MAT Result 2013 Feb

A Study on Quality Circles at BHEL
Krupanidhi Degree College, Bangalore-560035 Page | 1

CHAPTER 1
INTRODUCTION
1. Introduction to Production and operations management:
1.1 Production management:
Production management means planning, organizing, directing and controlling of
production activities. Production management deals with converting raw materials into
finished goods or products. It brings together the 6M's i.e. men, money, machines, materials,
methods and markets to satisfy the wants of the people. Production management also deals
with decision-making regarding the quality, quantity, cost, etc., of production. It applies
management principles to production.
Production management is a part of business management. It is also called
"Production Function." Production management is slowly being replaced by operations
management. The main objective of production management is to produce goods and services
of the right quality, right quantity, at the right time and at minimum cost. It also tries to
improve the efficiency. An efficient organization can face competition effectively. Production
management ensures full or optimum utilization of available production capacity.

1.2 Operations management:
Operations management is an area of management concerned with overseeing,
designing, and controlling the process of production and redesigning business operations in
the production of goods or services. It involves the responsibility of ensuring
that business operations are efficient in terms of using as few resources as needed,
and effective in terms of meeting customer requirements.

1.3 Quality:
"Quality itself has been defined as fundamentally relational: 'Quality is the ongoing
process of building and sustaining relationships by assessing, anticipating, and fulfilling stated
and implied needs.'
1.3.1 Total quality management:
TQM is the continuous process of reducing or eliminating errors in manufacturing,
streamlining supply chain management, improving the customer experience and ensuring that
employees are up-to-speed with their training. Total quality management aims to hold all
parties involved in the production process as accountable for the overall quality of the final
product or service.

1.4 Quality Circles
A quality circle is a volunteer group composed of workers (or even students), who do
the same or similar work, usually under the leadership of their own supervisor (or an elected
team leader), who meet regularly in paid time who are trained to identify, analyze and solve
work-related problems and present their solutions to management and where possible
implement the solutions themselves in order to improve the performance of the organization,
and motivate and enrich the work of employees.
Usually the members of a particular team (quality circle) should be from the same work area
or who do similar work so that the problems they select will be familiar to all of them. In
addition, interdepartmental or cross functional quality circles may also be formed. An ideal
size of quality circle is seven to eight members. But the number of members in a quality circle
can vary. When matured, true quality circles become self-managing having gained the
confidence of management. It is "a way of capturing the creative and innovative power
that lies within the work force".
1.5 History of the Quality Circles:
Quality circles were first established in Japan in 1962. Kaoru Ishikawa has been
credited with their creation. The movement in Japan was coordinated by the Japanese Union
of Scientists and Engineers (JUSE). The first circles were established at the Nippon Wireless
and Telegraph Company but then spread to more than 35 other companies in the first year. By
1978 it was claimed that there were more than one million quality circles involving some 10
million Japanese workers. They are now in most East Asian countries; it was recently claimed
that there were more than 20 million quality circles in China.

Quality circles have been implemented even in educational sectors in India, and QCFI
(Quality Circle Forum of India) is promoting such activities. However this was not successful
in the United States, as it (was not properly understood and) turned out to be a fault-finding
exercise although some circles do still exist.
The history of Quality Circles cannot be discussed with- out discussing the country of
its Origin .The success of any concept or philosophy gains conviction and spreads only when
it was practiced sincerely. The Japanese have not merely evolved a concept but practiced it
with sincerity of purpose bringing forth amazing results. This has drawn the attention of the
nation the world over and they have found great potential in involving the people by 1947.
General Douglas McArthur requested US Govt. to send experts to help Japanese rejuvenate
their industries.

1949: An Overseas Technical Research Committee was organized by the Union of Japanese
Scientists Engineers (JUSE)
1949: JUSE organized a seminar on SQC
1949: JUSE organized a seminar Quality Control-Basic Course
1950: JUSE published a magazine SQC
1950: Dr Deming invited to eight day Quality Control seminar organized by JUSE.
1951: Deming prize instituted.
1954: Dr Joseph Juran invited to Quality Control Management seminar organized by JUSE.
1956: Japans radio started broadcasting a Quality Control Course organized by JUSE.
1960: Japanese Govt. declared November as Quality Month and Q-flag was adopted.


Quality Control Circles (Japan)
1962: First QC Circles was registered with Circle Head Quarters
1962: First annual QC Conference for Foremen was held
1964: Regional chapters of QC were organized in four different districts
1966: Dr.Juran observed QC Circles activities
1966: Special QC Circle session was organized at the 10th conference of European
Organization for Quality Control held in Stockholm, Sedan
1967: Number of registered QC Circles grew to 10000
1968: JUSE dispatched the first QC Circle Study Team overseas
1969: Registered Circles grew t 20000
1969: 100
th
QC Circle Conference was held in Tokyo
1970: Registered Circles grew to 30000
1971: JUSE organized the first QC Circle seminar
1971: 200thQC conference was held
1971: Registered QC Circles grew t 40000
1971: First National QC Circle Conference was held in Tokyo
1972: Regional Circles grew to 50,000
1973: 300
th
QC Circle Conference was held
1974: Registered circles grew to 60,000
1974: 400
th
QC Circle conference held
1975: Registered Circes grew to 70,000. 500
th
Conference held
1977: Registered Circles grew to 80,000. 700
th
Conference was held
1978: Registered Circles grew t 90,000
1978: First international QC Circles Convention was held

1979: 800
th
QC Circles Conference was held
1979: Registered QC Circles Conference numbered 1000000
1980: 900
th
Conference was held
1981: International QC Circles Convention was held
1985: Third International QC Circles Convention was held
1988: More than one million Circles with over ten million members
Quality Circles (Other Than Japan)
1974: Lockheed Company, USA Started Quality Circles movement
1977: International Association of Quality Circles (IACC) was formed in USA
1980:230 Companies in USA has Quality Circles
1983: There were more than 500,000 known Quality active in the world
Quality Circles (India)
1980: BHEL, Hyderabad first in India to start Quality Circles
1982: Quality Circle Forum of India (QCFI) was founded
1983: Tata Motors (formerly Telco) started Circles by 1985 they had more than Circles 1985:
BHEL had 1411 Circles covering around 13362 members
1.6 Quality Circles in India
In India, Quality Circles movement was introduced in BHEL in January1981, after preparing
the ground in 1980. Its success in a large public enterprise like BHEL having 73000
employees naturally drew the attention of many organizations in the country and it triggered
off the spread of the movement in the country. BHEL kept its door open in sharing its
experiences and organizing National Seminars in association with other National Bodies and
thus the Q.C movement started catching up.

1.7 Other Names of Quality Circles
Small Groups
Action Circles
Excellence Circles
Human Resources Circles
Productivity Circles
1.8 Structure of Quality Circles

1.9 Quality Circle Meetings
Meetings play important role in working of quality circles.
Meetings must be attended by all the members of the quality circle.
In general, meetings take place once a week or once in a fortnight.
Each meeting lasts for approximately one to two hours, though variations are possible.
It is important to have the regularity of the meetings.

1.9.1 What takes place during Quality Circle Meetings?
Any of the several activities may occur during a meeting such as:
Identifying a theme or a problem to work on.
Getting training as required to enable members to analyze problems.
Analyzing problem(s).
Preparing recommendations for implementing solution(s).
Follow up of implementation of suggestions.
Prepare for a presentation to the management.
1.9.2 Pitfalls and problems
Lack of faith in and support to Quality Circle activities among management personnel
Lack of interest or incompetence of leaders/facilitator
Apathy, fear and misunderstanding among middle level executives
Delay or non-implementation of Circle recommendations
Irregularity of Quality Circle activities
Lack of or non-participation by some members in the Circle activities
1.10 Quality Circles in BHEL
To facilitate the employees of grass root level to involve in improvement activities and
take-up problems related to their respective work area, analyze and solve them in a systematic
way to enable self development & mutual development of Quality circle Team members.


1.11 Problem Solving Techniques in Quality Circles
Quality commonly uses certain basics techniques to identify analyze and resolve problems
they are:
1) Brain storming
2) Data collection
3) Stratification
4) Pareto analysis
5) Cause and Effective diagram
6) Histogram
7) Scatter diagram
8) Graphs
These techniques though simple, but are very powerful ones and they help they quality
circles investigation the case for their work related problems and find solutions in scientific
way.
1.12 Quality assurance co-ordination activities:
a) Formation of Quality Circles & Registration
b) Re-organization of circles (based on the need)
c) Maintaining data base of circles (Membership data)
d) Providing necessary inputs to circles like arranging training, Meeting register, QC
related books, formats etc.,

e) Maintaining performance record of Quality Circles( SIPs : Small Improvement
Projects, MMPs :Middle Management Presentations)
f) Keeping records of active circles (Active circles shall have Minimum of24
Meetings ,2 Case studies, & one Middle Management Presentation made in a
calendar year)
g) Conducting Annual Unit Quality Circle Convention (AUQCC).
h) Nomination for External Conventions (Facilitating QCs to participating in external
Conventions)
i) Republic day, EDs Rolling shield for best performing Quality circle by Evaluating
the case studies and performance of the previous year.
j) Procurement and performance of mementoes to active Circles.
k) Reporting the performance of Quality circles to corporate Quality from time to
time.
l) Facilitate Quality Circle teams to participate in International Conventions as per
corporate guide lines.
1.13 Formation of new circles:
Max 5 members Minimum 4 employees (worker category, supervisor category)
working at a particular function /area can form Quality Circles(QC).The Quality Circles also
have to select an Executive Guide(preferably from their work centre). The proposed Team
Members shall fill up the registration form (Format No: QA/QCC-001) available with a QA-
Quality Circles coordination centre. Members shall give consent by signing on the form. After
obtaining the signatures of area coordinator and facilitator of the concerned work
area/product/service group, form to be submitted to Quality circle coordination (QA).

QA shall Register the Quality Circle and allocate Quality circle Number and issue
meeting Register, copies of handbook n Quality circles to the newly formed Quality Circles
All the New Quality circles formed shall be encouraged with a welcome Memento to each
member f the team (including Executive Guide)
1.14 Re-organization of quality circles:
If the circle strength is reduced due to retirement or transfer of team members or
otherwise, shall fill in the Form (Format No: QA/QCC-001) with revised Team and indicate
Re-organization of Quality Circles with the consent of members and with the signature of
area Coordinator and facilitator of concerned work area/Product/Service Group and submit to
Quality Circle Co-ordination (QA)
Quality Circle Coordination shall update the data base accordingly.
Maintaining performance record of Quality Circles (Small problems solved, MMPs (Middle
Management Presentation).MMP Format No: QA/QCC-04, Rev-00and SIP Format No:
QA/QCC-03, Rev: 00
Based on the Submitted documents (Filled in signed SIP booklets &MMP Booklets) QA shall
update the data on problems solved by teams. Solved problems also can registered as
IMPRESS project by respective Quality Circle Team.
Keeping Records of Active Circles (Minimum 24 Meetings in a year, 2 case studies (SIPs) &
one middle management Presentation in a calendar year). QA shall prepare the list of active
circles for calendar year based on SIPs and MMPs data received from teams.


1.15 Annual unit quality circle convention:
The QA shall organize Annual Unit Quality Circle convention to provide a platform to present
the case studies by Quality Circles. The case studies shall be evaluated by external Judges and
winning Quality Circles Teams shall be awarded.
The Category for participation are: (a) Manufacturing (b) Support Services (c) Manufacturing-
New Circle (d) Support Services-New Circle.
Qualification for a New Circle is First time participation in the Annual Unit Quality Circle
convention and Should have formed in the past calendar years
1.16 Key activities of quality circles coordination:
Quality Assurance is the coordination agency for promoting, monitoring the quality circles in
the unit and to encourage the formation of QC Circles by potential members
To organize 2 day training program for all newly joined members and also to organize
refresher program to existing members.
1. All the Ne Members shall be given a 2 day class room training on simple problem
solving Tools, Presentation techniques.
2. As per training need identified by area coordinator, one day refresher programs shall
be organized to members of Existing Circles.
3. Organizing appreciation programs t area coordinators, Facilitators.
4. Training shall be planned based on the requirement as at pint 4 above, and get
incorporated in HRDC Calendar.
5. In addition to HRDC Calendar programs, need based programs shall be organize with
due approvals.

To organize to review of Quality Circles functioning by verifying meeting registers, collecting
Small Improvement Project (SIPs), facilitating Middle management Presentations (MMPs) at
function/shop level.
To plan to conducting steering committee meetings (twice a year)t discuss the status of
Quality circles movements and achievements and obtain directions for improvement.

1.17 Roles and responsibilities of quality circle members
Quality Circle: Circle consist of Leader, Dy.Leader, 4 members (Total QC Team
members=6) from working class (workers &Supervisors) and an Executives will be an
Executive guide from work area of team
Leader: Quality circle leader organizes and conducts quality circle meetings /activities as
per schedule and records meeting notes in the meeting register. He/she leads the team in all
activities.
Members: All members including leader, Dy.Leader are equal in sharing, discussing
problems, coming out with solutions and implementations of solution for the problem with the
consent of concerned work centre in-charge. Through the Quality Circles are voluntary, they
have responsibility of functioning with in a frame work of rules of company for the
improvement.
Executive Guide: The person chosen to guide the team possessing-work area job
knowledge, Basic SQC skills and PPT skills. Executive Guide shall support the circle in
implementation of solution, providing technical inputs, preparation of presentation etc.


Area Coordinator: The person nominated by the respective product/service GM to act as
a link between Quality Assurance & Quality Circle of the product/Functional area. The area
coordinator will liaisons with work centre in-charge of concerned circles and provide facility
for conducting weekly meetings.
Facilitator: Facilitator shall be nominated by concerned product/Service GM. He/She
coordinates the several quality circles through the circle leaders. the facilitator shall provide
resources for model making, trail implementation of solutions fund by Quality circle team.
Encouraging the Quality circles for greater involvement. The vetting of gains of the projects
shall be done by work centre in-charge &Facilitator.
Steering committee: Steering Committee consists of Unit head as Chairman, all product&
Service GMs& DROs as members and head of Quality Assurance shall be the convener for
committee meetings.

1.18 Terms of reference for steering Committee are:
To set goals and objectives for the Movement of Quality Circles.
To formulate/revise the policies for development of the Quality Circles
Approve the guide lines for measuring the effectiveness of Quality Circles
Review the Performance and progress of Quality Circles periodically
To provide all support and encouragement to Quality Circle movement in the
organization
Recommend for monetary benefits for nurturing the Quality Circles &Encouraging the
Best performing Quality Circles.


CHAPTER 2
REVIEW OF LITERATURE & RESEARCH DESIGN
A review of the literature is an essential part of an academic research project. The
review is a careful examination of a body of literature pointing toward the answer to the
research question. Literature reviewed typically includes scholarly journals, scholarly books,
authoritative databases and primary sources. Sometimes it includes newspapers, magazines,
other books, films, and audio and video tapes, and other secondary sources.

2.1 Review of literature on Quality Circles

Garvin (1993): mentioned that, through quality-related activities, organizations can be
effective at creating or acquiring new knowledge and applying that knowledge to their own
activities. Through such learning, organizations can strengthen their motive power, integrate
individual knowledge and skill into organizational competence, and create competitive
advantage and group effectiveness.

Mohrman (1995): mentioned that team members rely on each other, share the same goals,
and share responsibility for outcomes in team-based organizations. Thus, it appears that there
are major connections between organizational learning and QCC activities. Based on a review
of hospital-based studies, conducted in Taiwan, this study concluded that quality management
practices have created organizational improvements, which appear to contribute to transferring
knowledge and skills within the organization through teamwork and training. This
contribution not only increases teamwork effectiveness but also reinforced the perception of
self-growth in team members.

Meyer and Stott (1985): Recently estimated that at least 500 U.S. firms are currently using
QCs. They also noted the lack of evaluative research undertaken to assess the effectiveness of
the circles. Indeed, most of the evidence pertaining to their effectiveness is anecdotal or hazed
on cross-sectional survey research.

Dasgupta, Ranjan (March 2014): They found during Post-independence, Durga steel plant
was going through a crisis period up to early 1980s. During that period, a comprehensive
participative program was framed and implemented. One such program was quality circle
(QC), initiated in early 1990s and effectively run till date. This study has been undertaken to
find the critical responsible factors of such QCs' effectiveness in DSP based on the developed
QCs' effectiveness model. In this present study, both primary and secondary data were
collected in three phases during 2004-2009 through questionnaire from 160 respondents
representing 80 sample QCs. The data so collected were analyzed by PCA under FA with
relevant validity analysis. Twenty 'Factors' were found by the study as critical and responsible
for QCs' effectiveness. It was concluded that although the success and effectiveness measure
varies in between QCs, but those 'Factors' would act as the catalyst of QCs' effectiveness in
any type of industrial setting within the region and country.

Chi Chen Kuo, Min-Hsun Christine (Feb 2011): The health care industry in Taiwan has
faced many challenges in recent years. To tackle those challenges, many hospitals in Taiwan
began using management techniques used in other industries. As a result, quality management
has become important within Taiwan's health care industry. This study provides a perspective
on how this health care industry, by developing both quality control circle (QCC) practices
and organizational learning techniques, responded to those challenges.

Crossan et al. (1999): In their discussion of the linkage between quality improvement
activities and organizational learning. The results revealed the existence of a link between
organizational learning and QCC activities. In addition, the reviewed QCC activities
facilitated organizational learning and contributed to health care quality improvements in the
studied hospitals. Finally, QCC practices in hospitals facilitated dissemination of
organizational learning concepts in those hospitals.

Goldstein, S. G.: According to him, quality circles are only one manifestation has general
applicability and that an organization with a well-designed dualistic structure should
outperform one with a well-designed mono structure. The literature on quality-circle design is
not entirely consistent with the theory of organizational dualism, and this might explain why
some applications of quality circles have failed. Changes that could improve the basic design
of quality circles are suggested.

Jin, Hyun Woong, Doolen, Toni.L: Suggested that Quality Circles and Kaizen Events have
resulted in productivity and quality improvements for organizations. There is limited empirical
research comparing these two approaches. This research study was designed to understand the
similarities and differences in the structure and outcomes of these two popular continuous
improvement approaches in Korea and the USA. A logic model framework consisting of four
areas (resources, activities, outputs and outcomes) was used to assess the key components of
these six improvement projects. Data for three different comparative case study project pairs
were collected. Projects were matched on both manufacturer-level and project-level
characteristics. Matched projects were similar in size and type of product produced.

There was no evidence to support the conclusion that one continuous improvement approach
is more or less effective than the other. Both approaches produced improvements in both
technical and social system outcomes. Overall, it appears based on this study, that
both Quality Circles and Kaizen Events can be successfully deployed in an organization's
continuous improvement journey.

Radhoui, Rezg, Chelbi Jan (2009) suggested that quality control and preventive maintenance
policy for a randomly failing production system producing conforming and non-conforming
units. The considered system consists of one machine designed to fulfill a constant demand.
According to the proportion l of non-conforming units observed on each lot and compared to a
threshold value lm, one decides to undertake or not maintenance actions on the system. In
order to palliate perturbations caused by the stopping of the machine to undergo preventive
maintenance or an overhaul, a buffer stock h is built up to ensure the continuous supply of the
subsequent production line. A mathematical model is developed and combined with
simulation in order to determine simultaneously the optimal rate, [image omitted] and the
optimal size h* which minimize the expected total cost per time unit including the average
costs related to maintenance, quality and inventory.

Lawler III, Edward E, Mohrman, Susan A suggested that quality circles as an approach to
improve organizational performance. Quality circles are potentially useful in helping move an
organization toward greater effectiveness. Its orientation and structures are consistent with a
participative approach to management; as such, they pose the following challenge to
traditional management approaches.

The view of the authors on how well can traditional approaches coexist with quality circles is
that, in the long term, quality circles have trouble existing with traditional management
approaches; under such conditions, they either fade or require changes in major features of the
organization. There is no road map for the use of quality circles. However, some of their
strengths and weaknesses suggest that organizations should think carefully before choosing
them as an approach to participative management. In most cases, it may be best to transition
them to another form of cooperative program.

Wood, Robert, Hull, Frank, Azumi, Koya: The quality circles programs that exist in many
Japanese organizations are being widely adopted in U.S. organizations. However, the high
expectations and lack of planned evaluation for the quality circle programs in many U.S.
organizations suggests that quality circles are already in the adoption-disappointment-
discontinuation cycle that has been characteristic of many other managerial fads. The authors
present several reasons why quality circles can lead to increases in the morale, motivation,
productivity, and work quality of workers and suggest that the conventional wisdom, which
sees them as either a form of job enrichment or a human relations technique, is ill-focused.
The types of organizational settings in which quality circles are most likely to be effective are
discussed and suggestions are made regarding the proper evaluation of quality circle
programs.

Blair John D, Ramsing, Kenneth (1983): said that American production and manufacturing
organizations in the concepts and techniques being used by Japanese managers. In
particular, quality circles have been found to be valuable in some companies and been seen by
many as being the answer to the declining productivity in companies in the United States.

However, there is considerable concern by these authors that an indiscriminate acceptance of
the quality circle concept may result in a series of problems for many organizations attempting
its use. Although quality circles did not appear in the United States until implemented by
Lockheed Missile and Space Company in 1974, their growth has been extremely rapid. It was
estimated in 1980 by I.A.Q.C., that the number had grown to over 3,000 circles in U.S.
companies. This widespread interest in quality circles comes, in part, from the almost
deceptively simple concept of organizational intervention with the primary objective to
increase productivity and quality of the production/ manufacturing sector through direct
employee participation. Within this context, QCs appear to succeed in tapping into several
dimensions of organizational behavior which are potentially related to improved
organizational functioning: individual motivation, group process, and managerial decision
making. However, a number of questions do exist about the use of quality circles in the
production of goods and services in this nation. Some of these concerns are described under
the headings of.' Cultural Considerations; White Collar Effectiveness; Motivational Forces;
Effectiveness of Quality Circles; Introduction of Quality Circles; and Quality Circle
Longevity. This paper presents some implications and caveats for the use of quality circles as
a basis for improving quality and productivity:

From the careful analysis of all the above-mentioned studies, it was found that there is not
a single study related with the current research topic. Hence, in order to bridge the gap in the
available literature, the researcher has undertaken the present study.


2.2 Research Design

2.2.1 TITLE OF THE STUDY
A Study on Quality Circles in manufacturing industry with specific reference to
Bharat Heavy Electrical Limited, Hyderabad

2.2.2 INTRODUCTION

Total Quality Management (TQM) is an approach that seeks to improve quality and
performance which will meet or exceed customer expectations. This can be achieved by
integrating all quality-related functions and processes throughout the company. TQM looks at
the overall quality measures used by a company including managing quality design and
development, quality control and maintenance, quality improvement, and quality assurance.
TQM takes into account all quality measures taken at all levels and involving all company
employees.

In business, an organization should try to get the home court advantage using TQM.
The activities for each employee, including top management, should be geared toward the
same purpose, which is often referred to as the vision. If people in a company do not have the
same purpose, the organization will be weak. If the organization is to achieve its goals, all
people related to the organization must have activities for achieving their purposes. The bigger
the number of people who have the same purpose, the stronger the chances are of achieving
the purpose. If 20,000 employees are committed, the organization will be stronger than if
10,000 are committed.

The need for learning and understanding the principles of total quality has become
increasingly obvious in recent years. TQM is a comprehensive approach requiring lengthy and
extensive education and training programs within organizations. One such initiative is the
formation of quality circles. A quality circle is a participatory management technique that
enlists the help of employees in solving problems related to their own jobs.


Circles are formed of employees working together in an operation who meet at
intervals to discuss problems of quality and to devise solutions for improvements. Quality
circles have an autonomous character, are usually small, and are led by a supervisor or a senior
worker. Employees who participate in quality circles usually receive training in formal
problem-solving methodssuch as brain-storming, pareto analysis, and cause-and-effect
diagramsand are then encouraged to apply these methods either to specific or general
company problems.
2.2.3 STATEMENT OF THE PROBLEM
Quality became an important business issue because of the competitiveness in world
markets. No management issues since the Scientific Management has had the impact of the
quality movement. The total quality management (TQM) approach is increasingly used by
organizations to improve their operations and the processes used in all functional areas of their
organizations. TQM has become popular because it attempts to improve product/service
quality, productivity, and competitiveness by improving communications with customers and
suppliers and within organizations. In spite of quality circles having distinct advantages but
that they have inherent in their design numbers of factors that often lead them to self-destruct.
Quality circles are also said to be a poor forerunner for more participative approaches to
management. Changing a quality circle into an institutionalized participative structure
involves making many changes in important features of the organization that do not naturally
flow from the implementation of a circle program. Usually organizations fine-tune the quality
circle approach to suit their needs. The number of circles, the amount of training, the size of
groups, and whether the supervisor serves as the facilitator vary among companies. Quality
circle programs create a parallel organizational structure; that is, they operate independently
and in ways different from the existing organization. They emphasize different group
processes, assign new roles to people, and take people out of their normal day-to-day work
activities. To accomplish anything, the circles have to report their results back to the existing
organization, which is the object of change as well as the controller of the resources necessary
to effect it. Hence a study is undertaken in BHEL, Hyderabad to understand the problems of
quality circles the ways to combat these problems.

2.2.4 SCOPE OF THE STUDY

This study would enlighten the functioning of quality circles in BHEL, Hyderabad. The
study would, identify the key issues such as:
An in-depth knowledge regarding the work system of quality circles through appraisal,
Detailed knowledge with respect to Quality circle composition and its criteria,
The pre-requisites for an effective problem solving through QCs
The scope of the study also extends to external environment. It contains a detailed
description of the:
benefits,
rewards,
And other non-monetary benefits provided by the competing organizations.
This refinement in the current Quality circle process will enhance the effectiveness
and efficiency of the employees as well as the system. This would enhance the performance
levels of the employees; increases morale, loyalty and efficiency level of the employees.

2.2.5 OBJECTIVES OF STUDY
Primary Objective:
The main objective of the study is to determine the effectiveness of Quality Circles in
the manufacturing sector and the use of them as a measure to increase the efficiency level in
the organizations with specific reference to BHEL, Hyderabad.

Secondary Objectives:
The following are the secondary objectives of the study. They are to:
Identify the Quality Circles that are currently functioning in BHEL, Hyderabad
Understand the working system of the quality circles
Know their contribution towards employee communication, job involvement and
participation


2.2.6 TYPE OF RESEARCH
The study is descriptive in nature.

2.2.7 POPULATION
Employees of BHEL in India

2.2.8 SAMPLE SIZE
144 employees of BHEL, Hyderabad

2.2.9 SAMPLING UNIT
For this study the respondents are the employees of BHEL from all categories

2.2.10 TYPE OF SAMLING
Simple random sampling, a probability sampling method is used for the study.

2.2.11 TOOLS OF DATA COLLECTION
Primary data
Primary sources are the origin of information under study, fundamental documents
relating to a particular subject or idea. Often they are firsthand accounts written by a witness
or researcher at the time of an event or discovery. These may be accessible as physical
publications, as publications in electronic databases, or on the Internet. Primary data for the
current study was collected by interacting, through responses of employees related to the topic
with the help of the structured questionnaire.

Secondary data
Secondary sources are documents or recordings that relate to or discuss information
originally presented elsewhere. These, too, may be accessible as physical objects or
electronically in databases or on the Internet. The secondary data for the present study was
collected through Brochures, news magazines, Hand Books, corporate journals and apex
manuals, web sites etc..,


2.2.12 PLAN OF ANALYSIS
The data collected from various sources is tabulated and represented using the
percentage and ranking method. Graphical tools like bar diagrams, pie charts etc., are used to
illustrate the tabulated data pictorially. Inferences and interpretation of the data is done on the
basis of tabulated data.
In both Hypotheses 1 and 2, the null hypotheses are tested using Chi-Square test for
independence of attributes at 5% level of significance with the help of SPSS.

2.2.13 CHAPTER SCHEME:
a. Introduction
b. Review of Literature & Research Design
c. Profile of Industry/Business/Selected Organisations
d. Results, Analyses and Discussions
e. Summary of Findings, Conclusions and Recommendations.

2.2.15 OPERATIONAL DEFINITIONS
Quality: Quality is a products or services ability to satisfy the needs and expectations of
the customer

Quality Costs: The costs of quality are the cost associated with the prevention, discovery,
and resolving of defects in parts. These costs can arise whether the product in the design
stages, manufacturing plant, or in the customer's hand.
Quality management: is an organization-wide approach to understanding precisely what
customers need and consistently delivering accurate solutions within budget, on time and
with the minimum loss to society.

Total quality management: TQM may be defined as a continuous quest for excellence by
creating the right skills and attitudes in people to make prevention of defects possible and
satisfy customers/users totally at all times. TQM is an organization-wide activity that has
to reach every individual within an organization.


Quality control (QC): is a procedure or set of procedures intended to ensure that a
manufactured product or performed service adheres to a defined set of quality criteria or
meets the requirements of the client or customer. QC is similar to, but not identical with,
quality assurance (QA).

Quality Assurance: QA is defined as a procedure or set of procedures intended to ensure
that a product or service under development (before work is complete, as opposed to
afterwards) meets specified requirements. QA is sometimes expressed together with QC as
a single expression, quality assurance and control.

Quality Circle: A quality circle is a participatory management technique that enlists the
help of employees in solving problems related to their own jobs. Circles are formed of
employees working together in an operation who meet at intervals to discuss problems of
quality and to devise solutions for improvements. Quality circles have an autonomous
character, are usually small, and are led by a supervisor or a senior worker.

2.2.16 LIMITATIONS OF THE STUDY
The study assumes that the information revealed by the respondents is authentic and
not misleading.
The research had no control over the extent to which managerial support of the QC
programs differed in the work groups and organization under the study
As the Quality training was provided by the base of QC Facilitator, the researcher had
no control over any differences in training emphasis and/or technique to which the
various QC were exposed.
Non-attitudinal measures of QC outcomes (such as number of problem solutions
suggested or implemented) were not investigated.


CHAPTER 3

INDUSTRY PROFILE AND COMPANY PROFILE

3.1 INDUSTRY PROFILE
Industries are the pointing lights to the growth of an economy & are the backbone of
the country. The development & growth of a country largely depends on industrialization of
its economy. India is basically an agriculture based country. It is after the independence,
India has given importance to the growth of industrial development through 5 year planning
programs Government has taken a leading march to up the movement of industrialization.

For any country, small or big, developed or developing, need good infrastructure
facilities such as roads, dams, tunnels etc. the infrastructural facilities are the primary need
for the transportation movement of roads. Roads play an important role in this aspect.
Tremendous development has taken place in science & technology, which has mechanized
every in every field. Manually carried out work is less productive & time consuming. Thus,
to increase efficiency & productive, mechanical equipment came into existence & almost
every field is mechanized. As such, the demand for such mechanical equipments has
increased tremendously.

India has been ruled by foreigners for several years. And as such, after independence
India has given priority to strengthen the countrys defense force. Several industries
producing defense equipment has been started by the government of India thereafter. India
felt the need of having strong defense which is capable of defending its borders from
neighbors. In this view, BHEL has been established by ministry of defense.
Heavy Electrical Industry covers power generation, transmission, distribution and
utilization equipments. These include turbo generators, boilers, various types of turbines,
transformers, switchgears and other allied items. Majority of the products manufactured by
heavy electrical industry in the country, which includes items like transformers, switchgears
etc. are used by all sectors of the Indian economy. Some major areas where these are used are
the multi core projects for power generation including nuclear power stations, petrochemical
complexes, chemical plants, integrated steel plants, non-ferrous metal units, etc.

India is the only other developing country besides China, which produces a full range
of electric power generation and transmission equipment. In fact, the history and growth of
(Bharat Heavy Electricals Ltd.), a public sector enterprise under in the country, symbolizes the
overall growth pattern of heavy electrical industry in the country. BHEL has the unique
distinction of being one of the very few companies in the world, manufacturing all major
power generating equipment under one roof.
The industry has been upgrading the existing technology and is now capable of taking
up turnkey contracts also for export markets. The industry has been delicensed. Foreign
collaborations are allowed with 100 percent FDI. The country is planning to add 150,000 MW
power generation capacity in the next 10 years. This will generate substantial demand for
heavy electrical equipments.
The heavy electrical industry is capable of manufacturing transmission and distribution
equipment up to 400 KV AC and high voltage DC. The industry has taken up the work of up
gradation and transmission to the next higher voltage system of 765 KV and have upgraded
their manufacturing facilities to supply 765 KV class transformers, reactors, CTS, CVT,
bushing and insulators, etc.
The investments in R & D by the electrical industry are amongst the largest in the
corporate sector in India. Large electrical equipment used in steel plants, petrochemical
complexes and other such heavy industries are also being manufactured in the country. The
domestic heavy electrical equipment manufacturers are making use of the developments of the
global market with respect to product designs and upgrading of manufacturing and testing
facilities. The heavy electrical industry has established its reference in the global arena also.
These encompass thermal, hydro and gas based power plants, substation projects,
rehabilitation projects, besides a wide variety of products like transformers, photo voltaic
equipments, insulators, switchgears, motors,etc.


3.1.1 Turbines and Generator Sets
The capacity established for manufacture of various kinds of turbines such as steam &
hydro turbines including Industrial turbines is more than 7000 MW per annum in the country.
Apart from BHEL, the public sector unit that has the largest installed capacity, there are units
in the private sector also manufacturing steam & hydro turbines for power generation and
industrial use. The manufacturing range of BHEL includes steam turbines upto 660 MW unit
rating and the facilities are available for 1000 MW unit size. They have the capability to
manufacture gas turbines upto 260 MW (ISO) rating and gas turbine based Co-generation and
Combined Cycle Systems for the industry and utility applications. Custom built conventional
hydro turbines of Kaplan, Francis and Pelton types with matching generators are also available
indigenously. AC Generators manufactured in India are on par with international AC
Generators and consistently deliver high quality power with high performance. Domestic
manufacturers are capable of manufacturing AC Generator right from 0.5 KVA to 25,000
KVA and above with specified voltage rating. The imports and exports of turbines and
generators during 2005-06 were Rs. 2420 crore and Rs. 565 crore respectively.
3.1.2 Boilers
Bharat Heavy Electrical Ltd.(BHEL) is the largest manufacturer of boilers in the
country (with more than 60% share) and has the capacity to manufacture boilers for Super
Thermal Power Plants apart from utility boilers and industrial boilers. The industry has the
capability to manufacture boilers with super critical parameters upto 1,000 MW unit size. The
domestic industry has the capacity to meet the indigenous requirement / demand for boilers.
The imports and exports of boilers during 2005-06 were Rs.160 crore and Rs.242 crore
respectively.

3.1.3Transformers
The domestic transformer industry is well established with capability to provide state
of- the-art equipments. The industry has the capacity to manufacture whole range of power
and distribution transformers including the REC rating of 25,53,100 KVA and also the extra
High voltage ranges of 400 kV, 600 MVA.

3.1.4 Switchgear and Control Gear
In India, the entire range of circuit breakers from bulk oil, minimum oil, air blast,
vacuum to SF6 are manufactured to standard specification for the benefit of customers. The
ranges of products produced cover the entire voltage range for 240V to 800KV, switchgear
and control gear, MCBs, air circuit breakers, switches, rewireable fuses and HRC fuses with
their respective fuse bases, holders and starters. The industry is competitive in the field of
design and engineering as the skill sets available in the country are relatively less expensive.
The imports and exports of the above equipments during 2005-06 were around Rs.1690 crore
and Rs. 1108 crore respectively.
3.1.5 Electrical Furnaces
Electrical Furnaces are used in Metallurgical and Engineering industries like forging
and foundry, machine tools, automobiles etc. Adequate capacity for production of these
products has been established. The imports and exports of electrical furnaces during 2005-06
were around Rs.186 crore and Rs. 108 crore respectively.
3.1.6 Shunting Locomotives
Shunting Locomotives for localized/ internal transport facilities are used in railways, steel,
plants, thermal power plants, etc. BHELs Jhansi unit among others is manufacturing such
locomotives. The installed capacity is adequate to meet the domestic demand.


3.2 COMPANY PROFILE

Established more than 40 years ago, BHEL is the largest engineering and
manufacturing enterprise of India in the energy & infrastructure related sectors. BHEL is
amongst world's rarest few who have the capability to manufacture entire range of power plant
equipment. Since its inception, BHEL is maintaining a consistent track record of growth,
performance and profitability.
The company has grown in stature over the years with continued inflow of orders,
manufacturing prowess, continued thrust on technology leading to a strong presence in
domestic and international markets as a major supplier of power plant equipments besides
establishing substantial inroads in select segment of products in Industrial sector and
Railways.
3.2.1 Manufacturing

In Power generation segment, BHEL is the largest manufacturer in India supplying wide
range of products & systems for thermal, nuclear, gas and hydro-based utility and captive
power plants.
Establishments in the Manufacturing sector are often described as plants, factories, or mills
and characteristically use power-driven machines and materials-handling equipment.
BHEL is one of the few companies worldwide, involved in the development of Integrated
Gasification Combined Cycle (IGCC) technology which would usher in clean coal
technology.
Manufacturing establishments may process materials or may contract with other
establishments to process their materials for them. Both types of establishments are included
in manufacturing.

BHEL was founded in 1950s.Its operations are organized around three business sectors:
Power.
Industry-including Transmission, Transportation, and Telecommunication & Renewable
Energy.
3.2.2 Industry

BHEL has emerged as a major supplier of controls and instrumentation systems, distributed
digital control systems for industries, and simulators for various applications.
In Industry Sector, BHEL secured orders worth Rs.8782 Crore in Captive Power, Rail
Transportation, Power Transmission, Oil & Gas, Renewable Energies and other Industrial
Segments.
BHEL is supplying X'mas tree valves and well heads up to a rating of 10,000 psi to ONGC
and Oil India. It is also supplying on-shore drilling rigs, sub-sea well heads, super deep
drilling rigs, desert rigs and heli-rigs.
3.2.3 Transmission
BHEL supplies a wide range of transmission products and systems of up to 400 kV class.
Those include: high-voltage power and distribution transformers, instrument transformers,
dry-type transformers, SF6 switchgear, capacitors and ceramic insulators.
Equipment for high-voltage direct current (HVDC) systems are also supplied, for economic
transmission of bulk power over long distances. Series and shunt compensation systems are
also manufactured to minimize transmission losses.

BHEL has developed and commercialized the countrys first indigenous 36 kV Gas
Insulated Substation and has also developed 145 kV Gas Insulated Substation (GIS) which
has undergone successful testing at CESI, Italy.
BHEL has also established its capability in the area of Flexible AC Transmission systems
(FACTS).
3.2.4 Transportation

Most of the trains of the Indian Railways are equipped with BHELs traction and traction
control equipment.
Most of the trains of Indian Railways, whether electric or diesel powered, are equipped with
BHEL's traction propulsion system and controls. The systems supplied are both with the
conventional DC and state-of-the-art AC drives.
India's first underground metro at Kolkata runs on drives and controls supplied by BHEL.
Almost all the EMUs in service are equipped with electrics manufactured and supplied by
BHEL.
BHEL has proved once again its capabilities and technological excellence by successfully
establishing itself as an indigenous manufacturer of energy efficient IGBT based propulsion
system for AC drives, a landmark achievement in transportation sector.
India's first underground metro at Calcutta runs on drives and controls supplied by BHEL.
The Company has developed and supplied broad gauge 3900 HP AC locomotives,
5000/4600 HP AC/DC locomotives, diesel shunting locomotives of up to 2600 HP, battery
powered road vehicles, including electrics & control electronics.

BHEL has acquired the technology for 6000 HP 3-phase AC Locos and started
manufacturing the electrics & controls as well as those for 3-phase AC EMUs, Diesel EMUs
and OHE cars.
3.2.5 Telecommunication
BHEL manufactures telecom switching equipment based on C-DOT technology, the major
products being MAX-XL of up to 40,000 lines capacity and Single Base Module RAX for
rural applications.
3.2.6 Technology
BHEL is one of the few companies worldwide, involved in the development of Integrated
Gasification Combined Cycle (IGCC) technology which would usher in clean coal
technology.
3.2.7 Renewable Energy
In keeping with the commitment to use renewable power in units, the company has installed
Solar Street lighting in and around ISG building in Bangalore; PV panel module on rooftop
of PCB building in EDN, Bangalore and Emergency Solar lighting at the main receiving
stations at HPEP Hyderabad during 2011-12. In bid to ensure green supply chain, Study of
Supply Chain Management was completed at Hyderabad unit. Energy audit was completed
in Insulator Plant, Jagdishpur; EPD, Bangalore and HPEP Hyderabad units.
BHEL has been contributing to the national effort for developing and promoting renewable
energy based products on a sustained basis. Starting from small applications like Solar
Powered Street Lighting, Rural Water Pumping Systems, Railway signalling, Offshore
Drilling Platforms, etc.,

Technologies have been developed and commercialized for exploiting non-conventional and
renewable sources of energy.
Orders for two Grid Interactive Solar PV Power plants of 5 MW each from Karnataka Power
Corporation and Indian Oil Corporation for their projects at Mandya and Phalodi
respectively.
These include photovoltaic cells and modules, solar lanterns, grid-interactive PV Power
Plants and solar heating systems.
BHEL has emerged as a major manufacturer of wind electric generators of up to 250 kW
unit size. The Company has set up its own wind farms of 3000 kW capacity (12x250 kW) at
Ramgiri (A.P.) and another of 4000 kW capacity (16x250 kW) at Kadavakkallu (A.P.).
Today, BHEL has a wide-spread network comprising 14 manufacturing divisions, 8 service
centers, 4 power sector regional centers, 18 regional offices, and a large number of project
sites spread all over India and abroad.
This enables BHEL to have a strong customer orientation, to be sensitive to his needs and
respond quickly to the changes in the market.
It manufactures over 180 products under 30 major product groups and caters to sectors
including power generation and transmission, transportation, and renewable energy, among
others.
3.2.8 Research and development
The following are the major thrust areas for R&D and technology:
More efficient conventional thermal power plants using supercritical parameters
More efficient conventional thermal power plants using ultra-supercritical & Advanced Ultra
supercritical parameters

Advanced control and instrumentation platform for thermal power plant and industrial
application
Coal research for refinement of understanding Indian coal characteristics
Integrated Gasification Combined Cycle (IGCC) power plants
Green technologies for Reduction of emissions such as Underground Coal Gasification,
clean development mechanism (CDM) projects etc.
Atmospheric and Circulating Fluidized Bed Combustion (CFBC) boilers
Large size hydro power plants with higher efficiency and longer life
Advanced transmission systems like 800kV HVDC, 765 kV, 1200 kV Transmission
systems/ products
Flexible AC Transmission systems, including devices such as Thyristor Controlled Series
Compensation, phase shifting transformer, static synchronized compensator (STATCOM),
controlled shunt reactor, etc.
Gas insulated switchgear
Efficient, reliable and cost effective transportation solutions including IGBT based
applications, three-phase
AC drive system for diesel electric locos
Higher rating Industrial steam turbines
Enhancing efficiency of the existing products
Grid connected renewable energy systems such as solar PV, solar thermal, wind etc.
Simulators
Advanced Fabrication Technologies
Surface coatings including ceramic applications
Residual life assessment studies

Deployment of new technologies including deployment intelligent machines & robotics, for
reducing cycle time and cost
Specialized engineering software applications
Total Engineering solutions including EPC with focus on automation.
Vibration and noise reduction
Applications based on high temperature Superconductors.
Desalination and Water Treatment Plants
Nano-technology applications
Hydrogen energy and fuel cells
3.2.9 Diversification
BHEL has also diversified into the area of track maintenance machines and coach building
for Indian Railways and undertakes retrofitting and overhauling of rolling stock.
3.2.10 Profits and losses of BHEL

BHEL has recorded highest ever turnover and profit during 2011-12, at a time when the
economic and business environment in India was undergoing some uncomfortable changes.
With the turnover and net profit of Rs. 49,510cr. And Rs. 7,040cr.
BHEL Company has registered growth of 19.9% and 24.3% in 2010-11 respectively during
the year excluding onetime impact of change in policy in 2010-11 related to provisions for
warranty obligations for earlier years.
In the power sector and intense competitive pressure in domestic and overseas markets,
BHEL secured orders worth Rs.22,096 crore, during the year. At the end of the year,
cumulative orders in hand for execution in 2012-13 and beyond, stand at about Rs.1,35,300
crore.

BHEL significantly increased their execution capabilities. As a result, during XI Plan period,
BHEL commissioned 25,385 MW of Utility sets against 13,613 MW achieved in X Plan
period.
First time in country new rating 525 MW thermal sets was commissioned by BHEL.
Continuing its focus on Engineering and R&D, company invested r 1,198.82crore in R&D
and filed 351 patents during the year. This is enabling us to build and consolidate our
innovation capabilities in emerging and existing areas.
BHEL made a capital investment of r 1,122 crore during 2011-12 towards augmentation of
manufacturing capacity and modernization of facilities in manufacturing units and at power
project sites. With this, in XI Plan period, BHEL has made a capital investment of r 6,298
crore as against r 1,092 crore in X Plan- a six-fold increase. Maintaining our leadership
position in India.
Bharat Heavy Electricals Limited (BHEL) - SWOT Analysis examines the company's
key business structure and operations, history and products, and provides summary analysis
of its key revenue lines and strategy.
3.2.11 Strengths
Strong engineering base and stable industrial relationship. Has been making profits
continuously and paying dividends since 1974.
Great support from the collaborators has helped it to acquire modern technology and
transform it to suit Indian conditions
Huge customer base in domestic business leading to major presence and influence in the
market
More than 190 products and 30+ major product groups
Ability to deliver high quality products at a competitive price

3.2.12 Weakness

Inability to provide to give suppliers credit, soft loans and financing of power projects
Longer delivery cycles when compared with other international competitors
The company lacks effective marketing infrastructure
3.2.13 Opportunities
There is a huge demand of power and is expected to grow further
Ageing power plants need more service and spare parts
As it cost competitive, it has potential export opportunities
3.2.14 Threats
Increased competition both national and international companies
Foreign competitors rapidly spending on promotion tactics
Consolidations in the industry have reduced the turnover of the company
3.2.15 Competitors of BHEL
Larsen
Adani ports
Seimens
ABB
Jayaprakash Asso
GMR Infra
Thermax
EngineersIndia
IRB Infra
BEML
Suzlon Energy


3.2.16 VISION
A global engineering enterprise providing solutions for a better tomorrow
3.2.17 MISSION
Providing sustainable business solutions in the fields of energy, industry & infrastructure
BHEL has been a pioneer in the area of Human Resource Development, being the first
Public Sector Undertaking of its kind, in India, to have setup an extensive HRD infrastructure
as way back as the early sixties. Human Resource Development Centre (HRDC) of BHEL
R.C.Puram, Hyderabad occupies a significant place not only among other HRDCs of BHEL
but also as an important Training and Development Centre in the twin cities of Hyderabad
[Andhra Pradesh].
3.2.18 VALUES
Zeal to Excel and Zest for Change
Integrity and Fairness in all Matters
Respect for Dignity and Potential of Individuals
Strict Adherence to Commitments
Ensure Speed of Response
Foster learning, Creativity and Team-Work
Loyalty and Pride in the Company

3.2.19 OVERVIEW OF BHEL
Bharat Heavy Electricals Limited (BHEL) owned by Government of India, is a
power plant equipment manufacturer and operates as engineering and manufacturing company
based in New Delhi, India.

Established in 1964, BHEL is India's largest engineering and manufacturing company
of its kind. The company has been earning profits continuously since 1971-72 and paying
dividends uninterruptedly since 1976-77. In recognition of its consistent high performance,
BHEL has been conferred with the 'Maharatna' status by the Government of India on 1
February 2013. It is now one among seven Maharatna PSEs
BHEL emerged as the largest engineering and manufacturing enterprise of its kind in
India and ranks amongst the top ten power generation equipment manufacturers in the world.
BHEL is engaged in the design, engineering, manufacture, construction, testing,
commissioning and servicing of a wide range of products, systems and services for the core
sectors of the economy, viz. Power, Transmission, Industry, Transportation, Renewable
Energy, Oil & Gas and Defence.
With a massive network of 14 manufacturing Units located at various important
centers all over India, BHEL manufactures almost all critical high technology products
required for power sector like Gas Turbines, Steam Turbines, Turbo generators, Boilers,
Pumps and Heat exchangers, Pulverizes and electrical switch gears.
With a widespread network of 17 manufacturing units, two repair units, four regional
offices, eight service centers, eight overseas offices, 15 regional centers, seven joint ventures,
and infrastructure to execute more than 150 project sites across India and abroad, BHEL
provides products, systems and services to customers efficiently and at competitive prices. The
company has established capability to deliver 20,000 MW p.a. of power equipment to address
the growing demand for power generation equipment.
BHEL places strong emphasis on innovation and development of new technologies. Its
research and development (R&D) efforts enables a strong customer orientation for responding
to changes in the market.

The high level of quality & reliability of its products is due to adherence to
international standards by acquiring and adapting some of the best technologies from leading
companies in the world including General Electric Company, Alstom SA, Siemens AG and
Mitsubishi Heavy Industries Ltd., together with technologies developed in our own R&D
centers. Most of its manufacturing units and other entities have been accredited to Quality
Management Systems (ISO 9001:2008), Environmental Management Systems (ISO
14001:2004) and Occupational Health & Safety Management Systems (OHSAS 18001:2007)
With strategic alliances and technological collaborations with world leaders for its
products, BHEL's technological strength is today on par with the best in the world.
The BHEL, which set up its first in Bhopal was established in the year 1956. It is the
first and largest industrial undertaking in the country manufacturing power equipment. It has
now 4 Regional Centers, 8 Service Centers and 18 Regional Offices. The corporate head-
quarters is located in New Delhi. In the early sixties three major plants were set up at
Haridwar, Hyderabad and Tiruchirapalli. Its products cover a wide range like power,
transmission, industry, transportation, oil and gas, telecommunication etc., besides non-
conventional energy systems.
The other areas covered by the BHEL include defense and civil aviation. Its services
extend from Project Feasibility Studies to after sales service including undertaking turn-key
projects. Its credibility and standing in the industrial scene of the country is evident from the
report of the World Bank as the Indian Public Sector wherein it is described as One of the
most efficient enterprises in the industrial sector, at par with international standards of
efficiency. BHEL has acquired the ISO-9000 Certification for most of its operations.


According to the organizations vision 2002, it aims to become a world class,
innovative, competitive and profitable engineering enterprise providing total business
solutions. Its declared mission is to acquired the status of leading engineering enterprise
providing quality products, systems and services in the field of energy, transportation,
industry, infra-structure and other areas covered by the electricity industry.
The value system of the organization envisages meeting commitments to customers,
both internal and external, faster learning experiences and creativity among the work force,
maintain the dignity of the individuals working in the organization as well as customers and
outsiders, promote loyalty and a sense of pride among the workers, encourage team spirit,
create a zeal to excel and follow a policy of fairness among all those with whom it deals.
The leadership styles in the organization are oriented towards fostering and sustaining
organizational values, empowering everyone with responsibility but ensuring accountability at
all levels. The leadership styles include a vision, courage, credibility, versatility with due
importance given to recognition of merit, acting on feedback from the lower levels and
counseling those who need it, adopt a system of information sharing and consultation. In
short, it would like to project itself as a role model for others.
The organizational objectives of BHEL has been carefully and judiciously formulated
to ensure study growth in the current global environment of competition, secure a reasonable
and adequate return on the capital invested, ensure a high degree customer satisfaction, to
motivate its employees for performance of improvement and aim as a career growth within
the organization to achieve technological up gradation and to fulfill the expectations of its
share holders, customers and the BHEL manufactures wide range of transmission equipment
such as transformers, reactors, switches, control relay panel, insulators, capacitors, instrument
transformer sets etc.

It has developed capability to provide a wide variety of electrical, electronic and
mechanical equipment for industrial requirements particularly fertilizers, petrochemicals, coal
mining etc. Its role in the transportation sector as today over 60% of the Indian Railways is
equipped with the traction equipment manufactured by the BHEL. Its investment in the
development of oil and gas industry in the country, both on shore and off shore is
considerable. Its entry into the telecommunication industry has given India an Electronic
Private Automatic Branch Exchange (EPABX) system, the Rural Automatic Exchange (RAX)
based on indigenous technology from C-Dot. The latest digital switching used in these
exchanges and their network capability opens up endless possibilities.
BHELs engineering and R&D efforts are focused on improving the quality of its
products, upgrading the existing technologies, accelerating the process of indigenization and
diversifying its products.
It is a matter of pride to the country that BHELs products and services are used in
over 50 countries all over the world. It caters to export orders ranging from individual
specified products to complete power stations.
BHELs future plans include up gradation of its product engineering manufacturing
technology through induction of the state of the art technologies and absorption of knowhow
and know why its collaborators form.
BHELs strength lies in its dedicated work force, of about 63,000 employees who
undergo entry and on the job training to promote appropriate work culture through
participatory management techniques to meet the challenges of the current millennium.


3.2.20 BHEL - Hyderabad (Ramachandrapuram) Unit:
BHELs Ramachandrapuram Unit located in the out skirts of Hyderabad city was
established in the early sixties to bring power to the people. The products of the unit include
TG sets up to 200 mw, industrial TG sets, gas turbines, turbo-compressor systems, heat
exchangers, switch gears etc. Around 7000 employees work in the Hyderabad unit of whom
about 1500 are executives, 1200 supervisors and 4300 others.
As a member of the prestigious 'BHEL family', BHEL-Hyderabad has earned a
reputation as one of its most important manufacturing units, contributing its lion's share in
BHEL Corporation's overall business operations.
The Hyderabad unit was set up in 1963 and started its operations with manufacture of
Turbo-generator sets and auxiliaries for 60 and 110 MW thermal utility sets. Over the years it
has increased its capacity range and diversified its operations to many other areas. Today, a
wide range of products are manufactured in this unit, catering to the needs of variety of
industries like Fertilizers & Chemicals, Petrochemicals & Refineries, Paper, sugar, steel, etc.
BHEL-Hyderabad unit has collaborations with world renowned MNCs like M/S
General Electric, USA, M/S Siemens, Germany, M/S Nuovo Pignone, etc BHEL is the largest
engineering and manufacturing enterprise in India in the energy-related/infrastructure sector,
today. BHEL was established more than 40 years ago, ushering in the indigenous Heavy
Electrical Equipment industry in India - a dream that has been more than realized with a well-
recognized track record of performance. The company has been earning profits continuously
since 1971-72 and paying dividends since 1976-77.


BHEL manufactures over 180 products under 30 major product groups and caters to
core sectors of the Indian Economy viz., Power Generation & Transmission, Industry,
Transportation, Telecommunication, Renewable Energy, etc. The wide network of BHEL's 14
manufacturing divisions, four Power Sector regional centres, over 100 project sites, eight
service centers and 18 regional offices, enables the Company to promptly serve its customers
and provide them with suitable products, systems and services -- efficiently and at competitive
prices. 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 R&D centers
3.2.21 Product Profile
Thermal power Plants
Nuclear power Plants
Gas based power Plants
Hydro power Plants
DG power Plants
Boilers (steam generator)
Boiler Auxiliaries
Gas generator
Hydro generator
Steam turbine
Gas turbine
Hydro turbine
Transformer
Switchgear
Oil field equipment (OFE)

Boiler drum
Piping Systems
Soot Blowers
Valves
Seamless Steel Tubes
Condenser and Heat exchanger
Pumps
Desalination and Water treatment plants
Automation and Control Systems
Power electronics
Transmission system control
Semiconductor Devices
Solar Photo voltaic
Software System Solution
Bus ducts
Insulators
Control panel
Electrical machines
Compressors
Control gear
Traction motors
Research and development products

3.23 BHEL - OVERSEAS BUSINESS
BHEL, Ranking among the major power plant equipment suppliers in the world, is one
of the largest exporters of engineering products and services from India. Over the years,
BHEL has established its reference in around 60 countries of the world, ranging from the
united state in the west to New Zealand in the Far East.

BHELs exports range cover individual product to complete power stations, turnkey
contracts for power plants, EPC contracts, HV/EHV substations, O&M services for familiar
technologies, specialized after- market service like residual life assessment (RLA) studies and
retrofitting, refurbishing and overhauling, and supplies to manufacturers and EPC contractors.
BHEL has assimilated and updated / adopted the state-of-the-art technologies in the
power and industrial equipment sectors acquired from world leaders. BHEL has successfully
undertaken turnkey projects on its own and possesses the requisite flexibility to interface and
compliment international companies for large projects, and has exhibited adaptability by
manufacturing and supplying intermediate products to the design of other manufacturer and
original equipment manufacturers (OEMs)
The success in the area of rehabilitation and life extension of power projects has
established BHEL as a reliable alternative to the OEMs for such power plants.


CHAPTER-4
DATA ANALYSIS AND INTERPRETATION

The process of evaluating data using analytical and logical reasoning to
to examine each component of the data provided is called as data analysis.
This form of analysis is just one of the many steps that must be completed when conducting
a research experiment. Data from various sources is gathered, reviewed, and then analyzed to
form some sort of finding or conclusion. There are a variety of specific data analysis method,
some of which include data mining, text analytics, business intelligence, and data
visualizations.
The following section provides the details regarding the data analysis on the research
topic Quality Circles at BHEL. Also discusses the awareness of quality circles, Employee
feedback on Quality Circles etc.


Table 4.1: No. of Years of experience in the present organization (BHEL)

Sl. No Experience (years) No. of respondents Percentage
1 0-5 Years 27 19
2 5-10 Years 63 44
3 10-15 Years 23 16
4 More than 15 Years 31 21
Total 144 100
Source: Field Survey

Analysis and Interpretation:
From the above table it is found that 19% of the employees are working in this
company since 5 years, 44% of the employees are working in this company for 5-10 years and
16% of them are working in this company for 10-15 years whereas 21% are working for more
than 15 years. Majority of the employees are working for 5-10 years in BHEL which shows
that the workforce is quite young and enthusiastic.


Chart 4.1: No. of Years of experience in the present organization (BHEL)

0-5 Years
19%
5-10 Years
44%
10-15 Years
16%
More than 15
Years
21%

Table 4.2: Respondents opinion on awareness of Quality Circles at BHEL

S. No Parameter No. of respondents Percentage
1 Fully aware 43 30
2 Partially aware 51 35
3 Only basics 32 22
4 Not aware 18 13
Total 144 100

From the above table it is found that 30% of the respondents are fully aware of
quality circles, 35% are partially aware, 22% are aware of only basics in quality circles while
13% are not aware of quality circles at all. Most of the employees are partially aware (35%) of
the Quality Circles because of their non-involvement in the administrative issues of the
organization.


Chart 4.2 Respondents opinion on awareness of Quality Circles at BHEL

30
35
22
13
Fully aware
Partially aware
Only basics
Not aware
0 5 10 15 20 25 30 35 40

Table 4.3: Respondents opinion on involvement in Quality circles teams

1 Frequently 39 27
2 Some times 52 36
3 Rarely 34 24
4 Never 19 13
Total 144 100

From the above table it is found that 27% employees are involving frequently in
Quality circle teams working in their work area, 36% sometimes, 24% rarely, 13% never
involved in quality circles. The Majority of the employees involve sometimes in quality circle
process due to their busy work schedules.


Chart 4.3: Respondents opinion on the involvement of quality circles team

Frequently
27%
Some times
36%
Rarely
24%
Never
13%

Table 4.4: Respondents opinion on membership in Quality Circles
S. No Parameter
No. of
respondents
Percentage
1 Yes 95 66
2 No 49 34
Total 144 100

From the above table it is found that most of the employees (66%) are having
membership in Quality Circles. Rest of the employees also can take the membership in
quality circles to increase the Qaulity of their work.


Chart 4.4: Respondents opinion on membership in Quality circles

Yes
66%
No
34%

Table 4.5: Respondents opinion on the purpose of Quality Circles in BHEL

Sl. No Parameter No. of respondents Percentage
1
Improvement in Human
Relations
15 10
2 Promotion of Work Culture 17 12
3 Develop Team Work 31 22
4 Improve Productivity 21 15
5
Enhance Problem Solving
Capacity
15 10
6 All of the Above 45 31
Total 144 100

From the above table it is found that majority i.e., 31% of respondents need all the
categories to be involved and only 10% of respondents wants to make some improvement in
human relations, 10% in enhancing problem solving capacity, 15% want to improve
productivity, 22% want to develop team work, 12% want promotion of their work culture and
10% in improvement in their work culture using QC. So, it can be said that they can
implement QC in every field of work.


Chart 4.5: Respondents opinion on the purpose of QC in BHEL

10
12
22
15
10
31
Improvement in Human Relations
Promotion of Work Culture
Develop Team Work
Improve Productivity
Enhance Problem Solving Capacity
All of the Above
0 5 10 15 20 25 30 35

Table 4.6: Respondents opinion on whether Quality circle helps in developing a
participative environment

1 Fully agree 87 60
2 To Some extent 48 33
3 Does not 4 3
4 Not aware 5 4
Total 144 100

From the above table it is found that 60% of employees completely agree, 33% up to
some extent,3% does not agree and 4% are not aware, that QC helps in develoiping a
participative environmment in the organization.
Quality circles help in making a participative environment and employees can involve
in every activity.


Chart 4.6: Respondents opinion on whether QC helps in the development of
participative environment in the organization.

60
33
3
4
0 10 20 30 40 50 60 70
Fully agree
To Some extent
Does not
Not aware

Table 4.7: Respondents opinion on solving of problems in work area using QC

S. No Opinion No. of respondents Percentage
1 Fully agree 54 38
3 Never 13 9
Total 144 100

From the above table it is found that 38% completely agree, 53% to some extent and
9% never agree that QC teams can solve the problems of their work area.
The respondents need to have more awareness in QC, which helps in solving the
problems in working area.


Chart 4.7: Respondents opinion on solving of problems in work area using QC.

Fully agree
38%
To Some
extent
53%
Never
9%

Table 4.8: Respondents opinion on whether Quality Circles are helpful in Cost
Reduction

1 Fully agree 89 62
3 Never 8 5
Total 144 100

From the above table it is found that Out of 144 respondent employees 62% of the
employees agreed, 33% agreed up to some extent, 8% never believed that Quality Circles are
helpful in Cost Reduction.
Quality circles helps in cost reduction. BHEL has to implement more number of QCs
to reduce their extra costs of manufacturing.


Chart 4.8: Respondents opinion on whether Quality Circles are helpful in Cost
Reduction

Fully agree
62%
To Some extent
33%
Never
5%

Table 4.9: Respondents opinions on whether Quality Circles are helpful in increasing
Productivity

1 Yes 87 61
3 Never 12 8
Total 144 100

From the above table it is found that Out of the 144 employees, 61% of the employees
agreed and 31% agree partially and 8% never believe that Quality Circles are helpful in
increasing Productivity of the organization. And also Quality circles helps in increasing the
output level.


Chart 4.9: Respondents opinion on whether the QCs are helpful in increasing the
productivity.

Yes
61%
To Some extent
31%
Never
8%

Table 4.10: Respondents opinion on whether QCs help in building up the positive work
culture.

1 Yes 92 64
3 Never 8 5
Total 144 100

From the above table it is found that Out of the 144 employees, Regarding feed back
64% of the employees are satisfied, 31% some extent and whereas 5% of the employees are
not satisfied with the statement.
Quality circles helps in buliding up a postive work culture in the organization.


Chart 4.10: Respondents opinion on whether QCs help in building up the positive work
culture.

Yes
64%
To Some extent
30%
Never
6%

Table 4.11: Respondents opinion on whether Management keeps track on the activities
of Quality Circles

1 Yes 81 56
3 Never 10 7
Total 144 100

From the above table it is found that out of 144 respondents 56% of the employees
agreed, 37% partially agree and 7% disagree to say that the management keeps tracking on the
activities of Quality Circles.
The company needs to keep more tracking on the activities of quality circles.


Chart 4.11: Respondents opinion on whether Management keeps track on the activities
of Quality Circles

Yes
56%
To Some extent
37%
Never
7%

Table 4.12: Respondents opinion on Satisfaction with the Quality Circle Movement in
BHEL

1 Highly satisfied 47 33
2 Satisfied 87 60
3 dissatisfied 10 7
Total 144 100

From the above table it is found that 60 % of the employees are satisfied, 33% are
highly satisfied and 7% are not satisfied with the Quality Circle Movement in BHEL,
Hyderabad.
Employees are satisfied with the QC movement in the organization. The company
needs to work on making the QC movement even more effective.


Chart 4.12: Respondents opinion on Satisfaction with the Quality Circle Movement in
BHEL.

Highly
satisfied
33%
Satisfied
60%
dissatisfied
7%

Table 4.13: Respondents opinion on whether Top Management is interested in
motivating the employees through Quality Circles

S. No Parameters No. of respondents Percentage
1 Strongly agree 37 26
2 Agree 77 53
3 Disagree 23 16
4 Can't say 7 5
Total 144 100

From the above table it is found that majority of respondents i.e 53% agreed, 26% of
them strongly agreed, 16% of them disagreed and only 5% of the employees cant say
anything about the whether Top Management is interested in motivating the employees
through Quality Circles.
The top management should increase the number of training programmes for the
employees on quality circles, so that employees get motivated.


Chart 4.13: Respondents opinion on whether Top Management is interested in
motivating the employees through Quality Circles

26
53
16
5
0 10 20 30 40 50 60
Strongly agree
Agree
Disagree
Can't say

Table 4.14: Respondents opinion on whether Quality circles are important for the
growth of the company

1 Very important 57 40
2 Important 79 55
3 Not important 6 4
4 Can't say 2 1
Total 144 100

From the above table it is found Majority of respondents 55% agreed, 40 % said it is
very important, 4% said its not important, that it is important and only 1%of the employees are
not satisfied with the statement.
Quality circles helps in the growth of company, since the producivity and profits
increase.


Chart 4.14: Respondents opinion on whether Quality circles are important for the
growth of the company

Very important
40%
Important
55%
Not important
4%
Can't say
1%

Table 4.15: Respondents opinion on whether Top Management rewards the Quality
Circle Members for their Achievements

2 Agree 74 52
3 Disagree 12 8
4 Can't say 10 7
Total 144 100

Out of the 144 employees 52% of the employees agreed and 33% of the employees are
strongly agreed , 8% disagreed, 7% cant say that Top Management Rewards the Quality
Top management should have the responsibility to reward the quality circle members
in order to encourage the team performance.


Chart 4.15: Respondents opinion on whether Top Management rewards the Quality

33
52
8
7
Strongly agree
Agree
Disagree
Can't say
0 10 20 30 40 50 60
O
p
i
n
i
o
n

Percentage

Table 4.16: Respondents opinion on whether involvement in Quality Circles is un-
productive or waste of time

2 Agree 14 9
3 Disagree 112 78
4 Can't say 14 10
Total 100 100

The majority of the respondents i.e. 78% disagreed and only 3% of the respondents
strongly agreed, 10% cant say, 9% agreed with this statement.
Involvement in quality circles is productive; it is not a waste of time.


Chart 4.16: Respondents opinion on whether involvement in Quality Circles is un-
productive or waste of time

Strongly
agree
3%
Agree
9%
Disagree
78%
Can't say
10%

CHAPTER-5

FINDINGS, CONCLUSION & SUGGESTIONS
5.1 FINDINGS
There are very few employees who stayed in the company for 15 years. Most of them have
5-10 years of experience.
Majority of them are partially aware of quality circles at BHEL.
Majority of respondents involve in the quality circles teams sometimes.
Majority of the repondents had membership in quality circles teams.
Majority of the respondents said that they want improvement in human relations, enhancing
problem solving capacity, improving productivity, developing team work, promotion of their
work culture and improvement in their work culture using QC.
Majority of the respondents completely agreed that quality circles helps in developing a
participative environment.
Majority of the respondents said that QC helps in solving the problems at work area.
Majority of them said that QC are helpful in cost reduction. Very less people disagreed with
the statement.
Majority of respondents agreed that QCs are helpful in increasing the productivity.
Majority of the employees agreed that Quality Circles are helpful in building a Positive
Work Culture
Majority of the employees agreed that the management keeps tracking the activities of
Quality Circles.
Majority of the employees are satisfied with the Quality Circle Movement in BHEL,
Hyderabad.

Most of the respondents agreed that, Top Management is interested in motivating the
employees through Quality Circles.
Majority of the respondents think that quality circles are useful for the growth of the
company.
Half of the respondents agreed that the Top Management rewards the Quality Circle
Members for their achievements.
Majority of them disagreed that involvement of quality circles is an un-productive or waste
of time.


5.2 CONCLUSION
Quality circles were originally associated with Japanese management and manufacturing
techniques. The introduction of quality circles in Japan in the postwar years was inspired by
the lectures of W. Edwards Deming (1900-1993), a statistician for the U.S. government.
Quality Circle is one of the employee participation methods. It implies the development of
skills, capabilities, confidence and creativity of the people through cumulative process of
education, training, work experience and participation. It also implies the creation of
facilitative conditions and environment of work, which creates and sustains their motivation
and commitment towards work excellence. Quality Circles have emerged as a mechanism to
develop and utilize the tremendous potential of people for improvement in product quality and
productivity.

A study conducted on Quality circles in BHEL has given an enormous understanding
about the concept, functioning and their benefits to increase the productivity of the
organization. Hence it can be safely concluded that no progressive organization can afford to
ignore the concept of quality circles. Quality Circles are not limited to manufacturing firms
only. Quality Circles are relevant for factories, firms, schools, hospitals, universities, research
institutes, banks, government offices etc.


5.3 SUGGESTIONS
Conducting the motivational classes in the last week of every month
It is very important to provide the opportunity to the employees of the organization to
express their ideas or whatever they want to express during the quality circle process
Management can also give importance to the mental relaxation & socio-cultural
development of employees who strive hard for the company
Role clarity of each position need to be defined and based on that, individuals can plan
their work accordingly.
Self-potential system might be encouraged
Regular review and comparison of current & past performance to detect gradual
deterioration in the strategy to be conducted
The executives and the managers in order to make QC Circle activities successful,
contribute to improving the enterprises, constitute and implement companywide TQM
or similar one by themselves.


BIBLOGRAPHY
Text Books
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3. C.R.Kothari (2001) Research Methodology of Vishwa Prakashan Publishing, Chennai-
17, Edition
4. C.B. Mamoria & S.V.Gankar (2001), Personnel Management Text & Cases, Himalaya
Publishing houses Mumbai, XXI Edition.
5. R.S.N,Pillai & V. Bhagavathi (1998), Statistics of Sultan Chand and sons, New
Delhi,pp.132-141, II Edition.
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Dale and Lees Long Range Planning. Feb87, Vol. 20 Issue 1, p78-83. 6p.
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Garvin, D. 1993. Building a learning organization. Harvard Business Review 71, no. 4:
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Griffin, Ricky(1987), Academy of Management Best Papers Proceedings. 1987, p191-
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Hutchins, David Industrial & Commercial Training. Mar83, Vol. 15 Issue 3, p80. 3p.
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Meyer, G. W & Stott, R. G. 1985. Quality circles: Panacea or Pandora's box
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Websites:
www.citehr.com
www.managementparadise.cm
www.webopedia.com
www.bhel.com
www.ebscohost.com

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A Study on Quality Circles at BHEL

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