commodities and international business division for export activities. The company

is planning to diversity its operation to many other sectors of the economy of the

country.

BEML limited.


COMPANY PROFILE

Bharat Earth Movers Limited (BEML) incorporation in May 1964 with its

corporate offices at Bangalore and commenced operation from 1st January 1965, the

production units of the company are located at Bangalore, Kolar Gold Field and

Mysore in Karnataka and Pallakad in Kerala. The company is engaged in the

production of rail coaches, rail bus and Direct Current Electrical Multipurpose Unit

for Indian Railways, heavy duty trucks/its variants, crash fire tenders, heavy recover

vehicles, PMS bridges and earth moving equipment’s and aggregate for Defence.

Other major customers of BEML are Coal India Limited, Naively Lignite

Corporation, Associated Cement Company, Steel Authority of India Limited and the

National Hydro Electric Thermal Power Corporation.

BEML is a premier ISO 9000 company in India and the second largest

manufacture of earth moving equipment in Asia. A three-decade-old multi-location

and multi-product company, BEML has vital application in diverse sector of

economy such as coal, mining, steel, cement, powder, irrigation, construction and

road building and railway. It has expanded its product range to cover high-quality

hydraulics, heavy duty diesel engines, welding robots and undertaking of heavy

fabrication jobs.

A public sector undertaking, BEML commands 70% market share in domestic

earth mover industry. Nearly 40% of its quality has divested to financially institution

and public. BEML has its corporate headquarters and central marketing division at

Bangalore.

BEML manufactures wide range of products to meet the needs of mining,

construction, power, irrigation, fertilizer, cement, steel and rail sector. The earth

moving equipment includes bulldozers, dump trucks, hydraulic, excavators, and

wheel loaders, rope shovels, walking draglines, motor graders and scrapers.

BEML limited.


BEML has recently introduced road headers and slide discharge loaders for

underground mining application. Railway products include integral rail coaches,

electrical multiple units, rail buses, track laying equipment’s and overhead

equipment inspection cars.

BEML manufactures heavy duty trucks and trailers and hydraulic aggregates

for transportation sector. The company also manufactures high power diesel engines

and heavy duty hydraulic aggregates to meet specific customer requirements. The

company plans to diversify into varied activities including underground mining

equipment, underground for petro-products, leasing and financial services and joint-

ventures abroad.

BEML is rated as the first amongst the fastest growing construction equipment

in India. It is today leading the infrastructure revolution in the country with

successful foray into hi-tech metro trains. Beings a multi-technology, multi-unit and

multi-location company, BEML offers high quality products for diverse sector of the

economy such as coal, mining, steel, cement, powder, irrigation, construction, road

building. Defence, Metro and Railways. It has come to the forefront of heavy

engineering industry with a track record of growth and profit in the last for decades.

With increased focus on quality, safety and productivity, BEML is evolving

new technologies and aiming at value-addition in all its process and products.

The company’s manufacturing facilities are certified under ISO 9000-2000

series. Its strategic alliances with global partners have ensured a continuous flow of

state-of-art technologies and gain international competence. With impetus on market

driven R&D, BEML has rolled out several innovative products.

The company is established R&D centre of excellence for metro technology to

match world-class standards with grants received from planning commission,

government of India. BEML’s nationwide network of sales offices enables buyer

with ready access to its wide range of products and services.

BEML limited.


Its service centre, repair shops and parts depots total equipment care and

availability of machines through prompt after sales-service. Today BEML brand of

products are popular in over30 countries across the world in Asia, Africa, Europe,

Middle-East and Latin America. The company is in the process of opening overseas

offices at Singapore and China.

BACK GROUND AND INCEPTION OF COMPANY

BEML is a PSU (Public Sector Undertaking) under the effective

administration of Ministry of Defence (department of Defence supply). The

organization was setup in the late 40’s as part of HAL now know as “HINDUSTAN

AERONATICS LIMITED” to manufacture rail coaches. It gradually diversified

earth moving equipment in 1964. The company was incorporated in the first five

year plan when India was very weak economically. The main objective of setting up

the organization was to manufacture heavy earth moving equipment. Rail coaches

heavy duty trucks, trucks-laying equipment etc.

NATURE OF BUSINESS

BEML is equipment in production equipment for the industries such as

construction and mining, Defence aviation and the Metro and Railway sector.

CONSTRUCTION AND MINING

For development in surface mining projects, BEML produces machines such

as electric shovels, hydraulic excavation, bulldozers, wheel loaders, wheel dozer,

dump trucks, motor grades, pipelines and tyre handlers. Besides, giants walking

draggling for cost effective operations in the open cost mines are manufactured.

BEML has diversified into underground mining with products such as side discharge

loader, load haul dumper, winch winder, randy car and skip etc. BEML has an active

fleet of machines to take up works related to road construction, infrastructure,

development, port handling, tuning boring and petroleum projects.

BEML limited.


The company is floating a joint venture soon to take up contract mining and

maintenance of mining equipment’s.

DEFENCE AND CIVIAL AVIATION

BEML’s multi-role vehicle and transportation trailers have found total

acceptance with arms forces.

The company has started manufacturing the entire range of value added

TATRA vehicles. Which are robust and suitable for all terrain operation including

bridges layer field artillery, tractor, medium/heavy recovery vehicles and pontoon

mainstream bridge system, BEML also supplies engineering mine ploughs,

armoured recovery vehicles and weapon loading equipment. For the civil aviation

sector, BEML offers passenger Aerobridges, crash fire tender and aircraft towing

tractor.

METRO & RAILWAY SECTOR

BEML is today geared up for manufacturing and supply of high-tech

stainless steel metro to upcoming urban infrastructure projects in various cities

Other products supplied for Indian railways include integral rail coaches,

overhead inspection cars, track laying equipment broad gauge rail bus, treasury vans

and spoil disposal vans. It also offers electric multiple units for development in

suburban services.

The company also manufacture heavy duty diesel engines, diesel generators

sets and hydraulic aggregates. BEML has entered into alliance with international

partners for several new products which includes multi utility armed vehicles, mine

laying vehicles, long wall mining system, tunnelling equipment, mine protected

vehicles, surface miners etc.

BEML limited.


COMPANY VISION

The vision is to achieve a turnover of $ 1.15 billion (Rs.5000 crores) by 2013-

14, which translates into a compounded growth rate of 12%. The management has

refused this vision into 1000 employees and will grow across all three divisions:

mining and construction segment, we see a 15-20% growth rate will be between 8%

and 100%. At that moment 2/3th

of our top line and bottom line is contributed by

mining and construction.

BEML has earned a modest profit of 100 million in the rail business: they

have now achieved a critical mass and hence likely to enhance contribution to the

bottom line.

Build total self-reliance in earthmover and related technology.

Adapt technology to suit national requirement particularly in vital sector such

as construction, mining, irrigation, railway, transportation and automation.

Update current products for higher performance and reliability

Generate know- why through applied research

Design and develop products in identified technology areas.

Set up test facilities for evaluation of performance and reliability of vehicles

and system.

COMPANY MISSION

To achieve and retain a dominant position in the manufacture and supply of

earthmoving, mining, construction, railway and Defence equipment by

establishing high standards of quality, capability and reliability.

To pursue state-of-the-art and environment friendly technologies as well as

develop cost effective and value-added products.

To be competitive, responsive and continuously improve services so as to

ensure total customer satisfaction.

To grow into global company guided by a keen sense of vision and business

ethics as well as to maximise earnings.

To conserve energy and eliminate waste through optimum utilization of men,

money, materials and machinery.

BEML limited.


COMPANY OBJECTIVES

To maintain a dominant position in design, development, manufacture and

marketing of Defence, Earthmoving and Construction and Rail & Metro

equipment.

To diversify and grow.

To provide total engineering solution to its customer.

To internationalised operation by enhancing exports.

To maintain state-of-art technology for all products.

Re-orientation of the business operation to match the present scenario.

Continues building of skills and competencies to bring about executive

effectiveness for management succession.

QUALITY POLICY

“QUALITY IS THE HALLMARK OF EXCELLENCE”

At BEML, a corporate quality policy emphasizing total quality management

ensures the quality system adopted companywide to meet stringent standards and

requisite performance criteria. A separate quality spearheads the thrust towards total

quality. All manufacturing units in the company are under ISO 9000-2000

certification.

BEML equipment works in hospitality terrain under gruelling operation

condition. In order to ensure optimum performance of equipment each product is

tested in working condition. In order to ensure optimum performance equipment

each product is tested in working conditions in the company’s own track and fields.

Vendor assessment and development is a key component of the company’s

strategy for achieving total quality.

Experience professional work with vendors to improve directions to the

quality improvement activities.

“To offer products and services to the satisfaction of customers and strive to

upgrade quality continuously” is the quality adopted in BEML.

BEML limited.


PRODUCT PROFILE:

BEML products that are “Machine that build the nation” find their application

in core sector of economy in the country viz, mining, agriculture, energy, irrigation,

cement, steel, construction, rail and road transport apart from Defence.

The company has three ranges of products like earth moving equipment’s

Defence products and railways products.

The earth moving equipment’s include bulldozers, dump trucks, hydraulic

excavators, wheel loaders, wheel dozers, tyre handlers, pipe layers, rope sholves,

draglines, motor grades, scrapers, water sprinklers, aircraft towing tractors and

backhoe loader. BEML has recently introduced road headers and side discharge

loaders for underground mining application, tracking laying equipment, inspection

cars. BEML manufactures heavy duty trucks and trailers and hydraulic aggregates

for transportation sector. A part from this, BEML also radio controls disaster

management equipment in case of emergency.

BEML PRODUCTS:

Mining Machines.

Electric shovels.

Bulldozers.

Wheel dozers.

Dump trucks.

Motor graders.

Pipe layer & tyre handler.

Giant walking draggling for cost item.

DEFENCE EQUIPMENTS

BEML-TATRA T815 VVNC8*8 vehicle.

BEML-TATRA T815 VVL8*8 vehicle.

BEML-TATRA T815 VVTI8*8-Tank Transportation.

BEML-TATRA T815 VVNC6*6 High Mobility Vehicle.

BEML-TATRA T815 VVNC6*6 Field Artillery Tractor.

BEML-TATRA T815 VI4*4 High Mobility Vehicle.

BEML limited.


PRITHVI missile launcher.

OXIDISER carrier.

WA RDHEAD carrier.

FUEL carrier vehicles.

MISSILE Transport.

10T mobile crane.

Ammunition Loader.

Pontoon Bridge set.

Pontoon Truck.

Truck Mounted crane.

Pavement Laying Truck.

Dolly.

Light Recovery vehicle.

Armoured Recovery vehicle.

Backhoe loader transport.

RAILWAYS:

Passenger coaches.

DC electrical multiple units (DC-EMUS).

AC electrical multiple units (AC-EMUS).

Track laying equipment.

Rail bus.

Spoil disposal units (SDU)

Treasury vans.

Mill rail coaches.

Metro cars.

OHE cars.

BEML limited.


DESIEL ENGINES:

100-1000hp engines for contribution and mining equipment.

Irrigation pumps.

Marine vessel engines.

Compressors.

ROAD CONSTRUCTION EQUIPMENT:

Batching and mining plans.

Vibrating compactors.

Pneumatic-tried rollers.

DIASTER MANAGEMENT EQUIPMENT:

Radio-controls dozers.

Hydraulic excavators with demolition attachment.

ENERGY:

Diesel genets-230, 360, 550KVP.

INDUSTRIAL AND AUTOMATION:

Industrial welding robots,

Machine tending robots.

BEML limited.


PRODUCT MANUFACTURE IN BEML:

RAILWAY TRANSPORTATION EQUIPMENT

DEFENCE EQUIPMENT

MINING EQUIPMENT

BEML limited.


AREA OPERATION:

BEML being a public sector undertaking operates well in the global market

also. The company’s international divisions are involved in large trading as well as

counter trade in countries worldwide covering Asia and Middle East besides

entering into European market through UK, Italy and Greece.

The company commenced its overseas operations in 1969-70 and has exposed

earth moving equipment’s, rail coaches and spare parts valued at several million

US$ to countries all over the world.

As a recognized export house, BEML has expanded operation to include

export of engineering goods, Defence items commodities and undertaking of project

management and turnkey contracts. Despite the pressure of highly competitive

market for heavy construction and mining equipment, BEML’s Export is attributed

to good quality equipment and very efficient after sales services. Fully satisfied with

the BEML’s services, customers in several countries have been placing repeat orders

for the company’s equipment.

The company is looking at global market for future growth several countries

have been identified for making a foray. In keeping with this, the export target for

the year 2009-2010 has been fixed at over Rs 500 crores which are stiff considering

the strong foothold of competition in the world market. Exports were made to

countries like Syria, Tunisia, South Africa, Afghanistan, Bhutan, Abu Dhabi, Jordan,

Bangladesh and Suriname in Latin America.

BEML limited.


OWNERSHIP PATTERN:

SHARE HOLDING PATTERN:

CATEGORY 2007-08 2008-09 2009-10*

No. of

Shares

% to

Equity

No. of

Shares

% to

Equity

No. of

Shares

% to

Equity

Promoters

The President

of India

22500000 54.03 22500000 54.03 22500000 54.03

Institutional

Investors

Mutual Funds

and UTI

6001284 14.41 6411006 15.39 5597860 13.44

Banks /

Financial

Institutions /

Insurance

Companies

2491994 5.98 4204844 10.10 4081333 9.80

FIIs 6663993 16.00 4138975 9.94 5615855 13.49

Others

Private

Corporate

1239445 2.98 1290640 3.10 1141449 2.74

Indian Public 2472636 5.94 2781043 6.68 2474380 5.94

NRIs / OCBs 237526 0.577 229383 0.55 218052 0.53

Any Others -

Trusts

37622 0.09 88609 0.21 15571 0.03

Total 41644500 100.00 41644500 100.00 41644500 100.00

COMPETITORS OF BEML

Railways Integral coach factory permbur, RCF at

Karputhala

Bull dozer Caterpillar (Hindustan Motors)

Excavators L&T, Escort, TATA

Dumpers Hindustan Motors, Volvo, TATA, TELCO, Ashok

Leyland

BEML limited.


PRODUCT AND THEIR COLLABRATION

PRODUCTS COLLABORATION

210M Dump Truck KOMATSU Mining System,

USA

445E Electrical Dump

Truck

KOMATSU Mining System,

USA

Walking Draglines BUCRYUS International, USA

182cm 10cu.m Rope

Shovel

BUCRYUS International, USA

Heavy Duty trucks for

Defence

TATRA SIPOX

METRO Railway ROTEM, SOUTH KOREA

Diesel Engine KOMATSU, JAPAN

BANKERS

SBI

CANARA BANK

SBM (STATE BANK OF MYSORE)

PUNJAB NATIONAL BANK

BANK OF INDIA

STATE BANK OF BIKANER & JAIPUR

CENTRAL BANK OF INDIA

BEML limited.


INFRASTRUCTURE FACILITIES:

BHARAT EARTH MOVERS LIMITED

Name of the company BHARAT EARTH MOVERS LIMITED

Registered office BEML SOUDHA

CORPORATE OFFICE

NO-23/14TH

MAIN

S.R. NAGAR

BANGALORE-560027

Group PUBLIC SECTOR UNDERTAKING

Activity MANUFACTURING OF EARTH MOVING

EQUIPMENTS, RAIL COACHES, DEFENCE

AUTOMOTIVE VEHICLE

Date of Establishment JAN 1 1965

Activity

BEML limited.


OTHER COMPLEX

KGF KGF COMPLEX (KOLAR GOLD FIELD)

Kolar Gold Field, located from Bangalore, spread over an area of 1850 acres;

BEML has established an extensive manufacturing base. A skilled work force of

over 7400 turnout state of the art bulldozer, hydraulic excavator, wheel force of over

7400 turnover state of the art bulldozer, hydraulic excavator, wheel loaders, rope

shoves & walking draglines for mining & construction industry . Sophisticated CNC

machines & latest technology welding equipment have been installed.

MYSORE COMPLEX

The biggest dump truck factory in India is located at BEML’s Mysore

Complex. This unit is located about 180kms from Bangalore & occupies about 178

acres of land, having a work force of about 2500 employees.

PALLAKKAD COMPLEX

On 16th

May 2010, BEML added one more feather to its cap by inaugurating

its Manufacturing plant at Palakkad in Kerala, especially for Manufacturing of Rail

coaches, Wagon & Defence products.

AREA OF OPERATION

BEML has 3 international offices, 10 regional offices & 15 District offices &

it also have 4 activity centre.

INTERNATIONAL OFFICES

CHINA- BEML LTD shanghai representative office, shanghai

MALAYSIA- BEML (MALAYSIA) SNDBHD, johar bharu, MALAYSIA

BRAZIL- BEML BRAZIL, state of espirito santo BRAZIL

GLOBAL OFFICE

MOROCCO

CHINA

SINGAPOR

BEML limited.


ASSEMBLY PLANT

BRAZIL

GLOBAL PARTS WAREHOUSE

MALAYSIA

REGIONAL OFFICE

Bilaspur

Chennai

Hyderabad

Kolkata

Mumbai

Nagpur

New Delhi

Ranchi

Sambalpur

Singrauti

District office

Ahmedabad

Asansol

Bhili

Bhubaneswar

Chandrapur

Guwathi

Jammu

Madurai

Naively

Pan Jim

Udaipur

ACTIVITY CENTRE:

Ongole

Kanti

Hospet

Bangalore

BEML limited.


THE COMPANY SHARES

The Bangalore stock exchange limited, Bangalore BEML

The Bombay stock exchange limited, Mumbai

The National stock exchange of India limited, Mumbai BEML

ACHIVEMENTS AND AWARDS

CMD received the 'SCOPE Award for Excellence and Outstanding

Contribution to the Public Sector Management - Medium PSE Category D'

for the year 2006-07

CMD received Raksha Mantri's Award for 'BEST DEFENCE PSU' for the year

2007-08

CMD received the 'BEST PSU AWARD' instituted by India's leading B School,

Indian Institute of Planning & Management held at Bangalore on 25th March

2009

Southern Region of EEPC India awarded BEML with 'Silver Shield' for Star

Performer as a Large Enterprise for its outstanding contribution to Engineering

Export held at Trivandrum on 11th February 2009

CMD received the 'Raksha Mantri's Award for Excellence' for 'Best

Performance in Exports' held at New Delhi on 7th November 2008

CMD received the 'ROTARIAN AWARD' of Vocational Excellence in their

District Conference held at Bangalore on 9th February 2008

CMD received the 'BEST CEO AWARD' from Mr. SK Sharma, National

President , Indian Institute of Materials Management (IIMM) on 30th November

2007 at Chandigarh

Conferred „Star Performer Award‟ by Engineering Export Promotion Council,

Southern Region on 24th November 2007

Award for „Excellence in Technology and Innovation‟ from Confederation of

Indian Industries (CII)

Rated „AAA‟ by ICRA in January 2007

Received 'Golden Peacock Award for Innovation Management' from Institute

of Directors on 14th January 2007

BEML limited.


Ranked „4th Best Wealth Creator among 21 Best Wealth Creators of India‟

and the 1st among PSUs (US$ 1 in 2002 has appreciated to US$ 62.64 in 2007)

by Dalal Street Magazine

Conferred „Mini Ratna Category-1 Status‟ by Ministry of Defence, Govt. of

India during August 2006

Received „Golden Export Award‟ from Government of Karnataka, India during

August 2006

Received „Enterprise Excellence Award‟ from Indian Institute of Industrial

Engineers during May 2006

Received „Excellent‟ MoU rating in 2005-06

Award for „Outstanding Export Performance‟ from Engineering Export

Promotion Council (EEPC) during February 2005

Award for „The Largest and Most Profitable Construction Equipment

Company‟ - 1st Rank from Construction World - NICMAR 2007

Awarded „UDYOG RATAN AWARD (Gold Trophy)‟ by Institute of

Economic Studies, New Delhi, during October 2004

Received „Niryat Shree Gold Trophy‟ from Federation of Indian Export

Organisations for its outstanding export performance in Export House/Non SSI

category for the financial year 2000-01

„National Award for Import Substitution‟ for Crawler Mounted Shovels (2 to

2.5 bucket Cu., M. Capacity)

BEML limited.


EHS POLICY

We at BEML manufactures of equipment for construction & mining & metro

& defence are decided to protect & conserve the environment by minimizing the

adverse impact of the process, product & services on the environment.

OBJECTIVES

As part EHS policy we shall continually strive & are committed to:

Provide health & safe environment to all employees & interested parties.

Comply with all applicable legal & regulatory requirements.

Conserve natural resources & initiate & achieve energy saving.

Minimize process waste, promote recovery, reuse & recycling of material &

develop eco-friendly waste disposal system.

Improve to minimize environment health & safety hazards & hazardous

process.

Train & build awareness among all our employees of EHS issues on a

continuous basis.

Communicate EHS policy to all employees, stake holder, investors & other.

HEALTH

SAFETY POLICY

ENVIRONMENT

BEML limited.


BOARD OF DIRECTORS

Sri V RS Natarajan

Chairman & Managing Director

FUNCTIONAL DIRECTORS

Sri V Mohan

Director (Defence)

Shri M.Poongavanam

Director (Mining & Construction)

Shri P Dwarakanth

Director (Metro&Rail)

Shri M Pitchaih

Director (Finance)

Shri M Nellaiappan

Director (HR)

OFFICIAL DIRECTORS

Shri Satyajeet Rajan

Jt.Secretary (Exports), Ministry of Defence

Shri P.K Mishra

Addl Financial Advisor & Jt. Secretary, Ministry of Defence (Finance)

INDEPENDENT DIRECTORS

Sri J P Singh, IAS (Retd)

Sri M B N Rao

Sri J P Batra

BEML limited.


ORGANIZATIONAL CHART

CMD BEML

DIRETOR

PRODUCTION

DIRECTOR

MARKETING

GG

DIRECTOR

FINANCE

DIRECTOR

R&D

DIRECTOR

HR

EXECUTIVE DIRECTOR BANGALORE COMPLEX

GENERAL

MANAGER

DEPUTY GENERAL

MANAGER

ASST. GENERAL

MANAGER

SENIOR MANAGER

ASST. MANAGER

OFFICER

WORKER

BEML limited.


WORK FLOW MODEL

ORDER

MARKETING

CORPORATE

PLANNING

DESIGN &

DRAWING

PLANNING

DEPARTMENT

PURCHASE

STORE

RAIL COACH DEFENCE

MANUFACTURING

SHOP

SUB-ASSEMBLY

FINISHING

DELIVERY

ROLL OUT

TATRA TRAILER PMS

MGF-SHOP MGF-SHOP MGF-SHOP

SUB-

ASSEMBL

Y

SUB-

ASSEMBL

Y

SUB-

ASSEMBL

Y

EJECTOR

& AIR

CLEANER

ROLL OUT

BEML limited.


VARIOUS DEPARTMENTS

FINANCE DEPARTMENT

HIERARCHY OF FINANCE DEPARTMENT

CHEIF GENERAL MANAGER BANGALORE COMPLEX

DGM MANGER INTERNAL

AUDIT

GENERAL

MANAGER

MANAGER BILLS

RECEIVABLE

MANAGER MAT

A/C

MANAGER

COSTING

OFFICER

CHEQUE

SYSTEM

ASST.MANAGER

PAY ROLL

SR.MANAGER

BILLS

PAYABLE

ASST.

MANAGER

PURCHASE

SCRUTINY

MANAGER

BOOK

KEEPING

ASST.

MANAGER

PROVIDENT

FUND

BEML limited.


INTRODUCTION

It is a management activity, concerned with the planning and controlling of

firms financial resources. Great interest to the academicians & the practicing

managers are interested in the subject because among the crucial decision of the firm

are those related finance. The working capital requirement was from the internal

resources and cash credit facilities from banks. The company capital structure

consists of only equity & there is number department.

There are eleven sub section working under finance department

Pay roll

Bills payable

Bills receivable

Cash office

Provided fund office

Costing and Budgeting department

Purchase scrutiny

Material account

Book keeping

System appraisal (Audit)

1. PAY ROLL

The main function of payroll covers the following:

Placement of time punching cards in time card racks for recording attendance.

Receipt of approved leave application, O.T, authorization, attendance sheets,

employees gate passes etc.

Maintenance of leave records and feeling of attendance data to computer with

reference to the document received.

The computer or data processing section prints out payroll or pay bill or pay

sheets in duplicate or triplicate as required. Where two copies are printed the

original is used for obtaining acquaintance from employees and duplicate is

retained by the pay roll section for record purpose.

Disbursement of salaries and wages.

Payment and recovery of advances.

Recovery of dues from employees.

BEML limited.


Payment of travel advances and adjustment there off

Reimbursement of expenses like medical, conveyance, school fees etc.

Remittance of amount recovered from employees to various agencies.

Accounting of all pay roll transactions.

Maintenance of employee’s cards.

Miscellaneous.

The following major according registers and subsidiary ledgers or registers are

maintained in this section

Leave record ledger or register.

Salaries and wages journal.

Travel expenses journal

LTC expenses journal.

Loan registers.

Advances register for

Travel advances.

LTC advances.

Salary advances.

Vehicle advances.

Festival advances or contingency advances.

Incremental register.

Unpaid wages register.

Conveyance reimbursements register.

Remittances register of recoveries.

Register for reimbursement of other expenses.

2. BILLS PAYABLE

This bills payable department in BEML is highly sophisticatedly diversified.

The bills payable role will start after material requirement planning is done then the

tender are put forward to the vendor only to those who are registered with BEML

(approved vendor list). Then the question is received only from those vendors who

are rated as L1 is selected and order is placed.

BEML limited.


A copy of the purchase order is received by the bills payable department. The

purchase order contains the vendor name, the material order for quality, value, the

tax to be paid on the purchase or if there is any exemption under the central excise

duty if so avail it on the purchase

After the goods are received, the RR group prepares a receipt report after the

stores department verifies the goods & even a pay order is prepared & forward it to

the bills payable department. The bills payable department compares the purchase

order sheet with receipt report for any verification. The release for payment is passes

on to the cheque-processing department.

If the goods are not delivered within the specified period or time then BEML

deducts 5% as penalty on the payment.

Any purchase beyond 50 lakhs is referred to the chief managing director. In

BEML the credit policy followed for payment in 60 days.

The bills payable section further divided into two sub-divisions. They are:

Bills payable-Inland.

Bills Payable-Foreign.

BILLS PAYABLE-INLAND

This section deals with the following aspects of supplies and services rendered

by inland vendors to the company.

Payment and accounting of advances to supplies.

Payment and accounting of advance to other vendors.

Payment and accounting of final bills.

Bank dealing with relation to suppliers.

Adjustment/recovery of advances.

Accounting and pricing of receipt vouchers.

The following major accounting register and subsidiary accounting register are

maintained in this section:

Inland purchase journal.

Inland service journal.

Advance journal.

Insurance claims journal.

BEML limited.


Sundry creditors register.

Advance to supplier register.

Miscellaneous advance register.

Letters of credit register.

In addition to these accounting records, subsidiary register are also maintained

by this section:

To watch the flow of bills and invoices into the section and their clearance.

To watch the flow of other document from bank and their clearance and

To watch the flow of receipt voucher from stores or purchase department and

their clearance.

These register are as follows:

Service bill register.

Agency commission bills register.

Freight bill register.

Purchase order register.

Other periodical expenses register such as telephone, telex, electricity, water,

rent and property.

BILLS PAYABLE – FORIEGN

This section deals with the following aspects of supplies and services rendered

by foreign vendors or collaboration to the company.

Payment and accounting of advances to supplies.

Payment and accounting for services obtained from collaboration and others.

Payment and accounting of contractual fees (licence fees, royalty, etc).

Payment and accounting of customs duty, freight bills agency, commission

bills etc.

Payment and accounting of final bills.

Accounting and pricing of receipt vouchers.

Opening of letter of credit and dealing with banks for obtaining foreign

exchange release and payment there off.

Maintenance of deferred liabilities account.

BEML limited.


The following major accounting register and subsidiary accounting registers are

maintained in this section.

Foreign purchase journal.

LC registers.

Goods-in-transit register.

Contractual payment registers.

Advance to supplier register.

Sundry creditors register.

Deferred liability register.

In addition to the above accounting records the following register are also

maintained in this section.

Foreign purchase order registers.

Agency commission bills register.

Bills of entry register.

Foreign bills register.

Foreign claims bill register.

Foreign consignment freight bills register.

Insurance bills register.

3. BILLS RECEIVABLE:

It is responsibility for the preparation and submission of invoice for the

equipment and spare parts sold; service rendered, followed up for the collection

&accounting of sales & all other works connected to the sales like filling of

commercial tax return etc.

Functions

Register &scrutiny of sales order pertaining to equipment & spare parts

including export.

Preparation &submission of invoice to customer for payment.

Accounting of sales.

Compliance of sales tax returns.

Review of balance in the customer’s account on a frequent basis.

BEML limited.


Records maintained:

Sales order register.

Stage payment register.

Dispatch advice/invoice register.

Sales journal.

Sundry debtor’s ledger.

Register of export sales.

4. CASH OFFICE

This section is responsible for all payments of cash, cheques & accounting

same in the books of accounts.

Function:

Receipt of cash, cheque & bank draft etc & issue of official receipts for the

same.

Follow up/watch for the transfer of funds to & from regional/district offices.

Operations of bank accounts.

Cash disbursement to payroll for the payment of salaries & wages & other

payments.

To check the bank statement.

Reconciliation of inter transfer of funds transaction.

5. PROVIDENT FUND

This deals with the provident fund of the workers & the employees & it deals

with the family provident fund, employees deposit insurance schemes, gratuity

fund and group saving linked insurance plan.

It also provide other activities like investment of PF accumulation in approved

securities, final payment of on the termination or on the death of the person,

declaration of the person, declaration of the PF accumulation in approved

securities, declaration of the PF interest & crediting it to the members accounts

etc.

BEML limited.


6. COSTING AND BUDGETING DEPARTMENT

Costing and Budgeting department is a very important area concerned to the

company. Costing takes care of all the expenditure concerned to the production. This

department will calculate all the overhead cost and they will identify the area where

costs can be reduced. These reports they send it to the planning department and the

planning department will in turn send this to the IE & MS department as part of

annual cost reduction plan. Budgeting will be done for every financial year and the

funds will be allocated for each and every activity. These will help to maintain the

working capital and funds property.

7. PURCHASE SCRUTINY

Purchase is considered to be very important function in a firm. Therefore,

scrutinizing the purchase procedure is also as important as purchase itself.

The main function of this section is to scrutinize the purchase orders.

This section will assist the purchase department in deciding on the purchase

order.

All information of the purchase department will be scrutinized i.e. from the

time request for material is placed till the purchase order being placed.

Coordinating with the department during the tender formalities also.

8. MATERIAL ACCOUNT

This section is responsible for accounting the material held in the holding stores

by accounting all the receipts & issue documents. The accounts is done in quality,

value & also in charge of accounting of material issued for subcontracts of

fabrication, sent on loan basis, sent for rework/recommendation & stock transfer to

other departments.

Functions:

Maintenance of material ledger in the computer system for all items of the

material held in the stores, investment account wise & store wise by

accounting the receipts & issue to the production & other accounts & releasing

the accounting entries.

BEML limited.


Reconciliation of the value of inventory as per the material ledger with the

general ledger figure.

Reconciliation of the quality balance against the items in bin card with the

material ledger balance by rendering the required assistance to the stores

department.

Accounting & control of the material issued to the sub contract for the

fabrication/completed items as well as loaned items.

Scrutiny of the list of non moving surplus items as well as loaned items.

Accounting for scarp disposal orders.

Books maintained:

Material ledger.

Inventory accounts.

Ledger for material issued to sub contractors.

Register for scarp/surplus items dispatched.

All store documents relating to stock accounting.

9. BOOK KEEPING

This section is completely responsible for the maintenance of the complete

financial records all the accounting section sections present in BEML have to report

to this book keeping section. This document constantly keeps in touch with other

department for information pertaining to sales & purchase, investment, loans,

advances & other details for the profit & loss account & balance sheet which is to be

prepared at the end of the year.

BEML comes under the ministry of defence which has its own set of rulers

which governs the administration of the company but still it follows the rulers &

regulation laid down in the companies ACT of 1956.

This section is also responsible for the reconciliation of accounts of other

divisions, it also charges the depreciation on the assets of the company & is

responsible to answer the government audit & also entered with the work of the tax

audit report.

BEML limited.


10. SYSTEM APPRAISAL (AUDIT)

Auditing is very important for every organization. Therefore, BEML established

a separate section for its auditing purpose. Auditing is conducted on continues basis.

Internal as well as external auditing is done in this organization. All transaction,

accounts are audited by the internal staff, statutory audit is done by the external

organization which includes CA & BEML being a PSU under the ministry of

defence audit is done by the Government also. There are three types of audit being

done which are as follows:

Transaction Audit

Statutory Audit

Government Audit

FINANCIAL DETAILS:

SUMMARY OF THE LATEST REPORT:

PROFIT & LOSS ACCOUNTS OF BEML BANGALORE COMPLEX

SCH MARCH 2009

( Rs Lakhs)

MARCH 2008

( Rs Lakhs)

INCOME

Sales 16 301,346.94 271,334.47

Less: Value of consortium

supplies

8,256.90

-

293,090.04 271,334.47

Less: Excise Duty 13,372.94 17,374.59

Net Sales 279,717.10 253,959.88

Other Income 17 10,997.33 9,482.77

Increase/(Decrease) in

stock

18 28,072.11 11,360.21

318,786.54 274,802.86

BEML limited.


Expenditure

Cost of Raw Material & Spares

consumed/sold

19 185,089.39 160,956.68

Employees Remuneration &

Benefits

20 56,918.93 45,385.93

Depreciation 5 2,730.88 1,769.68

Other Expenses 21 31,295.76 30,445.82

276,034.96 238,558.11

Less: Expenditure allocated to

capital and other accounts

22

-

46.14

276,034.96 238,511.97

Interest 23 3,924.78 2,308.75

279,959.74 240,820.72

Profit for the year: 38,826.80 33,982.14

Prior period adjustment 24 80.07 (819.22)

Profit before tax: 38,746.73 34,801.36

Less: provision for tax 24A 11,862.49 12,235.98

Profit after tax: 26,884.24 22,565.38

Add: balance in profit and loss

account brought forward

6,242.07

4,523.50

Profit available for appropriation 33,126.31 27,088.88

Appropriations:

Proposed Dividend 4,997.34 2,706.88

Tax on Dividend 849.30 460.04

Interim dividend and tax thereon - 2,679.89

General Reserve 17,500.00 15,000.00

Balance transferred to balance sheet 9,779,67 6,242.07

33,126.31 27,088.88

Basic/diluted Earnings per share

(Rs.)

64.56 56.10

BEML limited.


BALANCE SHEET OF BEML BANGALORE COMPLEX

SOURCES OF FUNDS MARCH 2009 MARCH 2008

SHAREHOLDERS FUNDS

Share Capital 1 4,177.22 4,177.22

Reserves & Surplus 2 187,360.41 166,392.82

191,537.63 170,570.04

Loans funds

Secured Loans 3 47,090.88 30,326.80

Unsecured Loans 3A 9,673.08 --------------

56,763.96 30,326.80

Deferred tax liability 4 4.00 -------------

248,305.59 200,896.84

Application of funds

Fixed Assets

Gross Block (at cost) 5 74,950.61 68,027.78

Less: Depreciation 49,401.95 46,970.05

Net Block 25,548.66 21,057.73

Add: Capital work-in-progress 6 2,361.00 2,425.43

27,909.66 23,483.16

Investments 7 794.89 794.89

Current Assets, Loans &

Advances

Inventories 8 162,057.87 92,958.00

Sundry Debtors 9 154,526.67 149,605.62

Cash and Bank Balance 10 26,351.00 52,109.53

Other Current Assets 11 1,501.76 1,908.01

Loans and Advances 12 41,275.88 18,313.81

385,713.18 314,894.97

BEML limited.


Less: Current Liabilities &

provisions

Current Liability 13 113,326.33 97,916.44

Provisions 14 53,615.48 42,056.36

166,941.81 139,972.80

Net Current Assets 218,771.37 174,922.17

Deferred tax Asset 14A - 302.80

Miscellaneous Expenditure ( to

the extent not written off or

adjusted)

15 829.67 1393.82

248,305.59 200,896.84

BEML limited.


HUMAN RESOURCE DEPARTMENT

HIERARCHY OF HUMAN RESOURCE DEPARTMENT

HRM is planning, organization, directing& controlling of procurement,

development, integration, maintenance & separation of human resources to the end

those individual, organization & social objectives are accomplished.

DIVISION HEAD BANGALORE

COMPLEX

OFFICER

DEPUTY GENERAL MANGER

ASST. GENERAL MANAGER

SENIOR MANAGER

MANAGER

ASST. MANAGER

BEML limited.


HR VISION

HR will be Dynamic, pro-active & strategic Business Partner to enable

BEML to maintain its leadership position in all its Business Domains.

HR MISSION

To continuously innovate, evaluate and religion HR practices with the

environment, business strategies/directions and expectation to maintain

relevance and to attract nature and retain talent.

To foster a spirit of creativity and innovation amongst the employees by

facilities creation of a rewarding, inspiring and motivational organization

climate.

To act as a champion of change and managing the people implication of

organization changes.

HRM IN BEML CAN BE DIVIDED IN TO FOLLOWING DEPARTMENTS:

Welfare.

Establishment

Training & development

Disciplinary

Time office

House keeping

Canteen

Horticulture

Training centre

WELFARE:

As the name states the main aim of this department is to ensure the welfare of

the employees in various fields. It caters to the requirements of employees. Various

benefits being provided are as follows:

TRANSPORTATION

This department provides transportation facilities of the employees to

the factory. Various functions of this section are issuing bus passes, processing bills,

correspondence with BMTC, surprise checking & monitoring, cost reduction

measure, maintenance of files, cleanness of bus yard etc.

BEML limited.


MEDICAL

This section deals with the medical treatment & facilities being

provided to the employees. Various activities being performed are conducting

various health programmes i.e. pulse programme, free health camp, eye check up,

skin check up, diabetic check up, conducting various training programme, first aid

training, checking & compliance with ESI Act Provisions, Blood donation camp

arrangement & so on.

CANTEEN

This department ensures daily visit to canteen during breakfast & lunch

hour, coordinating with the canteen officer for canteen activities, framing rules &

regulation to regulate the canteen services.

HOUSING /TOWNSHIP

Conducts regular visit to township for beautification & handling the

grievances of township offices/employees. Coordinating with the committee for

smooth function of development work. Checking the day to day activities, planning

for revenue generation.

OTHERS

Various other functions being carried out by this department are

providing uniforms, shoes, dairies, coordinating with stores for smooth distribution

of activities, small savings, and distribution of Sodexho coupons, settlement of death

accounts, implementation of welfare activities & policies, conducting election for

BEMEA & other elected bodies, meritorious awards, attending accident cases,

handling the complaints boxes, school management, counselling the employees & so

on.

ESTABLISHMENT

This section is considering as the back bone of HRD. It contains all the

matters relating to an employee i.e. form the time he joins the firm till he leaves. It

performs various functions such as maintenance of personal files, issues relating to

promotion, wage fixation, recruitment, issuance of various certificates like service,

salary, NOCs etc. the company has a total strength of 12573 comprising 2708 offices

& 9865 employees. The following is the strength of the man power in Bangalore

Complex as on 1-5-2010.

BEML limited.


Scheduled tribe Ex-servicemen

WAGE GRADE CATEGORY NO. OF WORKERS

S4 SENIOR SUPERVISOR 200

S3 SUPERVISOR 460

S2 JOINT SUPERVISOR 135

S1 DEPUTY SUPERVISOR 666

E MASTER SKILLED 229

D HIGHLY SKILLED 392

C SENIORN TECHNICAN 270

B TECHNIAN 90

A UNSKILLED 12

TOTAL 2454

REPRESENTATION OF SC/ST/EX-SERVICEMEN

1.1.08 1.1.09 1.1.08 1.1.09 1.1.08 1.1.09 1.1.08 1.1.09

GROUP A 1569 1517 239 221 47 45 16 10

GROUP B 855 1234 135 198 35 61 6 7

GROUP C 9501 9656 2045 2080 366 375 392 375

GROUP D 89 130 33 47 - 5 - -

TOTAL 12014 12537 2452 2546 448 486 414 392

Category/

group

Total Strength

as on

No. of SC/ST and Ex-Servicemen

Scheduled caste

BEML limited.


The function of this section relating to various areas as follows:

RECRUITMENT

Recruitments in BEML are based on the requirement for maintaining different

operators of the company. The requirements in turn are associated by IED

keeping in view the operational requirements & succession planning.

Recruitments are normally made through employment exchange; walk-in or

openings are published in the web site/advertisement in news papers etc.

In respect of ex-service personnel the recruitment are based on the list

provided by ex-serviceman organization of Government of India.

Due reservation concession are provided to candidates belonging to

SC/ST/OBC/Physically Handicapped etc.

Medical examination & all the verification will be done.

After recruitment the candidates will be probation as per company policy &

confirmation of the post will be based on the satisfactory performance.

Any false data being provided will lead to the termination of service.

All the recruitment will be done by the corporate office.

PERFORMANCE APPRAISAL

It is very important for any organization to review the performance of its

employees periodically.

The appraisal is done annually for both employees as well as officers based on

rating scale.

Employees are rated by their immediate superior based on their performance

throughout a year. Employee’s service record is an important document which

indicates the performance with reference to various parameters with reference

to various parameters mentioned in the document.

No feedback is provided to the employees.

In case of officers key performance area will be determined at the beginning of

the year between the officer & reporting authority to enable the officer to

achieve the target set.

Self appraisal will be done by the officer & then will be reviewed by the

concerned authority & the rating is given.

BEML limited.


WAGE AND SALARY FIXATION

One of the most important functions is to fix the salary based on the

scales fixed by the management. Various allowances are given which are described

as follows:

The employees are paid on monthly basis; the components of salary are Basic

pay, DA, HRA etc.

Various allowances given are night shift allowances, Contingency allowances,

lunch allowance, transport allowance, Reimbursement of entertainment

expenditure, reimbursement of internet broadband charges etc.

Incentives are also given to the employees as well as the officers as per the

provisions.

Advances are provided for the purchase of vehicles, computers, house building

advance, leased car facility to senior officer etc.

PROMOTION

Promotion is given based on the seniority as well as the performance basis.

Once certain year of service is completed by an employee’s automatically he is

posted to the next level. In case of extra ordinary performance also before the tenure

itself an employee will be promoted.

TRAINING AND DEVELOPMENT

Each and every person is lacking some or the other skills which can be

improved but providing training as per the requirements. This section looks into the

training needs of the employees as well as the officers. It is done annually or as &

when required. Various activities being performed by this section are as follows:

Training needs differ from employees & officers. It also differs based on the

grade of each of employees & officer.

Each department identifies their training needs & inform to this section.

All needs of the entire department are consolidated & plans are being made

regarding the training to be provided & informed to the management regarding

the budget of the training programmes.

BEML limited.


Training calendar will be made stating the programmes to be implemented that

matches the needs.

Decision will be taken regarding who will train i.e. internal or external people.

Training is given based on various levels. It differs from each level based on

the innovation, competition level etc.

Training will be given for the overall development of an individual which

helps both in case of work as well as personal life.

Feedback will be collected from the employees after they are trained. Ratings

are given based on the set parameters.

Changes will be implemented in the next programmes from the feedback

obtained.

Training undergone will be recorded in each employee’s profile which can be

referred in the future for any purpose.

This record will help the department to avoid unnecessary training being given

to same employee without having the knowledge of the past training being

provided. This helps the management to reduce the cost.

Training needs are given in various areas such as Technical programmes,

Industrial safety management, Soft skills, quality improvement programmes,

Inventory management, Finance, Marketing & General.

Some of the training programmes are Awareness on safety, occupation safety.

Soft skills like communication & presentation skills, problem solving &

decision making, stress management, Awareness programme on ISO 14000,

Total Quality Management. General training which includes yoga, computer

training, health programme etc.

DISCIPLINARY

In every organization there are set rulers & regulations to be followed by

the employees. In the event of violation of standing orders, disciplinary action as

deemed fit will be initiated by this department. All matters relating to the problem of

the employees regarding violation of the rulers will be handled by this section.

BEML limited.


TIME OFFICE

Attendance is an important aspect in any field. Therefore it is necessary to

maintain the record of employee’s attendance. In this case each employee’s entry &

exit time will be recorded & for this purpose punching is being used. If any

employee has to go out during the working hour’s gate pass will be issued by the

department head & also recorded in the books of the security.

HOUSE KEEPING

Cleanliness is very important to be considered in any organization as it

conveys a message about the image of the firm to the outsiders. Therefore, a separate

section is formed by the organization in order to maintain the cleanliness of factory

premises.

CANTEEN

BEML is having three canteens which provide food to all employees.

Seating capacity 4000-4500.

Cost Rs. 5 per meal employees.

Purchases are done from Government agency.

Order will be placed for 1 year except vegetables.

Total requirement of rice 800 kg per day.

Total cost Rs. 75000-80000 per day.

Wastage 2%- 3% per day.

Total number of canteen staff 100 (No woman employees).

HORICULTURE

For any organization greenery adds to its beauty. So the firm has made a

separate section to look into the gardening/beautification of its firm. BEML has

achieved various awards for its beautiful garden.

TRAINING CENTRE

This is another section which is different from the training & development

section. This section mainly focuses on the training requirements of the

BEML limited.


apprenticeship for various types of technical & non technical training for a specific

period. It does not look into the training needs of the employees.

GRATUITY ACT (1972)

Employees drawing more than Rs.35000 & who have put in continuous

service for not less than 5 years for eligible for gratuity.

When Gratuity is not payable

Partial Forfeiture:

When employee’s causes any damage to the country’s machinery

equipment provided the principle of national justice is employed.

Full Forfeiture:

In case of riotous or disorderly behaviour of the employee inside the

factory & in case of moral turpitude like theft etc.

CALCULATION

Salary for this purpose includes Basic, DA

= (LAST SALARY DRAWN) *15* (COMPLETED YEARS OF SERVICE)/26

PERFORMANCE APPARAISAL, PROMOTION, MAN POWER PLANNING

PERFORMANCE APPARAISAL

Performance appraisal is done by the method of MBO (Management by Objectives)

PROMOTIONS

For employee category the promotion are done once in 4years regularly.

Sometimes it may become 5 years because of miss behaviour of employee.

In case of executive section it is based on performance of an executive & it is

not based on management objectives.

MAN POWER PLANNING

Man Power Planning is done in production department based on the

requirement to complete the yearly order. Contact workers are appointed to do extra

work & also night 11.00 PM to 6.30 AM is considered as overtime (OT) to complete

BEML limited.


the order. Administration of man power planning is done based on the available

work in the respective department.

BEML limited.


SERVICE WING

(SPARE PARTS)

MARKETING DEPARTMENT

HIERARCHY OF MARKETING DEPARTMENT

BEML limited has nationwide marketing network for sales and services of

construction equipment spread across 22 states, the National Capital Region and 2

Union Territories.

BEML has an effective marketing network that provides customer with

immediate access to BEML’s wide range of products & service. The company’s

marketing strength and reach has enabled it to achieve a share of even 70% in the

Indian market. The corporate head quarter is in Bangalore but the central marketing

unit been shifted to KGF where most of the vehicles for commercial purpose are

DEPUTY GENERAL AMNAGER

(MARKETING)

ASST. GENERAL MANAGER

(MARKETING)

SR. MANAGER SR. MANAGER

SR. MANAGER

DEFENCE RAILWAY METRO

BEML limited.


manufactured. It has regional offices, a large number of direct office, spare part

depots and service centres located within the country and also abroad.

SALES PROCEDURE:

Preparation of materials.

Presentation of materials.

Listing of the customers.

Call/invite the customer.

Arrange the site/place for preparation.

Display the material prepared.

Product improvement.

Product extension

Diversified product going for new products.

Demand.

Availability of technology

SALES PROMOTION ACTIVITIES

Regional offices take the survey of the product in the market.

Preparation catalogues and production guide lines.

Production exhibition.

Wall charts and calendars.

Photograph video tapes.

Transparencies mini shows.

Training of sales person.

Product launching

FUNCTIONS OF MARKETING

Mainly deals with spare parts and equipment for defence, railways and metro

exclusive for defence customer and public.

Army units will place their orders as per requirements. Since they cannot place

an order for each and every single item they should place their requirements to

Central Ordinances Depot (COD) which in turn collects all the orders & places

a bulk order to BEML.

Rate list will be received by the department stating the units & price.

BEML limited.


A separate section will deal with identifying the indigenous items & to be

improved. Some items needed to produce the products may be available with

the firm itself or may need to import.

Various files are prepared by the department separately for indigenous items &

improved items.

BEML has collaboration with various others firms like Rotem, mitsuibhishe

etc. Therefore, in case of import of items it should be intimated to the

collaborator by placing the purchase order.

The above mentioned files will be given to the top management for the

approval.

After the approval can go ahead with the purchase.

Waiting period can be 6 months in case of shipping goods. In case of defence

order no custom duty is charged.

When it reaches the factory local inspection is done by the concerned authority

of this department along with the representative of collaboration.

Check sheet is prepared. It should tally with illustration spare parts and

equipment manuals.

It is then inspected by the Controller of Quality Assurance (CQA).

The items should be accompanied along with the inspection note. Items will

not be accepted if it is not accompanied with I-Note.

Penalty of Rs. 1000/day will be paid in case I-note is not accompanied with the

items.

Payment schedule is fixed as 30 days.

Waiting period is 90 days in case of local suppliers & 6 months in case of

foreign suppliers.

This department achieves a turnover of about 60-80 crore annually.

Presales: Pre tender or pre quotation, support services, techno commercial analysis,

order dispatch.

Post sales: Dispatching messages run machines, rehabilitation, maintenance

contract, training, service Centre and merchandising.

Finance billing, submission of bills, follow up for payments and maintain

accounts, financing arrangements.

BEML limited.


Servicing of products like spare parts and providing various after sale service

is the major area of function.

FUNCTIONS OF SALES DEPARTMENT

PRE-TENDER ACTIVITY

After having known the requirement of earth moving equipment produced by

BEML, all the efforts need to be exercised as per-tender activities to motivate

customer to incorporate specification of BEML equipment only.

If succeeded in a pre-tender activity, customer will place order on BEML on

proprietary basis. Sales executive are required to keep in mind SWOT analysis to

understand the potential of the customer.

TYPES OF ENQUIRIES/TENDERS

PROPRITARY;

This type of tender, purchase who knows what he wants releases an enquiry to

the supplier. Purchase would specify the technical specification & the time for

supply of the equipment & other commercial terms & condition. If the supplier

cannot meet the requirements of the purchase, he could go to another supplier. There

is one-to-one relationship in the case.

LIMITED TENDER

This case the customer wills send his inquires to few suppliers (5 or 6)

specifying the requirements in equipment. Based on the enquire the suppliers will

submit quotation to the customer. Now the customer has to decide on purchasing of

the equipment based on consideration of price, delivery time, transportation,

insurance, technical specification given by the supplier. The decision making

requires a long time; as well as ordering time is also more.

GLOBAL OPEN TENDER

In this situation the tender notification are announced in news papers. The

process is similar to limited tender excepted that the numbers of suppliers are more.

The purchase has to decide on different quotations sent by different suppliers on

different consideration.

The GM sales could do the Tender/Analysis/Participation. The GM will purchase the

tender document from the tender.

BEML limited.


The tender documents are divided into following parts:

Technical specification.

Equipment specification.

Commercial Terms.

General terms & condition of supply of stores.

Perform for price bid.

The GM is responsible to answer the specification given by the purchased in

Tender

For the technical requirement the design parameters is send to the R&D

department, then they would give the technical support.

The production department will give the delivery and cost estimate.

The cost estimate would include manufacturing cost like material cost, labour

& overheads. To this cost certain margin is added, and then the price is

decided.

The finance department will give the payment terms.

The price is kept confidential.

Prepare sale order and submit to production, finance and the entire connected

department including the terms of purchase order.

Follow-up with production units for expecting, manufacture of required

equipment.

When the equipment is ready inform the customer for inspection of equipment

if applicable as per the order.

After inspection of equipment by the customer obtain acceptance certificate &

arrange to dispatch equipment to the consignee as per the order.

BEML limited.


MATRIAL MANAGEMENT

This department deals with purchasing and storing of materials and

supplying the materials to the production department according to their

requirements.

Department

Purchase department.

Stores department.

PURCHASE DEPARTMENT:

This department in BEML is decentralized each section is responsible for

the procurement of its requirement. The purchase section is directly responsible for

its efficient discharge of its function, duties and responsibilities.

The major objectives of this section is to procure only the required amount of

materials so as minimize the expenditure in inventory and keep the inventory as

minimum as possible.

The major functions of this department are mentioned below:

Identification and selection of suitable sources of supply of materials.

Analyzing of bids and prices by ensuring the fair opportunity to the supplier.

Negotiation the prices by ensuring the fair opportunity to the supplier.

Issue of purchase order, follow up for suppliers.

Assistance in standardization of material, supplies and equipments.

Co-ordination of payment to supplier bills and recovery of dues from

suppliers.

Conduction market research improved method and products.

BEML a lead time of 3 to 4 months for Indian items and 9 to 10 months for

foreign items is considered. While placing the order they take in account opening

stock, closing stock to be maintained and existing materials in production. The basic

document for preparing purchase plans are the production and prevision

programmers, revenue and capital budget, sales order and bill of material.

BEML limited.


Purchase procedure:

After getting material requisite from the planning department.

Sub-planning will be done inside the department.

Ask for the design for the particular machine from design department.

Selecting vendors both from Authorized vendor list (AVL) or marketing

department will do a survey make the list of vendors.

Vendors will be short listed on the basis of considering capacity, quality,

capability, technology, delivering, time etc.

From the short listed vendors they will call for tenders.

These tender will be opened in front of each person from audit, finance,

purchase.

The tender will be valued if all the three are signed in the tender.

Once quotations are approved they will compare the quotes.

From the list they will select the lowest quotation they will put label as L1, L2,

L3 etc.

Purchase order is prepared & sends to accounts department for scrutiny.

Purchase department have to give justification for why they selected particular

vendor.

Final purchase orders have to be prepared & have to forward to the vendors.

Delivery schedule also have to be prepared & send to the vendor. When

making the schedule they will make sure that stock will be purchase monthly

to avoid blockage of finance, storage problems.

Vendor has to supply the goods as per the schedule.

When goods arrive, the quality engineering department will inspect & approve

it.

After approval it will send to stores.

Then purchase department has to make arrangement for payment for the

vendor.

BEML limited.


STORES DEPARTMENT

The store department is the custodians of all inventory held by BEML, and

is charged with the responsibility of receipt of goods, processing, storage and

maintenance, issues, reclamation salvage items and also maintenance of proper

records for accounting of all stores transaction. It is a wing of materials management

and is under the overall charge of chief of stores, Bangalore complex. He is issued

by a team of officers and staff for carrying out the stores functions.

THE STORES COMPRISES OF DIFFERENT GROUPS AS MENTIONED

BELOW:

Receiving store

Holding store.

Tools store.

Defence store.

Non project store.

Salvage store.

Stock control.

FUNCTIONS:

Receiving of all materials (brought out customers supplied items) & offering

inspection.

Control of non- confirming products in receiving stage.

Proper storage and maintenance of tools, gauges & instruments.

Dealing with non-projects items.

Receipt & storage & issue of customers supplied products.

Production identification & trace ability.

Implementation statutory/regulatory requirements where ever required.

Handling field failure items.

Maintaining quality records.

Document and data control.

Control of non-confirming products range during storage.

Corrective & preventive action.

BEML limited.


SALES RECEIVING PROCESS

ENTRY OF TRUCKS

PRODUCTION

CONTROL GROUP

HOLDING STORES

PROCESSING

STORES

(INSPECTION)

VEHICLE ENTRY

PASS

RECEIVING STORES

IDENTIFICATION OF

LOCATION

UNLOADING

RECEIVING REPORT

BEML limited.


ENGINEER

PRODUCTION DEPARTMENT

HIRARCHY OF PRODUCTION DEPARTMENT

CHIEF OF PRODUCTION

BANGALORE COMPLEX

GENERAL MANAGER

DGM DEFENCE

PRODUCTS

DGM RAILWAYS DGM METRO

PRODUCT

AGM

Sr. MANAGER

MANAGER

Asst. MANAGER Asst. MANAGER

MANAGER

Sr. MANAGER

AGM

ENGINEER

AGM

Sr. MANAGER

MANAGER

Asst. MANAGER

ENGINEER

BEML limited.


Production department in BEML is concerned with the manufacturing of all

products of BEML. The products are manufactured in BEML are Defence, Railway

coaches, mining and construction equipment, industrial robots and steel plant

equipment heavy fabrication machines etc.

Production department in BEML comprises of:

Methods planning-1

Methods planning-2

Industrial engineering and management section (IE and MS)

Production control and progress.

Production shop.

METHODS PLANNING-1

This department is responsible for planning activities connected with railways

products, it is responsible for providing cost estimation to marketing division in co-

ordinating with R&D department and accounts department.

Functions:

Preparation of bill of material.

Preparation/approval/issue of process sheet.

Offloading of items.

Release of job cards and route cards for network.

Cost estimation.

Corrective and preventive action for system non-conformance.

Implementation of quality plan requirements.

Control of drawing.

Assistance offered for developing work instruction for special process.

Document and data control.

Control of computer software.

Internal communication.

Continuous improvement.

To approve temporary process deviation advice.

To co-ordinate with other department. Like production control, production

shops, industrial engineering & management services, tool engineering etc to

sort out the problem if any, connected with inputs given to these departments.

BEML limited.


METHODS PLANINNG-2

The function of the department is similar to that of method planning-1, but the

only difference being in the type of the product they deal in methods planning-2

deals with defence products which includes defence truck TATRA etc.

INDUSTRIAL ENGINEERING AND MANAGEMENT SERVICE

DEPARTMENT

This department coincides with the planning as well as the production

department. The main activity of this department is to fix the time required to

perform each operation. The major activities carried out by the department are as

follows:

Preparation of the job stating clearly the time required for the complete of each

job.

Improvement of the productivity.

Deciding on the time will be based on the corporate guidelines.

Estimation of the cost also will be done.

A separate committee is also formed to encourage the employees to come up

with the suggestion which will have a positive impact on the organization.

Practical & cost effective suggestion will be encouraged & is rewarded by the

management.

Rewards can be in the form of monetary as well as non monetary form.

Time taken by the employee is compared to the actual time given by the

department to know the efficiency.

Incentives will be provided for the time saved by the employee.

PRODUCTION CONTROL AND PROGRESS SECTION

This department is mainly concerned with movement of raw materials;

components from the store to the concerned production shop. In other words this

department controls the flow of material i.e. whenever there is a requirement of

some component from any job shop and this department informs the stores

department and ensures that there is continuous r uninterrupted flow of material so

that production is unhampered.

BEML limited.


PRODUCTION SHOP/JOB SHOP:

This is the place where the actual manufacturing/production takes place. In

BEML, following are the various hangers that are involved in the manufacturing

activities.

HANGERS DESCRIPTION:

Alternative current electrical multiple unit-ACEMU.

Multiple units.

Bogie.

Under frame work.

Sheet metal.

Pre-treatment/planning.

Machine shop.

Tools room.

Bogie frame.

Final finishing coaches.

Trailer shop.

New material preparation.

Assembly department.

Earth moving fabrication and assembly shop.

There are 5 major depots in production department:

New material preparation (NMP)

Machine shop.

Sheet metal.

Sub-assembly shop.

Pre-treatment and pre-painting.

BEML limited.


RESEARCH AND DEVELOPMENT DEPARTMENT

HIERARCHY OF RESEARCH AND DEVELOPMENT

DEPARTMENT

GENERAL MANAGER BANGALORE

COMPLEX

DEPUTY GENERAL

MANAGER PRODUCT

DESIGN

DEPUTY GENERAL

MANAGER

TECHNOLOGY

DIVISION

DEPUTY GENERAL

MANAGER RESEARCH

& DEVELOPMENT

SENIOR MANAGER

Asst. GENERAL

MANAGER

Asst. GENERAL

MANAGER

Asst. GENERAL

MANAGER

MANAGER

Asst. MANAGER

ENGINEER ENGINEER

Asst. MANAGER

MANAGER

SENIOR MANAGER

ENGINEER

Asst. MANAGER

MANAGER

SENIOR MANAGER

BEML limited.


INTRODUCTION

R&D division is gearing up to meet the challenges of future technology, which

is becoming more & more interdisciplinary in nature. A well established research &

development centre of the company continues to pay a vital role in the design and

development of products, indigenization.

BEML has built up a strong R&D base, which has a state of art manufacturing

technology committed to achieving superior quality in its products and service &

extends marketing support to its valuable customers.

The R&D department established in the year 1964 at present there are 215

engineers in the Dept. R&D centre are located in 3 centres namely KGF plant which

has one of the best R&D facility in Asia, next in Mysore & family in Bangalore

complex.

BEML aims to provide its customer in core sectors which state-of-the-art

equipment of the quality, reliability and performance standards, towards this end,

BEML R&D division is further strengthening itself as an indigenous and innovation

base for mining and construction equipment, railways and transportation equipment,

railway and on par with the best in the world.

Electronics has penetration almost all area of operation and R&D division is

increasing focusing towards macaronis, robotics and industrial automatic. Since the

Bangalore complex is mainly dealing in defence products there are many groups

looking after individual’s projects. Groups change according to the requirements of

research & development departments.

R&D has four main activities

Projects initiation report-this is based on the marketing report & feasibility

study which has to be submitted to the management.

Order based production under this method the customer place the order and the

prototype is developed & the pilot batch is launched.

Collaboration project items to solve the indigenous and only critical items ae

reached.

In house plant these are used to solve the problem within the plant.

BEML limited.


OBJECTIVES:

Build total self reliance in earth mover and related technology.

Adopt technology to suit national requirements practically in vital.

Sectors such as construction mining, irrigation, railways, transportation and

automation.

Update current products for higher performance and reliability.

Design and develop products in identification technology areas.

Set up test facilities for evaluation of performance & reliability of vehicles and

systems.

Generate design data & increase reliability of design.

FUNCTIONS OF THE DEPARTMENT

To take up the indigenization of the vehicle.

Doing case study of the existing projects to reduce the cost & increase

efficiency, for example some of the projects undertaking by BEML are

SAVOTRA, TATRA projects.

Design and develop specialized type of the vehicle both for railways and

defence for example some of the vehicles developed indigenous for railways

are 8-wheeler overhead electrical (OHE) car, 4-wheeler OHE car, PRITHVI

Missile launcher and 4*4, 6*6, 8*8 and 12*12 trucks for defence.

With the help of advance designing and engineering software’s like

CAD/CAM the entire products is prototyped in the computer and a thorough

analysis is made before the actual products designed is sent to the production

Dept.

Some of the current projects undertaken are PMS bridges system and another

important projects is that of Delhi Metro Rail Coaches (DMRC) which is done

in technical collaboration with the South Korean company ROTEM, sky bus

which is launched in Goa is also one of major breakthrough of R&D Dept.

BEML limited.


MAINTENANCE DAPARTMENT

HIERARCHY OF MAINTENANCE DEPARTMENT

DIVISION HEAD

BANGALORE

COMPLEX

CHIEF OF

MAINTENANCE

CIVIL

MAINTANANCE

ELECTRICAL

MAINTENANCE

MECHANICAL

MAINTENANCE

Asst.

MANAGER

MANAGER

Asst.

ENGINEER

MANAGER

Asst.

MANAGER

Asst.

ENGINEER

MANAGER

Asst.

MANAGER

Asst.

ENGINEER

BEML limited.


Maintenance Department is a vital function sector of BEML taking care of

mechanical, civil and electrical maintenance of the plant, machinery and

equipments. The activities of the department are inter-woven with the related

functional areas of complex.

FUNCTIONAL AREAS

1. Civil Maintenance

Maintenance of new constructions.

Maintenance of old buildings.

Maintenance ventilations.

Control of preventive actions

2. Electrical Maintenance

Maintenance of power handling equipment.

Maintenance of switch boards, wires etc.

Maintenance of fans, lights etc.

Control of preventive actions.

Control of quality records.

Erection and commissioning of new equipment.

3. Mechanical Maintenance

Maintains machine tools.

Maintains material handling equipment such as fork-lifts, side loaders.

Preventive maintenance as per the schedule drawn.

Control of preventive actions.


Erection and commissioning of new industry.

BEML limited.


QUALITY ENGINEERING DEPARTMENT

HIERARCHY OF QUALITY DEPARTMENT

Quality Engineering Department is a vital functional sector of BEML taking

care of quality testing of inventory, tools, machine, which are procured from vendor

and are inspected in the stores physically. It is responsibility for carrying out

activities pertaining to the products which are produced and dispatched by BEML,

Bangalore complex.

CHIEF OF

QUALITY

IN CHARGE

OF TRAILER/

TATRA , PMS

WAGON

IN CHARGE

OF

RECEIVING

INSPECTION

IN CHARGE

OF H6, H7,

H15 & BOGIE

OF QE

WAGON

IN CHARGE OF

METROLOGY

LAB, TOOLING

INSPECTION

IN CHARGE OF

METROLOGY

TOOLING

INSPECTION

MACHINE

IN

CHARGE

OF PMS

IN

CHARGE

OF

TATRA

IN

CHARGE

OF

WAGON

IN

CHARGE

OF

BOGIE

IN

CHARGE

OF H6,

H7, H15

I/C OF

PRETREATEME

NT OF SHEET

METAL AND

MATERIAL

I/C OF

LAB

BEML limited.


MAJOR FUNCTIONAL AREAS

There are four functional areas in this department:

Receiving inspection.

Regional Quality Assurance Wings (RQAW).

Final Inspection.

Metrology

Activities

The activities carried out in BEML are:

Inspection.

Quality assurance.

Coordinating with third party inspection wing authorized by customer.

Control of non-conformances.

Advice preventive and corrective actions.


Dealing with customer complaints.

Quality objectives

Achieve operation excellence by reducing the non-conformances.

Ensure reliability of equipment through quality assurance and quality control

activities.

Train and motivate quality personnel to achieve quality improvement.

Have an effective and documented system to ensure that quality control in

practical in all areas.

Strive continuously to achieve better products quality by introducing new

techniques facilities.

Functions:

Participation in management review.

Participation in contract review.

Carry out inspection & testing.

Verification of customer supplied products.

Verify product identification & traceability.

Inspection of goods, items, assemblies and provide test status.

Control of non-conforming products.

BEML limited.


Advice preventive and corrective actions.

Dealing with customers complaints.

Monitoring customer feedback.

Preparation and maintenance of quality records.

Evaluation of quality costs.

Identification and arranging for training of quality engineering staff.

Coordination with the third party inspection agencies.

Preparation & monitoring of quality objectives.

BEML limited.


SAFETY ENGINEERING DEPARTMENT

HIERARCHY OF SAFETY ENGINEERING DEPARTMENT

Safety in simple terms means freedom from risk of injury or less. Individual

safety or employees safety refer to the protection of workers from industrial

accidents. The Indian industries faces thousands of accidents they not only causes

pain, disability but death & also cause untold miseries to the families, apart from

accidents it also results in financial loss, besides legal effects, embracement’s & loss

of public image. Accidents also cripple profit and productivity safety measures have

become therefore necessary for public & industrial undertaking.

SAFETY GADGETS PROVIDED IN BEML

Helmets, goggles, respirator, ear muff, gloves, apron, safety belt, pants,

gagging boots, safety shoes, figure guards, suit, coat over all.

In BEML the safety engineering department looks into the safety of men,

material, machinery, equipment & environment. The safety precautions followed in

BEML are governed by the ISO-9000 certifications. The Indian factory Act of 1948,

the Karnataka factory Act of 1969 & the environment Act.

CHIEF MANAGING DIRECTOR

CHIEF OF MANUFACTURING &

MAINTENANCE

CHIEF OF SAFETY OFFICER

SAFETY

INSPECTION

SAFETY OFFICER ADMINISTRATIVE

ASSISTANT

BEML limited.


To ensure safety at BEML the following programs are undertaken

Display of safety poster.

Training of employees in safety maintenance, material handling & equipment

handling by internal & external safety experts.

4th

May is celebrated as safety day in which various safety programs like

award for people who have followed standards, safety quizzes & essay writing

on safety.

BEML limited.


TRADE UNION

Trade unions have been defined as “a continuous association of wage earners

for the purpose of maintaining and improving the condition of their working life”.

In earlier times, when industry was on a small scale where few apprentice and

craftsman whom the master craftsman employed lived with him and condition for

employment and grievances were easily discussed individually or in small groups

and quickly settled. Modern industry is very different. It is organized on a large scale

and the maintenance of close, direct relations between the employers and workers

for the settling of differences is very difficult. The status and security which workers

had in earlier communities has gone and in its place they need the protection of trade

unions. Labour is so much more mobile than in former times. The machinery and

other capital used in industry have become the owners of the capital and workmen

who operate the machines.

PRESIDENT

EXECUTIVE COMMITTEE MEMBERS

FIRST VICE PRESIDENT

SECOND VICE PRESIDENT

GENERAL SECRETARY

JOINT SECRETARY

ASSITANT SECRETARY

TREASURE

BEML limited.


FUNCTIONS OF TRADE UNION:

1. Functions relating to trade member:

To safeguard workers against all sorts of exploitation by the employer, by

union leaders and by political parties.

To protect workers from the atrocities and unfair labour practices by the

management.

To ensure healthy, safe and conductive working condition and adequate

conditions for work.

To ensure a desirable standard of living by providing various types of

social services such as health, education, housing, recreational, co-

operating etc and by widening and consolidating the social security

measures.

To guarantee a fair and square deal and social justice to workers.

To remove the dissatisfaction and redress the day to day grievances and

complaints of workers.

To encourage worker’s participation in the management of industrial

organization and trade unions and to foster labour management and

labour follower co-operative.

To make workers conscious of their rights and duties.

To stress the significance of settling disputes trough negotiations, joint

consultation and voluntary arbitration and not through adjudication.

2. Functions relating to industrial organization:

To highlight industrial as a joint enterprise between workers and the

management and to promote identity of interest.

To help in maintenance of discipline.

To create opportunity for workers participation in management and to

strengthen labour-management co-operation.

To create favourable opinion of the management towards trade union and

improve their status in industrial organization.

To facilitate communication with the management.

To impress upon the management the need to adapt reformative and not

punitive approach towards workers fault.

BEML limited.


3. Functions relating to union organization:

To formulate policies an plan consistent with those of the industrial

organization and society at large.

To preserve and strengthen trade union democracy.

To train members to assume leadership positions.

To resolve the problem of factionalism and promote unity and solidarity

within the union.

To keep away from advocating and adoption of unfair labour practices.

To prepare and maintain necessary records.

4. Functions relating to society:

To render all sorts of constructive co-operative in the formation and

implement of plans and policies relating to national development.

To activity participate in the development of programmes of national

development, for example family planning, afforestation, national

integration etc.

To enable unorganised sectors to organise itself.

To create public opinion favourable to trade unions and thereby to raise

their status.

To launch special campaign against the social evils of corruption,

nepotism, communalism, casteism, regionalism, linguism, price rise,

hoarding, black marketing, smuggling, sex inequality, dowry,

untouchability, illiteracy, diseases etc.

The shop unions are closely affiliated to a number of central unions. At

present only 10 of these central unions are recognised by the government. There are:

Indian National Trade Union Congress (INTUC).

Bhartiya Mazdoor Sangh (BMS).

Hind Mazdoor Sang (HMS).

United Trade Union Congress L.S (UTUC-LS).

All India Trade Union Congress (AITUC).

Centre of Indian Trade Unions (CITU).

National Labour Organization (NLO).

United Trade Union Congress (UTUC).

BEML limited.


SECURITY AND VIGILANCE DEPARTMENT:

SECURITY:

Security is safeguarding the property of the organization against any

malpractices. The security department ensures that the workers arrive at the right

time to the premises and the entry of trespassers into the premises is checked. The

visitors and suppliers etc, has to seek permission of the security before entering the

premises and are given pass to enter into premises and are given pass to enter into

premises.

FUNCTIONS:

To collect information for effective performance.

Preventive vigilance.

Educating the employees.

Monitor the guidelines.

Safeguards the men & material which are authorized and unauthorized.

VIGILANCE:

Vigilance department investigates any illegal acts done within the

organization. All government sectors should have Central Vigilance Commissioner.

Vigilance has no boundary for itself. All executives are bound to follow the policy.

Works instructions are provided to all departments.

THE MAIN FUNCTION OF THE DEPARTMENT ARE AS FOLLOWS:

To collect source of information.

To undertake preventive vigilance that is surprise check, random check.

Constructive vigilance for executives, supervisors.

Punitive actions to be provided wherever necessary.

Reformative action also provided.

Causes of corruption & measures to eradicate.

BEML limited.


SWOT ANALYSIS

OVERVIEW OF SWOT ANALYSIS

SWOT Analysis is a strategic planning method used to evaluate the

Strengths, Weaknesses, Opportunities & Threats involved in a project or in a

business venture. It involves specifying the objectives of the business venture or

project & identifying the internal & external factors that are favourable &

unfavourable to achieve that objective. The technique is credited to Albert

Humphrey, who led a research project at Stanford University in the 1960’s & 70’s

using data from fortune 500 companies.

NEED FOR SWOT ANALYSIS

The SWOT Analysis is an extremely useful tool for understanding & decision

making for all sort of situation in business & organizations. The aim of an SWOT

Analysis is to identify the key internal & external factors that are important to

achieve the objectives. SWOT analysis groups key pieces of information into two

main categories.

INTERNAL FACTOR-The strength & weaknesses are internal to the organization.

EXTERNAL FACTOR-The opportunities & threats are presented by the external

environment.

STRENGTHS WEAKNESSES

OPPURTUNITIES THREATS

SWOT

BEML limited.


The internal factor may be viewed as Strengths or Weaknesses depending

upon their impact on the organization what may represent strengths w.r.t one

objective may be weaknesses for another objective. The external factor may include

macro-economic matters, technological charge, legislation & social-culture charges

as well as charges in the market places or competitive position. The results are often

presented in the form of a matrix.

The SWOT analysis provides information that is helpful in matching the

firm’s resources & capabilities to the competitive environment in which it operates.

As such it is instruction in strategy formulation & selection. The following chart

shows how SWOY analysis fits into an environment Scan.

SWOT ANANLYSIS FRAME WORK

SWOT ANALYSIS OF BEML

Bharat Earth Movers Limited (BEML) in a premier ISO 9001-2000 company

in India & the second largest manufacturing of earth moving equipment in Asia.

BEML has vital application in diverse sectors of economy such as coal, mining,

steel, cement, powder, irrigation, construction, road building & railways. It has

expanded its product range to cover high-quality hydraulics, heavy-duty diesel

engines, welding robots & understanding of heavy fabrication jobs. It was

incorporated by government of India as a private Limited Company on May 11,

1964 & went public on Feb 21, 1992.

ENVIRNOMENT SCAN

EXTERNAL ANALYSIS INTERNAL ANALYSIS

WEAKNESSES STRENGTH OPPURTUNITIES THREATS

BEML limited.


The strengths, weaknesses, opportunities & threats are discussed below:

STRENGTH:

BEML is four and half decade old company. The company has been quite

strong faced competition over a period of time. During this reign the

experience gained by the company is incredible. This is the major strength of

the company.

The certification of ISO 9001-2000 are great strength for the company when

it comes to getting orders, as the customers insist on such certifications for

placing orders.

The employees of BEML are highly cooperative. They understand the

management’s productive ideas & join hands with management to achieve

the organization’s objectives. The employee union are highly supportive &

maintain healthy relationship with the management.

BEML has a wide marketing network & services centre situated all over

India. This has made the company to efficiently handle. Customer’s

requirements & problems.

The coordination between the department is quite strong with no

controversies existing between the department either organization or

personal. This leads to smooth functioning of the organization.

The company being the public sector undertaking is strengthened by constant

support from the government through receiving various subsidies &

concessions. The defence department has also been cooperative in

strengthening the organization.

WEAKNESSES

The infrastructure of BEML through spread over wide region is not well

planned. The old building are still with few repair being done her & there.

This could possibly reduce the moral of the employees as the working

environment really matters w.r.t. organization’s profitability.

Non utilization of productivity work time by the employees is a major

weakness to the organization. In the production side, the employees are seen

BEML limited.


moving for their break early & returning to the work late after lunch. This

almost reduces the production time by one hour resulting in reduction in the

production rate.

Lack of scarp management is a serious issue in any organization. In BEML

scarp management is not so effective. The scrap is well maintained in a

corner allowing it to corrode.

The over head costs incurred by the company are quite high resulting in

increased cost of production.

OPPORTUNITIES

The company being awarded with the Mini-Ratna status allow the chief

Managing director to take the important decision relating to collaborations,

technology transfer etc. Making the decision making process simple & fast

increasing the opportunities for the company to diversify.

Implementation SAP-an ERP package has increased the efficiency of the

organization. The efficiency could help the company to grasp more order.

With wide service network the BEML has tremendous opportunities to enter

into untapped markets.

The advent of more is expected to create great demand in the future. It is the

biggest opportunity for the company like BEML. The company could go for

setting up of an exclusive plant for manufacturing metro coaches there by

opening the doors of opportunities.

THREATS

The threats faced by BEML in the global market are high. The global players

like Bombardier & Alston have well sophisticated technology which reduces

the cost of production; however they are ready to suffer losses for the sake of

sustaining the market. The tender quoted by these competitors are attractive

& of low prices. This is a serious threat faced by BEML.

The economic policies of the country are continuously changing, posing

threats to the company.

BEML limited.


The salaries provided by the private sector are quite compared to the salaries

being paid at BEML. This will increase job hopper threats if talented

employees are not retained.

The hardening of steel prices is one of the major concerns of the

organization, as the major raw material required for the production in steel.

BEML limited.


FINDING AND SUGGESTION

Findings:

A detailed SWOT Analysis of the organization functioning has helped in

arriving the following finding:

The employees of the organization are quite conscious aiding the company

to maintain competition even in the global market. The suggestion given by

the employees are whole heartedly welcomed by higher authorities.

The relationship maintained by the employees union with management

unlike any other public sector undertaking is healthy & supportive.

The welfare activities that are provided to the employees have always kept

them at higher sprits which have successfully contributed towards the

profitability of the organization.

By setting up offices at various regions across the company is realizing the

dream of “Transcending new frontiers & gaining recognition in the global

market.

The company is diversifying its operation across the globe by setting up

various sourcing offices, services centres & representatives.

The implementation of “Just In Time” (JIT) has improved the material

management of the organization, reducing the over head costs of storing.

The company has taken stringent measures to ensures employees safety by

providing them with safety equipment & by placing sign boards.

The interdepartmental coordinating of the organization is well maintained

through a proper channel with advent of E.R.P it has become much easier &

faster.

The company has continuously been conducting various training &

development programmers on various fields so as to train the employees.

BEML limited.


SUGGESTION:

Plant layout plays a major role in the progress of work in the organization.

The plant layout in Bangalore complex is maintained as ot was during its

inspection. A change in the plant layout could be carried out so as to achieve

effective & fast progress of work.

The company having the best R&D center has been developing many

products that have proved successful in the Indian as well as the “Global

Market” technology transfer through MOU & joint ventures have been

common in the last few years. It is suggested that the R&D could concentrate

not only on products development but also in-house technology

development. This would help the company in reducing the cost of

outsourcing technology from other countries.

The implementation of SAP in BEML limited has triggered the profitability

the organization to leaps & bounds. A constant up gradation of such

technology transformations would help the company reduce the work force.

Hence it is suggested that such technological advancement could be given

more concentration so that the company can reduce its over head costs on

labour.

The company has excellent pool of workers who strive for excellence.

However during the 8 hour work schedule of the company the employees

almost work only for 7 hours. Utilizing the extra one hour would increase the

company’s productivity for this purpose. It is suggested that the working

hours of the employees could be maintained at 8 hours per day for tea &

lunch break relive the other by this process the work continuity will be

maintained & there will be no loss of precious time.

The scarp that is generated during the production process is being under-

utilized rather giving this waste in scarp at cheaper rates. But the company

should find those small companies that can use this scarp for further

production and can earn more money.

BEML has 5 decades of enterprise & expertise in the field has pioneered the

process & procedures of manufacturing its products & providing services. A

BEML limited.


diversification in the products & services so as to tap the rural market would

help the company in exploring the left out opportunities in the country.

CONCLUSION:

“Growth depends on performance, attitudes determine performance”. This is

how the revelation of talents is carried in the history of BEML limited. Highly

Qualified Administrator & talented workforce are the two eyes of the organization.

BEML is blessed to posses both at the same time. With the embedded strength, the

company is marching on the growth path adding new ventures & diversified

business activities with sole aim to become leader in global market.

BEML emerged as a public sector undertaking under the ministry of defence

around five decades ago to build the nation by serving the major sectors of the

economy such as mining, construction, defence, railways etc. the company in its act

of diversification has growing rapidly with timely expansion leading to a profit of

Rs. 305 crores in the year 2008. BEML with its consistent performance &

profitability has been conferred with category-1 Mini Ratna status by the

government of India, Ministry of Defence. This status has enhanced the power of

board to incur more on capital expenditure on new products.

Now BEML is all set to realize its dreams of transcending new frontiers &

gaining recognition as a truly global company. Its venture into new terrains has not

only inspired its counter parts has proved itself as a bench mark for them. BEML to

maintain the growth pace in accordance with the changing trends in the business

scenario, has set itself to establish global presence in terms of business as well as

sourcing, not only to compete with the like companies of international repute but

also to cut down costs to make sleek entries into new markets worldwide.

Not to ignore the technologies advancements made within the company. The

implementation of SAP in the organization but has also helped in improving its

functions would witch. The filly scalable solution from SAP has enable BEML to

gear up for fresh set of challenges to diversify into new horizons of business which

has provided BEML better insight into the enterprise-wide analysis. With such

BEML limited.


substantial advancements. BEML limited is poised to achieve profitability of 18 to

20% in metro & rail business alone.

By implementation of SAP in BEML, it is indeed a great step forward for

BEML to modernize the infrastructure to sync with the new strategy & vision of the

company. In spite of the challenges faced by the company in its implementation,

BEML has successfully been battling with all disadvantages & is making its

Herculean attempt to reach a target of Rs.5000 crores turnover by the year 2013-

2014.

LEARNING EXPERIENCE:

Knowledge comes out by studying volumes of books through continuous

learning. These practical situations can never be simulated. Only the real time

experience would allow a person to learn & there by acquire knowledge.

It had been a pride and privilege to undertake an organization study at “the

largest & most profitable construction equipment company” which is conferred with

Mini-Ratna status. It was a wonderful experience & indeed a great learning working

in such a multi-technology company which offers high quality products to the

various sectors of the economy. The learning’s acquired from the India’s largest

wealth creator BEML are many along which a few are penned.

A part from learning as to how the organization function, its structure,

departments, policies & processes the study has opened the doors to explore

the organization, whose operation are highly refined, it has helped in

understanding the processes involved in manufacturing an entire Rail. A visit

to production units helped in knowing the processes involved in

manufacturing & the modern technology adopted in various stages of

production.

The study has provided a chance to view the various gigantic machines,

modern equipment & tools which one could have not seen with out a study in

such an organization.

BEML limited.


The functioning of the various departments quality policies of the

organization & innovative management practices followed by the

organization, has been awarded the prestigious “Golden peacock innovation

management award”.

The cordial relationship between the workers & the management has helped

in understanding the fact that, the success of the organization depends not on

employees or on management alone but it depends on the combined efforts

of both the employees and management.

The commitment of the employees towards quality is a great inspiration.

The interactions made with the various higher officials in the organization

have inspired in developing the right attitude & commitment skills & has

thereby helped in becoming extrovert. The working of the entire BEML

limited as one family taught the basic concepts of team building.

Various theoretical aspects learnt in the books; particularly in the fields of

human resources, finance, marketing, research & quality were actualized

through this study.

The overall study in the organization has ignited the spark in the mind to talk up

an initiative in the later days to start & run such a company that would serve as

an asset to the entire country & the human race.

BEML limited.


BIBLOGRAPHY

Direct interviews with officers of various departments.

Annual report of BEML.

Previous project reports.

HR hand book.

Magazines.

www.bemlindia.com

http://www.bemlindia.com/

Documents

MBA Project