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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.
Kristu Jayanti College Page 2
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.
Kristu Jayanti College Page 3
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.
Kristu Jayanti College Page 4
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.
Kristu Jayanti College Page 5
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.
Kristu Jayanti College Page 6
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.
Kristu Jayanti College Page 7
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.
Kristu Jayanti College Page 8
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.
Kristu Jayanti College Page 9
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.
Kristu Jayanti College Page 10
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.
Kristu Jayanti College Page 11
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.
Kristu Jayanti College Page 12
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.
Kristu Jayanti College Page 13
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.
Kristu Jayanti College Page 14
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.
Kristu Jayanti College Page 15
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.
Kristu Jayanti College Page 16
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.
Kristu Jayanti College Page 17
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.
Kristu Jayanti College Page 18
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.
Kristu Jayanti College Page 19
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.
Kristu Jayanti College Page 20
PRODUCT MANUFACTURE IN BEML:
RAILWAY TRANSPORTATION EQUIPMENT
DEFENCE EQUIPMENT
MINING EQUIPMENT
BEML limited.
Kristu Jayanti College Page 21
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.
Kristu Jayanti College Page 22
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.
Kristu Jayanti College Page 23
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.
Kristu Jayanti College Page 24
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.
Kristu Jayanti College Page 25
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.
Kristu Jayanti College Page 26
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.
Kristu Jayanti College Page 27
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.
Kristu Jayanti College Page 28
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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
Kristu Jayanti College Page 44
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
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Kristu Jayanti College Page 45
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
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Kristu Jayanti College Page 46
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.
Kristu Jayanti College Page 47
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.
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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.
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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
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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.
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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.
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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.
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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
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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
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the order. Administration of man power planning is done based on the available
work in the respective department.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
Control of quality records.
Erection and commissioning of new industry.
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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
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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.
Control of quality records.
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.
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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.
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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
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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.
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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
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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.
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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).
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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
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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.
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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.
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BIBLOGRAPHY
Direct interviews with officers of various departments.
Annual report of BEML.
Previous project reports.
HR hand book.
Magazines.
www.bemlindia.com
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