Project Report On Bpc Ltd.

A Summer Training Project Report

A Summer Training Project On Marketing Plan & Project Analysis At

BHARAT PUMPS AND COMPRESSORS LIMITED (A Government Of India Undertaking) NAINI, ALLAHABAD – 211006 U.P. INDIA Ph. 0532-2687412, 2687413; Fax. 0532-2687075

e-mail: [email protected]

Duration (10-06-2009 to 29-07-2009) SUBMITTED TO: Mr. R.B.Singh Administrative Officer Bharat Pumps And Compressors Ltd. Naini, Allahabad SUBMITTED BY: Peush Prabhakar M.B.A. Reg. No. – VT/168/M.B.A./09 H.I.M.C.S. Farah, Mathura U.P. e-mail: [email protected]

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A Summer Training Project Report

CONTENTS

• • • • •

INTRODUCTION ACKNOWLEDGEMENT PREFACE OVERVIEW

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A Summer Training Project Report

INTRODUCTION

Bharat pumps & compressors ltd. Incorporated 1970 was established at Naini, the Trans yamuna area of Allahabad with objective to design, manufacture and supply of capital goods in the fluid handling field including provision of services connected therewith. BPC which caters to the need of core sector of the economy such as oil exploration, refineries, petrochemical, chemical and fertilizer, process industries nuclear and thermal power plant had in its earlier phases entered into technical collaboration with world renowned manufacturers of indigenously design and manufacture heavy duty centrifugal and reciprocating pumps, reciprocating compressors and high pressure gas cylinders and other hi-tech oil filed equipments such as cementing units, suckers rod pumps etc. In a very short span, the company absorbed the technology and established itself as the world renowned manufactured of a wide range of hi-tech products. BPC has supplied its products to the total satisfaction if the customers in almost all national projects of companies like ONGC, OIL, BPCL, IOCL, HPC, RCF, Nuclear Power Corporation, Deptt. Of Atomic Corporation, Deptt. Of Atomic Energy, IPCL etc.

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A Summer Training Project Report

PREFACE

I did my summer training in BHARAT PUMPS AND COMPRESSORS LIMITED, Allahabad. I completed my summer training for 50 days. I got training in the study of Marketing Plan and Product Analysis, Financial department is also being considered . Hence I am presenting the training report of Marketing Plan and Product Analysis. All the mistakes and problems had been carefully removed with the help of all the managers. So I am thankful to all the managers of BPCL

Peush Prabhakar MBA (IInd Semester) Hindustan Institute Of Management And Computer Studies

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A Summer Training Project Report

ACKNOWLEDGEMENT

After completing my IInd semester curriculum. I went for summer training for 6 weeks duration and it bears inspirit of several person. I have achieve this training in one of the most esteemed organisation of the country BHARAT PUMPS AND COMPRESSORS LIMITED, NAINI, ALLAHABAD for their kind permission to undertaken its study I am grateful to my respected Mr. R.B.Singh (Training Administrative Officer). For there moral support and encouragement throughout my project work. This list will go incomplete without the special reference of the contribution and whole hearted support of manager’s and all other staff and department, which truly reflect their deep insight into the project and the professional touch which is their benchmark. I express my sincere thanks to Mr. Yashvardhan Nagayach incharge (training n placement department) Hindustan Institute of Management & Computer Studies, who gave me professional advice from time to time.

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BPCL-NAINI (An Overview)

LOCATION- NAINI Naini is a satellite township of the city of allahabad, located on the banks of river yamuna and developed into an industrial centre. Some other manufacturing organizations located in Naini are ITI, TSL, AREVA, SAIL, etc.

About: Bharat pump & compressor ltd.,, Naini , allahabad is a certified integrated management systems company having ISO 9001:2000, ISO 14001:2004, OHSAS 118001:1999 Includes Environment, occupational health & safety Management systems, with the objective to design, manufacture and supply capital goods in the fluid handling field including provision of services connected therewith.

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A Summer Training Project Report BPC caters to the need of core sector of the economy such as oil exploration and exploitation, refineries, petro-chemical, chemicals and fertilizers, process industries and power plants and indigenously designs and manufactures heavy duty centrifugal pumps, reciprocating pumps, reciprocating compressors and high pressure seamless gas cylinders and other hi-tech oil field equipments such as cementing units, sucker rod pumps etc.

BPC : VISION • To become an Indian MNC in the field of fluid handling, gas compression, gas storage equipment, services and project management.

BPC : MISSION • To provide quality products and services to core sector industries with special thrust on oil and natural gas, petro chemicals, refineries, nuclear and thermal power plants, fertilisers and public transport services complying to health and safety requirements.

BPC : OBJECTIVES •

To increase market share of their products and services.

•

To maximise customer’s satisfaction by providing quality product and services within stipulated delivery. To increase the business of spares and rendering prompt after sales service including refurbishment. Achieve export turnover of 15% by 20009-10.

• •

BPC is the only company in Asia to manufacture a wide range of high tech products, heavy duty pumps and compressors and high pressure seamless and welded gas cylinders, under one roof. Such high valued hi-tech products are functioning to the total satisfaction of the customers with least maintenance cost and optimum energy. BPC is the exclusive manufacturer in the country of carbonate and ammonia pumps for fertilizer plants, mud pumps, cement pumping units and high pressure reciprocating gas compressors for the oil and gas industry. The company’s important clients to name a few are the following : ONGC, IOC, IPC, GAIL, IOL and the Department of atomic energy.

CAPABILITIES: •

Such high valued hi-tech products are functioning to the total satisfaction of the customers with least maintenance cost and optimum energy conservation. BPC, the ISO 9001:2000, ISO 14001:2004, OHSAS 18001 :1999 Company, manufactures highly technically sophisticated and environmentally friendly products, equalling International Standards of quality and performance with the support of a most modern and sophisticated machining centre having latest CMC Machines, assembly, testing , heat treatment and fabrication workshops.

•

Test facilities. The factory is equipped for full load testing of various parameter for complete product range up to 2000 KVA

•

Quality Assurance. Quality Assurance Department ensures that the products-pumps and compressors meet the specifications of international codes such as API and are fully guaranteed for performance on the basis of proven and most updated designs. Gas cylinders are manufactured as per specifications of international standards such as DOT, BS, BIS, ISO etc. and usage approval from recognized national/international agencies.

COMPETENCY: •

Quality Assurance Programmes conform to International specifications and requirements.

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• • • • •

• •

Research and Development efforts are supported by test facilities for model testing in the centrifugal pumps, reciprocating pumps and compressors area and also carry out live testing of expendables etc. Fully groomed Installation, Commissioning and Spare Parts Division renders Product Support, Technical Assistance and advice besides providing quick and effective after sales service A strong Design Department has been established which houses Computer aided Design Centre. Highly qualified, trained, experienced and competent engineers are involved in application engineering, thermodynamic calculations, hydraulic calculations and systems design in the area of piping, instrumentation, electrical, operational control etc. The company undertakes long term maintenance contract of the equipments installed and commissioned at customers' plants, with the objective to maximise their profits and minimise their risks.

CLIENTS

• • • • • • • • • • • • • • • • •

Oil & Natural Gas Commission. Indian Oil Corporation. Hindustan Petroleum Corporation. Fertilizer Corporation of India Ltd. Indian Farmers Fertilizer Corporation. Gas Authority of India Ltd. Indian Petro-Chemicals Ltd. Madras Refineries Ltd. Oil India Ltd. Bharat Petroleum Corporation. Engineers India Ltd. National Fertilizer Corporation. Indo Gulf Fertilizers Corporation. Indraprastha Gas Limited. Bongaigaon Refineries & PetroChemicals Ltd. Cochin Refineries Ltd. Tamil Nadu Petro-Chemicals Ltd.

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PRODUCTS Centrifugal Pumps Pumps for Application in Power Plants. Pumps and Compressors

Reciprocating Piston and Plunger Pumps. Cementing Units. Sucker Rod Pumping Unit. Reciprocating Compressors.

High Pressure Seamless Industrial Gas Cylinders. Gas Cylinders

Welded Cylinders. Cylinders in Cascade for Storage of Compressed Natural Gas (CNG)

Range of Products Centrifugal Pumps

Reciprocating Pumps

Maximum Power Maximum Pressure Maximum Capacity Fluids Handled

Maximum Power Maximum Pressure Maximum Capacity Fluids Handled

2500 KW 140 kg/cm2 12,000 M3/Hr Demineralised water, Sea water, Hydrocarbons, Neptha, LPG, Carbonate Solution, Boiler Feed Water, Benefield solution, Alkaline and Acidic Solution, Ammonia liquor and slurry 1700 KW 675 kg/cm2 315 M3/Hr Drilling Mud, Cementing Slurry, Crude Oil steam, Condensate, Heavy Water, Fatty Acids, Ammonia Carbonate, Liquid Ammonia, Water Injection

Reciprocating Compressors Maximum Power 25,000 KW Maximum Pressure 450 kg/cm2 Maximum Capacity 70,000 NM3/Hr Fluids Handled Air, Nitrogen, Oxygen, Carbon Di-Oxide, Hydrocarbons, Ammonia, Synthesis Gas, Hydrogen Sulphate, Coal Gas etc.

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Maximum Pressure Maximum Capacity Fluids Handled

GAS CYLINDERS 400 kg/cm2 110 Litres. Oxygen, Nitrogen, Hydrogen, Argon, Air, Helium, Carbon Di-Oxide, Nitrous Oxide, Acetylene, Ammonia, Chlorine, Freon, LPG, Compressed Natural Gas (CNG)

C.N.G.CYLINDER FOR VEHICLE USE WORKING PRESSURE: 200 BAR (204 Kg/cm2) TEST PRESSURE: 334 BAR (340Kg/cm2) SPECIFICATION - IS: 7285-1988

WATER OUTER LENGHTH (L') (Approx) WEIGHT (APPROX) in mm in Kgs CAPACITY IN DIA(D') in LITRES mm TYPE-'A' TYPE-'B' TYPE-'A' TYPE-'B' 22 232 730 735 33.00 34.50 34 232 1045 1050 44.50 46.00 35 232 1070 1075 46.00 47.50 40 232 1200 1205 51.00 52.50 45 232 1335 1340 56.00 57.50 50 232 1465 1470 61.00 62.50 30 267 716 725 36.00 38.70 50 267 1115 1125 53.00 55.70 55 267 1215 1225 58.00 60.70 60 267 1315 1325 62.00 64.70 65 267 1415 1425 66.00 68.70 70 267 1515 1525 71.00 73.70

MANUFACTURING CAPABILITIES: • • •

Modern & sophisticated machine facilities having at least CNC machines, assembly, heat treatment and fabrication workshop. In-house facilities of non destructive testing ultrasonic and chemical analysis, digital balancing machine, most modern boring and honing machines.

•

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A Summer Training Project Report • • • • •

CNC machines for manufacturing of high pressure industrial gas and CNC cylinders. Strong testing facilities for reciprocating compressors. Sophisticated standard room and modern tool room.

CUSTOMER SATISFACTION In Time Delivery, Installation Commissioning of Products

Common Objective To Maximise Profits And Minimise Cost Of The Customer

Long Term Preventive Maintenance Contract - Low Cost, Low Downtime

Just In Time Spare Parts ManagementLow Downtime

Continuous And Rapid Technological Upgradation

On The Job Training Programme For Customer Operational & Maintenance Personnel

RIGHT TO INFORMATION ACT, 2005: Right to information Act 2005(here-in-after called the act) provide for setting out the practical regime of Right to information to secure access to information under the control of public authorities, in order to promote transparency and accountability in the working of every public authority. Bharat Pumps & Compressors Ltd., Naini, Allahabad - 211010(India) is a Public sector Enterprise.

POWER AND DUTIES OF OFFICER AND EMPLOYEES: BPCL is a manufacturing unit and a commercial organisation. Power and duties of the officials are well defined.

DECISION MAKING PROCESS: The company is headed by Managing Director. Various functions of the organisation are managed by product managers and departmental heads (listed below) who report to Managing Director.

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A Summer Training Project Report Pump compressor design DGM(PDD) Pump compressor Pumps and compressors Business unit CGM(W) production technology

Gas cylinder Business Unit Spares part Business Unit Marketing & EDP Material management & stores Quality Control & Quality Assurance Engineering co-ordination & R & D. Financial Services Human Development , Welfare & PEX Workshop services , Plant Maintenance and Safety

DGM(DESIGNTECH)

Pump & compressor DGM(PCM) manufacturing DGM(GCD) SM (SPCD) GM (Mktg ) GM (MM) DGM (QC & QA) DGM (PDD & R&D) CGM (F S,ROs & CSR) & I/C- CS GM (PEX & HD) GM (CS & PM)

As company in recent past was drowning so Government allotted some care takers for some time so as to revive the company and make it a profitable venture, for that Government decided to set: • • •

E.I.L. – For Technology B.H.L. – For Management O.N.G.C. – For Funds.

NORMS FOR DISCHARGING FUNCTIONS: • • • • •

Conformance to systems ,procedures and Govt. guide-lines Efficiency and effectiveness in performance Good human relationship Integrity and fairness in all the matters Loyalty to company

RIGHT OF DISCHARGING FUNCTIONS: BPCL has formulated the rules/guide-lines for conducting business in the company. Some major guiding documents are listed below: Articles and Memorandum of Association of the company • • • • •

Delegation of Powers Purchase Manual Works Manual Conduct, Discipline and Appeal rules Standing orders

Personnel policies and administrative orders • Right To Information Act, 2005

• •

Power and Duties of Employees Decision Making Process

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• Norms for Discharge of Functions • Rights of Discharging Functions • Statement of Documentation • Arrangements for Consultation • Committees for Directions / Guidelines • Directory of Company Employees • Monthly Remuneration • Information Facility for Public • Public Information Officers • Other Useful Information STATEMENT OF THE CATEGORIES OF DOCUMENTATION: BPCL holds the commercial and technical documents regarding business operation of the company and data related to its employees.

ARRANGEMENTS FOR CONSULTATION: BPCL has interfacing with various Govt. Departments and parliamentary committees.

COMMITTEES FOR DIRECTION/GUIDE-LINES: BPCL has constituted committees to oversee its operation & provide directions/guidelines. The meetings of these committees are neither open to public nor the minutes are accessible to the public.

DIRECTORY OF COMPANY EMPLOYEES: Details of all the employees are maintained by company.

MONTHLY REMUNERATION RECEIVED BY EACH OF THE COMPANY'S OFFICERS AND EMPLOYEES (as on 01.07.09) ARE AS BELOW:Grade

Designation

Pay Scale (Rs.)

Strength

E9

Managing Director

25750-650-30950

01

E8

Chief General Manager

20500-500-26500

02

E7

General Manager

18500-450-23900

04

E6

Deputy General Manager

17500-400-22300

10

E5

Senior Manager

16000-400-20800

19

E4

Manager

14500-350-18700

24

E3

Deputy Manager

13000-350-18250

77

E2

Senior Engineer

10750-300-16750

23

E1

Engineer

8600-250-14600

28

Total Executives

188

S3

Assistant Engineer

6400-180-10000

49

S2

Supervisor Grade-1

6000-160-9200

00

S1

Chargeman

5600-150-8600

09

Total Supervisors

58

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W10

Chief Foreman

8600-250-14600

37

W9

Senior Foreman

6400-180-10000

222

W8

Foreman(W)

6000-160-9680

269

W7

Senior Technician

5600-150-9350

143

W6

HSW

5270-145-8895

49

W5

SKW-I

4925-135-8300

26

W4

SKW-II

4725-125-7850

22

W3

SKW-III

4550-115-7425

12

W2

SSW

4350-100-6850

12

W1

USW

4150-90-6400

18

Total Non-Executives

810

GRAND TOTAL(Executives + Supervisors + Non Executives) =

1056

INFORMATION FACILITY FOR PUBLIC: Nil. However company maintains a Library having technical books & specifications for reference of employees

PUBLIC INFORMATION OFFICERS: Names, Designations and particulars of Public Information Officer. Mailing Address: Bharat Pumps & Compressors Ltd Naini, ALLAHABAD - 211010 Fax : 0532 - 2687075 E-mail : [email protected] Public Information Officers

Senior Public Information Officer

Mr. M.Shahabuddin. DGM (MKTG)

91-9935595359

Mr. Mohan Kumar DGM (GCD)

91-9935595377

Mr. A.K. Mathur, GM(Marketing)

91-532-2687417 91-9935595369

Public Grievance Redressal System: A formal Complaint / Grievance handling procedure for all individuals except (i) Employees (ii) Vendors & (iii) Customers for whom a formal Grievance Redressal System already exists. A "Grievance" for the purpose of this Scheme would mean, a cause of distress felt on account of being wronged, to form a reason for complaint, relating to any Individual / Group (other than those not covered under the Scheme), arising out of any decision taken by BPCL in relation to that

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A Summer Training Project Report Individual/Group. A High-Powered Committee consisting of the following: i) Head of Finance ii) Head of P&A - Convenor iii) Head of Department to which the Grievance is related, decides on all the Grievances within 45 days of its receipt from the Personnel Grievance Officer(PGO) and thereafter informs the aggrieved person about the decision of the Committee within 7 days through the PGO. The decision given by the High-Powered Committee is final. Grievances that will not be taken up include : • Anonymous complaints / Frivolous cases / others in respect of which inadequate supporting details are provided. • Cases involving decisions/policy matters in which the aggrieved has not been affected directly/indirectly. • Cases where quasi judicial procedures are prescribed for deciding matters or cases that are sub-judice. • A grievance which has already been disposed of by the High-Powered Committee.

•

Complaints of corruption. These are to be lodged separately with the Chief Vigilance Officer.

Complaint should be registered to: Mr. M. Shahabuddin DGM (MKTG) Bharat Pumps & Compressors Ltd. Naini, Allahabad – 211010 E-Mail: [email protected] Appellate Authority Mr. A.K. Mathur GM (Marketing) Bharat Pumps & Compressors Ltd. Naini, Allahabad – 211010 E-Mail: [email protected]

TENDER NOTIFICATION:

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Notification Date of Opening Date of Bids

BPT No.

Description

46116720892264

NON-RETURN VALVE

13.06.2009

04.07.2009

46116510791270

FORGED BAR DIA 280X

15.06.2009

04.07.2009

4612402019271

VANE CELL PUMP

15.06.2009

29.06.2009

46116723691273

CONE. RED./ELBOW

15.06.2009

02.07.2009

4611675279274

SMART LEVEL TRANSMITTER

15.06.2009

02.07.2009

46116771343277

SHIMSET

18.06.2009

29.06.2009

46116741991278

SET OF GASKET

19.06.2009

06.07.2009

46118020094279

MACHINING OF CONNECTING ROD

19.06.2009

06.07.2009

46118020095280

MACHINING OF CONNECTING ROD

19.06.2009

06.07.2009

4611677144281

FLEXIBLE RUBBER HOSE ASSLY

20.06.2009

06.07.2009

46116790391282

SET OF GASKET

20.06.2009

04.07.2009

46116790392283

SET OF GASKET

20.06.2009

04.07.2009

46116790491284

COMPLETE MECHANICAL SEAL

20.06.2009

06.07.2009

46116736291285

12 PAIR JUNCTION BOX

20.06.2009

09.07.2009

46116753691289

SMART DIFF. PRESSURE TEMP.

20.06.2009

06.07.2009

4612402028291

INCREMENTAL SHAFTENCODER TYPE

21.06.2009

06.07.2009

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BOARD OF DIRECTORS

NAME

ABHAY KUMAR JAIN

DESIGNATION

ADDRESS

MANAGING DIRECTOR

MANAGING DIRECTOR,, B.P.C.L. NAINI, ALLAHABAD, 211010, INDIA

DIRECTOR R. MANOHAR

PALLESENA RAJGOPAL SHRIRAM

(NOMINEE OF GOVT OF INDIA)

DIRECTOR (NOMINEE OF BHEL)

DIRECTOR S. DHANDAPANI

(NOMINEE OF ONGC)

DIRECTOR SHYAM CHOUBEY

(NOMINEE OF EIL)

B 510 PRAGITI VIHAR LODHI ROAD, NEW DELHI-110003, INDIA

PHONE NO

EMAIL ID

05322687320

[email protected]

01123063707

[email protected]

690 ANNA SALAI 044NANDANAM, 24343382 CHENNAI600035, INDIA

ONGC TEL BHAWAN DHERADUN – 248003

7045, SECTOR-B, POCKET-10,, VASANT KUNJ, NEW DELHI110070, INDIA

[email protected]

01352793754

[email protected]

01126101458

[email protected]

HIGHLIGHT: BPC marches ahead with turnover of Rs. 236.36 Crores (Growth 21.4% over last year) and Profit before tax of Rs. 26.88 Crores for the Financial Year 2008-09 TSX [TECHNOLOGY] DEPARTMENT

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Motto: To ensure the smooth flow of instruments to match that of material.  Right M/C ~ Right Material ~ Right Tool ~ Right Job.

OBJECTIVES: • • • • •

To improve the quality of product. To increase the productivity. To reduce the cost. To optimize facilities and machine utilization. To enhance work culture, working conditions or environment.

5 M’s of Productivity: • • • • •

Money ~ Capital Man-Power ~ Workers(HR) Management ~ Planning Material ~ Direct / Indirect Methods ~ Technology

TECHNOLOGY FUNCTIONS: 1. To plan and specify methods and procedures for achieving special requirements. 2. Preparation of process sheets and procedures for specific processes and their qualification. 3. Designing jigs and fixtures, templates, special tools and gauges and initiate for the manufacture or procurement. 4.

Preparation of vendor process specifications for operations to be off-loaded.

5.

to approve / amend / modify changes in the processes as per the requirements, if needed.

ORIGINATING DOCUMENTS FROM TSX 1.

D.P.I. – For jigs and fixtures, thread rolls, gauges and special tools.

2.

Drawings – For jigs and fixtures and special gauges.

3.

Vendor process specifications – For operations to be off-loaded.

4.

Process sheet (test estimates) – For manufacturing at fabrication and machine shop and assembly / testing.

5.

Machine load chart – For annual production programme..

Process Sheet Contains: • • • • •

Sequence of operation. Work area / cost centre. Machine tools used Special tools requirements Relevant technical specifications

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 18

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Important inspection stages Witnesses / hold points Acceptance criteria Identification and protection Specific process specifications Raw material supply conditions

Jigs / fixtures / special tools (gauges) 1. Standard cutting tools 2. Special / form tools 3. Jigs / fixtures drill plates 4. Flanges for hydro test 5. Mandrill for DYN / STAT balancing. Purpose Of Tooling: 1.

paper machining – surface finish / tolerance

2.

to obtain the form / profile

3.

to hold the work – piece / tool

4.

to guide the tool during machining

Manufacturing Processes: •

To define process control at various stages of manufacture to meet the specified requirements.

•

Technology plans the manufacture processes in detail based on the drawing material specifications and quality plan as indicated in BM / drawing.

Special Processes: These procedures are carried out by qualified professionals under controlled conditions following the documented procedures.

Special processes qualifications: 1. Results of these processes cannot be fully verified by subsequent testing. 2. Production / QC to ensure that the procedure and the personnel are skilled. 3.

Proper and regular record has to be maintained for every particular or attributes.

4. Technology shall issue specifications or instructions for special process qualifications and maintenance of records.

IMS (INTEGRATED MANAGEMENT SYSTEM)

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A Summer Training Project Report IMS has world class standards through continuous improvements, research and developments. It comes under QMS (Quality Management System) and has been brought into application by API (American Petroleum Institute).

Certifications: IMS has following three certifications: •

ISO: 14001

•

ISO: 9001:2000

•

OHSAS: 18001

Note: ~ ISO: 14001 (environmental) management system standards to allow for easy integration of management systems. ~ ISO: 9001 is related to design, development, production, installation, testing activities and is following amendments of year 2000. ~OHSAS: 18001 has been designed to be compatible with ISO: 9001 and looking after employee’s health working in and for the organisation. ~ ISO stands for International Organisation of Standards. ~ OHSAS stands for Occupational Health And Safety Assessment System.

APEX MANUAL: It covers the following features as per the IMS standards:

1. Organisational Chart 2. Departmental Procedures 3. Controlled and Uncontrolled Documents 4. Working Standards and Instructions 5. Research and Developments Note: ~ Business Quality = Product Quality + Product Service Quality

TQM (TOTAL QUALITY MANAGEMENT) An integrated organisational approach in delighting customers (both internal and external) by meeting their expectations on a continuous basis through every one involved with the organisation working on continuous improvement of products, services and processes along with proper problem solving methodologies.

Core Values Of TQM: Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 20

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S ~ Self Discipline P ~ Patience O ~ Openness R ~ Result T ~ Trust

Essential Elements Of TQM: 1.

Total employee involvement

2.

Just in time / waste elimination

3. Total quality control (TQC) 1.

Total employee involvement: SKILL a) Able b) Unable

ATTITUDE a) Willing b) Unwilling

(TQP)Total Quality People • • • • •

Organisation is a tree(IMS) Organisational fruits(TQM) Organisational Stem(TQC) Organisational roots(TQP) Organisational resources(Cooperation, Communication and Commitment)

Note: Total Quality People i.e. HR are the most important and integral elements of any Organisation. 2.

Just in-time / Waste Elimination Wastes are those hidden problems or defects within an organisation which result in delay of production processes and also affect the cost of production. Hence, these need to be detected and eliminated at the earliest in order to meet the need of the customers just in-time. Wastes may result due to any of the following Abnormalities within the organisation:

a) Inadequate System b) High Defect Rate c) Improper Work Method

d) Sluggish Market e) Low Work Standards

3W Movement (WAGE WAR on WASTE) Identify & Eliminate wastage arising from:

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•

Over producing

•

Time at hand

•

Transporting

•

Processing itself

•

Unneeded motion

•

Unnecessary stock at hand

•

Producing defective goods

•

Outdated instruments / machineries

•

Insufficient scheduling / routine

•

Congestive set-up / layout

TOTAL QUALITY CONTROL(TQC) It means controlling: • Quality of work •

Quality of service

•

Quality of process

•

Quality of people

•

Quality of system

•

Quality of objectives

•

Quality of information (verbal / non-verbal)

•

Quality of life

QUALITY CONTROL DEPARTMENT Quality Control Department has control on all feeder sections. It checks the quality of raw material and finished products as per standard prescribed. The department can be categorised as: 1. 2. 3. 4.

Machine shop inspection and ultrasonic testing Non destructive testing (NDT) Standard room Assembly testing

5. 6. 7. 8.

Chemical lab Mechanical lab Gas cylinder quality control department Stores(QC)

NDT (Non Destructive Testing): Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 22

A Summer Training Project Report This section handles the following Tests: • Ultrasonic Test (UT) • Radiographic Test (RT) • Magnetic Particle Test (MT) • Dye / Liquid Penetration Test (PT) • Eddy Current Test (ET) • Helium Leakage Test Above four tests are mostly used. ULTRASONIC TEST: This is the test for checking inside defect in the material. Sound of frequency more than 20000 Hz (called Ultrasonic) is used for the test. A particular machine named Ultrasonic Testing Machine is used for the purpose with different probes (viz normal probes, angle probe of angle 30o, 45o, 60o, 75o). RADIOGRAPHIC TEST: This test is used for checking the internal defects of the material specially welded joints. These tests are done by X-rays or Gamma rays. TESTING FACILITIES IN RADDIOGRAPHIC LAB: 1)

X-Ray Radiography:

a. X-Ray Machine: Make: SEIFERT Type: PARVORAMIC Model: ERESCO 300/5 LRK Capacity: 300 Kw, 5 mA

b. X-Ray Machine: Make: ANDREX Type: UNIDIRECTIONL Model: CMA-16 Capacity: 160 Kw, 5Ma This is used for steel thickness upto 10mm. 2)

Gamma Ray Radiography: By IR – 192 Source (t ½ = 75 days)

a. Tech – OPS Camera (Remote Operated) Make: USA Model: 660/664 Capacity: 100Ci Working Capacity: 60Ci Shielding Material: Uranium This is used for steel thickness 19mm to 75 mm. Along with test piece, pentameters are used for checking the standards of radiographs. Pentameters have two types: 1. Wire Type 2. Hole Type

FORMULAE USED: % Sensitivity = Minimum Thickness of wire X 100/Material Thickness

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 23

A Summer Training Project Report % Sensitivity = 2\/(visible Hole /27) % Sensitivity should lie 1% to 3% ** Servameter ( Radiation detector ) : This is used for detecting every type of radiation.

PRODUCT COLLABORATION PRODUCT Centrifugal Pump Nuclear Reciprocating Compressor Reciprocating Pumps Carhamete & Ammonia Pumps Cementing Units Gas Cylinders Porous Mass Porous Mass (Upgrade)

COLLABORATORS NAME M/s Pumps Guinard France M/s Pumps Guinard France M/s Nuovo Pig none, M/s USS Oil Well, USA M/s Uraca Pumpenfabrik Germany M/s B.J. Highes, USA M/s Showa Koatsu Kogyo Co. Ltd. Japan M/s Yokohama Chemical Japan M/s Coyne Cylinder Co. Ltd. USA

PERIOD March 72 to March 82 March 85 to December 95 March 72 to March 82 March 72 to March 82 November 81 to November 91 January 85 to January 95 March 72 to March 82 March 72 to March 82 July 85 to July 95

BPCL BRANCH OFFICES MUMBAI

E – Mail : [email protected]

Bharat Pumps & Compressors Ltd., R&C Building, 4th floor, Byculla Iron Works, Sir J.J. Road (Adjoining J.J. Hospital – Byculla) MUMBAI – 400 008 Fax No. : 022 – 23750142 Tel. No. : 022 – 23716268 / 23774577 E – Mail : [email protected]

DIBRUGARH Bharat Pumps & Compressors Ltd., Rupam Building, Minal Nagar, DIBRUGARH – 786 001 Tel. No. : 0373 – 2314324 E – Mail : [email protected] CHENNAI

VADODARA Bharat Pumps & Compressors Ltd., 4 Manasmurti Flats, 14 J.P. Nagar, Opp. G.E.B. Colony, Old Paddara Road, VADODARA – 390 015 Tel. No. : 0265 – 2336193 E – Mail : [email protected]

Bharat Pumps & Compressors Ltd., Gemni Parson Apartment, “E” Block, 3rd Floor, No. 3 Anna Salai, CHENNAI – 600 006 Tel. / Fax No. : 044 – 28257107 E – Mail : [email protected]

KOLKATA NEW DELHI Bharat Pumps & Compressors Ltd., C-115 Lajpat Nagar – 1, Behind Gulshan Properties, NEW DELHI – 110 026 Tel. No. : 011 – 29815141

Bharat Pumps & Compressors Ltd., Room No. 222, 2nd Floor, Karnani Mansion, 21 Park Street, KOLKATA – 700 016 Tel. / Fax No. : 030 – 22269917 E – Mail : [email protected]

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 24

A Summer Training Project Report

HUMAN RESOURCE DEVELOPMENT OUR MUSCLES IS OUR MANPOWER …………………….. AND IT SHOULD BE GOOD. BPC is engaged in a wide range of activities, which are design, manufacture, assembling testing, inspection, dispatch, after sales, commissioning of Pumps & Compressor and after sale service. A professional and progressive human resource development approach is what knits together the BPC family together the BPC family of over 1200 employees. The policies and practices have been formulated with well structured programme with objective of developing an organisation that will fulfil, comply with and adopt all the statutory requirement of Govt. Of India in terms of identifying including, training and development of Indian Nationals. Strive for total quality management through human resource development based on their strength and the organisation.

CORPRATE PHILOSOPHY AND OBJECTIVES THINK BIG AND GROW BIG Corporate Objectives: •

To increase the profitability through judicious productions.

•

To maximise customer satisfaction through effective Redressal of customer queries and complaints.

•

To optimise the utilisation of available resources through comprehensive ERP Techniques.

MANUFACTURING CAPABILITIES EVEN PICASSO NEEDED A BRUSH AND A CANVAS And so does our committed force need an excellent and latest technology manufacturing infrastructure. Our manufacturing highlights are: •

Modern and sophisticated machine facilities having latest CNC machines, assembly testing heat treatment and fabrication workshops.

•

In-house facilities of non-destructive testing, ultrasonic and chemical analysis, digital balance machines, most modern boring & honing machines. CNG machines for manufacturing of high-pressure industrial and CNG cylinders.

• •

Strong testing facilities for reciprocating compressors.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 25

A Summer Training Project Report •

Sophisticated standard room and modern tool room.

MARKETING PHILOSOPHY WORK SMART INSTEAD OF WORKING HARD Marketing Objectives: •

To become a market leader in design manufacturer, testing, supply, creation and commissioning of pumps and compressors.

•

To be a leader in design, manufacturer, testing and supply of centrifugal and Reciprocating Pumps to Nuclear Power Projects Atomic Power Project.

•

To develop export market for BPCL products through target based pricing of products.

•

To improve upon market share for BPCL Products through target based pricing of products.

•

To increase the order booking for spare parts for BPCL supplied equipment through extensive overhauling and refurbishment activities for the equipment supplied earlier.

ASSUMPTION ABOUT THE MARKETING PLAN What is marketing plan: Marketing plan is systematic anticipation and analysis of future changes coupled with the methodology for adapting to such changes. Methodology that will allow the industrial marketing manager to capitalise on the changes in order to meet objective and goals of the company and to gain an edge over competition. It take care of all the lapses of a marketing manager and also highlight the weakness of the company that should be removed for meeting the ultimate objective of the company i.e. profitability through customer satisfaction.

Need for Marketing Planning: The marketing planning seeks to ensure perpetuity growth and continued profitability to a company through devising a suitable business portfolio and helping maintain a proper balance between short and long range objectives. It augments the health and image of a company through proper investment in business opportunities as well as in various resources. The absolute necessity of marketing plan becomes more conspicuous in its absence than in its presence. As without such a plan: a.

The marketing manager losses control over the future of the firm. He has no ability to react in a logical and well-reasoned manner.

b. The manager inevitably ends up managing by crisis rather than by design.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 26

A Summer Training Project Report c.

The marketing manager is forced to remain on the defence with marketing decisions to counteract the well timed well offensive thrust of competition.

STRATEGIES / ACTION PLAN: •

BPCL have already initiated action for attainment of ISO 9000 certification.

•

BPCL is already registered with process consultants and various exports houses. We are receiving enquiries from EEPC, Mohan Exports and PEC etc.

•

BPCL has initiated action to become a member of international Trade Council. Exp.

•

As agents are the main contacts with the ultimate customers, we are also looking for appointing some agents of repute in foreign countries.

•

To participate in international trade fairs which are held in India & abroad.

•

Contacting ultimate customers and mailing our product leaflet and brochures to them.

•

Improve the level of customer satisfaction be mail questionnaires and personal discussion. Organising camps at various sites for a limited period listening to customer’s problems, resolving them and providing technical guidance.

•

Presentation to customers / consultants before project sets date through audiovisual presentation slides / films.

•

Tie ups with turnkey contractors.

•

Scanning and circulation of tender notices advertised in newspapers, Government bulletin.

TYPES OF PLANS Mission The mission indicates primary beliefs and bedrock objectives, the central purpose of the business. The mission indicates precise answers to certain basic. Questions: •

What is our business?

•

What will our business be?

•

What should be our business?

•

Who is our customer?

•

What does he buy?

•

What does he expect from the product?

•

What does he look for when he buy our product?

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 27

A Summer Training Project Report •

Why should consumer citizen tolerate our existence? And so on.

If you have correct answers to these questions you can define your mission or line of business justifying its very survival.

Objectives: Objectives are the aims and goals to be achieved by the enterprise. They point out where we want to go what is our end or destination. They provide direction for the enterprise efforts. They become the bench marks or standards for evaluation of efforts. The facilitate control. Planning is most successful when it is based upon clear-cut, attainable and verifiable objectives or goals. Please note that objectives prescribe ends, whereas strategy prescribed means to accomplish desirable ends.

Strategy: R. Anthony has defined strategic “the process to deciding on objectives of the organisation on changes in these objectives and on the policies / strategies is a pattern of purposes and policies, which are unique to the firm”. Strategies are action – oriented programmes in order to give the organisation a unified direction towards achieving the company mission, objective and goals. Strategic decision is planned course of action to achieve clearly objectives, in the face of limited resources, a changing environment and intelligent completion. The word strategy has competitive implication. Strategies are planned response to external changes e.g. changes in customer tastes and preferences, changes in production do distribution, changes are based upon basic mission and objectives, resources to be delayed and changing marking opportunities. Strategies can establish favourable relation between the firm and its environment.

Policies: Policies are the principles and consequent rules of action of achieving specific organisation objective or goal.

Procedure: Procedures are a series of functions or steps performed to achieve a specific task or understanding.

Programmes: Programmes are a series of necessary activities and resources that are guided by the corporate objectives, plans and strategies.

Project: A project is a scheme for investing resources, resources which can be analysed and evaluated separately. It is a work plan.

Schedule: A schedule is a precise time table of a series of action. A vital part of a programme or project.

Budget: A budget is a document indicating amount of resources to be committed to a specific purposes of an organisation. Sales budget, production budget, capital budget and so on.

Standards:

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 28

A Summer Training Project Report A standard is a selected criterion against which actual results can be measured to evaluate performance. A standard is an integral part of control. There are four standards: quantity, quality, time and cost.

Method: A method describes how each step of a procedure is to be performed. One best way is a standard method.

Rule: A rule guides action but gives no discretion and demands strict obedience. Objectives indicate our ends or destination, policies point out what is intended; programmes, procedures, etc. describe how strategies and policies are being implemented. Standing plans ensure managerial efficiency, effective control and co-ordination. Moving from policies to rules, the standing plans become increasingly restrictive of management behaviour.

IMPORTANCE OF PLANNING There are following importance of planning to Management of Business:

•

Planning forces on the future direction, values and sense of purpose; basic objectives tell the direction of growth.

•

Planning provides a unifying decision making framework and facilities integration of efforts.

•

Planning helps to identify potential market opportunities and threats.

•

Planning offers standards of performance for comparison and evaluation of actual performance.

•

Planning enable the organisation to tune its business with environment and establish a profitable relationship with environment.

•

Precise plan can achieve a correct balance among: o o o

Corporate resources Corporate effort and The market potential

•

Planning assures effective management of change and thereby survival and growth of the enterprise. If there is anything constant, it is change. Change implies progress. Change is manageable only through conscious planning. For instance, planning can reveal future threats and uncertainties or probable changes in the national economy. Management can be prepared to face the change convert difficulty into opportunity and meet the challenge of change (resistance to change with reasonable success)

•

We determine our goals, policies, procedures and time bound precise action plans in advance and all activities are well coordinated and directed along predetermined channels on the target markets. Hence there is no problem of confusion or chaos, no barriers of communication and

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 29

A Summer Training Project Report no need to grope in the dark. Thus we have an orderly and smooth journey to arrive at our destination as per plan.

PRODUCTS Gas Cylinder: •

High pressure seamless industrial cylinders.

Pumps & Compressors •

Centrifugal pumps

•

Reciprocating piston and plunger pumps

•

Reciprocating compressors carbonate and ammonia pumps

•

Sucker rod pumping units

•

Pumps for nuclear power station application.

QUALITY ASSURANCE Backed up by metallurgical and other laboratories including standard and calibration room, the quality assurance programme confirm to international specification and requirements and aims at achieving excellence by integration quality development, quality maintenance and quality improvement effort of the various groups in the factory. Quality assurance department ensures that the products (pumps and compressors) meet the specifications of the international codes such as API and are fully guaranteed for performance on the basis of proven and most updated design Gas cylinders are manufactured as per specification of international standards as DOT, BS, BIS etc. and usage approval from recognised national/ international agencies.

NEW HORIZONS BPCL is operating in hi-tech area and has established a reputation of products on which maintenance cost is least: •

In recent past the company has intensified its activity in a highly sophisticated and specialised filed of nuclear pumps manufacturing order have already been executed to supply emergency core cooling pumps, moderator pumps primary system feed pumps and shut down cooling water pumps, to the country’s atomic power projects BPC ids fully geared to design manufacture and supply these pumps to nuclear power plants in order to achieve the generating capacity of 10000 MW by turn of the century.

•

To expand the product base organisation has undertaken manufacturing of canned motor pumps as a replacement of traditional moderator for nuclear power generation

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 30

A Summer Training Project Report

•

Pursuing the policy of the government to give more thrust to agriculture areas the company has planned to take up capacity irrigation pumps for manufacturing.

•

Besides the company has achieved bread through to design and manufacture a high pressure air injection compressor for the in site combustion plants for the extraction of high viscosity crude for ONGC’s pilot plant at Balol. The other two worth mentioning break through are PACOL service compressor and hydro service compressor for linear alkyl benzene (LAB) revamp project at IPCL, Baroda and recirculation compressor for Heavy Water Project at Tuticorin.

Visualising the oil crunch in coming years and unavoidable dependence on alternate resources of energy BPC is also planning to manufacture compressors and kits to be used on automobiles. A small package unit of high pressure low capacity compressors for starting aero jets and aero engines has been planned for production to meet the demand of Indian Air Force respectively.

BROAD CUSTOMER PROFILE (1)

PRODUCT: centrifugal pump

(A)

REFINERY AND PETROCHEMICAL • • • • •

Indian oil corporation ltd. Bharat petroleum corporation ltd Cochin refineries ltd. Indo Burma petroleum co ltd. Mangalore refinery & petrochemicals limited.

•

Tamil Nadu Petri-product ltd, Bongaigaon. Reliance petroleum. Essar oil & refinery Haldia petrochemicals.

• • • (B)

FERTILIZERS • • • • • • • • • • • • • •

(C)

Fertilizer corp. of India ltd. Hindustan fertilizer corp. ltd. Indian farmer’s corp. ltd. Nagarjuna fertilizer & chemicals lid, Hyderabad Gujarat Narmada valley fertilizers co. ltd., Baroda. Hindustan Lever ltd. Tata chemicals limited. National chemicals ltd. Indian explosive ltd., Kanpur Rashtriya chemicals& fertilizers ltd. Krishak bharti co-operative ltd., Hazaria Fact, cochin Bindal Agro Chambal fertilizers

OILS & GAS • •

Oil & natural gas corporation ltd. Gas authority of India ltd.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 31

A Summer Training Project Report • (D)

Oil India ltd.

THERMAL POWER • • • • •

(E)

National thermal power corp. Harduaganj thermal power station Captive power plant Namrup thermal power station Neyveli lignite Corp. ltd.

ATOMIC ENERGY • • • • •

(F)

atomic energy commission Nuclear power corp. ltd. Heavy water projects at : Talcher, Manu guru, Tuticorin. Bhabha atomic research centre. Indira Gandhi centre for atomic research

OTHER INDUSTRIAL SECTOR •

National aluminium co, ltd.

•

Steel authority lf India ltd, : Bokaro, Bhilai, Riurkela, Vizag Central coal fields led., Giddi Kerala news print & paper ltd. Bharat heavy plate & vessels ltd., Visakhapatnum. Rashtriya Ispat Nigam ltd., Vizag. Hindustan Zinc ltd. Vizag.

• • • • • (2)

PRODUCT: RECIPROCATING PUMPS:

(A)

REFINERIES & PETROCHEMICALS • • • •

(B)

India oil corp. ltd. Mangalore refinery & petrochemicals ltd. Madras refinery ltd., madras Indian petrochemicals ltd.

FERTILIZERS • • • • • • • • • •

(C)

Fertilizers corp. of India ltd. Hindustan fertilizers corp. of India ltd. National fertilizers ltd. Indian farmers fertilizers co-operative ltd. Fact-cochin Indian explosive ltd., Kanpur Krishak Bharti co-operative ltd., Hazira Rourkela steel plant Rourkela Indo- gulf fertilizers & chemical corp. ltd. Tata chemicals ltd. Bavaria

OIL & GAS • •

Oil & natural gas commission GAS authority of India ltd.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 32

A Summer Training Project Report • (D)

Oil India ltd.

OTHER INDUSTRIAL PROJECTS • •

Coal India ltd. Steel authority of India ltd. Bokaro, Bhilai, Rourkela, Vizag

CONSULTANTS •

Engineers India ltd.

•

Uhde India ltd.

•

Kellogg international ltd.

•

MECON

•

Humphreys & Glasgow, Mumbai

•

Project & development (I) ltd.

•

Snamprogetti-Italy

•

Tata consultancy ltd.

•

DCPL, Calcutta

•

Kinetic technology India ltd., Delhi

PRODUCT ANALYSIS (1)

PRODUCT: CENTRIFUGAL PUMPS

RANGE

:

Capacity up to 12000 m4/hr 7 pressure up to 140 kg./cm2 with power limited to 2500 KW.

FLUID HANDLED

:

Demineralised water, sea water, hydrocarbon, nitrogen, LPG. Carbonate solution; border feed water, Benefied solution, ammonia, Ligour & slurry.

MAJOR COMPTITORS: * * *

KSB pumps ltd, Pune Kirloskar Ebara ltd. Pune Sulzer Pumps Pvt. Ltd. Mumbai

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 33

A Summer Training Project Report * *

Best & Compton Engg. Ltd. New Delhi Worthington Pumps, Calcutta

FACTOR AFFACTING BUSINESS * * * * *

Prices Deliveries Adherence to customer’s requirements/ specialization After sales services & spare pates backup Government policies

PRESENT MARKET SIZE SHARE IN CO. BUSINESS

Rs. 500 Crores 45%

SWOT ANALISIS STRENGTH

WEAKNESS

OPPORTUNITIES

THREATS

Good engineering capabilities. Good design backed by reputed foreign pump manufacturer. Good manufacturing & testing facilities. Good performance of equipments already supplied. Good quality & high degree of reliability. Stable industrial relations. High material & manufacturing cost. Delays in deliveries. Lack of planning & scientific monitoring of jobs. Lack of reliable vendors for casting and other bought outs. Inadequate after sales services & delays in resolving customer’s problems.

Higher fixed costs & administrative expended. Lack of aggressive marketing Inadequate technology up gradation. Poor liquidity position 7 market credibility. Reference to BIFR. Large investment planned in oil & gas, petrochemical’s refineries, power 7 chemical industries etc during 8th plan period. Growing demand for pumps in all the core sectors. Entry of foreign suppliers due to recession in world markets. Increase competition from Pvt. Sector cost and entry of more & more roreign cos. into main.

Markets resulting in cut – throat competition Dependence on world bank, other agencies for funds resulting large – scale import of equipments.

Project consultants/process licensors imposing preference on Indian customers leading to imports. Foreign cost quoting dumping prices. Reduction in customers duties has made offers from overseas Cos. More competitive in comparison to Indian counterparts. Due to financial constraints customers going in for turnkey package with credit package manufacturers/suppliers. Our own ex-collaborators are now Competing us. Ability of foreign cos. To quote very competitive price.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 34

A Summer Training Project Report

(2)

PRODUCTS: RECIPROCATING PUMPS

RANGE: Maximum pressure – 675 kg/cm2 maximum capacity – 315 m3/hr LIQUID HANDLED: Drilling mode, cementing slurry, crud oil steam, condensate, heavy water, fatty aid, ammonium carbonate, liquid ammonia, water injection.

MAJOR COMPETITORS: Plunger pumps

Mid pumps SRP units

Cementing units

Ongersoll Rand Ahmedabad Matriplex, Coimbatore Goma Engg. Mumbai Larsen & turbo ltd. Mumbai Bhel, Hyderabad Simplex, Bhilai New standard engg. Mumbai Greaves cotton & co. ltd. Ahmedabad Naveen engg. New Delhi Tractors India ltd. Calcutta

FACTORS AFFECTING BUSINESS: • • • • •

Prices Deliveries Technology After sales services & spares parts back up Govt. policy (e.g. hiring of chartered drilling rings)

PRESENT MARKET SIZE

:

Rs. 2200 lacks

SHARE IN CO. BUSINESS

:

40%

Eliminating domestic bidders. Prices preference available earlier may be dropped in publ co. Increasing competition from pvt. Sector companies. (3)

PRODUCT: RECIPROCATING COMPRESSORS

RANGE

GASES II ANDLED

Maximum pressure -450 kg./cm2 Maximum pressure -450 kg./cm2 Maximum power – 25,000 Kw Air nitrogen, oxygen, hydrogen, carbon Di- oxide, hydrocarbons, ammonia, syntheses gas, hydrogen- sulphit coal gas etc.

MAJOR COMPTITORS:

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 35

A Summer Training Project Report • • • • • • • • •

Ingersoll rand, India/USA Atlas copaco, India/Belgium K.G. khosla, faridabad Novo pig none, Italy Worthington, USA Kirlosker pneumatics, pune Regal international, USA Hitachi, japan Cooper engineering USA

FACTOR AFFECTING BUSINESS • • • • •

Prices Deliveries Technology After sales services & spare parts back up Govt. policies

MARKET SHARE: 70% PRESENT MARKER SIZE: SHARE IN CO. BUSINESS:

Rs. 160

SWOT ANALYSIS STRENGTH

Good design backed up by reputed foreign pump manufacture Good performance of equipment already supplied Good quality & high degree of reliability Good reference as more than 200 compressors gad been already supplied

WEAKNESS

High material & material manufacturing cost delays in deliveries Lack of sufficient design and engg. Expertise Very low value addition. Limited experience leading to lack of optimum selection. Lack of planning & scientific monitoring of jobs. Inadequate after sales services & delays in resolving customer’s problem

OPPORTUNITIES THREATS

Lack of aggressive marketing Lack to technology up gradation Poor liquidity position & marker credibility Reference to BIFR Enhancement in no. of site problem. Very good requirement of compressors exist from GAIL, ONGC, IOCL, IBP, Hudrocraker Projects Fertilizers & petrochemicals project large investment envisages in these sector during 8th plan period. Entry if foreign suppliers due to recession in the world market.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 36

A Summer Training Project Report Competition from ex-collaboration. Dependence on the world – bank, other agencies of fune result in large scale import equipments Project consultants/process licensers imposing preference on Indian customer. Foreign cos. Quoting dumping prices Reduction in customer duties has made offer from Overseas cos. More competitive in comparison on Indian Customer. Due to financial constraints customers are going in for turnkey package of credit package thus altogether

(4)

PRODUCT: GAS CYLINDERS

RANGE GASES HANDELES LPG CNG

Maximum pressure 150 to 400 kg/cm2 O2, N2, H2, AIR, HE, CO2, N2O2, NH3, CL2, LPG, CNG. CPMPOSITION PROPANE & BUTANE COMPTESSED NATURAL GAS. COMPOSITION – HYDRA CARBON CONDODT OF 80 TO 90% OF METHANE IN GAS FROM

MAJOR COMPETITORS: • •

Everest kanto cylinder ltd. Maruti katsu cylinder pvt. Ltd.

MARKET SHATE PRESENT MARKET SIZE SHRE IN CO. BUSINESS

: 10 TO 15% : RS 150 CRORE : 10% SWOT ANALYSIS

STRENGTHS

WEAKNESS OPPORTUNITIES

THREATS

Good design backed by reputes foreign pump manufacture Good manufacture & testing facilities. Good quality & high degree of reliability. High material & manufacturing cost. Lack of aggressive marketing. Requirement of gas cylinder exist from BPCL, ONGC, NTPC, NPCIL, TELCO, BHEL & for Delhi Transpost (CNG) Gas cylinders. Entry of foreign suppliers due to recession in the world market.

Project consltants. Preference on Indian customers.

7 ‘C’ IN BPCL: 1. 2.

Concepts of what I want. Concentration of what it takes.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 37

A Summer Training Project Report 3. 4. 5. 6. 7.

Commitment to achieve and see it through. consistency in what I do. commitment of emotions. Character of high quality. capacity to enjoy it.

ONE ‘N’ IN BPCL: NEVER EVER GIVE UP. NO ONE HAS FAILED TILL HE HAS GIVEN UP. These marketing offices carry out all the pre & order activities which BPCL’s main office dose. Promotion Although being a producer of industrial goods, promotional activities are not found necessary in BPCL. One more reason for this attitude is that BPCL is pioneer in this industry and its products are well known to its exiting potentia customers as of high quality. Thus its promotional activities are confined to: Frequent participation in trade fairs and exhibition all over world by holding company BYNL. • • •

Taking initiative through personal contacts. Sending catalogues to potential customers. Using consultants-main consultants are: 1. engineers India ltd.

ACCOUNTING POLICIES FIXED ASSETS: 1.

Capitalisation: • • •

2.

Land given by the government of Uttar Pradesh is valued notionally at value shown in the records of land Acquisition officer, allahabad and the corresponding amount credited to Capital Reserve Account. Fixed Assets are valued at cost including allocation from expenditure during construction wherever so applicable. Capitalisation out of inter plant transfer is made at factory cost including excisse duty.

Depreciation: • •

Depreciation on assets capitalised and put to use and / or sold / discarded during the year is charged on monthly pro-rata basis. Pattern and dies with fabricators, suppliers / contractors and in stock are depreciated @11.31%.

VALUATION OF INVESTMENT: Investments are valued at cost.

VALUATION OF INVENTORY: Raw materials, components and stores and spares:

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 38

A Summer Training Project Report The pricing of issues of raw materials, components and stores and spares is done on periodical weighted average cost method. Loose tools: Loose tools valuing Rs.500/- or above are depreciated @ 20% on written down value and below Rs.500/- are charged off revenue. Work in progress: Work in progress of the products manufactured by the company are valued at absorption cost or estimated realizable value whichever is lower jobs done internally for use in capital works are valued at factory cost. Finished goods: Finished goods are valued at absorption cost or realisable value whichever is lower. Finished goods manufactured against stock orders are valued at absorption cost. Advance from customers: Advance from customers include those received with letters of intent / sale contract and progressive payments received as per contracts during the tendency of the order. Miscellaneous expenditure to the extent not written off or adjusted: Deferred Revenue Expenditure: Techs know how / application engineering charges: Deferred revenue expenditure of technical know-how fees / application engineering charges are charged off to profit and loss account as per technical estimates. Payment under V.R.S. The ex-grated payment made by the company under V.R.S. (Voluntary Retirement Scheme) is treated as deferred revenue expenditure to be charged off to profit and loss account in five equal yearly instalments. However, the same is charged to profit and loss account in full, in case of receipt of grant of equivalent amount from Govt. Of India. Income: Sales: The pumps and compressors, gas cylinders, shell forgings and other products are billed at 100% sale value on dispatch and accounted for as sales. Others: Jobs executed including erection and other services and other revenues are taken into account on actual on billing / accrual basis. Claims: By The Company: Claims for the price escalation on sale contracts, export incentives and other fiscal incentives etc. are accounted for on accrual basis. Against The Company: Liability arising as a result of final assessment in respect of custom duty, central excise, income tax, sales tax etc. is set up in the books during the year in which final assessments are made and / or decided. Contingent liability is accounted for in the year in which it becomes evidentially estimable and / or crystallised as payable.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 39

A Summer Training Project Report Research & Development expenditure: Research & Development expenditure is charged to profit and loss account in the year of incurrence. However, R&D expenditure on fixed assets is treated in same way as other fixed assets of the company. Foreign Exchange: Liability for foreign currency loan and / or deferred credit payments is realigned at the year’s end exchange rates. Any loss or gain arising thereon is charged to profit and loss account. Provisions: Gratuity: The gratuity liability of the company has been taken into account based on actuarial valuation got done through actuary, at the end of the year. Leave Encashment: The liability on account of leave encashment of the company has been taken into account based on actuarial valuation got done through actuary, at the end of the year.

WORKING OF MARKETING DEPARTMENT Energy is a sector which is vastly flourishing around the world as all the vehicles and machineries some where or around requires oil. Various companies are indulged in oil business so as to provide service and furnish their business. Companies indulged in oil business relates to: -

Oil Exploration Oil Refining

The geological section of oil exploration companies search for oil in the block section. For this purpose they require certain equipments for which they send an enquiry and pass the tender for the same. Also oil refining companies while refining oil to extract different forms of oil from crude oil being provided by Oil Exploration Company, require certain equipment for which they also send an enquiry and pass the tender for the same. Some of their requiring equipments are manufactured at BPC, such as Reciprocating pumps, Centrifugal Pumps, Reciprocating Compressors, etc. Enquiry is of two types: - Budgetary - Firm In Budgetary enquiry the budget is estimated as to what is the competitive price and what is the price company can bear and how can company can add a new feature into the product to create its USP and still making it competitive in its market. In firm enquiry the enquiry of firms are made that which are the companies who can provide the equipments meeting the standards, lower price(L1) and other required specifications TENDER: A tender is a list of required materials in a specific format as intended by the desired party. After the firm / company enquiry is being made by the company the tender is being raised or opened so as to invite those companies capable of meeting the specifications required by the company. TYPES OF TENDER: -

Global National Limited Single

Note:

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 40

A Summer Training Project Report •

BPC generally uses limited tender.

PARTS OF ENQUIRY:

•

Commercial: In this commercial terms are decided with the company

•

Technical: In this technical terms are decided with the company.

If all the terms are agreed between parties then supplier is being sent a letter of intent (L.O.I.). Then for furnishing the objective the company distributes the sale order with help of marketing department to all sections or department of company for furnishing their orders.

WORKING OF PRODUCTION PLANNING (PEX) In production planning the decision is taken on what would be the procedure for preparing the product and what would be the methods to be implemented on product layout is being prepared with the help of list of specifications desired in the order placed by the customer. All the production planning is being made so as to what process is to be performed at what time period with specific time intervals. Also production techniques are specified, so as to which production technique to be implemented at what time. So that it can help product developed in a manner to meet out every possible standard and international standards at the same time.

WORKING OF DESIGN DEPARTMENT In design department the product’s design is being stipulated in the process. Design department sends the list of items to production planning department and they send it to store to check whether items exist or not from the list of items provided. If not they are being sent to purchase department and from their again tender is being raised. The vital decision product is being taken by design so as to decide whether company would be able to produce or manufacture the product with the specifications as desired by the customer or not.

WORKING OF QUALITY CONTROL DEPARTMENT The quality control department is a very vital department for BPC as BPC is a company engaged in producing equipments used in energy or power sector, where products are large in size and bulky and also they require huge amount of investment, so quality is the most basic and unavoidable segment. The quality control department first inspects the quality control department checks the sample of materials from supplier and if they pass it, then only the purchase is made. Then again when product is produced then also quality check is made so as to satisfy the company as well as the customer since product also carries company’s stakes or goodwill. Various tests are performed in quality check they are: HYDRO TEST: To see or check whether material can bear the pressure METAL TEST: To check the metal used is of good quality or not.

WORKING OF ASSEMBLY DEPARTMENT Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 41

A Summer Training Project Report

After all the quality check is being done and material is purchased the production starts in various stages; as products are bulky so various parts of the product is manufactured separately. After it is being manufactured, there assembling takes place. And the product is assembled tested and finalised. After that inspection is done by an inspector i.e. a third party generally theey are member of a statutory body, if product meets the desired standard a Letter Of Award( L.O.A.) is being issued by the inspector. And he provides a release note after getting it packing is done and product is being delivered. Important Terms: •

Bank Guarantee: If any supplier is contingent in supplying the product then

bank pays the loss. •

Performance Security: If supplier fails to provide proper service then the bank

pays back the customer. •

Liquidated Damages:

If delivery is late on part of customer of payment then he is liable to pay back the supplier the compensation and instead if supplier delays the delivery of the product at a given time then customer is liable to receive the compensation from supplier leading to deduction in product’s price. •

Deemed Order:

It is if Indian suppliers get excise free from government in their product’s delivery with foreign parties so as to increase exports.

WORKING OF PURCHASE DEPARTMENT (M.P.X.) The functioning of purchase department initiates from issuing of indent or requirement slip, in the organisation the purchase is made of: •

Production Items: -

Metallic Non Metallic

It includes raw materials, semi finished goods prepared by casting, finished product •

Non Production Items: -

Non Consumables Consumables It includes office stationeries, electricity etc.

If indent budget is below 8 lacks then tender committee B takes decision regarding purchase of items, it includes managers in the purchase department. If indent budget is above 8 lacks then tender committee A takes decision regarding purchase of items, it includes chiefs of marketing department. Some of the items that are purchased are such as face milling cutters, cooling systems, oil seal, moulds, wax seals, rubber materials, connectors for tube fittings etc.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 42

A Summer Training Project Report Normally enquiry for intent preparation takes 21 days otherwise if urgent according to the requirement.

WORKING OF SALES DEPARTMENT STEPS TO PROCESS A SALES ORDER 1.

Receipt of sales order from our marketing department and spare parts and component division (SPCD) (SB).

2.

Open a file corresponding to the sale order simultaneously control that file in file control that file in file control register by sale order no.

3.

After receiving the packing list from packing department. We are sending this packing list after valuation to the market in the case of main product (RP, CP, & RC) and SPCD in the case of spares of above main product for the rechecking of valuation.

4.

After rechecking the valuation of above packing list, the packing list is sent to the excise cell of our department for the calculation of excise duty.

5.

Preparing excise invoice in five copies for clearing the material from factory gate, after getting packing list from excise cell.

6.

Sending this excise invoice to store department for dispatch of material and after dispatching the material they send us dispatch documents (GR, Challan, Invoice Cum Delivery Note first copy i.e. original for buyer.)

7.

After getting dispatch documents we are preparing commercial invoice in ten copies with six forwarding : 1. 2. 3. 4. 5. 6.

8.

3 copy for customer 2 for marketing department 1 for branch 2 for office record 1 for master record 1 for consignee

After making final commercial invoice we send it our marketing department as well as SPCD for taking actions to realise the payment.

STEPS TO RECORD COLLECTION AGAINST SALE ORDER We are getting payment from our customers in following manner:

1. Received directly from the customers in our bank account through EFT (Electronic Fund Transfer) or by way of CH / DD or

2. Payment collected by our branches and deposited in bank account of BPCL, Naini or bank account of that branch also 3.

If collection made by the bank in the case bank directly credited our account through EFT

In all the above cases we are preparing BCV (Bank Credit Voucher) for making book adjustment for payment receive in head office, or received in the nature of Ch / DD and EFT in Naini Branch after receiving collection advice from our MKTG. department.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 43

A Summer Training Project Report We are preparing JV (Journal Voucher) for payment collected and deposited in Bank account of branches after receiving collection advice. We are controlling collection advices in collection register and after controlling the collection we are entering the collection details in to the computer for maintaining the debtor’s realisation and for management reporting as and when required. Our Products 1. 2. 3. 4.

Reciprocating Pump (RP) & Spares. Centrifugal Pump (CP) & Spares. Reciprocating Compressors (RC) & Spares. Gas Cylinder (GC)

Working Of Sales Tax Section Sales tax is a statutory due which is collected from the customers and paid to the government on sales made by the company during financial year. The sales tax section is an integral part of sales section.

Types of Sales Tax: 1.

Central Sales Tax (CST) charged @ 2% against form “C” and 4% if form “C” is not collected from the customers.

2. Value Added Tax (VAT) charged flat @ 4% without any form for any type of goods sold whether it is RP, CP, RC or GC.

Deposit Of Tax: The tax collected as above is to be deposited to thee government account as follows:

1. CST / VAT – Upto every 20th of the following next month if 20th is a holiday then the day before the 20th. But for the month of march we have to deposit the tax for the period of 1 st march to 0th march on 25th march and for the period from 21st to 31st march, the tax is to be paid as usual on 20th of following month i.e. April. 2.

Interest @ 14% per annum will be charged if the sales tax not deposited in the stipulated time as mentioned above.

3.

The tax is to be deposited on due date without fail ass mentioned above irrespective of whether the same is collected from our customers or not.

Filing Of Return: We are required to file the Sales Tax Return within the 20th of every next month in the prescribed Form No. 24 with annexure ‘A’ & ‘B’ as per the VAT Rules 2008.

Forms required to be produced under CST: 1.

‘C’ – For any central sale.

2.

‘E’ – For transit sales, required to be produced when the goods dispatched to the other site of the party.

3.

‘F’ – for the transfer of the stock from H.O. to the other branches of the company.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 44

A Summer Training Project Report 4.

‘H’ – Used in the course of export.

List Of Benefits provided by BPC to its Employees: •

Medical Benefits:

Medical benefits are provided on salary of employee over 10000 and gets 95% basic DA and Personal Insurance to the salary under 10000. At the of year undertaking is taken from employees getting medical benefits. If medical treatment is taken then receipt from doctor is submitted to Personal Department and then Personal Department gives details to finance and further actions are taken under Central Government Health Scheme. Company attach with some hospitals and prepare a treatment procedure tariff which is a standard for treatment of employees in the process of curing diseases such as Saraswati Heart Care and Research Centre. 60 years is the age limit for retirement of employees from the BPC.

•

Leave Benefits: Earned leave is 24 days in first four years of service. Exceeds to 26 days in next four years and exceeds to 28 days in next four years and in next four years it exceeds to 30 days.

-

Medical Leave: It is provided maximum of 20 days in a year and it provides half salary to the employee for that period.

-

Casual Leave: It is provided maximum of 12 days in a year and it provides half salary to the employee for that period.

•

Promotion Policy: 4 years of entitlement for consideration: - Annual confidential report. - Present and absenteeism if absenteeism is exceeded over 240 days in 4 years then candidate is not considered. - Charge sheet

TAX RATES FOR ASSESSMENT OF MALE EMPLOYEES – (2009-10)

Income Level

Income Tax Rate

i.

Where the total income does not exceed Rs.1,60,000/-.

NIL

ii.

Where the total income exceeds Rs.1,60,000/- 10% of amount by which the total income but does not exceed Rs.3,00,000/-. exceeds Rs. 1,60,000/-

iii.

Where the total income exceeds Rs.3,00,000/- Rs. 14,000/- + 20% of the amount by which the but does not exceed Rs.5,00,000/-. total income exceeds Rs.3,00,000/-.

iv.

Where the total income exceeds Rs.5,00,000/-. Rs. 54,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 45

A Summer Training Project Report

TAX RATES FOR ASSESSMENT OF FEMALE EMPLOYEES – (2009-10) Income Level

Income Tax Rate

i.

Where the total income does not exceed Rs.1,90,000/-.

NIL

ii.

Where total income exceeds Rs.1,90,000/- but 10% of the amount by which the total income does not exceed Rs.3,00,000/-. exceeds Rs.1,80,000/-.

iii.

Where the total income exceeds Rs.3,00,000/but does not exceed Rs.5,00,000/-.

Rs. 11,000- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.

iv.

Where the total income exceeds Rs.5,00,000/-

Rs.51,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.

NOTE: *EDUCATION CESS IS 3% OF INCOME TAX FROM ALL ASSESSEE. *THE SURCHARGE ON INCOME TAX FOR INDIVIDUALS FOR TOTAL INCOME EXCEEDING RS.10 LACS STANDS REMOVED.

SPECIMEN OF TAX RETURN BEING FILED BY AN EMPLOYEE: 08-NOV-08 TAX RETURN FOR 2008-09 PSL NO: 0184

NAME: MUNNA LAL

DEPT. NO: 150

DESIG: SR ATTDT (W)

BASIC DA HRA CCA SPL INCREMENT 10% IR

(+) (+) (+) (+) (+) (+)

= = = = = =

95654.26 90562.80 14436.90 1845.00 1073.57 1400.00

INCENTIVE ATTENDANCE AWARD NIGHT SHIFT ALLOW LEAVE ENCASHMENT OTHER INCOME

(+) (+) (+) (+) (+)

= = = = =

1383.52 140.00 603.00 10027.85 26250.00

TOTAL HRA (REBATE)

= (-) =

243376.90 0.00

TOTAL HBLD. INTT PROFESSIONAL TAX MEDICLAIM HANDICAPT

(-) (-) (-) (-)

= = = = =

243376.90 0.00 0.00 0.00 0.00

=

243376.90

TOTAL

PF VPF GLIC

(+) = (+) = (+) =

PH. NO. SCALE CODE: 8

PAN NO: ACJPL3781C

22116.00 30000.00 637.00

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 46

A Summer Training Project Report LIC PENSION LIC LIC PERSONAL EDUCATION PPF ULIP HOUSE BUILD LOAN NSC NSC DEEMED IDBI / ICICI

(-) (+) (+) (+) (+) (+) (+) (+) (+) (+)

= = = = = = = = = =

0.00 0.00 34300.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL (TAXABLE) TOTAL SAVING FOR REBATE

= =

156330.00 87053.56

TAX CESS / SURCHARGE NET TAX TAX ALREADY PAID NET PAYABLE TAX

= = = = 652.00

=

633.00 19.00 652.00 0.00

NOTE: *IF ANY CHANGE PL. RETURN THE SIGNED FORM BY 20.11.08 IN FINANCE (SIGN. OF EMPLOYEE)

SPECIMEN OF TAX RETURN BEING FILED BY ANOTHER EMPLOYEE: 08-NOV-08 TAX RETURN FOR 2008-09 PSL NO: 2497 DEPT. NO: 131

NAME: SUDHAKAR DESIG: CGM (FS, ROs, CSR)&CO. SE I/C

BASIC DA HRA CCA SPL INCREMENT 10% IR INCENTIVE ATTENDANCE AWARD NIGHT SHIFT ALLOW LEAVE ENCASHMENT OTHER INCOME

(+) (+) (+) (+) (+) (+) (+) (+) (+) (+) (+)

= = = = = = = = = = =

238450.00 211194.00 35550.00 1845.00 3000.00 3240.00 0.00 0.00 0.00 42412.00 58927.04

TOTAL HRA (REBATE)

= (-) =

594618.04 35550.00

TOTAL HBLD. INTT PROFESSIONAL TAX MEDICLAIM HANDICAPT

(-) (-) (-) (-)

= = = = =

559068.04 0.00 0.00 0.00 0.00

=

559070.00

= = = = = = = = = = = =

53553.00 58000.00 0.00 6415.00 0.00 5342.70 0.00 0.00 0.00 0.00 0.00 0.00

TOTAL

PF VPF GLIC LIC PENSION LIC LIC PERSONAL EDUCATION PPF ULIP HOUSE BUILD LOAN NSC NSC DEEMED

(+) (+) (+) (-) (+) (+) (+) (+) (+) (+) (+) (+)

PH. NO. SCALE CODE: 58

PAN NO: ABLPS8330F

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 47

A Summer Training Project Report IDBI / ICICI TOTAL (TAXABLE) TOTAL SAVING FOR REBATE TAX CESS / SURCHARGE NET TAX TAX ALREADY PAID NET PAYABLE TAX

=

(+) =

0.00

= =

100000.00 459070.00

= 46814.00 = 1404.00 = 48218.00 = 19500.00 28718.00

NOTE: *IF ANY CHANGE PL. RETURN THE SIGNED FORM BY 20.11.08 IN FINANCE (SIGN. OF EMPLOYEE)

WORKING OF IMPORT AND EXPORT DEPARTMENT The import and export department helps in supplying products and retrieving materials from foreign parties. For any importer IEC code is important for every one. Joint Director General IEC Kanpur issues IEC code without IEC code custom clearance is not allowed for import forting tender enquiries are done. Only technically accepted offers are only tendered for EPX: • • • •

Floating of tender enquiry Receipt of quotation and technical scrutiny Placement of order are technical suitable vendor Payment terms in import case - Payment through letter of credit - Cash against document

After opening of Letter Of Credit shipments are made either by air or by sea through our authorised forwarding appointed by Government Of India / BPC In case of urgency material being accepted otherwise being shipped by Indian FAG Documents required for custom clearance: • Commercial Invoice • Bill of lading in case of air and sea • Packing list • Country of Origin After arrival of material at destination counting is done as per requirement. Authorised clearing agent files, bill of entry with custom along with documents listed above. Process of clearance of bill of entry. • •

Classification of custom duty as per custom tariff, rate of fixed custom duties. License audit, passing of bill of entries, payment of custom duties delivery of consignment of custom warehouse

WORKING OF STORE ( M.S.X.) Store consists of three sections: • Receiving Cell • Transport Cell • Custody Cell

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 48

A Summer Training Project Report

For which Daily Material Arrival Report is prepared i.e. DMA Report. After DMA, DR is prepared i.e. Daily Receipt of stores in which location is specified after that SRV is prepared Store Receipt Voucher and all the copies of SRV are distributed to all concerned departments. After SRV is prepared material is being checked by quality control inspector if accepted then it is undertaken otherwise rejected by rejection store. After undertaken custody department takes over. SRV is maintained in group codes and is matched by material. The store keeper keeps a watch on the procedure. The entries are made and material’s inventory is maintained. After all formalities the details are sent to finance department and feedings are made. PEX department issues Store Issue Voucher which is are forwarded to work in progress department. After forwarding material ship the material’s code is matched and if found true then it is transferred to W.I.P. Custody time to time issues material for production so that there cannot be any in convenience while production. In transport cell items are transported in and out of the organisation, if only few items are there for transporting then BPC sends Their Truck. The terms of payment by the party in the process of transport are: • General Receipt (GR) • Challan • Excise Gate Pass GR includes delivery office address, consignment note number, remarks if any, delivery party or supplier, rates, delivery acknowledgement for facilitation. BPC informs the supplier through Challan that such and ssuch product is being received with such and such specifications and all the details of packing are mentioned with agreement by Senior Manager MSX.

MARKETING MIX

PRODUCT •

Product Variety

•

Quality & Design

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 49

A Summer Training Project Report

•

Feature & Brand Name

•

Packing

PRICE •

Discount

•

Payment Period

•

Credit Terms

TARGET MARKETING PROMOTION •

Advertising

•

Personal Selling

•

Sales Promotion

PLACE •

Channels

•

Locations

•

Transportation

•

Logistics

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 50

A Summer Training Project Report

The 4 P’s Of Marketing Mix: Price: In the study of 4 Ps the price of the product comes second. In BPCL there are 4 major considerations while deciding the price: • • • •

General Overheads Machine Hours Competitors Price Size Of The Order.

As it happens in the area of the industrial goods products is negotiated order wise. Now-a-days BPCL is lagging behind despite having qualitatively superior products because of its high overheads and that too is skyrocketing due to some unviable government policy. Place: BPCL has one and only production unit in the whole country which is situated industrial area Naini, Allahabad. BPCL’s marketing cells are situated in: •

Varodara

•

Mumbai

•

Chennai

•

Delhi

•

Dibrugarh

•

Kolkata

4 Ps of BPCL: It has been a common convention that one should study marketing of a particular company under the head of classic 4 Ps. So let us have a look of the situation of Ps in BPCL. Product: BPCL manufacturers mainly 4 types of products with their subtypes also: •

Centrifugal Pumps

•

Reciprocating Pumps

•

Reciprocating Compressors

•

Gas Cylinders (Seamless & Welded)

BPCL have a complete team of design & development engineers and most of item have been trained at collaboration works and have through experience of a wide. Place: BPCL factory is situated in Allahabad, a well knit team of quality control & quality, throughout all phases of manufacturing third party inspecting by reputed inspection agencies such as

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 51

A Summer Training Project Report Lloyds, Bureau Veritias, EIL, PDIL, UDHE and HIG are offered to all products at client’s direction. BPCL makes high quality products to serve various purposes of different companies of diverse nature. After discussing the 4 Ps we will have brief description of the prime customer of BPCL.

“ WHAT BUSINESS BPCL ARE IN” To identify create and maintain and continued Dasis satisfied customers, who have a demand, both present & future for.

(a)

Design, manufacture and supply of centrifugal pumps, reciprocating pumps, reciprocating compressors and gas cylinders for the core sectors of industry such as refineries, petrochemicals, fertilisers, metallurgy, oil & natural gas etc and has manufacturers.

(b)

Design manufacture and supply of sucker rod pumping units, cementing units for oil & natural gas commission and Oil India Ltd.

(c)

Services to customers for equipments supplied by us as well as technical guidance to customers for smooth operation of plants 7 performance upgradation.

QUALITY POLICY OF BPCL “BPCL is committed to deliver pumps, compressors, gas cylinders, spares an services on international quality with continual improvement in delivery performance to enhance customer satisfaction.” QUALITY OBJECTIVE: To improve average delivery performance of our products by five percent, yearly. Target for delivery performance of the year 2004-05 is seventy percent. BPCL OBJECTIVES: The main objectives of BPCL are as follows:

1. To design manufacture and supply of capital goods in the find handling field including provision of services connected these with.

2. To provide a reasonable and adequate return of the invested capital. 3.

To provide participative style of management

4.

To built confidence for company’s product and services factor pumps and compressors and gas cylinders.

5.

To achieve a leading position in the engineering development and manufacture of pumps and compressors and gas cylinders.

6.

To ensure sound commercial policies, customer expenses satisfaction of BPCL products and services.

7. To encourage rural development and growth accordance government policies. 8.

To develop sound after sales services.

9.

To provide reasonable and adequate return of the invested capital.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 52

A Summer Training Project Report VISION OF BPCL Building Tomorrow’s World Today: By providing quality engineering products and services through core competencies of our human resources and assets with focus on health and safety of manpower, society and environment.

MISSION OF BPCL Our Business Is Client’s Total Satisfaction: Provide excellent quality and services to core sector industries with a special thrust on oil and natural gas, petrochemicals, refinery, nuclear and thermal power, fertilisers and public transport sectors.

PROFILE OF BPCL Fuelled By A Commitment For Excellence Incorporation:

•

•

Till late 60s, the multinational companies dominated the petroleum sector in India. Since these industries were operating in the core sector, it was strategically decided by the government of India to nationalised these companies and bring them under government control. This led to the formation of Hindustan Petroleum Corporation, Bharat Petroleum Corporation and India Oil Corporation. For meeting the requirement of equipments as well as spare parts for the imported equipments installed in these companies, the Government of India decided to establish Bharat Pumps & Compressors Ltd. In 1970 under the Ministry of Heavy Industries and Public Enterprises. The companies registered office / works is located in Naini, Allahabad , U.P. It has branch / regional offices at Mumbai, Vadodara, Kolkata, Dibrugarh and New Delhi.

AREAS OF OPERATION •

•

Bharat pumps and compressors ltd. situated in trans-yamuna area of allahabad is basically engaged in manufacturing of heavy duty pumps and compressors for oil exploration down stream projects such as Refineries, Petrochemicals etc. Other sectors served by the company are Fertiliser, Thermal Power, Hydro and Nuclear Power, Steel etc. The company has a high credibility for quality of its products and has acquired ISO 90012000, 14001 and OHSAS 18001 certification.

PROFIT AND GROWTH STRATEGIES Prior to liberalised economic policy, public sector enterprises has the benefits of prince & purchase preference (with no limit) in case of domestic bids and deemed export benefits in case of ICG bid with the increased competition from Private Sector cost into Indian Market. The following measures have to be adopted counter external threats and offset our weaknesses: Creation of marketing cell: • • • • • • •

Marketing cells are fully responsible Marketing survey Data bank maintenance for market demand, business share, competitors data / activities. To find market strategies of competitors, their strengths and weakness. Collection of site reports and offensive marketing, their strengths and weakness. Submission and follow up of offers Arrangement of technical seminars for new projects

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 53

A Summer Training Project Report • •

Updating marketing plans Once the offer is matured into order, the file will be taken over by contract execution group.

Relooking into pricing policy: • • •

In view of very trough market conditions and world recession and low order book position. Order will be booked on marginal costing basis Review of pricing policy once order book position improves recovery overheads from spare parts.

Separate costing centres for different products: Since machining facility and labour requirement are different for different products, separate costing centres shall be created so that to each product price is competitive to our competitors. Preorder purchasing activities by marketing: • • • • •

To have competitive detailed offers for bought-outs & major casting / forging To have complete technical details of bought-outs before finalisation of order by the customer Sub-ordering time period will be reduced Sub vendors can offer discount as they will be a partner to out bids. Reduction in overall cost will be assured

Strengthening of branch office: •

•

For day to day dealings with customers and to have latest feedback on offers and competitor’s activities. To improve upon business relationship with customers and consultants.

Aggressive marketing: • • •

Frequent interactions with end users and consultants. Impress upon customers to recommend to turnkey for buying BPC made equipments only. Marketing intelligence reports and takes immediate action on it.

Service and spare parts: • Prompt after sales services and supply of spare parts. • Posting of service personnel at major business centres. Taking up turnkey projects: •

Will help improve in order book position as well as financial position.

•

Will also help to have more orders for as now most of the customers are going for turnkey jobs rather than having more vendors for different times.

NEW AREA DIVERSIFICATION Technology of BPC for the next three to five years essential covers the following products, which have been identified for the diversification and growth apart from technology upgradation of existing facilities and products on which brief note is attached.

1. Sucker rod pumping unit 2. Ring section pump 3.

CNG compressors (Daughter Station)

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A Summer Training Project Report

(A)

Sucker rod pumping unit •

Production description:

Sucker rod pumping unit (SRPU) excluding subsurface items SRPU consists of Gear reducer, Counter balanced cranks, Walking beam, Semoson, Post base plate etc. •

Application: For pumping out crude oil from dead oil wells

•

Customer: Oil & Natural Gas Commission.

•

Competition:

Indigenous: new standard engineering, simplex engineering, and engineering etc.

naveen

Foreign: CMEC, China; industrial export import, Romania; shaunxi machinery & equipment, China etc. •

Market projection:

ONGC had project a market demand of 420 nos. valued at Rs. 42 crores for 8th plan period (1992-97). However inquiry for about 200 nos. had been already float during one and half years considering the past inquiries and information from eastern and western regions of ONGC, the total requirement may go up to 600 nos. •

Business projection:

BPC can expect a share approximately 20% i.e. orders worth Rs. 8 Crores out of Rs. 40 Crores provided we are able to quote competitive price. Italy, Chinese have been literally quoting dumping prices for SRP unit and BPC has lost orders against 3-4 inquiries of ONGC in a row. Our prices have been almost double of these quoted Chinese parties.

•

Technology: Present Status:

Technology collaboration was earlier made by BPC for SRO units in 1984-85 with M/s. Industrial Export Import, Romania and design documents were obtained for 3 models only based on recommendations of ONGC. Supplies were made to ONGC in 1986-87 and after that ONGC didn’t make any purchases. After a gap of about seven years ONGC has again procurement of SRPU of different models for which BPC does not have a design. Due to which BPC has not been able to secure orders as its prices were not very competitive. In view of this lamination it would not be necessary to make some kind of tie up with Chinese company. Whereby BPC might have to import the gear box unit, fabricate units and supply depending upon the pricing strategy that followed by LGMP and other Chinese manufacturers in future. Action Plan: An order to enter into some kind of tie-up or an understanding BPC contacted various reputed manufacturers of SRP units all over the world. However, BPC managed to get response from only three manufacturers: o o o

CMEC / LGMP, CHINA HPMIC / FPMMP, CHINA INDUSTRIAL EXPORT IMPORT, ROMANIA

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A Summer Training Project Report Know how has demanded by M/s Industrial export import, Romania was high and not justified in relation to business expected proposals from China were comparatively reasonable and detailed discussions were held with both the parties of APC during their visit to India. Subsequently, a delegation consisting of Mr. G.K. Balaava Ex-MD and Mr. S.N. Dwivedi chief (design) visited China in September’ 93 for finalisation of technical know how agreement. However, due to the insistence of CMEC / LGMP not to excusive sales right to BPC even in India as also high fees demanded by them, an agreement could not be an concluded. The other Chinese party visited only by the chief (Design) i.e. HPMIC / FPMMP though having design and manufacturing set up cannot consider for the present as they expect to receive the same by December’ 93 BPC in touch with them. In view of the above, BPC shall continue its efforts for a suitable tie-up with M/s HPMIC / FPMMP subject to their receiving. API certification, an effort will be made once again once again to contact other potential manufacturers in this regard. Recently a big success came across BPC an Iranian Company placed an order of 30 Reciprocating Pumps from BPC as International market boycotted to supply the energy equipments to Iran, therefore Iran looked towards India and found BPC most appropriate supplier, this opportunity will lead BPC to new heights and help it to become a Multinational Company. Additional Resources: Existing manufacturing facilities are adequate; however some balancing facilities shall be required in approximately Rs. 50 Lacks. Investment of Rs. 1.5 crores been proposed technical tie-up for know how. (B) Ring section pump

•

Product description: Ring section boiler pump.

•

Product specification: Suitable for captive power plant upto 60 MW.

•

Application: Pumping of voiker feed water crude oil and dewatering application

in mines.

•

Customer:

Power plant of state electricity boards, captive power plant pf refineries, fertilisers plants and other process plants limited to 60 MW. •

Competitors: KSB / KBL / KEBL / MATHER & PLANT

•

Market projection:

Based on new captive power plants coming up a replacement of existing units, there is a market of Rs. 20 to 30 Crores per year.

•

Business projection:

BPC can expect a market share of 10% and this can give a business of approx. Rs. 2-3 crores per year. •

Additional resources: Existing manufacturing are adequate except some balancing facilities. Investment proposal Rs. 2.5 Crores has been planned mainly for acquiring technical know-ho and some balancing facilities.

(C) Compressed Natural Gas (CNG) Compressor (Daughter Station) Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 56

A Summer Training Project Report

•

Product description: CNG compressor for CNG refuelling daughter station

•

Application: Transfer of CNG from cascade to cubicle cylinders.

•

Brief description:

High pressure multi-stage CNG compressor along with all accessories such as drive instrumentation, and control inter collar’s separators piping and cascade, etc. shall be installed in ISO container for supply as pack aged unit. •

Customer: GAIL, MRL, IBP etc.

•

Competitors: Sulzer (India) Ltd. Nuova pig none Italy and Bauer Germans.

•

Market and Business Projection:

Government is likely to give a lot of thrust to the usage of Compressed Natural Gas (CNG) as an alternative fuel government has made GAIL, MRL and IBP as nodal agencies to work out the projections were given by these agencies there will be demand of 900 nos. daughter stations and 100 no. mother stations as also corresponding no. of cylinders in the next 3 to 5 years. BPC is already in the field of compressors manufacturing and it is therefore only appropriate that BPC enter this area also in the good time. Based on the demand materialising as above, we could expect orders @ Rs. 5 Crores P.A. from 1996-97 onwards. We are only party to have supplied 3 nos. CNG Compressors for mother station of GAIL and the same of working satisfactorily. This has been achieved for the first time in the country with our in house R&D design and manufacturing. •

Additional Resources:

Present manufacturing facilities are adequate. Investment of Rs. 3.50 Crores has been planted for acquiring technical know-how / tie-up etc.

EXPORTS 1.

Objective: Situation Government of India in its new industrial policy has great emphasis on exports in all spheres including engineering goods. In view of this BPCL should immediately explore possibilities for export and services. The recent devaluation of rupees and the rupees convertibility will help BPCL to be more competitive. It is true that immediate returns will not accrue, but certainly it will help BPCL in the export business in the long run. Once we enter into export market handling of foreign turnkey bidders, will be easier and they will be attached towards BPCL automatically.

2.

Scope for export:

Pumps and compressors are being manufactured with latest design and technology. Once quality and delivery is maintained entry into export market will not be difficult with little additional efforts. Export market exists for following products Centrifugal and Reciprocating pumps, Reciprocating Compressors, Gas Cylinders finished castings, components for pumps and compressors. Target market for above items exists in following countries Middle East and African countries such as Arabia, UAF, Iraq, Uganda, Philippines, Nigeria, Sudan, South East Asian Countries such as Romania, Russia etc. Neighbouring countries such as Bangladesh, Sri Lanka and Nepal etc.

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A Summer Training Project Report 3.

Past performance: (a)

10 numbers centrifugal pumps to Romania during 1984-85 of value Rs. 17 lacs

(b)

1500 nos. gas cylinders to Oman and Kuwait during 1970-80

(c) BPCL has executed an order for 12000 oxygen and 11000 DA cylinders. Valuing Rs. 1000 lacks for Algeria through Mhan Exports India Ltd.

CONCLUSION It is felt that the company is now better geared to manage its order execution cycle more satisfactorily orbit this assessment is based on an analysis of its currents order book log position. A security of its recent operational and financial performance a study of orientation related to order execution also due consciences has been taken of the series of systematic improvement recently implement by the company. The systems are mostly in place though same process simplifications have to be carried out and certain procedural redundancies need to be remained. The company also need to make the interdepartment co-ordination and effective in addition BPCL must up completely responsible for intenal follow up as well as service as a single paint contact with the client.

SUGGESTION In the report we have seen the graph of order booking targets and sales turnover. In the graph of order booking we have seen that the order for our product is increasing year. It means that with the increase of order to target. We have efficiency of the organisation, we have to improve on certain points: •

Cost efficiency:

To get the achievement of cost efficiency we have to keep certain points in our mind they are resale of scraps, inventory management, work distribution. •

Profit generation:

In the SWOT analysis we have seen there is a great opportunity products, these can be turnkey for the company. The company should try to work on export. They should lay more emphasis on export. •

Improving technology:

There is no doubt that the product of company is not good. But from time to time the regular improvement of the technology. It improves the quality of the product as well as save the time. •

Becoming a global player:

With the last dealings we can conclude that the company had satisfy there maximum customers. After those dealings the company should try to get a good name in India as well as in international market. •

Employee handling:

Generally we have seen that in the maximum government sectors there is lack of professionalism. It means that we have to make an environment of

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A Summer Training Project Report work in the company. The company should try to motivate the worker to become punctual and loyal for the company. •

Product: PRODUCTS

MARKET SHARE

o

Centrifugal Pumps

10%

o

DA Cylinders

25%

o High Pressures Cylinders o

Sucker Rod Pumping Unit

o Reciprocating Compressors o

Centrifugal Pumps

10% 02% 25% 10%

In the given statistics we have seen the market share of the products. In the case of DA Cylinders and Reciprocating Pumps there is largest market share of BPC. It means we should concentrates on those products which have very low market shares.

BIBLIOGRAPHY Bibliography refers to the sources through which information has been retrieved in my project development: •

Marketing Management By ( Philip Kotler )

•

Marketing Management By ( S. A. Sherlekar)

•

Economic Times

•

Annual Report of BPCL.

Prepared b y Peush Prabhakar M.B.A.- H.I.M.C.S. 59