Project management:

Intoduction
After contracting with the customers, Management will allocate certain amount to different production department. Each department will take care of purchasing and inventory management. Eg- The project Surana of Rs 1500 crores, will allocate some amount to thrichi plant for building boilers.

Purchasing process
Raw materials from suppliers Finished product from vendors: Bought out item/DD item (Dispatch delivery item) :- These are the item that are dispatch to the site itself by the vendors

Out Sourcing
- Will outsource non critical items like steel molding etc.

PEM department (Project Engineering Management)

- This department will take care of outsourcing. Eg- If the customer is hurry it will plan and manage the production by proper allocation and out source.

Main manufacturing facilities

Heavy Electrical Plant Bhopal Heavy Electrical Equipment Plant, Haridwar, Uttarakhand Heavy Power Equipment Plant Ramachandrapuram, Hyderabad (Andhra Pradesh) Transformer Plant, BHEL Jhansi (Uttar Pradesh) High Pressure Boiler Plant and Seamless Steel Tube Plant, Trichy(Tamil Nadu) Boiler Auxiliaries Plant, Ranipet, Vellore (Tamil Nadu) Electronics Division and Electro Porcelain Division, Bangalore (Karnataka) Centralised Stamping Unit & Fabrication Plant |, Jagdishpur (Uttar Pradesh) Insulator Plant Jagdishpur (Uttar Pradesh) Component Fabrication Plant Rudrapur (Uttrakhand) Industrial Valves Plant, Goindwal (Punjab) Bharat Heavy Plates and Vessels Limited (Vizag) BHEL Electrical Machines Ltd., Kasaragod, Kerala

Types of holding - Demobilsing:Removing the workforce and production.

- Stop DispatchingDelivering of product will be blocked.

Challenges faced when a project is hold: Demobilising

Removing vendors, workers (including the AGM which runs the project) etc

 Space management
As the building equipments are heavy, Space management and inventory management are difficult.

Challenges faced when restarting Compensation handlingThe Company will claim for the loss they afford on the time of project holding.

Time liquidationThe Company will expand the time of delivery of the product

Challenges faced when the project stops Liquidate damage:

The company will claim for the damages due to the project.

Compensation claim:
The company will claim for their financial loss.

Management tool for stopped/hold projects Supply diversification:

By convincing another customer to choose the hold project who demands almost similar rating. Eg- A customer needed 600mw project, He will be convinced to choose 660MW project which was a previously stopped project.

Challenges faced on project diversification

- Difficulty in finding the customer who needs smaller ratings