Bhel’s Journey Towards Business Excellence Essay

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Bhel’s Journey Towards Business Excellence

BELL is one of India”s oldest and largest engineering and manufacturing enterprise. It is functional in the energy related and infrastructure sector which includes power, railways, telecoms, transmission and distribution etc. It was set up 1959 by the Government of India with the objective of creating indigenous manufacturing base for power plant equipments. The company has the ability to manufacture the entire range of power plant equipment and has one of the largest capacities of power plant equipment in the world. This enables the company to bid for large power projects.

Belle’s cost-competitiveness visit-a-visit international competition in the power sector can be attributed to the factors like fully depreciated manufacturing facilities, lower labor and freight costs and economies of scale. BELL manufactures over 180 products under 30 major product groups and caters to aforementioned core sectors of the Indian economy. The company operates through 14 plants and 9 service centers. The major inhibiting factor for the growth of BELL in the past has been lack of access to large fund base. Indian government holds a high stake in the company which might be disinvest in the near future.

The company is a candidate for disinvestment as the Central Government had decided to offload at least 20% of its stake towards a strategic partner. This could help the company in the long run as the strategic partnership could bring in benefits like access to new technologies and capital. The wide network of Belle’s 14 manufacturing divisions, four Power Sector regional centers, over 100 project sites, eight service centers, 18 regional offices and one subsidiary enables the company to serve its customers and provide them with eatable products, systems and services efficiently and at competitive prices. The list of the various units of BELL and their locations are given in Exhibit 1 . ) The high level of quality & reliability of its products is due to the emphasis on design, engineering and manufacturing to international standards by acquiring and adapting some of the best technologies from leading companies in the world, together with technologies developed in its own Research & Development centers. Belle’s operations are organized around three business sectors, namely Power, Industry including

Transmission, Transportation and Renewable Energy – and Overseas Business. This enables BELL to have a strong customer orientation, to be sensitive to its needs and respond quickly to the changes in the market. Belle’s vision is to become a world- class engineering enterprise, committed to enhancing stakeholder value. BELL has 42,600 employees and it claims that every employee is given an equal opportunity to develop himself and grow in his career. Continuous training and retraining, career planning, a positive work culture and committed and motivated workforce.

BELLE’S Quality policy In its quest to be world class BELL pursues continual improvement in the Quality of its products, services and performance leading to Total Customer Satisfaction and Business Growth through dedication, commitment and team work of all employees. ” – BELL”s Quality Policy BELL has been using the vehicle of Quality Management Systems which are certified to ISO 9001 :2000 series of Standards by BIG to meet its Quality Policy. A quality management system in accordance with ISO 9001 :2000 provides an organization with a set of processes that ensure a common sense approach to the management of the organization.

The system ensures consistency and improvement of working practices, which in turn provide products and services that meet customer’s requirements. ISO 9000 is the most commonly used international standard that provides a framework for an effective Quality Management System. BELL has Corporate Quality and Unit Level Quality structures which enables it to plan, control and implement accompanied Quality Policy. The BELL corporate quality departments are directly monitored by Chairman and Managing Director of the company.

The calibration and testing laboratories of BELL re accredited under the National Accreditation Board for Calibration and Testing Laboratories (NAB) scheme of Laboratory Accreditation. It has got mutual recognition with Asia Pacific Laboratory Accreditation Conference and International Laboratory Accreditation Conference. BELL”s emphasis on quality and technology has led to national and international recognition in the form of Product Certification by International Bodies like SAME, API etc. And Plant Approvals by agencies like Lloyd Register of Shipping, U. K. , Chief Controller of Explosives India, TUB Germany etc.

The details are given in the table below: Product Certifications and Stamps Table 1: Certifications for BELL Products Certificate “S” Stamp Products Boilers Certifying Agency American Society of Mechanical Engineers, USA “U” and “02” Stamps Heat Exchangers and Pressure Vessels American Society of Mechanical Engineers, USA National Board, USA “R” Stamp “AAA”, “AD” & “ADD” monograms “SSL”, “ACTS” monograms Oil Field Equipments American Petroleum Institute, USA Pipes & Tubes Well known Tube/Pipe maker certificate Tubes & Pipes Central Boiler Board, India Source: http://www. Hell. Com/quality. PH Plant Approvals Table 2: Approvals for BELL Plants Approvals Class 1 Fusion Welded Pressure Vessel Manufacturers Group 1 – Boiler and Pressure Vessel Manufacturers Authorization under SUMP rules Unit/ Division High Pressure Boiler Plant, Triumph High Pressure Boiler Plant, Triumph High Pressure Boiler Plant, Triumph Certifying Agency Lloyd Register of Shipping, U. K.

American Bureau of Shipping, USA Chief Controller of Explosives, India TUB, Germany Authorization under TRY rules and DAM rules AD Marketable HOP approval for Combustion Chambers Well known Forge shop High Pressure Boiler Plant, Triumph Heavy Electrical Equipment Plant, Harridan Forge hop of Heavy Electrical Equipment Plant, Harridan TUB, Germany Central Boiler Board, India Central Boiler Board, India Central Boiler Board, India Bureau of Indian Standards Central Boiler Board, Well known Forge shop Approval for training and qualification of welders under BIRR Approved Electrode Test Center Welding Research Institute, Triumph Welding Research Institute, Triumph Well known REAL agency High Pressure Boiler Plant, Triumph Source: http://www. Bell. Com/quality. PH Other than traditional quality functions, BELL also focuses on: India Propagating Quality Management Systems and Total Quality Management Formulating, implementing and monitoring the Improvement Plans with focus on internal and external customer satisfaction. Investigations and preventive actions on Critical Quality Issues BELL has always strives to attain business excellence and has set the goal of achieving International level of Quality. BELL has adopted European Foundation for Quality Management (FEES) model for business excellence.

FEES Model for Business Excellence FEES is a global non-profit membership foundation based in Brussels, Belgium with more than 500 members covering more than 55 countries and 50 industries. It provides a unique platform for organizations to learn from each other and improve performance. FEES is the custodian of the FEES excellence model which is a framework for success that has been utilized by over 30,000 organizations all over the world. The FEES framework is non prescriptive assessment framework which is used to gain holistic view of an organization regardless of its size, sector or maturity. The fundamental concepts which are to be followed by any organization using FEES model for business excellence are given below: 0 0 Achieving Balanced

Results Adding Value for Customers Leading with Vision, Inspiration & Integrity Managing by Processes Succeeding through People Nurturing Creativity & Innovation Building Partnerships Taking Responsibility for a Sustainable Future There are nine entities which are present in this model. These entities cover all activities in an organization. These are separated into Enablers and Results. The Enablers are concerned about the way the organization conducts itself (how the staff and resources are managed, how the strategy is planned and how monitoring is done). The various enablers are Leadership, organization are called the Results. This also signifies the level of satisfaction among the organization”s employees and customers. The Results are People results, Customer results, Society results and Key Performance results. The figure below gives the relationship between Enablers and Results.

Figure 1: FEES Framework for Business Excellence Source: http://www. Overdeveloping. Org/new/tools/fees. PH As shown in the figure above, in FEES model for business excellence, the results (Customer, Society and People results) are achieved through Leadership driving Policy and Strategy, People, Partnerships and Resources which finally leads to excellence in Key Performance results. RADAR Logic BELL also uses the RADAR Logic approach to achieve business excellence. It is a dynamic assessment framework which is used to question the performance of an organization. Figure 2: RADAR Logic Source: http://www. Fees. Org/en/Home/beauteous/TheEFQMExcellenceModel/ RADAR/tibia/171 ‘Default. SSP According to the RADAR Logic, and organization needs to: 0 0 0 0 Determine the results it is aiming to achieve as part of its strategy Plan and Develop an integrated et of sound Approaches to deliver the required results both now and in the future Deploy the approaches in a systematic way to ensure implementation Assess and Refine the deployed approaches based on monitoring and analysis of the results achieved and ongoing learning activities CGI-EXAM Bank Award for Business Excellence The CGI-EXAM Bank Business Excellence Award programmer, which is based on the FEES Model of Excellence, is an effective mechanism to help Coos and senior leadership of organizations to plan, implement and evaluate the quality of ћManagement” in their organizations, in a comprehensive and integrated manner. Confederation of Indian Industries (C”) and Export Import Bank of India Joined hands, in 1994, to promote ћexcellence” among Indian Industry through the ћCGI-EXAM Bank Award for Business Excellence”. While competitiveness is a comparative concept of the ability and performance of a firm, industry sector or country to sell and supply goods and/or services in a given market, ћexcellence” refers to the outstanding practices in managing the organization and achieving results based on fundamental concepts.

Truly excellent organizations are measured by their ability to achieve and sustain outstanding results for their stakeholders. Excellence Models in Practice and Comparison 0 0 FEES (European Foundation of Quality Management) Excellence Award, Europe Malcolm Baldrics National Quality Award- USA Deeming Prize, Japan In India CGI-EXAM Bank Award for Business Excellence is based on FEES Excellence Model whereas Ramekins Baja] National Quality Award is based on Malcolm Baldrics Model. Deeming Prize is organized by USE, Japan directly. BELL has adopted FEES model in general at all its divisions. However, best practices of other models are also being adapted suitably by different divisions.

The award criteria and points of above three models are explained below: Table 3: Award Criteria for various Excellence Awards MAMBA, USA FEES, Europe Deeming Prize, Japan Leadership Strategic Planning 120 85 Leadership Policy & Strategy 10080 A. Basic Categories MGM Policies & their Deployment 10020 Customer & Market Focus Measurement, Analysis & Knowledge MGM HER Focus Process MGM. 85 People New Product Development, Work Process Innovation 20 Maintenance & Improvement 85 85 Processes Customer Results 40200 Management System Information analysis & utilization of IT 1015 Results 450 People Results HER Development 15 Total 1 oho Society Results Key Performance 150 B. Unique activities Results Total 1000 C. Role of TOP MGM 100 BELL has a sound track record in its Journey towards business excellence.

As business paradigms are changing at astonishing pace, BELL is strengthening its organization and operations each and every day to become a global leader. At BELL, all efforts are directed towards harnessing and leveraging the power of excellence in every sphere of business activities. BELL”s consistent contribution in power generation in the country with its reliable and quality equipment reflects the effectiveness of its business operations since the inception of the organization. BELL has aligned its systems to ISO 9001 right from 1992. Today all its Manufacturing Units, Power Sector Regions, Industry Sector, Engineering Centers, Corporate Offices, R are accredited for ISO 9001.

Beside this, the organization has gone ahead to satisfy the requirements of Environment, Health through accreditation as per IS014001 and SHOOS 18001. Today major IT centers of the organization are certified or ISO 27001 and all laboratories are NAB accredited as has been mentioned earlier. To assess the maturity of a division with respect to ISO 9001 systems, Quality Management Effectiveness Review (SMEAR) is conducted every year by Corporate Quality. During this, review gaps are captured and actions are taken to improve the systems. All the divisions are measured/scored to assess its maturity. This is a unique review mechanism which is intended to take the divisions towards excellence. Various practices adopted by BELL towards Quality in chronology Table 4: Various

BELL is also the only public sector company in the country to have earlier won the ћPRIZE”, under the Call EXAM Award Scheme, besides being the only company in India, all of whose major divisions have been recognized for business excellence. Jointly instituted by Call and EXAM Bank, the coveted commendations have been warded to BELL”s units for ongoing Journey towards Business Excellence, aimed at improving overall operations and encouraging Total Quality Management (TTS) at all levels. The highest recognition of its kind in the country, the award has been instituted in India in line with International Quality Awards like the ‘Malcolm Baldrics National Award’ in USA, the ‘Deeming Prize’ in Japan and the ‘European Quality Award’. 15 units of BELL are moving ahead in the Call EXAM Award Scheme for business excellence.

Continuing its winning streak, BELL”s units at Opal and Tricky and its Power Sector Eastern Region construction division have won ћCommendations for Significant Achievements”, while its units at Bangers and Rainier and its Power Sector Southern Region construction division have been awarded the ћCommendations for Strong Commitment to Excel”. A quality conscious organization with a strong customer focus, BELL has acquired ‘SO-9001 (2000 version), ‘SO-14001 and SHOOS-18001 certification, for all its operations. BELL initiated TTS in 1995 at its Tricky unit. Later, the concept was extended company-wide and a road map for business excellence was evolved. TTS