A STUDY ON WORKING OF DIFFERENT DEPARTMENT OF

BHARAT ELECTRINICS LIMITED BY-

RAHUL CHAUHAN 08MBA077

UNDER GUIDANCE OF Ms. A.ANEETHA

Assistant Professor, VITBS

CONTENTS

• Company Profile-BEL• Unit Profile-BEL-KOT• Mission Vision Value &Objective of BEL-KOT• Organization Structure• Major Milestones of BEL-KOT• Product of BEL-KOT• HR Department• Marketing Department• Strategic Challenges• Finance Department• Production Department• Development & Design Department• SWOT Analysis• Recommendations

COMPANY PROFILE

• From a humble beginning to a Navratna Company• BEL is a PSU, under Ministry of Defense, Government of India established on 1954.• BEL has more than 360 products in its range from small components costing a

rupee to huge equipment costing about Rs.60 Cr.• Starting with a single Unit at Bangalore, BEL now has nine Units spread across the

country. • Nearly 80-85% of the company’s annual sales turnover accrues from products sold

to Defence Services and the balance from Civilian customers.• The company’s dividend payment has been continuously increasing and the

company paid a dividend of 170% for the year 2007-08. • BEL became a Mini Ratna Category I company in February 2002. Subsequently BEL

has been got Navratna status in June 2007

UNITS ESTD. (YEAR)

No. of

Employee

BANGLORE 1954 5927

GHAZIABAD 1974 2596

PUNE 1979 411

MACHLIPATNAM 1983 500

PANCKULA 1985 625

CHENNAI 1985 410

KOTDWARA 1986 720

HYDRABAD 1986 490

NAVI MUMBAI 1986 500

NINE MANUFACTURING UNIT

PRODUCT MANUFACTURED BY BEL

BANGALORE • Communication equipments – HF/VHF Man pack, Mobile & static Trans-receiver/TransmittersGHAZIABAD• Antenna for primary & secondary radarsPUNE • Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide Battery packsMACHILIPATNAM• Passive night vision devices- Goggles, Binoculars, Periscopes, KOTDWARA • ULSB, BEST, SMART, HARTPANCHKULA • VHF/UHF Ground to ground to air communication equipmentNAVI MUMBAI• Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipmentCHENNAI• Gun control & Drive System for Armored Fighting VehiclesHYDERABAD• Electronic warfare equipment

INTRODUCTION OF UNIT BEL KOTDWARA

• Established in 1985-86 coincided with the formation of C-DOT in August 1984 for development of electronic switching equipments in India

• BEL-KOT is the 9th and the youngest Unit in the family of BEL. • Soon after its inception, the Unit undertook manufacturing of Radio Relay

Equipment, a very complex equipment• The Unit entered in the highly competitive market of telecom and became one of

the leading suppliers of C-DOT switching equipments.• It also received CII-EXIM Bank Excellence recognition for strong commitment to

TQM/Excel for three consecutive years: 2003, 2004 & 2005.

Mission ,Vision, Values and Objective Of BEL- KOT

Vision• To be a world-class enterprise in a professional electronics.

Mission• To be a customer focused globally competitive company in defence electronics and

in other chosen areas of professional electronics, through Quality, Technology and Innovation.

Values• Putting customers first.• Working with transparency, honesty & integrity.• Trusting & respecting individuals.• Fostering team work.• Striving to achieve high employee satisfaction.• Encouraging flexibility and innovation.• Endeavoring to fulfill social responsibilities.

INTRODUCTION OF UNIT BEL KOTDWARA Contd..

OBJECTIVES OF BEL-KOT

• To be a customer focused company providing state-of-the-art products & solutions at competitive price, meeting the demands of quality, delivery & services.

• To generate internal resources for providing growth.• To attain technological leadership in defence electronics through in-house

R&D, partnership with defence/research laboratories & academic institutions.• To give thrust to exports.• To create a facilitating environment for people to realize their full potential

through continuous learning & team work.• To give value for money to customers & create wealth for shareholders.• To constantly benchmark company’s performance with best-in-class

internationally.• To raise marketing abilities to global standards.• To strive for self-reliance through indigenization.

Organization Structure of BEL-KOT

GM

AGMD&E

AGMMKT

DGMPROD

DGMCS

Sr DGMQ&MS

MGRMM

MGRF&A

MGRP&A

MGRP&S

DGMO&T

MAJOR MILESTONE OF KOTDWARA UNIT

• 1988 Plant inaugurated by Defence Minister• 1990 Self Inspection Status • 1993 Certification for ISO 9002:1987• 1997 Golden Peacock award for quality• 1997 ELCINA award for manufacturing• 1998 Certification for 1SO 9001: 1994• 1999 Excellence in professional Electronics, Deptt. of IT , Govt of India• 2002 Corporate R&D award for ULSB MKII• 2003 Certification for ISO 9001:2000 & ISO 14001:1996• 2003,04 & 05 Strong Commitment to Excel “ in CII Exim Bank Business

Excellence “• 2005 Platinum award in IMEA-2005 by Frost & Sullivan• 2006 Certification for ISO 14001:2004• 2007 SAP implemented• 2008 Recommended for AS 9100 Rev B

PRODUCT OF BEL- KOT WITH COMPETITOR

PRODUCT PRODUCT DETAILS COMPETITORS

SMART, BEST, HART Data terminals with encryption facility for use with radios

Not till date, but MNCs like TADIRAN may come

ULSB MKII 15 line Automatic EPABX ITI

SLSB MKIII 50 line Battalion level state of the art Exchange for Indian army

ITI, ECIL, IL, ALPHA

SARX MKII 600 line EPABX for application at command level -

MAX XL AND SPARES

Land line exchange based on C-DOT design ECIL, ITI, IL, UTL

STM1/4/16 SDH based transmission equipment in Telecom network ITI, Siemens,

Fibcom,SCL&

Terracom SACU Encryption Data terminal with simultaneous

transmission ( TOT with M/s Elbit) -

PRC-6020 HF Radio trans receiver with encryption, TOT with M/s TADIRAN

-

IFDSS Microprocessor based fire detection & suppression system for tracked vehicle with detection & suppression in less than 140 seconds

INTEL, Spectronics, Southern Electronics and Ashoka Engg

HUMAN RESOURCE DEPARTMENTWork culture in BEL KOT• BEL KOT believes that performing work culture can be nurtured by being a

learning organization• Series education, training, self development and career development

programme are done for Human resources development.Various activities done in BEL to promote continuous learning are:Individual learning• Internal/ External Training, Work experience, On the job Training, Job

RotationTeam Learning• Improvement projects , Task force for specific task, Seminars/ ConferenceOrganizational Learning• Adoption of Business Excellence Model• Best practices from other units/ industries

Various innovative methodologies to improve employee’s response

Unit has taken several initiatives for introducing innovative methodologies to improve organizational response, customer satisfaction, enhancing productivity and morale of the employees in continuous improvement activities.

Innovative methodologies for HR Management• Performance Management System• Cross Functional team• Job Rotation• Self inspectors• Excellence awards• QC circles A four tier need identification system is institutionalized in the unit. Based

on assessment manpower planning is done. Training records of all employees are maintained in computer database

Employees are sent for training to premier training institutes like XLRI, Administrative Staff College, Tata Management Training Centre, MDI etc.

Employees involvement and participation in BEL-KOT

BEL KOT believes in involving and empowering people through greater participation by giving them various opportunities .

Major employee involvement programs are:• Quality circle, Suggestion scheme• Some of the committees:• Cultural , sports, safety, canteen, community centre, labor welfare fund

committee , death relief fund committee• Quality circle in BEL was started in 1991 and has taken deep root.• Around 65 quality circles are active. The coverage of employees is highest

among all units of the company.• More than 85% of employees are the member of QCC.• Participation of QCC in various competitions like yearly Inter Unit QCC

Competition, CCI Competition and National QCC Competitions give them immense opportunity to learn and improve the process effectively.

• An attractive award scheme was introduced in year 2002 for QCC presentation and implementation of solution generated

2005 2006 20070

2

4

6

8

10

12

14

16

No.of QCCs

Awards won

QCC represented in CII, QCFI and Awards won

Benefits and Reward for Employees in BEL KOTDWARA

Compensation and benefits plans of BEL are comprehensive.BEL enters with wage negotiation with Negotiating Trade Union periodically according to the guidelines issued by Department of Public Enterprises

Some of the rewards are:• Appreciation or cash award for suggestion• Awards for outstanding Performance• Gifts after completion of 15 and 25 year of service• Sponsorship for competition/ Seminars• Awards for achievements in safety QCC and Housekeeping.List of some suggestion and awarded during 2007-08

Name Suggestion Given Saving in Rs lakh

S.S. BISHT Use of rejected power supply of SACU project 10.91

VED PRAKASH Repairs of OLD thermal Strippers 4.90

BHOPAL SING Rectification of Filter Failure during leak test of STARS-V FH 3.56

VED PRAKASH Reduction in rejection of display card used in front panel assay of PRC

2.54

Job RotationUnit has planned for rotation of 10 % 0f its employee each year

(04-05) (05-06) (06-07) (07-08) AVG0

1

2

3

4

5

6

7

8

9

10

% 0f Job rotation of EMP.

% 0f Job rotation of EMP.

MARKETING DEPARTMENTORGANISATIONAL CHART

. GM (KOT)

MKT-1 MKT-2 Training, Demo & Exhibition FGS & Excise Sales A/C

Defence

Telecom

Paramilitary New Projects

ARC

New Market

Excise FGS

PROCESS FLOW CHART OF MARKETING DIVISION

VISIT CUSTOMER & MARKET

TIE-UP WITH TECHNOLOGY PARTNER

QUOTE/TENDER PARTICIPATION

TECHNO COMMERCIAL EVALUATION

OBTAINING SUPPLY ORDER

FINALIZATION OF CONTRACT & REVIEW

EXECUTION OF PO/SODESPATCH OF MATERIALS

BILL SUBMISSION OF CUSTOMER

PAYMENT COLLECTION

TRAINING & AFTER SALES SUPPORT

CUSTOMER

MARKETING STRATEGY IMPLICATION AT BEL KOTDWARA

It can be divided into following parts:• Market Segmentation • Targeting• Promotion Strategy• Positioning Strategy• Competitive Analysis• Diversification strategy

SEGMENTATION

MARKETSEGMENT

CUSTOMER EQUIPMENT %TURNOVER(08-09)

DEFENCE ARMY, NAVY, AIR FORCE,

ORDINANCE FACTORIES,

ULSB, STARS-V SMART, SACU,

PRC/VRC

68

MINISTRY OF

HOME AFFAIRS

BSF, CRPF, ITBP, STF, STATE

POLICE, SSB

BEST, HART, SMART 03

CIVIL BSNL, MTNL, RAIL-TEL,

CAPART

CDOT EXCHANGE, STM 17

OTHER UNIT OF

BEL

BEL-PK, BEL-GAD, BEL-BG MUX, FILLGUN, ELOCTRONIC

WARFARE ( SANKET)

12

MARKETING TARGETING

• Need based customer:• Segment Attractiveness• Segment Profitability• Segment Positioning

POSITIONING

• Positioning is the act of designing the company’s product and image to occupy a distinctive place in the minds of target market and customer to increase the sale of their product.

• This goal is to locate the brand in the minds of consumer to maximize the potential benefit to the firm at less time.

Brand or

company

Target

customer

Benefits Value Proposition

BEL-

KOT

Defence,

Civil,

Reliable, best

coverage and

service

A company which is highly

reliable, have branches all

over India, and gives service

on their product for 15 year

Promotion

• Advertising• Sales Promotion• Direct Marketing

COMPETITIVE ANALYSIS

Strategy may be of three types:-• ENTRY INTO NEW PRODUCTS:- • COST LEADERSHIP:-• AFTER SALES SERVICES

SEGMENT COMPETITORS EQUIPMENT

Telecom Market

(BSNL)

ITI, PCL, IL, SIEMENS, FIBCOM, ICOM,

ORDYNE, TERRACOM

Switching &

Transmission

Defence Market ITI, ERRICSION, TADIRAN, HBL NIFE,

ALFHA, ECIL, SPANCO, PRECISION

ELECTRONICS, SPECTRONICS, INTEL,

ASHOKA ENGG

EXCHANGE,

ENCRYPTION &

IFDSS

EQUIPMENTS

DIVERSIFICATION STRAGY BY BEL-KOT

• a) NEW PRODUCT DEVELOPMWNT• BEL-KOT is always known for development of new product according to

the need of the customer .In order to develop new product BEL follow the general pattern:• They gathered the information from the customer relating existing

product and also about their need and used it for the development of new equipment.

• Up gradation of existing equipment and product.• Planning and imparting operation and maintenance training to employees.• Field visit of their technical personnel to impart in-situ training and

planning for early deliveries of ordered equipmentsLittle equipment under development as a result of such interactions is• S-RAXMKII• ULSBMKII• IFDSS for T90 Tank

DIVERSIFICATION STRAGY BY BEL-KOT Contd……

b) NEW BUSINES DEVELOPMENT GROUPIn view of rapid expansion of mobile phone communication, disappearance of old

product which are the strength of BEL and increase of market challenges, New business development group is formed during 2005-06 to enter into new business areas.

Therefore, advance technology partners are scanned and selected, keeping in view their product portfolios, R&D strength and leadership position in Global/ Indian market.

As a major step in diversification, BEL-KOT has started interaction with Nuclear Power Corporation of India Ltd. IGCAR for manufacturing of Nuclear Instrumentation .

Some of BEL major partners are :

FIELD PARTNER CORE COMPETENCY

Technology/ D&D TADIRAN-Israel, NUTEK- Hyderabad, SPECTRON-Pune,

NID- Ahemdabad, CDOT, UDAY, CORAl

Switching, Data terminal, Radio, software,

Power supply, Fire Fighting Sys.

Materials AMPHENOL, FRAMATOME, AT&S Connectors, PCBs

Manufacturing RHPL, DELTRON, RTL, BASANT INDIA, Local

Subcontractor

Manufacturing of line, Cards & Power

Supplies, SMT Assembly

Human Resources MDI, IIMS, NITIE, ASCI, COD HYDRABAD Human Resources Development

STRATIGIC CHALLENGES

• Strategic challenges of BEL Kotdwara include:• Fast changing technology• Management of obsolescence of material• Retention of competent engineers• Cost reduction• Timely delivery• Productivity improvement • Effective utilization of machines• Human resource• Motivation of employees• Export marketing

FINANCE DEPARTMENT• BEL Kotdwara since inception is a profitable company. Its Finance department is highly

efficient and always looking for reducing unwanted cost which leads to increase in the earning of company

• Turn Over:For last five year turnover of the unit and PBT given in following fig. respectively. 2006-07

saw a quantum jump in turnover to 415.73 Cr and PBT to 70.24 Cr due to convergent Billing and CRM project of MTNL. In year 2007-08 turnover went down to delay in placement of some of major orders by various customers.

(04-05) (05-06) (06-07) (07-08) (08-09)0

5000

10000

15000

20000

25000

30000

35000

40000

45000

ActualBudgetd

Inventory ,Sundry Debtors PBT

• The rise in Inventory in 2007-08 was due to low level of direct sales. Orders could not be released by Gov. i.e. for CAPART, STM etc. Hence inventory piled up in anticipation of orders.

• In 2004-05 unit has achieved low sundry debtors turnover of 41 days. Thereafter sundry debtors figures shows increasing trend due to lower turnover.

• In 2006-07 profit increased due to supply of equipments for MTNL project which had 9% margin thus even if we exclude Rs 25 Cr contribution of MTNL project, profit of the unit shows steady trend. Year 2007-08 was exceptional in nature due to low direct sales.

(04-05)

(05-06)

(06-07)

(07-08)

020406080

100120140

Inventory

Inventory

(03-04) (04-05) (05-06) (06-07)0

1000

2000

3000

4000

5000

6000

7000

8000

ActualBudgeted

(04-05)

(05-06)

(06-07)

(07-08)

0

50

100

150

200

250

Sundry debtors

Sundry debtors

Cost reduction, Cash Flow and Depreciation

• Cost reduction technique has been deployed in a big way to achieve significant cost reduction .Cost reduction of Rs 1175 lakhs have been achieved in 2004-05

• The net cash flow of BEL KOT has been fluctuating. From high of Rs 64 Cr in 2004-05, it dipped to net flow of Rs 190 Cr in 2006-07 due to payment of vendors of MTNL project. In 2007-08 due to sundry debtors collection in MTNL project net cash flow touched to Rs 100 Cr.

• The depreciation bas been increased from Rs224 lakh in 2003-04to Rs 353 lakh in 2007-08. The increase in depreciation shows the additional investment done to ensure adequacy of technology and infrastructure.

(03-

04)

(04-

05)

(05-

06)

(06-

07)

(07-

08)

0

200

400

600

800

1000

1200

1400

Cost Reduction

Cost Reduction

(04-05)

(05-06)

(06-07)

(07-08)

050

100150200250300350400

Depreciation

Depreciation(04-05) (05-06) (06-07) (07-08)

-250

-200

-150

-100

-50

0

50

100

150

Cash Flow

Cash Flow

P R O D U C TIO N D EPA R TM EN T

• Key production process and its key characteristics are identified through PFMEA (Product failure Mode and Effect Analysis) technique which is followed all over the world.

Other Process in Production Department:• FABRICATION- Machining, Turning, Drilling, Welding, Tapping• ELECTROPLATING- Ni, Cu, Zn, Tin plating, Chromate conversion coating• PAINTING- Epoxy painting, Powder coating• PCB ASSEMBLY- Hand soldering, wave soldering• ELECTRONIC ASSEMBLY- Cable assembly, Mechanical assembly• TESTING- Card testing, Sub system/ system testing• ENVIROMENTAL STRESS SCREENING- Hot and cold cycle, Bump test, Vibration

test, Leak testSIX-SIGMA:IN 1998 BEL had adopted Six Sigma techniqueSome of the six-sigma project s completed during 2007-08 are listed below:• Reduction in cycle time for rejected item• Improvement of Internet connectivity in BEL- Kotdwara• Cycle time reduction for repairs of printers

LIST OF SOME KEY MACHINE

• In circuit tester• Reflow Owen• Wave soldering machine• CNC machining centre• CNC JIG Boring machine• CNC Turret Punch Press• Electroplating/ Painting Plant• Walk in chamber/ Environmental Stress Screening Equipment

DEVELOPMENT AND ENGINEERING DEPARTMENTPRODUCT AND SERVICES ARE DESIGNED AND DEVELOPED BASED ON

CUSTOMER• To have in depth understanding of customer needs and expectation, BEL

has a policy of recruiting experienced retired defence personals• when customer requirement is immediate, technology transfer is taken

from global companies. During the development of design, changes suggested by the customer are discussed by and implemented on mutual agreement.

• Similarly marketing and design groups keep close interaction with paramilitary forces to understand their requirement.

• The needs of civilian customers are known primarily from market research.

The process flow chart for design and development process is given below

Development discussion

With customer by D&E and MKT

Receipt of requirement

1) GSQR/QR2) TECH specs3) Specs from

market research

Design & Development

planning

Compilation & review of

design inputs

Product design

Design Changes

Definition Validation & review

Provisional Engineering document

Final Design Documentation

Inputs from

market research

Customer and production

Released to production

Repair & Maintainability

Technology Inputs

Statutory & Regulatory Requirement

SWOT ANALYSIS OF BEL KOTDWARA

STRENGTH1) BEL has got modern manufacturing facilities with test instruments, set up at

Kotdwara for manufacturing & supply of telecommunication equipments.2)R&D set up with qualified manpower, suitable for technology

development/absorption.3)Known for quality & reliability of its products.4)Known for its prompt after sales service, 5) Vast experience in the manufacturing of electronic equipment. The parent unit

established in 1954.6)Highly trained, professionally qualified manpower trained to deal in the latest

technologies.7)Well established organizational structure.8) Availability of Central Research Laboratories at Bangalore & Ghaziabad, working .9) Young & dynamic top management at corporate level, ensuring stability.

SWOT Contd……..

WEAKNESS1) The main weakness of BEL is its being owned Govt. of India under ministry of

defence. This makes decision-making slow.2) BEL has been predominantly in defence sector, which has been monopoly business.

Hence, it does not have experience in managing a competitive business like telecommunication equipment manufacturing.

3) Lack of flexibility in manpower management, especially in pay scales, promotion, recruitment policy, etc., thus resulting in brain drain.

4) Lack of bold decision making in the area of investment & others due to fear of various audits, both statutory & Govt. in the mind of management.

5) Lack of accountability in top management, as personal stakes are not related with the performance of organization.

SWOT Contd…………..

OPPORTUNITIESThe following are the major opportunities available for BEL Kotdwara:-1) Liberalization leads to opening of huge market. e.g. ITI, HTL, etc.2) BEL can go for technology transfer, ties up & JV due to liberalization3) Various other companies are also modernizing hence creating new market for

telecommunication equipment Railway, Power Sector, Oil Sector, Defence, etc.4) Telecommunication Sector has been recognized as one of the important infrastructure

sector essential for the growth of the economy. This is resulting in the availability of potential market in developing countries.

THREATS1) Entry of private sector & multinationals in this field is making competition very tough.2) Due to overall reduction in import duties, the indigenous manufacturing & direct

import are competitive.3) Imperfections in the market, leading to price wars & undercutting of prices, resulting in

sustained losses for telecommunication manufacturer.4) Margins are under pressure due to competitive market situation.5) Lack of infrastructure facilities like power, roads, etc. making indigenous manufacturing

costly.6) High investment required in this sector.

RECOMMENDATIONS

• One s area of concern is a sundry debtor. It is recommended that either the operations in this area be toned up with introduction of skilled, trained & motivated work force or the subcontracting of this operation to be done to outside agencies.

• Marketing department should be divided in different & each sub department will be responsible for their work. In the complex market, the divisional heads are required to be given total responsibility of the operations under them & be held accountable for that.

• They should advertise their product through media.• Targeting low margin high volume operations and diversifying the

product and business.• Better HR policies to attract and retain the talent. • Technological advancement.