HEC Project Report1

8/3/2019 HEC Project Report1

1/52

Marketing Study of HEC

INTRODUCTION

ABOUT PROJECT AND ITS NEED

A variety of operations keep businesses, especially large corporations,running efficiently and effectively. Common business operation divisionsinclude (1) production, (2) marketing, (3) finance, and (4) human resourcemanagement.

PRODUCTION

Production includes those activities involved in conceptualizing, designing,and creating products and services. In recent years there have beendramatic changes in the way goods are produced. Today, computers helpmonitor, control, and even perform work. Flexible, high-tech machines cando in minutes what it used to take people hours to accomplish. Anotherimportant development has been the trend toward just-in-time inventory.The word inventory refers to the amount of goods a business keeps availablefor wholesale or retail. In just-in-time inventory, the firm stocks only what itneeds for the next day or two. Many businesses rely on fast, globalcomputer communications to allow them to respond quickly to changes inconsumer demand. Inventories are thus minimized and businesses caninvest more in product research, development, and marketing.

MARKETING

Marketing is the process of identifying the goods and services thatconsumers need and want and providing those goods and services at theright price, place, and time. Businesses develop marketing strategies byconducting research to determine what products and services potentialcustomers think they would like to be able to purchase. Firms also promote

their products and services through such techniques as advertising andpersonalized sales, which serve to inform potential customers and motivatethem to purchase. Firms that market products for which there are alwayssome demand.

So in our project report we really emphasis on manufacture, production,financial aspects of HEC Ranchi to make our project more realistic andauthentic.

1 | P a g e


2/52


SCOPE OF PROJECTGathering information and theoretical knowledge is a part of study. Itbecomes complete when added with practical knowledge as the noted truthcomes to sight. Hence one becomes more efficient and effective when a

flavor of practical out look is added to the bosky mind. As the study has gotwide relevance is formulating valid information about the HEC. The authentic project reports helps us in several purposes Goal setting To get the profitability of the company To implement the rule and regulation in the company To overcome the risks in the company To understand the companys marketing strategy To estimates the financial budgeting of the company and many more

ABOUT HEAVY ENGINEERING CORPORATION

Heavy Engineering Corporation or "HEC" is a Public Sector Undertaking ("PSU") in India . It is one of India's oldest and largestengineering companies. It is the biggest industry of its kind in Asia. HEC isunder the Ministry of Heavy Industries, Govt. of India. Established in theyear 1958 as the largest integrated engineering industrial complex in Indiawith excellent design, Engineering, and manufacturing base. The company isengaged in the manufacture and supply of capital equipments, machine toolsand spares needed for the core sector industries.

Location

HEC is situated near Hatia , in Ranchi , Jharkhand .

Plants

It consists of four units:

1. Heavy Machine Building Plant (HMBP). Set up in Collaborationwith erstwhile USSR Design & Manufactures Equipment and Spares for different

Sectors.

1. Heavy Machine Tools Plant (HMTP). Set up in Collaboration witherstwhile CSSR (M/s SKODA)

2 | P a g e
http://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hatiahttp://en.wikipedia.org/wiki/Ranchihttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Hatiahttp://en.wikipedia.org/wiki/Ranchihttp://en.wikipedia.org/wiki/Jharkhandhttp://en.wikipedia.org/wiki/Public_Sector_Undertakinghttp://en.wikipedia.org/wiki/Public_Sector_Undertaking


3/52


Design & Manufactures CNC & Conventional machine tools inmedium & heavier ranges. Manufactures special purpose railwaymachine tools and reconditions old machine tools.

1. Foundry Forge Plant (FFP) - Set up in collaboration with erstwhileCSSR (M/s SKODA)

Manufactures heavy castings & forgings and rolls for hot & coldrolling mills for steel

1. Project Division - HEC Executes various projects in the core sectorsfrom concept to commissioning in different sectors like mining, power,steel plants, cement engineering etc.

COMPANY PROFILEINTRODUCTION

HEC was incorporated on 31.12.1958 under the Companies Act, 1956. Thecompany started production in the year 1964. It was established under theMinistry of Industry with the primary objective of achieving self sufficiencyand self reliance in the field of design and manufacture of equipment andmachinery for core sector, especially steel industries. It was visualized atthat time that one steel plant of one million ton capacity will be added everyyear in India, which however, did not materialize. Consequently the demandfor steel making machinery was never as high as it was expected. HenceHEC diversified its area of operation in other core sectors like mining,railways, defence etc. Currently, the company is engaged in the manufactureand supply of capital equipment, machine tools and spares needed for thecore sector industries namely; steel, coal, cement, power, defence,aluminum, ship building and railways etc.

The head office and three plants of the company are situated in Ranchi, thecapital of the newly formed state Jharkhand. The company has its offices inNew Delhi and Kolkata.

3 | P a g e


4/52


UNITS:

Heavy MachineBuilding Plant(HMBP) :

The Plant has a fenced area of 5,70,000 sq.m and afloor area of nearly 2,00,000 sq.m. It is wellequipped with sophisticated machine tools andhandling equipments to undertake manufacture of heavy machinery and equipment of top quality. It isengaged in design and manufacture of equipmentsand components for Steel Plant, Mining, MineralProcessing, Crushers, Material Handling, Cranes,Power, Cement, Aluminium, Space Research,Nuclear Power etc..

Foundry ForgePlant (FFP):

It is the largest foundry and forging complex in Indiaand one of the largest of its kind in the world. Thearea of the Plant is 13,16,930 sq.m accommodating76,000 tonnes of installed machinery to cope up withthe various operations effectively. This Plant is themanufacturer of heavy castings and forgings forvarious HEC make equipments and related to Steelplant, Defence, Power, Nuclear energy etc..Manufacturer of Forged Rolls for Steel Plants, CrankShafts for Railway Loco etc.

HEAVY MACHINETOOLS PLANT(HMTP):

Set up in collaboration with M/s SkodaexportCzechoslovakia, HMTP is the most modern andsophisticated of its kind in the country whichproduces machine tools in heavier ranges. The Plantcovers an area of over 2,13,500 sq.m. It designsand manufactures medium & heavy duty CNC andconventional Machine Tools for Railways, Defense,Ordnance factories, HAL, Space and other strategicsectors.

Projects Division Design, Engineering and execution of TurnkeyProjects related to Bulk Material handling, SteelPlant projects, Cement Plant and other sectors.

Quality Policy:

To achieve and maintain a leading position as supplies of reliable quality products,

4 | P a g e


5/52


systems and services to meet customer needs and expectations

Technology and associates:Over the years HEC absorbed and assimilated technology from various

internationally renowned organizations:

GM/s HITACHI ( Japan ) Forged RollTechnology

M/s RANSOM & RAPIER (UK) Walking DRAGLINE for open cast mines

M/s BUCYRUS-ERIE (USA) 10 Cu.M. Excavators for open cast mines

M/s O&K ORENSTRIN & KOPPELAG(Germany)

Hydraulic Excavators for coal mines

M/s GHH STERKRADE (Germany) Mine Winders & Vertical Transportation System

M/s DEMAG LAUCHHAMMER(Germany)

Stackers, Reclaimers etc.

M/s SMS SCHLOEMANN SIEMAG(Germany)

Continuous Casting Plants

M/s Schelke EisenhutteMaschinefabrick GMBH, Germany New generation Coke Oven Machines

M/s Benxi Iron & Steel Group CraneWorks Ltd., (China)

Torpedo Ladle Cars

M/s SKODA, CKD BLANSKO, TOS of CSSR

M/s HERKULES (Germany)

M/s HEGENSCHEIDT (Germany)

M/s BOEHRINGER (Germany)

M/s O-M (Japan)

5 | P a g e


6/52


M/s CREUSOT LOIRE (France)

M/s NATIONAL FORGE COMPANY (USA)

CAPITAL BASE:The authorised capital of the company is Rs. 1000 crores and the paidupcapital is Rs.606.08 crores.

EXISTING PLANT LAYOUT,MANUFACTURING PROCESS,FACILITIES, PRODUCTS AND PAST COLLABORATIONS:More than 7000 acres of land had been conveyed to the company at thetime of its incorporation by Govt. of Bihar for its use. The company has builtplants, administrative office and township on this land.

The company was set up with the capability to manufacture steel plantequipment that can enhance the steel producing capacity by one milliontones per annum. The company has three manufacturing units and oneproject and consultancy division viz.

(i) Foundry Forge Plant (FFP)(ii) Heavy Machine Building Plant (HMBP)(iii) Heavy Machine Tool Plant (HMTP)(iv) Project Division (TKP)

PLANT LAYOUT

The plant layout of HEC is mainly Functional layout.In this layout , the mainidea is to arrange or gather machines or equipments of the same functioninto one group or department.The advantages of this layout arae as follows:-

1. Minimize material handling costs

2. Utilize space efficiently

3. Utilize labor efficiently

4. Eliminate bottlenecks

5. Facilitate communication and interaction between workers, workers andsupervisors

6. Eliminate waste or redundant material

6 | P a g e
http://en.wikipedia.org/wiki/Layouthttp://en.wikipedia.org/wiki/Layout


7/52


7. Promote product and service and quality

8. Provide a visual control of activities

MANUFACTURING PROCESS:The manufacturing process deployed in HEC is mainly discretemanufacturing. The processes deployed in discrete manufacturing are notcontinuous in nature. Each process can be individually started or stoppedand can be run at a varying production rates. The final product may beproduced out of single of multiple inputs.

This is different from Process manufacturing like production of paper orpetroleum refining, where the end product is obtained by a continuousprocess or a set of continuous processes.

Discrete manufacturing process allows for temporary stoppage of work inone area without affecting the entire unit, where as continuous processmanufacturing requires that entire production process be stopped.

The advantages of discrete manufacturing are as follows:-

work is generally of a high quality a high level of customisation is possible to meet the customer's exact

requirements significant flexibility is possible workers can be easily motivated due to the skilled nature of the work

they are performing

The installed capacity of the plant units is as follows:-(i) FFP: 174540 T of casting and forgings(ii) HMBP: 105000 T of equipment and structures(iii) HMTP: 970 nos. of machine tools.

Details of facilities available, the products and the past collaborators of theplant are as follows:-

FOUNDRY FORGE PLANT (FFP)The plant was established in collaboration with SKODAEXPORT of erstwhileCSSR and equipped with facilities for melting, heavy and medium casting, alltypes of forging and machining. Some of the major facilities installed in theplant are as follows:-

7 | P a g e


8/52


a. Arc furnaces of capacity 5t, 10t, 20t and 60t.

b. Vacuum arc degassing furnace of capacity 60t.

c. Induction furnaces of capacity 0.5 t, 2t and 3t.

d. Hydraulic forge presses of capacity 6000t, 2650t, 1650t and 1000t.

e. 3t hammer, a series of small free forgings hammers and die forgingpresses.

f. Various ranges of machine tools including one lathe of 53m bed length.

g. Low frequency induction hardening machine for CRM rolls (25 mmdepth).

h. Centrifugal casting facility for slender bushes (350 mm dia and 1mlong).

i. Horizontal and vertical mist quenching equipment for quality heattreatment, producer gas & oxygen plant

The plant has also acquired technical know-how from the followingagencies:-

a. M/s Hitachi of Japan for updating forgings and forged roll technology.

b. M/s National Forge of USA for nitriding and machining of diesellocomotive crankshafts.

It manufacturers the following products:-

a. Medium and heavy castings/forgings for coal, defence, railway powerand other engineering sector - iron castings weighing upto 65 T pc.wt.,steel castings weighing upto 70 T pc.wt., non-ferrous castingsweighing upto 4 T pc.wt. and forgings weighing upto 50 T pc.wt.

b. Rolls for hot rolling mill and cold rolling mill of steel plant.

c. Crankshafts for railways.

d. Rolling mills, slabbing mills, blooming mills, SG iron rolls etc.

In addition this plant has also developed the following critical products:-

a. Armour plate forging for defence

b. Turret castings for defence.

c. Propeller shafts for Navy.

HEAVY MACHINE BUILDING PLANT (HMBP)The plant was established in collaboration with PROMASEXPORT of erstwhileUSSR and equipped with facilities for machining, gear cutting, heavystructurals and heat treatment. The plant comprises the following shops:-

a. Heavy Machine Shop

8 | P a g e


9/52


b. Medium and small machine shop

c. Reduction gear shop

d. Block of coke oven shop

e. Heat treatment and forging shop

f. Tools shop

g. Repair shop

h. Structural fabrication shop.

Some of the major facilities installed in the plant are as follows:-

a. Giant lathe (SOB:4 m, CD:20m)

b. CNC vertical turning and boring machine (job dia, 14m, job weight250t)

c. CNC plano milling machine (job size 3.5mx7mx2.5m,job weight 120t).

d. CNC Horizontal boring machine (200 mm spindle dia x 18 m col.travel)

e. CNC flame cutting machine (Max job size 25mx6.2m upto 500 mmthick).

f. Gear cutting machine (max job dia 5m, max. module 40mm hobbing).

The plant has also acquired technical know-how from the followingagencies:-

a. M/s Schloemann Siemag (SMS) of Germany for Continuous CastingPlants.

b. M/s Lurgi GmbH of Germany for Sinter Plants.c. M/s MANN of Germany for special purpose cranes.

d. M/s Bucyrus-erie of USA for 10 cu.m. excavators.

e. M/s Ransom and Rapier of UK for walking draglines.

f. M/s GHH Sterkrade of Germany for Mine winders and verticaltransportation system.

g. M/s Orenstein and Koppel (O&K) AG of Germany for Hydraulicexcavators.

The plant designs and manufactures equipment and spares for thefollowing:-

a. Steel plants.

b. Coal/mining equipment viz. 5 and 10 cu.m. rope shovels, hydraulicshovels, draglines, crushers and grinders, material handling equipmentetc.

c. Aluminium, power, defence, space research and atomic energy etc.

9 | P a g e


10/52


It has also a design and technology wing manned with trained andexperienced engineers. Some of the major equipment successfully designedby HMBP are as follows:-

Steel Plant Equipment

a. Sinter plant equipment (75 sq.m. to 312 sq.m.)

b. Coke Oven batteries (4.3 m to 7 m tall ovens).

c. Blast furnace (1033 cu.m. to 3200 cu.M)

d. Steel melting shop equipment (100t to 300t LD converter)

e. Continuous casting plant (for slabs/blooms/billets)

f. Rolling mill equipment including 3600 mm plate millg. EOT crane (up to 450t capacity).

Mining Equipment

a. Draglines upto 24 cu.m. Capacity and 96m boom.

b. Electric rope shovels (5/10 cu.m. capacity).

c. Primary gyratory, secondary and tertiary cone crushers and doubletoggle jaw crushers of various sizes.

d. Mine winders

HEAVY MACHINE TOOLS PLANT (HMTP)The plant was established in collaboration with SKODA of erstwhile, CSSRand equipped with facilities for manufacturing heavy machine tools-bothconventional and CNC version. It has also design and R&D wing mannedwith trained and experienced engineers. The plant is equipped with CNCmachine tools, conventional machine tools, induction hardening equipmentetc. Subsequently, the plant has also acquired technical know-how from thefollowing agencies:-

a. M/s HERCULES of Germany for roll grinding machines

b. M/s HEGENSCHEIDT of Germany for railway lathesc. M/s O-M of Japan for vertical borers.

d. M/s BOEHRINGER of Germany for plano-milling machines


a. Special purpose railway machine tools

10 | P a g e


11/52


b. CNC & Conventional machine tools in the medium and heavy range forcore and defence sectors like vertical turning and boring machine, rollturning lathe, roll grinding machine, deep hole boring machine, planer,plano-milling machine etc.

It also has also a fully equipped development wing and design section withCAD center, prototype assembling and testing facilities and manned withqualified and experienced engineers. HMTP has successfully indigenised thedesign of machine tools,both conventional and CNC version.

For movement of the materials within the plant and upto Hatia railway yard(nearest railway station) HEC has its siding of approx. 100 kms. of railwaylines served by its own diesel engines (8 nos.) and wagons (125 nos.). Thecompany has power generating facilities consisting of 4 nos. of DG sets each

of 2.8 MW in FFP and 1 no of 3.5 MW of DG set in HMBP as standbyarrangement.

TURN-KEY PROJECT EXECUTION

HEC Executes various projects in the core sectors from concept tocommissioning in different sectors like mining, power, steel plants, cementengineering etc.

Fields of specialization:

Material Handling Plant

Coal Handling Plants

Coal Washeries

Low Temperature Carbonisation Plant and Gas Treatment Plants

Tar distillation Plant & Processing Plants

Direct Reduction Plants from Iron Ore

Sinter Plants Continuous Casting Plants for Billets, Slabs and Blooms

B.O.F. & Gas cleaning Plant

Lime Calcination Plants

Rolling Mills

11 | P a g e


12/52


Cement Plants.

Special Focus:

Concept to Commissioning for Bulk material Handling and steel plant projects.

Feasibility studies & Site selection

Basic Engineering with Process Flow Sheets, Energy and Material Balance

Detail Specification of Plant and Process Equipment

Manufacturing, Erection, Testing & Commissioning of Plant & Equipment

Some of the projects executed:

Project & features Capacity Year of Completion

Coal Handling Plant atPARICHHA Thermal PowerStation (UPSEB), UPSEBTurnkey: Design tocommissioningWagon Tippler, Ring Granulator,

Plough Feeder, Conveyor (1.6Km)Civil, Structure, Electrics

675 TPH 1984

Jayant CHP, Northern CoalFields Ltd.Turnkey: Design tocommissioningGyratory Crusher, ApronFeeder, EOT Crane, Conveyor (1Km)Civil, Structure, Electrics

1200 TPH 1987

Dankuni Coal Complex, CoalIndia Ltd.Turnkey: Design tocommissioningLow Temperature Carbunisation

1000 TPH 1991

12 | P a g e


13/52


Complex including : WagonTripler, Crusher, Screens,Conveyor (2.5 Km)Civil, Structure, Electrics Upto

Lime Storage & ScreeningPlant, Bokaro Steel PlantTurnkey: Design tocommissioningScreens, ConveyorsCivil, Structure, Electrics

1500 TPH 1996

Coal Preparation Plant,Kedla, Central Coalfiels Ltd.Consultancy servives for project& detailed engineering,construction, erection & commissioning of washeryincluding CHPConveyors (4 Km)

650 TPH 2001

Raw Material HandlingSystem (Phase-II), RourkelaSteel PlantTurnkey: Design to

commissioningWagon Tripler, Wagon Pusher,Apron Feeder, Cone & RollCrushers, Inspectors, Rod Mills,Weigh feeders, Vibro Feeders & Screen, Conveyor (7 Km)Civil, Structure, Electrics & PLCsystem Up to

1200 TPH 1996

Raw Material Handling

System, NINLTurnkey: Design tocommissioningHammer Crusher, Feeders & screen, Conveyor (10.5 Km) Upto

1000 TPH 2001

13 | P a g e


14/52


Second Launching Pad,ISRO400 / 60 EOT Crane,200 / 30 T EOT Crane10T Tower Crane,FCVRP, SDClean RoomMobile Launching Pad

2006

Coal Handling Plant (Ph-II),Nigahi, Northern Coal FieldsLtd.Planning, Design, Engineering,Construction, Fabrication,Supply, Erection, Trial run and

Commissioning on Turnkeybasis.Major Items : GyratoryCrusher, Apron Feeder, EOTCrane, complete utilities etc.Conveyor system of lengthapprox. 4.0 km3000T Silo with rapid wagonloading system of 5500 TPH.

2010

VISION

To be a major Heavy Engineering Company in India providing qualityproducts and services to the Steel, Mining, Coal, Railways and otherStrategic Sectors.

MISSION

1. To acquire and maintain leading position as suppliers of qualityequipment, spares, systems & services for the Steel, Mining, Coal,Railways and other Strategic Sectors.

2. To expand business into allied areas and other priority sectors of theeconomy.

OBJECTIVES

1. GROWTH

14 | P a g e


15/52


To attain substantial jump in production and bring about sustainedgrowth to attain production level of Rs.3000 crores by 2011-12.

2. PROFITABILITY

To provide reasonable & adequate return on capital employed,

primarily through improvement in operational efficiency, capacityutilization & productivity, in order to generate adequate internalresources to finance the companys growth.

3. HUMAN RESOURCE PLANNING & DEVELOPMENT

To enable each employee to achieve his optimum potential, improvehis capabilities, perceive his role and responsibilities and participate inand contribute to the growth and success of the company.To continuously invest in human resources and be alive to their needs,hopes and aspirations.

4. CUSTOMER SATISFACTIONTo build a high degree of customer confidence by providing increasedvalue for his money through improved product quality, delivery,performance and customer service.

5. MODERNISATION

To upgrade and modernize plants and equipment with the aim of increasing availability of machines/equipment and removingbottlenecks.

6. TECHNOLOGYTo achieve technological excellence in operation by development of indigenous technology and efficient absorption and adaptation of imported technologies to suit business needs and priorities with a viewto providing a competitive advantage to the company.

MARKETING OF HEC

The Marketing of HEC is Industrial marketing (or business to businessmarketing ) is the marketing of goods and services by one business toanother. Industrial goods are those an industry uses to produce an endproduct from one or more raw materials.

The main features of Industrial marketing are as follows:-

15 | P a g e
http://en.wikipedia.org/wiki/Marketinghttp://en.wikipedia.org/wiki/Marketing


16/52


Marketing is one-to-one in nature. It is relatively easy for the seller toidentify a prospective customer and build a face-to-face relationship.

Highly professional and trained people in buying processes areinvolved. In many cases, two or three decision makers must approve apurchase plan.

Often the buying or selling process is complex, and includes manystages (for example, request for proposal, request for tender, selectionprocess, awarding of tender, contract negotiations, and signing of finalcontract).

Selling activities involve long processes of prospecting, qualifying,wooing, making representations, preparing tenders, developingstrategies, and contract negotiations.

The Marketing of HEC often involves competitive tendering. This is a processwhere a purchasing organization undertakes to procure goods and servicesfrom suitable suppliers. Due to the high value of some purchases and thecomplexity of such purchases, the purchasing organization will seek toobtain a number of bids from competing suppliers and choose the bestoffering. An entire profession that includes tertiary training and qualificationshas been built around the process of making important purchases.

Suppliers who are seeking to win a competitive tender go through a biddingprocess. At its most primitive, this would consist of evaluating thespecification (issued by the purchasing organization), designing a suitableproposal, and working out a price.This is a "primitive" approach because...

There is an old saying in industrial marketing; "if the first time youhave heard about a tender is when you are invited to submit, then youhave already lost it."

While flippant, the previous point illustrates a basic requirement forbeing successful in competitive tendering; it is important to develop astrong relationship with a prospective customer organization wellbefore they have started the formal part of their procurement process.

LITERATURE REVIEW

During the literature review, we have gone through the findings in the fieldof Marketing study of HEC.

16 | P a g e


17/52


Heavy Engineering Corporation has completed its fifty years of service to thenation. The year 2008 was marked as the Golden Jubilee Year of HeavyEngineering Corporation Limited.

The performance of HEC had improved continuously although there waseconomic melt down world wide. The company has shown an appreciablegrowth in all the areas in the last five years.

From a huge loss of 285 Cr. in 2005, it recorded 303.30 Cr. gross turn overwith a marginal profit of 2.86 Cr. in 2006.

It further increased its profit successively to 4.17 Cr in 2007-08, 18.37 Cr in08-09, and 26.93 Cr. in 2009-10.

What seemed impossible to create a turnover of 300 Cr at one time with oldplant and machineries, HEC forged forward and crossed the 500 crore markregistering an all time high gross turnover of 511.84 Cr. HEC has signed anMOU with department of Heavy Industries for sales target of Rs.700 Cr. witha net profit of 36.80 Cr. for the financial year 2010-11.

2007-2008

17 | P a g e


18/52


OBJECTIVES OF THE STUDY

This study program has got the following objectives:

To know about different plants and products.

To know about the marketing strategy.

To know about the customers and competitors.

To know the international scope.

SWOT analysis.

18 | P a g e


19/52


RESEARCH METHODOLOGY

TYPES OF RESEARCH

On the basis of fundamental objectives of the research, marketing researchprojects are classified into three branches:

Descriptive.When a study is designed primarily to describe what is going on or whatexists. Public opinion polls that seek only to describe the proportion of people who hold various opinions are primarily descriptive in nature. For

instance, if we want to know what percent of the population would vote for aDemocratic or a Republican in the next presidential election, we are simplyinterested in describing something.

Relational.When a study is designed to look at the relationships between two or morevariables. A public opinion poll that compares what proportion of males andfemales say they would vote for a Democratic or a Republican candidate inthe next presidential election is essentially studying the relationship betweengender and voting preference.

Causal.When a study is designed to determine whether one or more variables (e.g.,a program or treatment variable) causes or affects one or more outcomevariables. If we did a public opinion poll to try to determine whether a recentpolitical advertising campaign changed voter preferences, we wouldessentially be studying whether the campaign (cause) changed theproportion of voters who would vote Democratic or Republican (effect).

RESEARCH DESIGN

The Research design used in the study was descriptive research design. Itincludes surveys and fact-finding requires of different kinds. The majorpurpose of description research designs, as it existing at present. Our studyis concerned with the assessment of marketing study of HEC Ranchi. Itmakes an effort to know that how the organisation handles the different-different projects,how it works.what are the significance of various plant inHEC,Ranchi

19 | P a g e


20/52


SAMPLE DESIGN

We are doing our summer training project in HEC Ranchi and the employeesworking there are chosen for the study. The employees of differentsegments involved are: Executives Non-executives Technical Non-technical

SOURCES OF DATA:

Primary data: -

A brief questionnaire was designed and used by us as an instrument forcollecting primary data. Keeping in mind the nature of our study thequestionnaire prepared was STRUCTURED, NON-DISGUISED & containedopen as well as closed ended questions.

Secondary data: - Internet

Books Handbooks,files etc

Sampling Method

In this study,Stratified random sampling method is used in selecting the

samples.

Geographical area:

The Frame comprises the employees of HEC, Ranchi.

Target Population:

Employees working in HEC, Ranchi.

20 | P a g e


21/52


Sample Size:

60 employees were surveyed.

21 | P a g e


22/52


QUESTIONNAIRE

On the basis of following questions we have made our project:

1. How many plants of HEC are there?

2. What are the major products manufactured by each plant?

3. Who are the major customers of HEC?

4. Who are the major competitors of HEC?

5. Being a PSU, is HEC really giving a good performance as compare

to private sector?

6. What is the international business scope of HEC Ranchi?

7. What are the different strategy HEC is adopting for the

upgradation of the plant?

8. Do you think HEC need to restructure its business portfolio in

current scenario, if yes, what?

9. What makes HEC to manufacture a high quality products?

10. From last few years HEC is in profit. What are the reasons

according to you?

11. Do you think that current manpower supply in HEC is sufficient?

12. Most of the machines in the plant are facing frequent breakdown.

What are the reasons?

13. Do you think the offered prices of the products of HEC are

competitive as compare to others?

14. On what new product and areas, HEC should need to concentrate?

22 | P a g e


23/52


THEORETICAL BACKGROUND

FINANCIAL POSITION OF HEC RANCHI

Heavy Engineering Corporation, Ranchi turnover Crosses 500 CroreMark

HEC met the expectations of the country in the nation building exercise butdid not do so financially. Due to one reason or the other, it was in the redexcept on three occasions i.e. during 1975-76, 1976-77 & 1988-89. But2006 onwards the story is different. It geared up itself to rewrite its historyaround its Golden Jubilee Year (2008).

From a huge loss of 285 Cr. in 2005, it recorded 303.30 Cr. gross turn overwith a marginal profit of 2.86 Cr. in 2006. It further increased its profitsuccessively to 4.17 Cr in 2007-08, 18.37 Cr in 08-09, and 26.93 Cr. in2009-10. What seemed impossible to create a turnover of 300 Cr at onetime with old plant and machineries, HEC forged forward and crossed the500 crore mark registering an all time high gross turnover of 511.84 Cr. HEChas signed an MOU with department of Heavy Industries for sales target of Rs.700 Cr. with a net profit of 36.80 Cr. for the financial year 2010-11.

The considerable improvement in work culture, team building, customerfocus, commitment and ability to deliver in time or even ahead of schedulehas helped the company for this growth and in getting approval of Govt. forimplementation of 50 % DA merger. During his visit Honble Minister for HIand PE Shri Vilasrao Deshmukh in February 2010 had all praise for HEC. Heassured all possible support to HEC in its pursuit for excellence and furthergrowth. Earlier Honble Jharkhand High Court on 13.11.2009 quashed thewinding up order and approved revival package of HEC. With the growingperformance and now having positive net worth, HEC will be able to

participate in tenders and get orders from organizations such as NTPC wherenegative worth is a disqualifying criterion.

23 | P a g e


24/52


"Performance Excellence Award" conferred on HEC Ltd., Ranchi

At the 15th CEOs Conference 2011, being held at Goa from 16th to 18th May

2011, Heavy Engineering Corporation Limited, Ranchi has been conferredwith a " Performance Excellence Award 2010 " in organization categoryfor its outstanding contribution to the Industry. The award was given by theHonble Chief Minister of Goa, Shri Digamber Kamat to Shri G K Pillai,Chairman and Managing Director, HEC.

The conference was organized by Indian Institution of Industrial Engineering( IIIE ). IIIE was founded in 1957 as a non-profit organization and aregistered Society for propagating the profession of Industrial Engineering in

India and is a Registered Public Trust under the Bombay Public Trust Act,1950. It is dedicated to the advancement of Industrial Engineering educationand practice and to the application of such scientific knowledge fordevelopment of industry and society.

The award is a feather in the cap for HEC. The company has been on thepath of growth for the last few years and has won many accolades for itsperformance and contribution to the nation, especially in the nuclear field.Recently, HEC was selected for "BRPSE Turn around Award 2010" and theaward was bestowed on 10.03.11 for its outstanding efforts andachievements. The company has increased its turn over considerably and atthe same time earned profits for the last five consecutive years a first forHEC.

HEC bags prestigious order of Draglines worth Rs. 306 Cr.

Heavy Engineering Corporation Ltd. (HEC) secured order for supply & commissioning of two numbers of Draglines (24 CuM/88 m) valued at Rs.306 crores from Northern Coalfields Ltd.(NCL). Earlier in September, 2009HEC bagged order for one Dragline from NCL against stiff Globalcompetition. The manufacturing progress was impressive and supply aheadin schedule helped early starting of erection work. The board of Directors of NCL was satisfied with HEC's commitment to time bound delivery and order

24 | P a g e


25/52


for two more machines placed on 28-Dec-2010. The machines are to besupplied in 20 and 32 months respectively and commissioned in 18 monthssubsequently at Amlori Project of NCL.

HEC is the first Indian company to manufacture the heaviest machine on theearth that walks - Dragline with 24 Cubic Meter Bucket capacity and 96meter long Boom. Dragline weighing around 1800 Tons is one of the mostproductive and large size machines that are used for removal of coal & overburden from open cast mines and no additional transportation devicerequired to take the material to pit head or dump yard. It was 1983 whenthe first Dragline rolled out from HEC's works & commissioned in Jayant areaof Northern Coalfields Ltd. Subsequently, HEC supplied 12 nos of Draglinesto various CIL subsidiaries (NCL, MCL, SECL and BCCL). The machines beingsupplied under the present order have latest state of the art control systemwith faster response and easy maintainability. Some other advancedfeatures incorporated in the machine that will increase the machine utility & safety are: Boom protection device, Self diagnostic system, ProductionMonitoring System which will record all operational data etc.

Visit of Dr.A.P.J. Abdul Kalam on 24.06.2009

Bharat Ratna & Former President of India

HEC should target annual turnover of Rs 3,000 crore : Kalam

Ranchi: Speaking about the future growth plan for Heavy EngineeringCorporation (HEC), Ranchi, former president A.P.J. Abdul Kalam set Rs 3000crore as its annual turnover target in the next three to five years.

Addressing employees at the HEC premises, he lauded the growth of HEC inthe past ten years and the turnaround it achieved in the last three years. Hesuggested that HEC enter into a long-term MoU with the the space researchdepartment.

25 | P a g e


26/52


Heavy Engineering Corporation, as part of its growth plans, has beendiversifying into strategic sectors like Space, Nuclear and Defence apart fromits traditional sectors of Steel & Mines.

Due to its association with the space programme, HEC Ltd is now capable of meeting the challenges in terms of adopting advanced technologies orhandling complex manufacturing jobs.

Kalam suggested that HEC increase focus on its foray into the manufactureof nuclear power reactors and equipment as the country is currently raisingits nuclear power production capacity.

Speaking about the opportunities available, he added that HEC would beable to bag orders due to the modernisation drive at various steel plants inthe country. One of the main thrusts of HEC is to play a major role in theexpansion plan of SAIL.

Kalam, who had last been to HEC in April 1998, said that young project

directors were ready to meet new challenges. Speaking elaborately onmanagement and leadership qualities he also suggested improvements inthe working atmosphere for its employees.

He indicated that HEC would play a significant role in achieving "IndiaMission 2020".

26 | P a g e


27/52


DATA ANALYSISQUESTION WISE DATA ANALYSIS

1.How many plants of HEC are there?

There are four plants in HEC.

1. Foundry Forge Plant.2. Heavy Machine Building Plant.3. Heavy Machine Tool Plant.4. Project Division.

27 | P a g e


28/52


1.What are the major products manufactured byeach plant?

FFP productsa. Heavy Casting and Forgingb. Forged rollsc. Slag cupsd. Heavy tyre castinge. Industrial turbine shaftf. Stainless steel die forgings

HMBP Products


a. Steel plants.

b. Coal/mining equipment viz. 5 and 10 cu.m. rope shovels,

hydraulic shovels, draglines, crushers and grinders, materialhandling equipment etc.

c. Aluminium, power, defence, space research and atomic energyetc.

It has also a design and technology wing manned with trainedand experienced engineers. Some of the major equipmentsuccessfully designed by HMBP are as follows:-

Steel Plant Equipment

a. Sinter plant

b. Coke Oven batteries

c. Blast furnace

28 | P a g e


29/52


d. Steel melting shop equipment

e. Continuous casting plant

f. Rolling mill equipment

g. EOT crane

Mining Equipment

a. Draglines

b. Electric rope shovels

c. Primary gyratory, secondary and tertiary cone crushers anddouble toggle jaw crushers of various sizes.

d. Mine winders

HMTP Products

a. Vertical Turning & Milling machineb. Lathec. Roll Grinding Machined. Deep Hole Boring Machinee. Horizontal Boring Machinef. Radial Drilling Machineg. Planning Machineh. Plano Machinei. Special Purpose Railway Machine Tools

Project Division Products

a. Coal Handling Plantb. Coal Washeryc. Raw Material Handling Plantd. Wheel & Axle Plante. Super Alloy Plant

29 | P a g e


30/52


1. Who are the major customers of HEC?

STEEL SECTOR

Steel Authority of India

Bokaro Steel Plant Bokaro

Bhilai Steel Plant Bhilai

Durgapur Steel Plant Durgapur

Rourkela Steel Plant Rourkela

Alloy Steel Plant Durgapur

Rashtriya Ispat Nigam Ltd Vishakhapattanam

Tata Iron and Steel Company Jamshedpur

Essar Steel Gujarat

Jindal Steel Mumbai

INDOMAG New Delhi

MECON Ranchi

Neelachal Ispat Nigam Ltd. Dubri/Orissa

MINING SECTOR

Coal India Ltd.

Northern Coalfields Singrauli

30 | P a g e


31/52


Limited

Mahanadi Coalfields

Limited

Sambalpur

Eastern Coalfields Limited Sactoria

Bharat Coking Coal

Limited

Dhanbad

South Eastern Coalfields

Limited

Bilaspur

Cental Coalfields Ltd. Ranchi

Westen Coalfields Ltd. Nagpur

Hindustan Copper Ltd. Kolkata

Hindustan Zinc Ltd. Udaipur

NMDC Hyderabad

Singareni Collieries CompanyLtd.

Kothagudam

Neyveli Lignite Corporation Ltd. Neyveli

DEFENCE SECTOR

Ordanance Factory Board

Metal & Steel Factory Ichapore

Field Gun Factory Kanpur

Ordinance Factory Kanpur

31 | P a g e


32/52


Ordinance Factory Ambernath

Ordinance Factory Ambajhari

Gun Carriage Factory Jabalpur

Ordinance Factory Muradnagar

Indian Navy

Misra Dhatu Nigam Ltd. Hyderabad

Goa Shipyard Ltd. Goa

Mazhgaon Dock Ltd. Bombay

DRDO Diff. Units

RAILWAY SECTOR

Indian Railways Workshops Eastern Zone Jamalpur, Kanchrapara,

Lilluah

East Central Zone Samastipur

Central Zone Matunga, Parel, Kurdwadi

Northern Zone Alambagh, Amritsar,

Charbagh

North Central Zone Jhansi

North Eastern Zone Gorakhpur, Izzatnagar

32 | P a g e


33/52


North East Frontier Zone New Bongaigaon,

Dibrugarh, Lumding

North Western Zone Jodhpur, Bikaner, Ajmer

South Eastern Zone Kharagpur

Southern Zone Trivandrum

COFMOW

Diesel Locomotive Works Varanasi

Chittaranjan Locomotive Works Chittaranjan

Integral Coach Factory Chennai

Rail Coach Factory Kapurthala

Diesel Loco Modernization

Works

Patiala

ALUMINIUM SECTOR

Bharat Aluminium Company Korba

National Aluminium Company Angul

POWER SECTOR

Bharat Heavy Electricals Ltd. Diff. Units

National Thermal Power

Corporation

Diff. Units

33 | P a g e


34/52


Damodar Valley Corporation Durgapur

Jharkhand State Electricity

Board

Patratu

U.P. State Electricity Board Lucknow

Tamilnadu Electricity Board Chennai

OTHER SECTOR

Indian Space ResearchOrganisation

Sriharikota

Vikram Sarabhai Space Centre Trivandrum

Variable Energy Cyclotron

Centre

Kolkata

Bhabha Atomic Research

Centre

Kolkata

GOVT.MINT Mumbai

Fertiliser Corporation of India Barauni

Tata Engineering & Locomotive

Company

Jamshedpur

Larsen & Toubro Mumbai

New Bongaigaon Refinery Bongaigaon

Oil & Natural Gas Commission Mumbai

Batliboi Mumbai

34 | P a g e


35/52


TATA Growth Shop Jamshedpur

Tin Plate Company India Ltd. Jamshedpur

Tata Yodogawa Jamshedpur

McNally Bharat Dhanbad

TRF Limited Jamshedpur

TATA International Kolkata

1. Who are the major competitors of HEC?

STEEL SECTOR 1. L&T

2. BHEL

3. Bharat Forge

4. Telco Construction Equipment Co. Ltd

MINNING SECTOR

1.Bharat Earth Movers Ltd

2.W M I Cranes Ltd

3.L & T

4.Andhra Pradesh Heavy Machinery & Engg. Ltd

35 | P a g e


36/52


MACHINE TOOLS INDUSTRY

HEC faces a cut throat competition with the foreign multinational

companys in the Machine Tools Industry.

1.Being a PSU, is HEC really giving a goodperformance as compare to private sector?

Attributes Employees Percentage

YES 45 76%

NO 15 24%

2. What is the international business scope of HECRanchi?

INTERNATIONAL SCOPE OF HEC

36 | P a g e


37/52


'HEC will look for global partners in nuclear arena'

-- G.K. Pillai, Chairman & Managing Director, Heavy Engineering Corporation

Ltd

HEC Ltd, the largest public sector engineering and industrial complexfounded in 1958, is going through a makeover with foray in the nuclearsector, tie-ups with many international players of its forging and forgeplants. G.K. Pillai explains his plan to Pradip Bhattacharya .

In view of the economic downturn, will HEC restructure its businessportfolio?

Since HEC mainly manufactures capital goods items, an immediaterestructuring of the business portfolio is not possible. The economicslowdown has made an impact on HEC. The primary area of HEC's businessis steel and mining, though the slowdown has not affected the mining sectorto a large extent. Due to the impact on the steel sector, many orders for theexpansion of Steel Authority of India Ltd are getting deferred. Many otherequipment, which has already been manufactured for Sail, is also not beinglifted. These are definitely making an impact on our ongoing business.

Notwithstanding the above, we are trying to make some short-term changessuch as laying more emphasis on reconditioning of equipment and supply of spares.

HEC manufactures and supplies machine tools and capital equipment forcore sector industries. What are your plans for the nuclear sector?

37 | P a g e


38/52


HEC has a huge infrastructure both in foundry and forge as well as inmanufacturing fabrication and machining. However, this infrastructure andcapacity is grossly under-utilised. The company has developed special steelsfor the nuclear segment and with success in this field, it intends to cater to

special requirements in the nuclear area. With the opening up of the nuclearsector, major global players will be keen to work with Indian nuclearestablishments. Thus, HEC intends to look for global partners to jointlymanufacture equipment for the nuclear sector.

Which new products will be manufactured by your machine tools division inRanchi?

The new machines which will be manufactured by our machine tools divisioninclude under floor wheel lathes in collaboration with Hegenscheidt,

Germany, the world leaders in railway machine tools.Heavy Engineering Corporation Eyes International Partnership toManufacture Nuclear Power Equipment

State-owned Heavy Engineering Corporation Limited (HECL) (Ranchi, India)is in talks with international engineering companies for a prospective joint-venture partnership to manufacture equipment for nuclear power projects.Discussions are in progress with General Electric Company (Fairfield, CT),Alstom SA (Levallois-Perret, France) and Areva (Paris). HECL plans to hold

the majority stake in this joint venture, reports Industrial Info Resources(Sugar Land, TX).

3. What are the different strategy HEC is adopting for theupgradation of the plant?

1. Technological Tie-ups for latest technology.

2. Investment Policy is adopted.

38 | P a g e


39/52


3. Focus on Yielding.

4. Modernization.

5. Cost control.

39 | P a g e


40/52


1. Do you think HEC need to restructure its business

portfolio in current scenario?


Yes 51 85%

No 9 15%

40 | P a g e


41/52


2. What makes HEC to manufacture a high quality

products?

Attributes Rank 1 Rank 2 Rank 3 Rank 4

Government Policy 14 13 16 17

Tomaintainits brand

Image

16 15 18 11

To retainIts quality 10 18 19 13

Believe inquality

notquantity

17 16 14 13

Weightage 4 3 2 1

Attributes Rank 1 RANK 2 Rank 3 Rank 4

Governme

nt Policy56 39 32 17

Tomaintainits brand

Image

64 45 36 11

To retainIts quality 40 54 38 13

41 | P a g e


42/52


Believe inquality

notquantity

68 48 28 13

Attributes Weightage

Believe in quality not quantity 157

To maintain its brand Image 156

To retain Its quality 145

Government Policy 144

Total 602

COMMENT: All the above attributes help in the organisation and all of them are very closelyrelated to each other.

3. From last few years HEC is in profit. What are thereasons according to you?

Attributes Rank 1 Rank2

Rank 3 Rank 4

Good administrativecontrol

14 18 16 12

Reduction in wastage 17 12 19 12

Increase in yield 13 14 20 13

Change in policy 18 12 16 14

42 | P a g e


43/52


43 | P a g e


44/52


4. Do you think that current manpower supply in HEC is

sufficient?


Yes 42 70%

No 18 30%

44 | P a g e


45/52


5. Most of the machines in the plant are of old technology

& need rehabilitation. What are the reasons?

1. Need technological tie-ups with foreign partners who have

unique experience in modernization of steel plants.

2. No reconditioning or refurbishing of the plants could be done due

to companys poor financial health.

3. Many of the equipment available at HEC is nearly half-a-century

old and these are huge power guzzlers. HEC intends to replace

these in batches with more energy-efficient devices that will

bring overall benefit for the company and the country.

4. Lack of capital investment over R&D.

45 | P a g e


46/52


1. Do you think the offered prices of the products of HECare cheaper as compare to others?

Attributes Employees PercentageYes 51 85%

No 9 15%

46 | P a g e


47/52


2. On what product HEC should need to concentrate?

HEC need to concentrate in its major products so that it will help HEC toincease its profit and performance. Along with this it need to generate newideas to build new products whose requirements are more in the market. Itsmajor products are

FFP

Forge rolls

Electric Rope Shovel Slag cups Turbine

HMBP

Dragline Crushers Cranes Sinter car

HMTP

Radial Drill Roll Grinder Heavy Duty Centre Lathe Deep hole boring

PROJECT

Coal handling plants Ore handling plants Coal Washeries Cement plants

47 | P a g e


48/52


FINDING

At last we would like to conclude that HEC is presently in growth stage.fromlast four years HEC is growing, despite all hurdles. In quality terms ,we

found HEC products as a world class. Since HEC mainly manufactures capital

goods items, an immediate restructuring of the business portfolio is not

possible. The economic slowdown has made an impact on HEC. The primary

area of HEC's business is steel and mining, though the slowdown has not

affected the mining sector to a large extent. Due to the impact on the steel

sector, many orders for the expansion of Steel Authority of India Ltd aregetting deferred. Many other equipment, which has already been

manufactured for Sail, is also not being lifted. These are definitely making an

impact on our ongoing business.

Notwithstanding the above, we are trying to make some short-term changes

such as laying more emphasis on reconditioning of equipment and supply of

spares.

HEC has a huge infrastructure both in foundry and forge as well as in

manufacturing fabrication and machining. However, this infrastructure and

capacity is grossly under-utilised. The company has developed special steels

for the nuclear segment and with success in this field, it intends to cater to

special requirements in the nuclear area. With the opening up of the nuclearsector, major global players will be keen to work with Indian nuclear

establishments. Thus, HEC intends to look for global partners to jointly

manufacture equipment for the nuclear sector One of the challenges before

the management is very old plant and machinery. Over the years, on

48 | P a g e


49/52


account of the companys poor financial health, no reconditioning or

refurbishing of these assets could be done. This has resulted in the poor

state of plant and machinery. Now with the company making progress and

coming out of the red and with the infusion of funds, it is the priority of the

management to recondition the plant and machinery so that their utilisation

and effectiveness can be enhanced.

Moreover, many of the equipment available at HEC is nearly half-a-century

old and these are huge power guzzlers. HEC intends to replace these in

batches with more energy-efficient devices that will bring overall benefit for

the company and the country.

The capacity utilisation at the foundry and forge plants has been very low,

about 23 per cent. With a perennial shortage of capital, the company could

not improve it.

49 | P a g e


50/52


SUGGESTIONS

As per our survey, we have find that HEC need to concentrate in the

following areas for the better performance and profit of HEC.

1. Modernization of plants need to be done.

2. Recruitment of skilled employees are required.

3. Working condition need to be improved.

4. Yielding should be increased.

5. Investment should be done.

6. Need to focus on R&D.

Note: HEC need to concentrate on cost reduction policy so that profit of the

company increase.

a. Good system of material management is required.

b. Rejection must be decrease.

50 | P a g e


51/52


LIMITATIONS OF THE STUDY

The limitations of the study which were felt as the organizational challengesto be faced in day to day routine by the employees and customers affectedthe performance of the company were as follows:

Due to the time constraint , the number of respondants were less.

There is a chance of personal bias which affects the original data.

The information gathered are somewhat near to the exact information

as because some of the employees are reluctant to share theinformation.

The time schedule of the employees were such that we couldnt

gathered much information.

51 | P a g e


52/52


BIBLIOGRAPHY

1. Business Research, Kothari, C.R, New Age International

Publisher.

2. www.hecltd.com.

3. Annual Report of HEC.

Date post:	06-Apr-2018
Category:	Documents
Upload:	rbhushan62
View:	238 times
Download:	6 times

HEC Project Report1

Documents