bharat-eectronics-limited-a-study-on-working-of-different-department

1. A STUDY ON WORKING OF
DIFFERENT DEPARTMENT OF
BHARAT ELECTRINICS LIMITED
BY-
RAHUL CHAUHAN
08MBA077
UNDER GUIDANCE OF
Ms. A.ANEETHA
Assistant Professor, VITBS

2. 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

3. 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

4. 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

5. PRODUCT MANUFACTURED BY BEL
BANGALORE
• Communication equipments – HF/VHF Man pack, Mobile & static Trans-receiver/Transmitters
GHAZIABAD
• Antenna for primary & secondary radars
PUNE
• Static 7 Rotating Anode x-ray cables, Magnesium Manganese Dioxide Battery packs
MACHILIPATNAM
• Passive night vision devices- Goggles, Binoculars, Periscopes,
KOTDWARA
• ULSB, BEST, SMART, HART
PANCHKULA
• VHF/UHF Ground to ground to air communication equipment
NAVI MUMBAI
• Hydraulics for T- 72 Tank stabilizers, Shelters for Electronic equipment
CHENNAI
• Gun control & Drive System for Armored Fighting Vehicles
HYDERABAD
• Electronic warfare equipment

6. 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.

7. 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.

8. 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.

9. Organization Structure of BEL-KOT
GM
AGM
D&E
AGM
MKT
DGM
PROD
DGM
CS
Sr DGM
Q&MS
MGR
MM
MGR
F&A
MGR
P&A
MGR
P&S
DGM
O&T

10. 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

11. 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

12. HUMAN RESOURCE DEPARTMENT
Work 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
Rotation
Team Learning
• Improvement projects , Task force for specific task, Seminars/ Conference
Organizational Learning
• Adoption of Business Excellence Model
• Best practices from other units/ industries

13. 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.

14. 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

15. 0
2
4
6
8
10
12
14
16
2005 2006 2007
No.of QCCs
Awards won
QCC represented in CII, QCFI and Awards won

16. 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

17. Job Rotation
Unit has planned for rotation of 10 % 0f its employee each year
0
1
2
3
4
5
6
7
8
9
10
(04-05) (05-06) (06-07) (07-08) AVG
% 0f Job rotation of EMP.
% 0f Job rotation of EMP.

18. MARKETING DEPARTMENT
ORGANISATIONAL 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

19. 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/SO
DESPATCH OF MATERIALS
BILL SUBMISSION OF CUSTOMER
PAYMENT COLLECTION
TRAINING & AFTER SALES SUPPORT
CUSTOMER

20. MARKETING STRATEGY IMPLICATION AT BEL KOTDWARA
It can be divided into following parts:
• Market Segmentation
• Targeting
• Promotion Strategy
• Positioning Strategy
• Competitive Analysis
• Diversification strategy

21. SEGMENTATION
MARKET
SEGMENT
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

22. MARKETING TARGETING
• Need based customer:
• Segment Attractiveness
• Segment Profitability
• Segment Positioning

23. 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

24. Promotion
• Advertising
• Sales Promotion
• Direct Marketing

25. 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

26. 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 equipments
Little equipment under development as a result of such interactions is
• S-RAXMKII
• ULSBMKII
• IFDSS for T90 Tank

27. DIVERSIFICATION STRAGY BY BEL-KOT Contd……
b) NEW BUSINES DEVELOPMENT GROUP
In 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

28. 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

29. 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.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
(04-05) (05-06) (06-07) (07-08) (08-09)
Actual
Budgetd

30. 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.
0
20
40
60
80
100
120
140
Inventory
Inventory
0
1000
2000
3000
4000
5000
6000
7000
8000
(03-04) (04-05) (05-06) (06-07)
Actual
Budgeted
0
50
100
150
200
250
Sundry debtors
Sundry
debtors

31. 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.
0
200
400
600
800
1000
1200
1400
(03-04)
(04-05)
(05-06)
(06-07)
(07-08)
Cost Reduction
Cost
Reduction
0
50
100
150
200
250
300
350
400
Depreciation
Depreciati
on
-250
-200
-150
-100
-50
0
50
100
150
(04-05) (05-06) (06-07) (07-08)
Cash Flow
Cash Flow

32. PRODUCTION DEPARTMENT
• 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 test
SIX-SIGMA:
IN 1998 BEL had adopted Six Sigma technique
Some 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

33. 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

34. DEVELOPMENT AND ENGINEERING DEPARTMENT
PRODUCT 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.

35. 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/QR
2) TECH specs
3) 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

36. SWOT ANALYSIS OF BEL KOTDWARA
STRENGTH
1) 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.

37. SWOT Contd……..
WEAKNESS
1) 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.

38. SWOT Contd…………..
OPPORTUNITIES
The 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 liberalization
3) 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.
THREATS
1) 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.

39. 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.