CHAPTER 1

INTRODUCTION

Bharat Earth Movers Limited is an Indian Public Sector Undertaking, with

headquarters in Bengaluru. It manufactures a variety of heavy equipment, such as

that used for earth moving, construction, rail, mining and defence.
BEML Limited was established in May 1964 as a Public Sector
Undertaking for manufacture of Rail Coaches & Spare Parts and Mining
Equipment at its Bangalore Complex. The Company has partially disinvested and
presently Government of India owns 54 percent of total equity and rest 46 percent
is held by Public, Financial Institutions, Foreign Institutional Investors, Banks and
Employees. BEML Limited, a Miniratna-Category-1, plays a pivotal role and

serves Indias core sectors like Defence, Rail, Power, Mining and Infrastructure.

The Company started with a modest turnover of Rs .5 Cr during 1965 and

today, the company has been able to achieve a turnover of more than Rs .3,500 Cr.
Its three major Business verticals are Mining & Construction, Defence and Rail &
Metro are serviced by its nine manufacturing units located at Bangalore, Kolar
Gold Fields (KGF), Mysore, Palakkad.
BEMLs products are sold and serviced through its large Marketing
Network spread all over the Country. BEMLs products are exported to more than

56 countries. As part of companys globalization strategy, the company has

expanded its global reach by opening local company at Indonesia and Brazil
recently in addition to Malaysia and China offices.

The company operates under three major Business verticals - viz. Mining

& Construction, Defence and Rail & Metro. Each of the above Business is headed
by a Director who acts as CEO of the Business and reports to the Chairman &
Managing Director of the company.
BEML manufactures and supplies Defence Ground Support Equipment
such as Tatra based High Mobility Trucks, Recovery Vehicles, Bridge Systems,

1
Vehicles for Missile Projects, Mil-rail Wagons, Crash Fire Tenders, Snow Cutters,
Aircraft Towing tractors, Aircraft Weapon Loading Trolley . Under Mining and
Construction Business, the company manufactures and supplies Mining &
Construction equipment like Bull Dozers, Excavators, Dumpers, Shovels, Loaders
and Motor Graders to various user segments and under Rail & Metro Business,
manufactures and supplies Rail Coaches, Metro Cars, AC EMU (electric multiple
unit), OHE (overhead electric) Cars, Steel and Aluminium wagons to the rail
sector.

Internship at BEML, Mysore complex lasted for two months period . The

time period of internship was May 8th June 30th. The number of interns did

internship at BEML during the same time was two. During the study in BEML,
Mysore complex; Intern got a great opportunity to come across many facts that
were studied in the form of theories . This enabled intern to get practical and real

time feel of various aspects concerned with the organization. This study also gives
the opportunity to observe, learn, assimilate and analyze the vision of the
organization and functioning of planning department.

1.1 OBJECTIVES OF THE STUDY

The main objective of the internship programme is to understand the
functioning of an organization. It also helps to understand the performance of

various departmental activities related to planning department. The main aims of

doing internship in BEML, Mysore complex are:-

To familiarize with business organization and its various departments and

their functioning.

To understand organization structure and practices.

To get an idea about how different functional departments are structured
and how each one of them operate.

To study the various activities carried out in a company.

To familiarize with planning department and its activities.

To get an opportunity to analyze the real problems.

2
 To be a part of activities of the company.

To get practical knowledge from the organization.

This study helps to find out the various levels of management, relted to the
planning department, and their functions. It helps to study about the organizational

structure. The study helps to analyses the planning department and its functions
and how it helps for the smooth running of the organization by achieving the key
goals. The study is important for knowing the following:

To have an idea about the organizational structure of the company.

To have an idea about departmental functions of the company.

To have an idea about the financial position of the company.

To have an idea about the products.

To study the corporate mission and vision.

To study the work culture of the executives and the workers.

Understand how information is used in organization for decision making at
various levels.

To identify the strengths, weakness, opportunities and threats to the firm.

It helps to get practical knowledge from the organization.

1.2 INDUSTRY ANALYSIS

The three major Business verticals of BEML are Mining & Construction,

Defence and Rail & Metro. The main competitors of BEML are Caterpillar, L&T,

JCB, Hindustan motors, Volvo, Voltas, Godrej and Komatsu . The main customers
of BEML are SAIL, Coal India ltd, Associated Cement Company, Naively lignite
corporation, NTPC (National Thermal Power Corporation), Indian Army, Indian
Railways.

BEML has manufacturing plants in Kolar Gold Fields, Bengaluru,

Palakkad and Mysore. It has numerous regional offices throughout the country.
KGF unit is the main unit accounting for the manufacture and assembly of a wide

3
array of earth-moving equipment such as Bulldozers and Excavators . Rail coaches
are made in the Bangalore complex and the Mysore facility makes dump trucks,
motor grader and engines of various capacities. In Palakkad complex tetra trucks

are made.

BEML HAD international offices at China, Malaysia, Brazil and Indonesia.

BEML have nation-wide after-sales service network. That includes four

Zonal Offices, 10 Regional Offices, 16 District Offices, 15 Dealers, 5 Service
Centers and 11 Activity Centers throughout India . BEML's nationwide network of

sales offices enables buyers with ready access to its wide range of products . Also,
the full-fledged service centers and parts depots offer total equipment care,
maintenance contracts and rehabilitation services

BEML have international business divisions around the globe. BEML

equipment have international presence in 52 countries including Syria, Tunisia,
UAE, Jordan, Suriname, South Africa, UK, Sri Lanka, Bangladesh, Philippines,
Indonesia, Oman, Nepal.

BEML Company has opened its overseas offices in Malaysia, Brazil and
China for sourcing components and parts as well as for promoting its products in
these markets. BEML Brazil Industrial Ltd was set up in Brazil for sales of mining

and construction equipment. The company opened its sales and service centre in

Indonesia.

Defence Business

Being Indias leading defence equipment manufacturer, BEML Limited

keeps the Indian Army and other defence forces abreast with state-of-the-art
military equipment. The company manufactures variants of Tatra vehicle for all
terrain operations including Bridge Layer, Field Artillery Tractor, Medium &
Heavy Recovery Vehicle, Pontoon Mainstream Bridge Systems, Crash Fire
Tenders, Mobile Mast Vehicle, etc. BEML also supplies Engineering Mine
Ploughs, Tank Transportation Trailers, Weapon Loading equipment, Armoured

4
Recovery Vehicle, Milrail Coaches and Wagons apart from Aircraft Weapon
Loading Trolley and Aircraft Towing Tractor . BEML plays a stellar role in the
countrys Integrated Guided Missile Development Project by supplying ground
support vehicles. The company has also created a world class test track at its KGF

Complex to test defence equipment and vehicles.

Aerospace Manufacturing Division

BEML Limited, in its drive towards continuing diversity, from its current
product configurations of Mining & Construction, Rail & Metro and Defence
Sectors, has forayed into Aerospace business . Taking advantage of the global and
domestic opportunities available in the fast expanding aerospace market in India,
and the Off-Set policy laid down for defence procurement by Government of
India, BEML launched its aerospace vertical during the year 2007 to exploit the
potential of the e-engineering services in the aerospace domain.

The Aerospace Manufacturing Division (ASMD) of BEML was launched

during February 2009 to foray into the aerospace domain as a diversification
strategy to exploit the manufacturing opportunities likely to be generated due to
the defence offset policy of Govt . of India. The vision of the aerospace
manufacturing unit is to become a prominent player in aerospace sector to support
both domestic and global aerospace industry in defence and civil aircraft needs .
BEML is already supporting the aerospace operations by supplying Ground
Support Equipment such as Aircraft Towing Tractor (ATT), Multi Purpose
Weapon Loader (MPWL-Bheema) and Crash Fire Tender (CFT).

The ASMD is established at Mysore, Karnataka. The Manufacturing unit

is AS9100B accredited. The current manufacturing facilities supported by the

NABL certified test facilities are capable of manufacturing Ground Support
Equipment, Ground Handling Equipment, jigs, fixtures, test rigs, etc ., for aircraft

building and maintenance. Additional manufacturing facilities with NADCAP

approved heat treatment and processing facilities are being put up to enable the
division to take up manufacture of air worthy components and aircraft structural

5
assemblies. The road map is to enter into the domain of Carbon Fibre Composite
parts manufacturing (both primary and secondary), manufacture of gear box and
its MRO (Maintenance, repair and operations) , Hydraulic aggregates to support
the aircraft industry. The company has acquired 1,00,000 sq . meters of land near
Bengaluru International Airport in the Aero park SEZ for expanding its
manufacturing activities.

Mining & Construction Business

BEML Limited offers a comprehensive and diverse range of mining

machinery for both opencast and underground mines . BEML produces machines
such as Electric Rope Shovels, Hydraulic Excavators, Bulldozers, Wheel Loaders,
Wheel Dozers, Dump Trucks, Motor Graders, Pipe Layers, Tyre Handlers, Water
Sprinklers and Backhoe Loaders. Besides, BEML also manufactures mammoth

Walking Draglines for cost-effective operations in the opencast mines . BEML has
ventured into underground mining with products such as Side Discharge Loader,
Load Haul Dumper, Winch, Winder, Granby Car, Skip etc. The boom in the

mining industry has opened up new avenues for BEML in contract mining.

BEML has formed a joint venture company with its partners, Midwest
Granite Limited and Pt. Sumber Mitra Jaya, Indonesia to take up contract mining

within the country and overseas. The joint venture company is called BEML-
Midwest Limited and the company will bid for coal and other mining contracts in
India and abroad.

Rail & Metro Business

In recent years, BEML Limited has forayed into high-tech Metro Trains
deployed for intra-city commuting. BEML is expanding its infrastructure to meet

the greater needs of metro projects coming up in the country. Also, BEML
supplies equipment to Indian Railways which include Integral Rail Coaches,
Overhead Electric Inspection Cars, Postal Vans, AC/DC Electric Multiple Units,

6
D-EMUs, Utility Track Vehicles, Track Laying Equipment, Broad-Gauge Railbus,
Treasury Vans, Spoil Disposal Units etc.

1.3 SWOT ANALYSIS

Strength
Established manufacturing infrastructure, knowledge base, dedicated and
skilled
Man power.
All manufacturing units accredited with ISO 9001-2000 certification.
Established R&D base with technology absorption and design capability.
Technology self-reliance for existing product range as well as for
production / processes.
Development of High End Electric Drive Dump Trucks and Excavator.
First Indian Company which has acquired state-of-the-art Metro Car
manufacturing capability in the country.
Dedicated Test Facilities and Test Tracks for Tracked and Wheeled
Vehicles.
Wide range of products to cater to customer needs.
Well spread out Marketing network of Sales, Service and Spare parts
distribution.
Spare parts Depots and Service Centers located close to the mines.
Established presence and brand image.

Works on outsourcing model with strong and vibrant vendor base.

Good industrial relations enjoys conducive atmosphere for working.

Weakness

High wage cost - flat sales leading to higher overheads.

Technology levels of certain products do not measure up to international

levels and trends.

No assured business from Defence unlike other DPSUs.

7
 No orders for Rail Coaches for the last 2 years which was affecting
Bottom line.

Margins are low due to dictates of market / current environment.

Opportunities

Mining & Construction

Coal India envisaged to increase production of coal from 0.5 billion ton to

1 billion ton in the next five years.

Underground Mining is also expected to catch up and improve.

Operationalization of additional coal blocks would increase business
opportunities.

Increased thrust by Government in infrastructure development.

Dredger equipment Business / Business from spares for existing dredgers.

Rail & Metro

Metro Rail extending to Tier-II cities in the Country.

Light Rail Metro is also catching up as a revenue line which is expected to
emerge from tier-II & tier-III cities.
Indian Railways is graduating to Medium Speed LHB Coaches & Sub-
urban Railways graduating to SS EMUs.

Defence
'Make in India' policy of Government is a boon to Indian industry and
focus is on for indigenous production.

Emerging business for defence requirements.

New Areas
The demand for Electric Drive Dump Trucks and Excavator.

OFB engagement for manufacture and supply of fighting vehicles.

BDL engagement for supply of Akash Missile.

8
 Emerging business opportunity for Light Rail Metro which is also a feeder
line for the main Metro in the tier-I cities is expected to emerge from tier-II
& tier-III cities.
Threats

Domestic and global economic scenario yet to pick-up.

Post liberalization, technology leaders operating directly than parting
technology to Indian counterparts.

Mergers & Acquisitions in mining and construction equipment industry.

Project delay, especially in mining sector due to delay in resolving
environmental and social issues.
Demand for higher capacity M&C equipment, in line with the global
market trend.

High expectations of contract segment.

Increasing pressure on reducing ownership costs.

Improved technology for operational cost to stay ahead in business.

Uncertainty in defence business.

Increased FDI caps in defence sector.

Opening up of defence purchases to private sector increasing further
competition.

Dumping of products.

9
 CHAPTER 2
ORGANIZATIONAL ANALYSIS

BEML operates on three major business verticals for associated equipment

manufacturing:
Mining & Construction

Defence

Rail & Metro

In addition to the above there are two Strategic Business Units (SBUs):
Trading Division for dealing in non-company products
International Business Division for export activities

BEML have three subsidiary companies and one joint venture.

Vignayan industries ltd (VIL)

MAMC industries ltd (MIL)

BEML Brazil industrial ltd (BBIL)

BEML Midwest ltd (BMWL)

BMWL was formed and registered with the Registrar of Companies at

Hyderabad on 18.04.2007. BEML holds 45% share and M/s Midwest Granite
Pvt. Ltd. (MGPL) and P T Sumber Mitra Jaya of Indonesia as partners holding
the balance 55% share. The Company has been established to capitalize on the
growing business opportunities in the contract mining segment.

The company has 9 manufacturing units spread over the following locations:

10
 Kolar Gold Fields (KGF) Complex
Earth Moving Division

Rail Coach Unit II

Heavy Fabrication Unit

Hydraulic & Powerline Division

Mysore Complex
Truck Division

Engine Division

Defence & Aerospace Manufacturing division

Bangalore Complex
Rail & Metro Division
Palakkad Complex
Defence division

The company has a dedicated R&D infrastructure and team in line with
consistent policy of the company to meet the technological demands through in-
house R&D and strategic technical tie-ups with global players.

Truck Division (Mysore Complex)

Truck Division at Mysore, located in state of Karnataka, was established in

1986 with a total area of 600 acres . Asias biggest Dump Truck Factory in India is

located at Truck Division, Mysore.The products manufactured at Truck Division

are:
Mining & Construction

Dump Trucks (Mechanical Drive)

11
 Dump Trucks (Electrical Drive)

Water Sprinkler

Motor Grader

Defence

Tatra 6x6 (Euro II)

Air Craft Weapon Loader

Others

Air Craft Towing Tractor

Air Craft Towing Tractor with Ground Power Unit

Manufacturing Facilities

Dumper Assembly

Welding Robot

5 Major Hangers

o Plate / Fabrication Shop

o Machine Shop

o Light Assembly

o Major Assembly

o Final Testing & Paint Shop

Equipment Test Track

Tatra Hanger

12
 5 Ancillary Units

Central Test Laboratory NABL Accredited

To Ensure Quality of Conformance, Precision Measuring, Test Equipments

and their Calibration

Having Facility for Testing of Materials, Castings, Forgings, Raw

Materials, Oils and Paints Rubbers

Test Facility include Mechanical Tests, Chemical Analysis,

Metallographic, Radiography, Ultrasonic Testing, Magnetic Particle
Inspection and Dye Penetrant Testing

Metrology & Gauge Calibration is having facility for Calibration of

Precision Measuring Instruments Co-ordinate Measuring Machine, Form
Tester and Surface Tester

Sophisticated test cell for performance of Engines & Endurance Testing of

Components, Injector Tester and FIP Calibration Bench

2.1 MISSION, VISION, OBJECTIVES and MOTTO

Vision

To become a market leader, as a diversified company supplying products

and services to Mining & Construction, Railway & Metro and Defence Services
and emerge as an International Player.

Mission

1. Improve competitiveness through organizational transformation and

collaboration / strategic alliances / joint ventures in technology.

2. Grow profitably by aggressively pursuing opportunities in national and

international markets.

13
 3. Attract and build people in a rewarding and inspiring environment by
fostering creativity and innovation.

Objectives

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

marketing of Defence, Earthmoving & Construction and Rail & Metro
equipment.

2. To diversify and grow.

3. To provide total engineering solutions to its customers.

4. To internationalise operations by enhancing exports.

5. To improve profitability.

6. To maintain State-of-the-Art technology for all products.

7. Re-orientation of the business operations to match present scenario.

8. Continuous building of skills and competencies to bring about Executive

Effectiveness for Management Succession.

Motto
"New Frontiers. New Dreams."

2.2 PRODUCTS / SERVICES OF THE COMPANY

14
 The products manufactured at Truck Division are:
Mining & Construction
Dump Trucks
A dumper is a vehicle designed for carrying bulk material, often on
construction sites and coal mines. Dumpers are in various capacity; 35 ton60 ton,

85 ton 100ton, 150ton and 205 ton. The dump trucks are again classified as based

on its drive as mechanical Drive and electrical Drive.

Fig : 2.1 Rear dump truck

Motor Grader

Motor grader also named as road grader is a self-propelled machine with

an adjustable blade. Position of blade is between the front and rear axle . That

blade is most commonly used for cutting, spreading and leveling of material.
This machine has also a scarify option which is used for scarifying the
underlying layer and then removal of that layer with the help of blade. After
that a new layer is made by spreading some other soil or that scarify soil
again.

Graders are commonly used in the construction and maintenance of dirt

roads and gravel roads. In the construction of paved roads they are used to
prepare the base course to create a wide flat surface upon which to place the
asphalt. Graders are also used to set native soil foundation pads to finish grade

15
 prior to the construction of large buildings . Graders can produce inclined

surfaces, to give cant (camber) to roads.

Fig : 2.2 Motor grader

Water Sprinkler
Companies in the mining industry are tasked with monitoring and
controlling their dust emissions, because dust is created in every step of the
mining process: mine construction, extraction, processing, storage and
transportation.
Dust can cause a host of problems for mining operations, such as low-
visibility issues and equipment failure, and can also be linked to health problems,
such as asthma, lung cancer, and heart disease. Airborne dust can adversely affect
employees working at mines or at transportation facilities, residents who live
nearby, and the surrounding environment.
Water is used to help control dust during the excavation and processing of
ore, on tailings and storage piles, and throughout the transportation process . The

water Sprinkler is used to spray water in coal mines.

16
 Fig : 2.3 Water Sprinkler

Defence
Tatra (Euro II)
BEML-Tatra is a terrain vehicle with a long wheel base which is specially
designed for ground support applications of army . This is a terrain vehicle

intended for transport of personnel, weapons supply. It also used as mobile missile

launchers and to make temporary bridges. The vehicle is provided with

centralized tyre inflation / deflation system inside the cabin which enables
inflation / deflation of tyres depending on terrain conditions.

Fig : 2.4 Tatra (Euro II)

17
 Air Craft Weapon Loader
Automatic Weapon Loader is manufactured by BEML for the use of Indian
Air force. This versatile design can even be used for towing of small aircrafts on

tarmac. AWL has a maximum lifting capacity of 1000 Kg.

Others
Air Craft Towing Tractor and Air Craft Towing Tractor with Ground
Power Unit
Aircraft Towing Tractor is indigenously developed equipment having
compact and low profile design which enables the machine move under the
fuselage of wide body aircraft for push out and dock-in operations . It can also be

adopted for towing heavy duty trailers . 3 variants of ATT are available to pull the

aircraft weighing upto 300 tons. GPU is specifically designed and developed for

military applications.

Fig : 2.4 Air Craft Towing Tractor

18
2.3 Share price performance

Fig : 2.6 Share price in last 5 year

Fig : 2.7 share price maxmum

19
Balance Sheet ( Cr.)

20
 MAR'1 MAR'1 MAR'1 MAR13
MAR'12
Parameters 6 5 4

Equity and liabilities

Share Capital 41.77 41.77 41.77 41.77 41.77
Share Warrants & Outstandings
2,080.0
Shareholder's Funds 2,109.36 2,076.76 2,079.84 2,172.09
3
Long-Term Borrowings 0.00 0.00 0.00 0.00 0.00
Secured Loans 307.34 338.78 370.22 404.17 138.10
Unsecured Loans 55.32 75.15 94.98 93.94 109.59
Deferred Tax Assets / Liabilities -103.52 -101.38 -100.05 -105.24 -62.77
Other Long Term Liabilities 363.99 316.97 379.40 406.04 417.01
Long Term Trade Payables 0.00 0.00 0.00 0.00 0.00
Long Term Provisions 160.64 164.36 135.87 149.17 121.13
Total Non-Current Liabilities 783.77 793.88 880.42 948.07 723.06
Trade Payables 408.21 543.29 385.80 489.56 499.63
Current Liabilities
Other Current Liabilities 617.51 771.42 728.86 680.89 592.90
Short Term Borrowings 145.42 178.24 439.43 716.20 695.25
Short Term Provisions 155.17 125.97 146.43 195.15 197.89
2,081.7
Total Current Liabilities 1,326.31 1,618.91 1,700.52 1,985.67
9
5,109.9
Total Liabilities 4,219.45 4,489.55 4,660.78 4,880.81
0
Non-Current Assets 0.00 0.00 0.00 0.00 0.00
Assets
1,183.7
Gross Block 1,349.04 1,226.27 1,200.62 1,128.45
7
Less: Accumulated Depreciation 808.82 757.56 701.93 653.03 599.23
Less: Impairment of Assets 0.00 0.00 0.00 0.00 0.00
Net Block 540.22 468.71 498.70 530.74 529.22
Lease Adjustment A/c 0.00 0.00 0.00 0.00 0.00
Capital Work in Progress 58.83 149.95 135.34 113.23 23.86
Intangible assets under
45.05 41.75 37.54 28.56 0.00
development
Pre-operative Expenses pending 0.00 0.00 0.00 0.00 0.00
Assets in transit 0.00 0.00 0.00 0.00 0.00
Non Current Investments 2.58 2.58 2.58 2.58 4.43
Long Term Loans & Advances 226.84 233.07 296.56 281.64 276.09
Other Non Current Assets 5.66 4.91 5.33 3.80 6.92
Total Non-Current Assets 879.18 900.97 976.03 960.55 840.52
2,038.2
Total Reserves 2,067.59 2,034.98 2,038.07 2,130.31
6
Current Assets Loans &

21
Profit & Loss account ( Cr.)

MAR'16MAR'15MAR'14MAR'13MAR'12
Parameters

Gross Sales 3,287.44 2,999.17 3,120.17 2,998.87 2,920.58

Less :Inter divisional transfers 0.00 0.00 0.00 0.00 0.00
Less: Sales Returns 0.00 0.00 0.00 0.00 0.00
Less: Excise 303.72 189.98 208.66 189.96 194.09
Net Sales 2,983.72 2,809.19 2,911.51 2,808.91 2,726.49
EXPENDITURE:
Increase/Decrease in Stock 223.29 197.71 86.74 -64.86 -384.41
Raw Materials Consumed 1,477.24 1,373.68 1,617.34 1,724.28 1,846.33
Power & Fuel Cost 32.52 33.05 35.76 33.54 34.08
Employee Cost 767.89 769.11 716.76 739.40 725.08
Other Manufacturing Expenses 33.35 30.20 32.64 31.68 44.13
General and Administration
41.42 40.88 34.63 38.70 37.93
Expenses
Selling and Distribution Expenses 61.67 61.65 52.45 40.42 56.41
Miscellaneous Expenses 211.82 228.30 233.29 295.03 225.54
Expenses Capitalised 0.00 0.00 0.00 0.00 0.00
Total Expenditure 2,849.21 2,734.58 2,809.60 2,838.19 2,585.09
PBIDT (Excl OI) 134.52 74.61 101.91 -29.28 141.40
Other Income 39.06 60.00 71.43 108.64 50.76
Operating Profit 173.58 134.61 173.35 79.36 192.15
Interest 56.09 75.71 126.59 161.57 110.61
PBDT 117.49 58.90 46.75 -82.20 81.55
Depreciation 53.21 52.14 53.56 50.25 43.92
Profit Before Taxation &
64.27 6.76 -6.80 -132.45 37.63
Exceptional Items
Exceptional Income / Expenses 0.00 0.15 15.89 10.12 28.82
Profit Before Tax 64.27 6.91 9.08 -122.34 66.46
Provision for Tax 11.62 0.16 4.40 -42.46 9.21
PAT 52.65 6.76 4.68 -79.87 57.25
Extraordinary Items 0.00 0.00 0.00 0.00 0.00
Adj to Profit After Tax 0.00 -4.83 0.00 0.00 0.00
Profit Balance B/F 220.10 229.94 234.81 363.18 335.86
Appropriations 272.76 231.87 239.49 283.31 393.11
Equity Dividend (%) 40.00 10.00 10.00 25.00 50.00
Earnings Per Share (in ) 12.64 1.62 1.12 -19.18 13.75
Book Value (in ) 506.49 498.66 499.40 499.44 521.55

22
 The firm BEML had good financial performance in the past years. Now
the share value is in a higher positionduring last five year. It is assumed that
privatization of BEML causes to further hike in share price. The main reason
behind lower financial performance is the markets of the products are very less.
Due to globalization there is higher competition in the segment.

23
 CHAPTER 3
POSITIONING OF THE INTERN AND ROLE

3.1 STRUCTURE OF THE OFFICE

3.1.1 Planning department
Planning department is a major department. It has to plan the yearly,
quarterly and monthly activities with marketing department, to ensure optimal
utilization of machine, material and men. Research & development, industrial
engineering department, progress &production control department and sub-
contracting & off-loading department works in hand with planning department.

Chief of complex

Chief of planning

Head of production, planning and control

Section incharge 1 Section in charge 2

(
Higher capacity dumper, Spares, Raw (Contracts, production planning of
material, Imported material ) smaller dumper, motor grader, ISO
quality system)

Fig : 3.1 Structure of the office of Planning department

24
 3.1.2 Engineering service

Chief of planning

Head of Head of Head of Head of

department department department Tool department
methods planning facility planning engineering industrial
engineering and
management
studies

Section head methods

planning (plate shop,
fabrication shop,
machining shop, Section head tool Section head tool
assembly and testing) planning design

Fig : 3.2 Structure of the office of Engineering service department

Engineering service department consist of methods planning, facility

planning, tool engineering, industrial engineering and management studies. The
facility planning department is responsible for facility layout planning and
improvement of infrastructure. Methods planning department decide the activities
to perform during manufacturing process every part used; they prepare the
operation master, which is a master data used in production planning. Industrial
engineering and management studies department is responsible to determine the
time requirement to carry every operations and total time requirement to complete

25
 the manufacturing of equipment. The major responsibility of tool engineering is
tool planning and tool design.

3.1.3 Production control (progress)

Chief of planning

Head of production control

Section head Section head Section head Section head Section head

Progress Progress Central Progress Progress

plate & machine shop progress light assembly major
fabrication assembly
shop

Fig : 3.3 Structure of the office of Production control (progress) department

Production control (progress) department control the monthly and

daily activities as per the production order from planning department. Production
control department has sectional offices associated with every job shops. The
central progress department is responsible for material movement inside the firm
to various shops and issue of job card.

26
 3.1.6 Sub-contracting and off-loading

Chief of planning

Head of Sub-contracting and off-loading

Section incharge

Fig : 3.4 Structure of the office of Sub-contracting and off-loading

Sub-contracting and off-loading department controls the

outsourcing activities as per the master production schedule and operation master.
This department functions in association with planning department and industrial
engineering and management studies.

27
 CHAPTER 4
DETAILS ABOUT INTERNSHIP
4.1 WEEKLY ACTIVITY / PROGRESS REPORT

Company : BEML, Mysore

Place : Mysore
Area : Planning

Work details and offs

Work Timings : 10.00 am to 3.00 pm

Offs : Saturday & Sunday

Weekly report 1

Day Date Task Observation

Day 08/05/2017 Joined in company and had an interactive The equipment
1 session with HR manager and other produced in Mysore
employees. truck division is
Day 09/05/2017 Cleared security related issues like ID mainly rear dumpers
2 card, bond etc.. Got a brief description and motor grader.
about the company & various plant and its Production planning
products. department do the
Day 10/05/2017 Discussed about various activities takes planning activities
3 place in planning department. Had a for material required
for
study about departmental operating production,manufact
procedure. uring plan and
Day 11/05/2017 Studied about post contract review & pre production schedule.
4 contract review and about standard
formats of various documents.
Got a power point presentation about

28
 BEML.
Participated in BEML anniversary
celebrations.
Day 12/05/2017 Studied about master production schedule,
5 planned order and production order and
bill of material.
Familiarized with SAP.
Visited plate shop, machine shop and
assembly lines.

Weekly report 2

Area : Planning

Day Date Task Observation

Day 15/05/2017 Leave The master
6 (went to home town to collect police datas used are bill of
verification certificate) material, material
Day 16/05/2017 Discussed about various CSR activities master and operation
7 carried out by BEML. master
Day 17/05/2017 Understood about material master and
8 master production schedule.
Also Familiarized to SAP.
Day 18/05/2017 Discussed about quality management
9 process.
Understood about various subsidiary
companies of BEML.
Day 19/05/2017 Had library session and plant visit.
10

Weekly report 3

Area :Production Planning, Machinery department, Methods Planning,

Industrial engineering

Day Date Task Observation

29
Day 22/05/2017 Had a detailed Discussion about operation Maintance
11 master and its preparation in SAP department follows
Studied about spare order list and warranty preventive maintannce
order creation. method.
Day 23/05/2017 Visited production units and make Industrial
12 awareness about various machines used as engineering &
per the instruction of machinery management studies
department. department estimates
Reported at machinery department and the standard time
understand about various maintenance requirement for every
activity and scheduling of maintenance. manufacturing
Day 24/05/2017 Studied about logistics and supply chain activites.
13 management. Methods planning
Obtained the deputation letter to undergo department gives
internship in various departments and process instruction,
make basic awareness about those identify need of tools.
departments.
Day 25/05/2017 Visited assembly line and reported at
14 Industrial engineering & management
studies department.
Understood departmental operating
procedure and activities carried out in that
department.

Day 26/05/2017 Reported at methods planning department

15 and created detailed knowledge about
activities of methods panning department.

Weekly report 4

Area : Facilities Planning, Tool engineering

Day Date Task Observation

29/05/2017 Reported at facilities planning department Facilities
Day
and got awareness of activities carried out planning department
16
by facilities department. organize the required
30/05/2017 Employee strike (against privatization of
Day infrastructural facilities
BEML) Tool engineering
17

30
 31/05/2017 Leave (food poisoning) department provides
Day
various tools.
18
Tool planning
01/06/2017 Reported at Tool engineering and had
Day
section do the planning
interaction with chief. This department
19
activities regarding
consist of two section tool planning and
tools.
tool design.
Understand the working and activities of
tool planning
Day 02/06/2017 Assisted tool design section in
20 documentation of designs.

Weekly report 5

Area : Tool engineering, Production control (progress)

Day Date Task Observation

Day 05/06/2017 Assisted tool design section in tool design
21 documentation of designs. section do the design
Day 06/06/2017 Assisted in inspection of out sourced item. activities for new tools.
production
22 Visit imported stores.
Day 07/07/2017 Assisted tool department in supervisation control (progress)

23 of machining process of items designed by department consists of

tooling department. five sections plate &

Understood about various machineries fabrication shop,

used inside the machine shop. machine shop, light

Day 08/07/2017 Assisted tool department in supervisation assembly, major
24 of machining process. assembly, central
Assisted tool design section in progress.
documentation of designs.
Day Reported at production control (progress)
09/07/2017
25 and had interaction with manager.
Visited light assembly and major
assembly. Understood various operations

31
 carried out in those units.

Weekly report 6

Area : Production control (progress), Sub-contracting and off-

loading

Day Date Task Observation

Day 12/06/2017 Reported at central progress section. Production
26 Got familiarized with inventory control department
management and raw material movement coordinate the activities
by SAP for product realisation.
Production
Studied about job card processing.
Day 13/06/2017 Reported at plate shop progress section. control department also
27 Observed various process that happen in control the movements
plate shop and had a discussion about of raw material and
various advanced production techniques other items.
Sub-contracting
used.
Day 14/07/2017 Reported at light assembly progress and off-loading
28 section. department is
Understood about functions of department responsible to make
and inventory management. Had a available the brought out
discussion on Kaizen projects. items for production.
Went through departmental operation
procedure file and acquire more
information.
Day 15/07/2017 Reported at machine shop progress unit
29 Understood about functions of department
Got information about various quality
circle team and their project.
Had discussion with chief of machine shop
progress unit about weakness and threat
faced by BEML various method that can
used to improvement the functions.

32
Day 16/07/2017 Reported at Sub-contracting and off-
30 loading department (YPS) and had an
interaction with manager.
Got knowledge about the functions of the
department, bid invitation and process and
delegation of power.
Observed the process of tax payment for
interstate material movement using e-
Sugam online platform.

Weekly report 7

Area : Production control (progress), Sub-contracting and off-

loading

Day Date Task Observation

Day 19/06/2017 Studied about transportation of material, Subcontracting
31 procedures, modes of transportation. and off-loading
department functions
Understood about different types of bids
with planning
invitation.
Day 20/06/2017 Got knowledge about departmental department and

32 operating procedure. Industrial engineering

department.
Understood the calculation criteria of Store keeping
lowest purchasing price (LPP) department works in
Day 21/07/2017 Understood about counter offer and its association with
33 procedure. planning, purchase,
progress and quality
Got knowledge about quality checking, lab
inspection department.
tests, and warranty related aspects.

33
Day 22/07/2017 Visited stores department and had
34 interaction with store chief.

Observed the process of item receiving

activities in store.
Day 23/07/2017 Visited domestic store and foreign store.
35 Studied about working of stores and
management, also got the knowledge
about material flow and item withdrawal
procedure from store.

Weekly report 8

Area : Stores, Quality control

Day Date Task Observation

Day 26/06/2017 Holiday (Ramzan) Quality control
36 department works
according to the
Day 27/06/2017 Visited the raw material yard and observed procedures given by
the storage and movement of items. methods planning
37
department.
Day 28/07/2017 Reported in quality control department and
understand the functioning of the
38
department.
Day 29/07/2017 Had an interaction session and doubts
39 were cleared.

Day 30/07/2017 Obtained the certificates and relevant

40 documents.

34
4.2 LEARNING FROM INTERNSHIP

Buy
Purchase

Production /
Design Planning assembly
Raw material

Make Manufacture

Quality
checking

Sales

Fig: 4.1 Stages of production

The activities in planning department starts with the production target,

which is decided by corporate office. The corporate office identified the
production target by analyzing previous year sale, tenders in hand and information
forwarded from marketing department. Research & development department gives

35
the design to planning department. The planning department conducts an analysis
of available machinery, material and man. Based on it they will take a make or
buy decision. As per it they outsource some items or go for in-house
manufacturing. Then the assembly process takes place. After completion of
equipment assembly the quality checking is done and kept the equipment in the
yard and hand over to customer.

Role of planning department

The objective of production planning department is to coordinate

production division activities to fulfill the customer needs as per the terms of
contract. They are responsible for planning all types of material required for
production of equipment and equipment manufacturing plan and production
schedule. The main activities of planning department are:

Prepare and issue of month wise master production schedule on the annual
production program issued by the chief executive of central planning.

Release of purchase request (PR) for procurement of bought-out items

Conversion of planned order into production order (PO) for in-house

manufacturing

Creating of stock transport order (STO) for requirement of aggregate from

other division.

Post contract review

Sales order
Marketing Contract review committee
division

Feedback to marketing
division (sales)

Response from marketing

division (sales)

36
 Feedback to marketing
division (sales)

Fig: 4.2 Post contract review

Pre-contract review

Receipt of tender documents from marketing division

(sales)

Copies to D&D (design & development) for technical

comments

Review of technical scope by division

Review of delivery & cost details by planning department

and finance department

Clarification required by marketing division (sales)

37
 Interaction with concerned

Replay to marketing division

Review by contract review committee and final response

Fig: 4.3 Pre-contract review

Master production schedule & master data

Master Production Schedule or MPS is the plan that a company has

developed for production, inventory, staffing, etc. It sets the quantity of each end
item to be completed in each week of a short-range planning horizon. A Master
Production Schedule is the master of all schedules.

The major factors that affect MPS are man, machinery and material. MPS
is a key component of material requirements planning (MRP). MPS is a key
component of material requirements planning (MRP). Based on MRP planning
department releases the purchase request (PR) for procurement of bought-out
items. Planning department converts planned order into production order (PO) for
in-house manufacturing.

The mater data used in planning department are bill of material (BOM),
operation master and material master. Operation master is the master data used for
in house item. Methods planning department have the responsibility to prepare
operation master. Bill of material (BOM) is a list of the raw materials, sub-
assemblies, intermediate assemblies, sub-components, parts and the quantities of
each needed to manufacture an end product. It gives information about material
available in inventory; and helps to procurement items. Material master is the
master data that have details of in-house items and brought out item that required
for production of each equipment.

38
SAP
SAP is a German multinational software corporation that makes enterprise
software to manage business operations and customer relations. The whole
BEML, its each departments and head office are linked with SAP. Flexibility, ease
of use and highly integrated modules makes SAP very effective ERP software.
Plant maintenance

The plant engineering department consist of four department; machinery

department, electrical energy department, transport department and civil
department.

Machinery department have the responsibility of all maintenance activity.

The maintenance practice followed in BEML is preventive maintenance. Based on
criticality of machine they have to done the maintenance activity. The target is to
make avail 90% of machines ready for operation. Currently 97% of machines are
ready for operation.

Manufacturing engineering department

Engineering service department consist of methods planning, facility

planning, tool engineering, industrial engineering and management studies.

Methods planning

Methods planning department decide the activities to perform during

manufacturing process every part used; preparation, issue and revision of general
and special process sheet for manufacturing and heat treatment for all in-house
production.
Methods Production
D&D planning
planning

Tool Preparation of master IE & MS

engineering process sheet

Jigs & fixtures Production D&D Establish time

control standard
39
 Generation of job Documentation
cards

Production

Fig: 4.4 Master process sheet flow chart

The documents that have to produce by this department are master process
sheet, work instruction, tool master list and quality records. Master process sheet
consist details about description of operations, sequence of operations, inspection
stage, associated tooling and special tooling.

This department issues the process that should follow throughout

manufacturing process. They identify need of new tools, gauges, jigs and fixtures.
Estimation of consumables like gas, oil, paint and electrodes are the responsibility
of methods planning.

Industrial engineering and management studies (IE & MS)

IE & MS estimates the standard time required for every manufacturing

activity and monitors the yield and performance. They coordinates all production
machines and work center. Allocation of workmanship, productivity improvement
and scrutiny of job card are done by IE & MS. Plant balancing, cost reduction are
their main responsibilities. They monitor the machine utilization.

IE & MS conduct the time study based on past experience, stop watch
method and according to predetermined motion time system (PMTS).
Predetermined motion time system (PMTS) is forwarded by international labor
organization (ILO).

normal time=ob served time

40
 standard time(SMH )=work performance normal time

The skills of people change from person to person and with respect to
working environment, work performance is used to consider this human factor.
(SMH- standard man hour)

Job cards are used for incentive scheme of BEML employees and for the
assessment and training purpose.

Facility planning

Facility planning department provide facilities (plant & machineries,

building and infrastructure) to meet production need and other support service
department needs. They participate in techno commercial negotiations and
coordinate with purchase department. They work with maintenance department in
installation and commissioning of machineries. They act as supervisor for new
facilities created and organizing training and education from supplier to operators.
Allocation of facilities to various departments and technological up-gradation of
plant & machineries to meet organizational requirement is their responsibility.

Tool engineering

The main activities of tool engineering department are:

Provide necessary tool, jigs & fixture

Tool planning

Maintenance of tool master and its periodical updation

Identification and implementation of special tools required for

production shop for quality and productivity improvement

Periodical revaluation of tools

As per the BEML practice, minimum stock level is three months average
consumption and reorder level is six month average consumption.

Production control (progress) department

41
 Production control (progress) department control the monthly and daily
activities as per the production order from planning department. Production
control department has sectional offices associated with every job shops. The
central progress department is responsible for material movement inside the firm
to various shops and issue of job card.

The function of Production control (progress) department sis to supporting

production and make avail materials for production. (controlling of material
movement from stores to assembly shop). Identification of kit of items are also the
responsibility of progress department. They have to move the rejected item to
scrap yard and loose items & tools to dispatch section.

Once in a week there is a review meeting and they make an analysis about
availability of material and the target. Due to globalization selling price of
equipments are almost fixed. In order to attain more profit there is cost controlling
by controlling material and labor.

To reduce the wastage of plates, they ensure maximum utilization of plate

and this method is called Nesting.

Planned order

Production order

Creation Planning / progress

Release Progress

Job card save Progress

Job card print Central progress

42
 CMR -goods issue
Progress
(Consolidated material
request)

Confirmation
Production shop
o Confirmation by operation
o Mass confirmation

Incentive keyed Progress

Store credit

Production
order closuer
Accounts
fig: 4.5 Job card processing
BEML have a obsolesce committee. Divisional head calls regular meeting
and take decision about obsoleted items and machines. The obsolesce committee
take decision based on PDO (part disposal order).

Sub-contracting and off-loading

When there is lack of facility to carry a specific production operation (eg:
chromium plating, heat treatment, tooth cutting), machine capacity constraints,
cost constraints and time constraints BEML will give raw material to external
people (venders) to carry out that specific operation.

Sub-contracting and off-loading department take the responsibility upon tis

outsourcing. Planning department, IE & MS department give information to Sub-
contracting and off-loading department about amount of job to outsourced. BEML
uses supply relation module (SRM) for all Sub-contracting related activities.

Approval from higher authority

Design of tender
43
 Bid invitation

Negotiation and counter offer

Approval from higher authority

Approval from higher authority

Fig: 4.6 Sub-contracts processing

Based on technical ability, facilities, certification, turn over the vender

assessment team from corporate office identified suitable venders. BEML have
business with this approved vendors. BEML give Sub-contracts in the ratio 100%,
60%:40% and 50%:30%20%.

For every Sub-contracts BEML invites bids from suitable approved

vendors. Then make contracts based on technical and commercial aspects of bid
and counter offer by price negotiation committee.

Sub-contracting and off-loading department also responsible for timely

completion of outsourced job and to take liquidity damages penalty from vendor
in case of uncompleted jobs.

The various tender modes used by BEML are open tender, limited tender,
merit tender, two bid tender and singe bid tender.

For the movement of material BEML have two type of transportation

mode.

44
 Ex works

F.O.R BEML (free on read)

In Ex works transportation cost will meet BEML and in F.O.R BEML the vendor
have to transport the items to BEML after completion of work.

CHAPTER 5
CONCLUSION
BEML is a well-organized firm in our country and it has to play a major
role in the economy of India as well as improvement of society. Intern hopes
BEML will grow and prosper to a dominant position in the country and outside
the nation too. In the context of global context, BEML is earnestly pursuing the
idea of developing to an international standard.

This internship has helped intern to increase the confidence and awareness
so as to make him capable of working in a firm. This study has helped intern to
improve his practical knowledge.

45