PART-A

1 : INDUSTRY PROFILE

A BRIEF HISTORY OF PORCELAINS INSULATORS

Porcelain insulators had their start when local potteries began making telegraph
insulators in the 1850’s and 1860’s. These crude early piece were usually treadles and were
produced in much lower quantities than their glass counterparts, and few gave survived the
years. Some more notable examples are the “Elliot” flint insulators (U-980 and U-983),
Bennington glaze( U-982 and U-983), as well as a porcelain version of both the
“Teapot” (U-990) and “Slash top” (U-988).

Porcelain saw every minimal use for either telephone or telegraph after the
development of threaded glass insulators. Glass tended to be cheaper than quality porcelain,
and was deemed better as it was thought that clear glass would discourage insects from
building nests under the insulators reducing their effectiveness. This all would change with
proliferation of electricity.

With the advent electric power distribution in the 1880’s larger and more reliable
insulator were needed to carry the higher voltages of power lines, in the tens of thousands of
volts. Glass at that time was not sufficient, and one man in particular, Fred M.Locke of
victor, NY, was convinced that porcelains was a superior insulating medium and began
experiments with clay mixtures that would produce finer insulators. In addition he was
working to create new insulator design that would hold up to high voltage service in all
weather conditions .Fred contacted several companies to help him with his experiments, and
one offered assistance. That was imperials Porcelains works of Treton.NJ.

Porcelains Overview

Similar to their glass counterparts, Porcelains insulators date back to before the civil
war for telegraph wires. In North America glass was always the predominate materials for
communications insulator s but porcelain has become the standard for power distribution due
to its greater strength and surface resistance.
 Porcelains insulators did receive the same level of interest as glass in the early years of
insulator collecting, but have been gaining popularity in the last ten years. They are equally
historically significant as their glass counterparts and available I as many color and
significantly more styles. Within the 10 years or so a number of factors have contributed to
the rapid increase in interest in porcelains:

 More information has surfaced about the porcelains insulators business and a number
of dedicated individuals have written books, articles and reprints catalogues that have
significantly increased collector knowledge and interest in the porcelain side of the
hobby.
 Glass prices have been on the increase in recent years, making porcelains an attractive
and affordable alternative. Porcelains insulators are now much more available at
insulator shows.
 More and earlier “classic” porcelains has been taken out of services as utilities
increase distribution voltages and collectors go “mud hunting”
 Collectors have realized that the amount of color available in porcelains is very
significant and has increased as more distribution lines are dismantled.
 The increase of information availability on the internet, as well as the variety of
porcelains insulators available on E-bay gave a larger population exposure to
porcelains insulator collecting.
 More historical interest has been generated in the early development of power
generation and distribution which has been primarily dependent on porcelain
insulators. Current lineman are much more familiar with porcelain, as very little glass
remains in use today
 New styles are still being found every year
 Old trade journals have increased collector knowledge of where to find the early
classic

Electricals insulator is a material or object that resists the flow of electric current when a
voltage is placed across an insulator, very little current flows. An object intended to support
or separate electrical conductors without atoms that have tightly bonded valence electrons
and resist the flow of electrical current.
The term electrical insulation has the same meaning as the term dielectric.

BHEL manufactures over 180 products under 30 major products groups and caters to
core sectors of the Indian economy viz, power generation and transmission,
industry ,transportation, telecommunication , renewable energy, etc. The wide network of
BHEL’s 14 manufacturing division ,4 power sector regional centres , over 100 projects
sites ,eight service centres and 18 regional offices , enables the company to promptly serve
efficiently and at competitive prices .The high level of quality and reliability of its products
is due to the emphasis on design , engineering and manufacturing to international standards
by acquiring and adapting some of the best technologies from leading companies in the world
, together with technologies developed in its own R&D centres.

2 : COMPANY PROFILE

ORIGIN OF BHEL

BHEL was established in 1956 at Bhopal and came into existence in November 1964. At
first, nearly 41 years ago at Bhopal, a plant was setup, and that was the genius of heavy
electricals equipment industry in India. BHEL is today the largest Engineering and
manufacturing Enterprise of its kind in India with well recognized track record performance.
Right from 1971-72 this organization is making profit.

Heavy Electricals (India) Ltd was setup in Bhopal in August 1956 with the view to
reach self-sufficiency in Industrial products and power equipment vital for the
industrialization of the country. To make the total demand of Heavy Electrical equipment,
BHEL came into being in November 1964.

Three plants were established

 High-pressure Boiler plant - Trichy - Tamil Nadu - May 1965.

 High power equipment plant - Hyderabad - Andhra Pradesh – December 1965.
 Heavy Electrical equipment Plant - Haridwar - Uttar Pradesh – January 1967.
As there was need for an integrated approach to development of power equipment
manufacture in India and also with the view to optimally utilize the resource, Heavy
Electricals (India) Ltd. Bhopal was merged into BHEL in 1974.

Nowadays BHEL manufactures about 180 varieties of products under 30 major product
groups. It has built up an available reputation for high quality and reliability of its
equipment. In BHEL 67.72% is held by the Government of India and 28-32% is held by
Financial Institutions, mutual funds, insurance company, foreign institutional investors and
employees. BHEL is paying dividend since 1976-77. BHEL has been a profit making
company right since its incorporation and has been making significant contribution to the
Government’s funds by way of dividend on the equity, taxes and duties etc. BHEL has also
received “Excellent” rating for 9 years consecutively in achieving memorandum of
undertaking targets with Government of India and has been conferred the prices status of a
‘’Navaratna Company”. Another major contribution of BHEL to the nation is by the way of
its involvement in the social development work such as adoption of backward villages,
buildings and running of schools, medical centres providing self-employment facilities for
widows, handicapped persons etc.

BHEL’s ELECTROPORCELAINS DIVISION (EPD): ORIGIN & GROWTH

To meet the nation’s demand for continuous country wide generation and distribution
of electricity, early in 1902, the Govt. of Mysore took a progressive step forward and it
established, for the first time in India a Hydro Electric Power Generation Station in
Shivanasamudra. When Power started flowing from Shivanasamudra, the Govt. of Mysore
was faced with the problem importing Insulators year after year because Insulators carry
Power on their shoulders over miles and miles of wires.As a result in 1932, the Govt.
Porcelain Factory (GPF) was established to manufacture low-tension insulators, Crockery’s
& artwork under the guidance of Sir M. Vishweshwaraiah.

The factory started manufacturing operation in last week of March 1932 on a very
small scale. The amount of capital invested was Rs.3,03,656 the total number of people
employed were 200. The production was Rs.28,500 and sales were Rs.21,270. This was the
only firm in the whole of South India which manufactured and supplied high and low tension
insulators to various Electric Corporations and Government mostly in South India.
 On March 31,1954 GPF made collaboration with NeigoonGaishi Kaisha (NGK) a
Japan Company. After collaboration, to increase production, a new factory block was setup.
The foundation stone was laid by his Highness, the late Sri JayachamarajaWodeyarBahadur,
on July 7, 1954. To ensure autonomy of administration, the factory (GPF) was converted into
a Public Limited company in 1st April 1967 and named Mysore Porcelains Limited (MPL).

By 1975 MPL was sick unit running at heavy loss. At the instance of the Govt. of
Karnataka, Mysore Porcelains Limited was taken over by BHEL on 4th October 1976 which
become it’s subsidiary with assets worth Rs.5.5crores, an accumulated loss of over Rs.1crore
and a work force of 1500. Before take-over, the unit was faced with financial difficulties,
highly competitive market, surplus manpower and traditional management approach. After
the take-over, improvements in the working of the factory were affected in many areas. New
departments like Central Planning, Engineering and Research, Quality Control, Field Engg.
And Production Planning was started. Safety systems were introduced and the Personnel
Department was revamped to include, among other things, new recruitment systems, training
facilities and manpower information system. Amenities like canteen, medical centre and
Crèche were introduced.

BHEL-JOINT VENTURES.

As new business strategy, for the first time in its history BHEL has entered into joint
ventures with two renowned international companies and has been recently promoted the
following joint ventures companies (NC) in May 1997.

2(a) : BACKGROUND AND INCEPTION OF THE COMPANY

In year1932 has been the starting point of insulator production in India .in this year,
the then government of Mysore ,presently Karnataka established a department undertakings
called “THE GOVERNMENT PORCELAIN FACTORY” under the guidance of the great
Sir.M.VISHEWESHVARAIAH.

In the year 1957, the company obtained technical collaboration with M/S NGK
Insulator Ltd, NAGOYA, JAPAN the world leader in that yield.
 In the year 1967, this factory was converted in to a public limited company and
renamed “MYSORE PORCELAINS LTD” (MPL). This was done in order to give the
company greater autonomy in administration and unable financial participation by M/S NGK
INSULATOR LTD , NAGOYA JAPAN.

In spite of all this, the company did not do well and had a huge outstanding .it was at
this stage the then government of Karnataka mooted a proposal to hand over this unit to
BHEL. Accordingly on October 4th 1976 MPL became a full-fledged division of BHEL .EPD
today is a leading manufacturer of high tension insulator with an experience of over 75 year.

BHEL has two insulator manufacturing plants one in Bangalore and other in
jagdishpur. These two plants were competing with led to the starting of strategic business unit
for ceramic products and systems under the banner of ceramic business unit (CBU) CBU is
dedicated to the enhancement of business in ceramics and its associated systems .This
business unit deals with high tension insulators, ceramic wear resisted liners, Industrial
ceramic products, composite insulator and associated systems .CBU has its headquarters at
Bangalore and is supported by the following facilities:

Manufacturing units with the “state of the art” technology for ceramic products and
systems at electronic porcelain division, Bangalore and an insulator plant at jagdishpur.

This is supported by an advanced research and development facilities for ceramic

products, processes and application at ceramic technological institute, Bangalore.

EVOLUTION OF THE COMPANY

1. February ,1947 Advisory planning board felt need for electrical machinery industry
in India

2. March ,1948 Expletory committee to set up heavy electrical generating equipment

factory in state sector

3. January 1955 S.A Gelkary committee reiterates needs for heavy electrical generating
equipment factory

4. August ,1956 Heavy electrical pvtltd.Incorported ,later renamed H.E (1 st) ltd, At
Bhopal
 5. November, 1964 BHEL established plants at Hyderabad and Trichy

6. July, 1972 Action committee for public enterprise recommends integration.

7. January ,1974 H.E ltd and BHEL formally merged

8. January, 1974 Company prepares first corporate plan.

9. January, 1980 Company prepares second corporate plan emphasis laid on growth

10. January ,1992 Government brings liberalisation policy , allows private sectors to
manufactures power generating equipment investments policy of government , on
public shareholding BHEL shares offered to employees also

11. January ,1995 BHEL shares listed on all principal stock exchanges of the country

12. February ,1997 Greater autonomy in PSVS , BHEL accorded the ‘NAVARATNA’
status

13. October .1997 BHEL prepares document on perspectives for 2002

14. 1999-2000 A Team of members were conferred with the prime minister’s “SHRAM
BHUSHAN” Award

15. 2006 Implementation of SAP

2(b) : NATURE OF THE BUSINESS CARRIED

The nature of the business carried by the BHEL (Electro porcelains division) is to
receive orders and produce electro porcelains insulators like disk insulator, hallow
insulator, ceralien etc. in accordance with the customers requirement and deliver the
same on time.
The Manufacturing plants are as follows
Heavy equipment plant – Bhopal
Transformers plant – Jhansi
Heavy electrical equipment plant – Hardwar
 Central forge and foundry plant –Hardwar
Heavy power equipment plant –Hyderabad
High pressure boiler plant – Trichy
Steam less steel tube plant –Trichy
High pressure boiler plant –Ranipet
Boiler auxiliary plant –Bangalore
Electronic division –Bangalore
Electronic porcelain division –Bangalore
Industrial values plant –gooddwal
Insulator plant –jagadispur
Component fabrication plant –Rudrapur

2(c) : VISION , MISSION AND QUALITY POLICY

VISION

A world class, innovative, competitive and profitable engineering enterprise to provide total
business solutions.

MISSION

To be the leading engineering enterprise providing quality products, system and services in
the field of energy, transportation, industry infrastructure and other potential areas.

VALUES

 Meeting commitments made to external and internal customers.

 Faster learning, creativity and speed of response.
 Respect of dignity and potential of individuals.
 Loyalty and pride in the company.
 Team playing.
 Zeal to excel, integrity and fairness in all matters.

IMAGE
To build up a high degree of customer confidence in product of quality, performance and
service, particularly in regard to supply of spares like government as owner, employees,
customer and the country at large half from BHEL.

GROWTH

To ensure a steady a growth in business so as to fulfil national expectations from BHEL and
expand international operations

To invest in human resources development sustained research and development strike for
excellence in management and other long-range activities to tonsure a leadership status for
BHEL.

EVOLUTION OF THE COMPANY

16. February ,1947 Advisory planning board felt need for electrical machinery industry
in India

17. March ,1948 Expletory committee to set up heavy electrical generating equipment
factory in state sector

18. January 1955 S.A Gelkary committee reiterates needs for heavy electrical generating
equipment factory

19. August ,1956 Heavy electrical pvtltd.Incorported ,later renamed H.E (1 st) ltd, At
Bhopal

20. November, 1964 BHEL established plants at Hyderabad and Trichy

21. July, 1972 Action committee for public enterprise recommends integration .

22. January ,1974 H.E ltd and BHEL formally merged

23. January, 1974 Company prepares first corporate plan .

24. January, 1980 Company prepares second corporate plan emphasis laid on growth

25. January ,1992 Government brings liberalisation policy , allows private sectors to
manufactures power generating equipment investments policy of government , on
public shareholding BHEL shares offered to employees also
 26. January ,1995 BHEL shares listed on all principal stock exchanges of the country

27. February ,1997 Greater autonomy in PSVS , BHEL accorded the ‘NAVARATNA’
status

28. October .1997 BHEL prepares document on perspectives for 2002

29. 1999-2000 A Team of members were conferred with the prime minister’s “SHRAM
BHUSHAN” Award

30. 2006 Implementation of SAP

QUALITY POLICY

To maintain the position as a supplier of quality products conforming to relevant

standards and to build a high level of customer confidence.
BHEL has identified as “ISO 9001” by International Standard Organisation in Quality
maintenance and “ISO 14001” in Environmental policy.

ENVIRONMENTAL POLICY.
In its endeavour to adopt and implement the environment policy enunciated as follows:
“To strive to be an environment friendly company in its Activities, Products and Service
through;
 Compliance with applicable Environment Legislation! Regulation.
 Continual improvement in Environment Management System to protect our Natural
environment and control pollution.
 Promotion of activities of conservation of resources by Environment Management.
 Enhancement of Environment awareness amongst our employees, customer and
suppliers.
 Assist and co-operate with concerned Government agencies/ regulatory
Bodies engaged in environment activities offering BHEL’s capability in the field.”
OHSAS 18001.

OCCUPATION HEALTH AND SAFETY POLICY HEALTH .

 “BHEL is committed to provide safe and healthy working environment to the all
employees as integral part of business performance through:

 Compliance with applicable Legislation and regulations.

 Setting objectives and targets to eliminate /control /minimize risks due to
Occupational and Safety Hazards.
 Appropriate structural training of employees on Occupational Health and
Safety (OH&S) aspects.
 Formation and maintenance of OH&S Management Programmes for

continual improvement.

 Periodic review of OH&S Management System to ensure its continuing

suitability, adequacy and effectiveness.
 Communication of OH&S Policy to all employees and interested parties.”

BHEL AND GLOBAL COMPACT.

COMMITMENT.

In a letter to UN Secretary General, Mr. Kofi Annan, CMD, BHEL has committed to
support the Global Compact and set of core values enshrined in its nine principles in the area
of human rights, Labour Standards and Environment. Principles of the Global Compact are:

HUMAN RIGHTS

1. Internally proclaimed human rights.

2. Make sure they are not complicate in human right abuses.

LABOUR STANDARDS

1. Business should uphold the freedom of association and the effective recognition of
the right to collection bargaining.

2. The elimination of all forms of forced and compulsory labour.

3. The effective abolition of child labour.

4. Eliminate discrimination.
ENVIRONMENT

1. Business should support a precautionary approach. To environmental challenges.

2. Undertake initiatives to promote greater environment responsibility.

3. Encourage the development and diffusion of environmentally friendly technologies.

2(d) : PRODUCT / SERVICE PROFILE

BHEL-EPD India’s manufacture of high-tension porcelain insulator , a class by

themselves acknowledge by internationally reputed laboratories of CESI (Italy),KEMA
(Holland), Doulton (UK), CPRI( India) and IISC (India) .BHEL disc insulators are known for
this reliability more than 10 million insulators are in service in India and abroad .

1) High tension insulators

Disc insulator rating from 70 km to 300km electromagnetic strength for transmission
lines from 11kv to 800 kv and substations.
Bus support insulators in substations and for switches and isolators from11 kv to 220
kv.
Solid core insulator rating 25 kV for railway traction, bus support, station post and
long rod insulator as per customer specifications up to 36 kv
2) Hollow insulators of height up to 1500 mm in single piece and 5500 mm by joints for
power transformers, electrostatic precipitators and circuit brakers of conventional and
gas insulated types
3) Wear resistant materials
Abration and erosion resistant high alumina lining material for applications like
pulverisers and coal piping in termal power plants, coke oven ,dust collector cyclones
and air separator dusts in cement plants .
4) Industrial ceramics
High alumina pebbles and linings for ball mills in industries like ceramic, cement,
paints and dyes, minerals and carbon products.
High temperature ceramic glaze and mortar for steel foundries
Insulators for high frequency applications in TV and radio transmitters
5) Ceramic flow beans for Christmas tree values of oil field equipment
 6) Composite insulators
It is for the use in transmission and distribution HV/EHS lines
7) Ceramic honey comb substrates for catalytic converters and SCR’S

NEW PRODUCTS

 Thyristor housing
 Zeolite
 Nano technology products
 Personal armours

2(e) : AREA OF OPERATION

BHEL is having its operation throughout the nation, as the company is having nationwide

Presence in three core areas they are

1) Generation
Generation in the terms means generation of power constitutes a major part where in
various products are produced by the company and it is having a major share in this
sector even through computation is severe.
2) Transmission
Transmission which also parts an important part in the power so bhel also supplies
various products which are required for the transmission of power.
3) Distribution
Distribution also forms one of the important part in the sector so BHEL produces such
as products which on the cost wise very cheap as well as in the quality wise is also
very good .only a little bit of products which are produced are exported to some
countries because in house demands is more compared to global level demand so a
little share of products are exported and remaining amount of products are kept for
sale in the domestic market

2(f) : OWNERSHIP PATTERN

 As for as a ownership of Bharath Heavy electrical limited is concerned 67.72% of
equity is held by the government of India 32.28% is held by the financial institution and
employees of Bharath Heavy electrical limited…….

Today Bharath Heavy Electrical limited manufactures 180 varieties of products under 30
major production groups .It has built an enviable reputation for high quality and reliability of
its equipment.

SO in short

BHEL is having 67.72%

Government of India is having 32.28%

2(g) : COMPITATORS INFORMATION

 JAYASHREE INSULATOR
 IEC BHOPAL
 WS INDUSTRIES, CHENNAI
 MODREN GROUP INDUSTRIES, RAJASTHAN.

2(h): INFRASTRUCTURAL FACILITY

The most important resources of CBU is employees. They are provided with safe working
condition ,detailed training in technical aspects of their jobs and also imported knowledge in
areas like first aid ,fire fighting and other facilities are also provided which are required for
day today working in the company

The facilities which are provided are as given below

1) Production plant and machinery :

The firm is having sophisticated and very good layout for plant and machinery
and is having modern machines and tools with Japanese technology and it also
ensures safety of each and every worker and provides good working condition
2) Testing and Research &Development equipment
CBU’s research and development wing along with the ceramic and chemicals
laboratories is equipped with various testing facilities like X-RAY differactometers,
spectro and flame photometers, SEM ,Multichannel dilatometers ,UTM etc.
3) Human Resources development centre :
 The company also organizes a number of programmes in team
building ,organisational development, productivity techniques and company
information through a well- equipped HRD centre and also an auditorium is provided
with modernised visual aids
4) Security and fire fighting facilities
BHEL is having very good facility with security and having modern facilities
in order to be ready in case of fire because adequate fire fighting devices to employee
in batch wise and required number of security persons are kept at each place in order
to provide security for both men & materials security is provided both at entry gate &
also at exit gate.
5) Loading , unloading & material handling facilities
Loading, unloading & material handling would be done by regular and casual/
temporary workers as for as the work is considered raw material are stored in a
warehouse where in it would be grouped on the country , or state wise for this
vehicles such as fork lift truck, band truck , tillers are used as and when required.

6) Canteen facilities :
Food which is basic necessity of human being served in the company over the
years at a subsidized rates say about rs 2.5 per day and it also serves nutritious and
hygienic food .and a special features is that each and every employee has to wipe
his/her Identity card in a way to identify the time of entry and exit to the concern .this
canteen also provides tea/coffee at least twice a day
7) Learning centre( library)
Learning centre which is a core part of BHEL (Electro Porcelains Division)
has a well-established library with the latest books, journals, periodicals and
international standards in various fields’ .senior executives are also exposed to general
management programmes
8) Work shop and maintenance :
Work shop which is a part of management services where in required
mechanics and technicians within the company would repair the machine, tools and
vehicles if any problem arises then only outsiders are called for services and also
certain amount of baring nuts ,steel blocks etc. are produced with the company for
regular maintenance of machines
9) Transportation services
 Transportation system which is the nerve system of the company except the
carrying of employees except the carrying of employees to the company it will
provide all other facilities for the carriage of raw materials and finished goods it will
also provide facilities in order to bring guests, customers and other business delegates
to the firm
10) Medical centre:
A medical centre with an ambulance service is attached to CBU’s industrial complex
and all workers are covered under BHEL’s group insurance policy .
Apart from these facilities employees are provided with housing facilities employees
are provided with housing facilities employees are provided with housing just outside
the factory. And also employees are kept informed about various activities through a
monthly house journal.

2(i) : ACHIVEMENTS /AWARDS

AWARD, RECOGNISATION AND APRECZATION
The year 2004 has been received by the following employees (EPD). The details Prime
minister’s shramshree award for are given below
1) Sri .G.Murgan
2) Sri .T.Ramachandra
3) Sri .H.Chndrasekhar
4) Sri H.Mylarappa for design development and fabrication of preshaping machine
for disc insulators. Savings Rs 54 lakhs
5) Sri .k .Rajendran –for modification of chain dryers to increase production by
100% saving rs 49.92 lakhs.
Primeministr’sshramBhushan and shramvir have been received for the enhancing
disc loading, cycle time reduction, recovery improvement, reduction in thin Glaze
rejection and development of burner block.

BHEL Excel award for modification of kiln car, cycle time reduction and OTK
loading density improvement was received.

Quality circle ‘Surabhi’ selected on ‘Excellent’ category at national level and

invited to the international competition.
 BHEL has received ‘CRADLE’ Award for producing non-conventional
power..BHEL (EPD) which is one among the navarathnas is best owed with so
much of award and achievements since from inception. There are various awards
which the company was nominated not only with in the country but also from
foreign nations which will add feathers to it name & fame

The following are the awards which are mentioned below as follows.

1) BHEL is the first public sector organisation to secure the best industrial relations
for the year 1983
2) The national productivity award awarded to EPD for three successive years for
best performance in heavy engineering sector .transmission and distribution and
power generation and equipment sector for the year 1987 to 1990.
3) For its quality performance, the unit got the ISO 9001 certificate by the bureau
vertical quality international in 1994.
4) The capital award for export of insulation
5) Dr.N.C.Trehan and environment scientist in BHEL was awarded the “DR.Majhed
Shah award” situated by department of science and technology
6) Other awards include AITES “ALL INDIA TOP EXPORTERS SHIELD” for
outstanding performance during the year
7) Prime minister’s “SHRAMSHRI” award to a company employee
8) National production performance award
9) NATIONAL SAFETY AWARDS
These are the awards are nominated for nationwide safety maintenance with
the company
a) National safety award 1985
b) National safety award 1986
c) National safety award 1989
d) National safety award 1990
e) National safety award 1991
f) National safety award 1993
g) National safety award 1994
h) National safety award 1995
i) National safety award 1996
j) National safety award 1997
 k) National safety award 1998
l) National safety award 1999
m) National safety award 2000
n) National safety award 2004
10) INTERNATIONAL AWARD
British safety council has awarded the BHEL (EPD) in 1989 for the
maintenance of safety and its performance
11) During 2003-04 prime ministers SHRAM BHUSHAN was conferred 3
employees
2(j):WORK FLOW MODEL:
2(k):FUTURE GROWTH AND PROSPECTS:
BHEL EPD has monopolised the insulator market share ,it has 70-80% of market
share .India is in verge of becoming a economically developed nation .so it is concentrating
more on providing basic infrastructural facilities. Hence each and every small village will be
given electricity because of this there will be more demand for insulator within the country
for the purpose of distribution of electricity or power .
It has increased its profit compare to last 2 years by vide margin and it is the sign of growth
and in future BHEL-EPD will be a main player in the global insulator ,market .membrane
technology to be developed which is of pores tube ,currently there is polymer membrane , In
future ceramic membrane is used which filter bacteria and viruses . There is possibility of
installing oven instead of kiln.

3.MCKINSEY’S 7S FRAME WORKS WITH SPECIAL REFERENCE TO

ORGANIZATION UNDER STUDY

THEORY OF MCKINSEY’S 7 S MODEL:

The Seven-Ss is a framework for analyzing organizations and their effectiveness. It

looks at the seven key elements that make the organizations successful, or not: strategy;
structure; systems; style; skills; staff; and shared values.

Consultants at McKinsey & Company developed the 7S model in the late 1970s to
help managers address the difficulties of organizational change. The model shows that
organizational immune systems and the many interconnected variables involved make change
complex, and that an effective change effort must address many of these issues
simultaneously.

The 7-S model is a tool for managerial analysis and action that provides a structure
with which to consider a company as a whole, so that the organization's problems may be
diagnosed and a strategy may be developed and implemented.

The 7-S diagram illustrate the multiplicity interconnectedness of elements that define
an organization's ability to change. The theory helped to change manager's thinking about
how companies could be improved. It says that it is not just a matter of devising a new
strategy and following it through. Nor is it a matter of setting up new systems and letting
them generate improvements.

To be effective, your organization must have a high degree of fit, or internal

alignment among all the seven Ss. Each S must be consistent with and reinforce the other Ss.
All Ss are interrelated, so a change in one has a ripple effect on all the others. It is impossible
to make progress on one without making progress on all. Thus, to improve your organization,
you have to master systems thinking and pay attention to all of the seven elements at the
same time. There is no starting point or implied hierarchy - different factors may drive the
business in any one organization.

 STYLE

All organizations have their own distinct culture and management style. It
includes the dominant values, beliefs and norms which develop over time and become
relatively enduring features of the organizational life. It also entails the way managers
interact with the employees and the way they spend their time. The businesses have
traditionally been influenced by the military style of management and culture where
strict adherence to the upper management and procedures was expected from the
lower-rank employees.
The DEMOCRATIC LEADERSHIP approach is being practiced in the organization.
 The style of an organisation according to MC Kinsey’s frame work becomes evident
through the patterns of actions taken by members of the top management team over a period
of time .BHEL being a PSU there is no opportunity for grievances while making decisions
regarding any problem or project .Here employees i.e., artisans are consulted for the ideas
viewpoints regarding any problem .Here there is no autocratic style of leadership. BHEL
believes in participative style of decision making because decision generated is favourable to
everyone and it could be one of the best, if not the best.

 STRUCTURE

Business needs to be organised in a specific form of shape that is generally

referred to as organisational structure. Organisations are structured in a variety of
ways, dependent on their objectives and culture.The framework in which the activities
of the organization's members are coordinated. The four basic structural forms are

a. Functional form,
b. Divisional structure,
c. Matrix structure, and
d. Network structure.

 SYSTEM

BHEL is an organisation which is systematic in doing its day to day work .This is evident
from the facts. BHEL has well managed HR department systems and management
information system.

SYSTEMS FOLLOWED IN HR DEPARTMENT

(1) Roaster method = This method is used while recruiting the workers through
reservations .Here 50% of job’s reserved for SC, ST and OBC,5% for SC. 8% for ST and
remaining 27% OBC.

1. 15 into 7=105 .When the percentage exceeds 100 then they decide to take one
person out of seven of SC.
2. 8 into 14= 104 Here one person out of 14 will be ST.
 3. 27 into 4=108 Here one OBC candidate.

(2) Performance evaluation method – Every authority maintains an annual confidential

report of all his subordinate with the performance recorded very often. It is kept highly
confidential and is available only to the senior authority and the personal department.

 STAFF

Staffing is a process of acquaint human resources for the organisation and assuring that
they have the potential to contribute to the achievement of the organisational goals

BHEL generally prefers to have highly qualified engineers and dedicated management
professionals in case of staffing process at BHEL..Every executives, supervisors, workers
need to be technically sound.

Employee classification at BHEL EPD

Total numbers of employees =746

91 Executives

107 supervisors

43 Artisans

58 Semi and unskilled

13 supportive technical staff

34 Clerical and office staff

515 contract labours

Executives E1 Engineers or MBA’s

Executives E2 Seniors engineers

Executives E3 Deputy manager

Executives E4 Manager

Executives E5 Senior manager

Executive’s E6 Deputy General Manager

Executives E7 Additional general manager

Executive’s E8 General Manager

Executives E9 Executives Director

Supervisors = There are 7 level S1 –S7

Supportive technical staff

Skilled workers

Unskilled workers

Semiskilled workers

Clerical and office staff

Temporary and casual workers

 SHARED VALUE

 Zeal to excel and zest for change.

 Constantly its striving hard to achievement the highest possible standards in the day to day
work and quality of goods services to be provided
 Integrity and fairness in all matters; we must conduct our business fairly with honesty and
transparency
 Everything we do must stand the public scrunity. It shows transparency in its deal and
there is no chance for misappropriation.
 Respect for dignity and potential of individuals = we must be caring, show respect,
comparison and humanity for our colleagues and customers around the world and always
work for the benefit of our nation. Each employee who performsexceptionally should be
given some recognition and they will also be recommended to prime minister’s award
 Ensures speed of responses:
 If a client asks for any information regarding products of the company recently R&D dept.
have come up with an idea to replace kiln with oven which finishes the process in quick
time
 Loyalty and pride in the company: Each and every employee in the organisation will be
loyal to his organisation and they are proud of their organisation

 SKILLS

The terms skills includes those characteristics which most people used to describe a
company .BHEL is a company well known for its quality products and services, which is
evident through state of the art design and technology .It is a company which is benchmark
for its quality technical engineering, communication and problem solving managerial skills
for the employees both on the job and off the job training is given;

On the job training

Artisans : Coaching by superior or senior technicians Raj

Bhaha officer teaches Hindi, internal faculty or

Experts give lectures based on any topic of there
Expertise. Safety stewards give lecture on HSE
Supervisors : Rajbhasha officer teaches Hindi internal faculty
Experts give lectures based on any topic of there
Expertise
Safety stewards give lecture on HSE
Executives : Raj bhasha officer teaches Hindi internal faculty or
Experts give lectures based on any topic of there
Expertise safety stewards give lecture on HSE

OFF THE JOB TRAINING

Artisans : Visit to other industries for the purpose of learning
Seminars conducted in other places
Supervisors : Visit to other industries for the purpose of learning
Seminars conducted in other places
Executives : Executives are sent abroad to learn about new
Technologies and participation in seminar and
 Conferences

 STRATEGY

Strategy refers to the determination of the purpose and the basic long term objectives of
an enterprises and the adoption of course of action and the allocation of the these aims.
QUALITY OBJECTIVES
To optimize
1) Product and service quality by improving key processes
2) Customer satisfaction by improving delivery and response
3) Quality of suppliers by improving supply performances
4) Capability of human resources by upgrading skill and knowledge

PRICING STRATEGY

Pricing of the insulator product is market driven. in ranges where insulator are in direct
competition pricing strategies are evolved with the objectives of ensuring retention of market
in key ranges and preventing overseas bidders from capturing domestic market.

In pockets bunching of needs for 2 to 3 years are foreseen .BHEL also adopts the marketing
strategies with the confidence of its clients and assuring on delivery levels and reasonable
prices .In the view of the dynamic situation the market pricing strategies are made to suit the
environment prevailing

2. SWOT ANALYSIS
 STRENGTH WEAKNESS

OPPORTUNITY THREAT

The basic objectives of SWOT ANALYSIS is to provide a frame work to reflect on the firms
ability to overcome barriers and avail of the opportunities emerging in the environment.

A SWOT Analysis is a strategic planning tool used to evaluate the Strengths,

Weaknesses, Opportunities, and Threats involved in a project or in a business venture or in
any other situation requiring a decision. It involves monitoring the marketing environment
internal and external to the company. The technique is credited to Albert Humphrey, who led
a research project at Stanford University in the 1960s and 1970s using data from the Fortune
500 companies.

o Strengths: attributes of the organization that is helpful to achieving the objective.

o Weaknesses: attributes of the organization that is harmful to achieving the objective.

o Opportunities: external conditions, that is helpful to achieving the objective.

o Threats: external conditions, that is harmful to achieving the objective.

STRENGTH:

 The company has 180 products under 30 major product groups that cater to the needs
of the core sector like power, industry, transmission, transportation, defence,
telecommunications and oil business
  BHEL's ability to acquire modern technology and make it suitable to Indian
conditions has been an exceptional strength of the company
 Quality
 Cost competitiveness
 After sales service
 R&D
 Global presence

WEAKNESS:

 The company offers very stringent credit facilities to the customers and this is a
weakness when compared in the face of rising competition.
 The company is vertically integrated, which could have been avoided by outsourcing
its components for power generation and transmission. This could have reduced the
cost.

OPPORTUNITIES:
 The power sector reforms are expected to pick up in the near future in India, which
would directly benefit BHEL
 Increase in defence in budget will increase the top line for the company.
 The business of modernization and renovations of power plants is expected to grow in
India.
The disinvestment plans of the government would bring in new resources and
experience into the company.
 Joint Venture with Siemens in the name of Power plant Performance Improvement
Ltd. (PPIL), is a major strength for the company. This tie-up will be beneficial as
there is a lot of scope for business. During FY00 the PPIL received orders worth Rs.
320 crore.

THREATS:

The global trend of consolidation has already resulted in a fall in turnover of the
company and this will to be a major threat in the years to come as well unsatisfactory
financial performances.
LEARNING EXPERIENCE
Learning is the process of gaining knowledge and experience. It was agreat experience doing
my study in BHEL which is one among the “Navaratna”company.
BHEL-EPD has a good organizational culture, excellent working environment and a precious
asset that is highly dedicated, hardworking, well qualified and knowledge workforce. The
manpower has been utilized to the maximum level. There is a proper division of work. The
hierarchy system has been segregated well.
BHEL-EPD has training and development programs to the employees of all the coders and
gives importance to the employee’s values. All the employees receive functional as well as
behavioral training on a routine basis.
From the study I came to the conclusion that majority of the employees are adapted to the
changes and strive for self-development. Hence, a training and development program at
BHEL-EPD is successful.