A REPORT ON

AN ORGANSATIONAL STUDY of Hindustan Aeronautics Limited

(Aircraft Research & Design Centre)
Submitted in partial fulfillment of the requirements of the M.B.A Degree Course of Bangalore University By Ms. Srividhya Venu REG.NO. -03XQCM6103 2003-2005

Under the Guidance and Supervision Of Prof. B.K Ramaswamy

M.P.BIRLA INSTITUTE OF MANAGEMENT Associate Bharathiya Vidya Bhavan #43, Race Course Road BANGALORE-560001

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I hereby declare that this project titled A Report on the organization study of Hindustan Aeronautics Limited, submitted in partial fulfillment of the requirement for master of business administration, is my original work and not submitted for any other degree/diploma or similar title or prizes. All the facts have been obtained from the study. Any resemblance to any other work, if any, will be merely coincidental or due to similarities of facts.

DATE: PLACE:

SRIVIDHYA VENU REG. NO.-03XQCM6103

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In any project endeavor, the amount of help one receives from different sources is much difficult to estimate and even much more to acknowledge. During the course of my study I have benefited by the suggestions of many and the practical assistance of quite a few people. As far as possible they have been duly acknowledged at the appropriate places. I extend my sincere thanks to the management of Hindustan Aeronautics Limited (ARDC) for having given me an opportunity to conduct a study of the organization. I would like to express my deep sense of gratitude to Mr. VENU, SENIOR MANAGER MAINTANENCE and Mr. B.G.NAIK, CHIEF MANAGER PERSONNEL AND ADMINISTRATION (ARDC) for the immense help. I would also like to thank Mr. SUJIT BHATTACHARYA for the guidance and support he has provided me during the course of the study. My hearty thanks is also due to Ms. S.RAJALAKSHMI, Mr. ANAND, Ms. PRIYANKA and also Ms. Jansi for generously sparing time and efforts and helping me in the collection of information of the company. Its my privilege to thank Mr. NAGESH MALAVALLI, PRINCIPAL and Mr.B.K.RAMASWAMY, INTERNAL GUIDE for giving me an opportunity to undergo an internship programme. I would also like to thank the almighty, my family, friends and all the people who have directly and indirectly helped me through the process of completion of my internship report.

EXECUTIVE SUMMARY
The main objective of the study is to provide an insight to the student about the various functional aspects of a business establishment. Bangalore University has included internship work in an organization, as a part to of the course curriculum. Every student is required to undergo training in a respectable working environment and understand the know-how of a companys working. It enables one to know the realities of a firm/companys business and gives a chance to put into application, the theoretical knowledge that has been gathered. The purpose of the training is to create managers with greater adaptability, which in turn, can provide creative solutions to the organizations they work with. The document creates a report on the understanding of the working environment and also the task undertaken during the training period. The company chosen was the prestigious Hindustan Aeronautics Limited (HAL) with special posting in the Personnel department. The reason behind this was that the company one of the premier Public Sector Enterprises in the country. The commitment & dedication of its employees towards the tasks at hand as well as future needs, which in turn is a reflection of the human resource management in the company, is the reason. The beginning of HAL can be traced to the year 1940 when a far-sighted industrialist, the late
SETH WALCHAND HIRACHAND

laid foundation stone on 24th

December and set up a company called HINDUSTAIN AIRCRAFT LIMITED in association with the government of Mysore. In the six decades, HAL has spread its wings to cover various activities in the areas of Design, Development, Manufacture and Maintenance.

Some of the tasks that I undertook as a internship trainee at HAL are Preparation of Master Records for Executive Trainees, Diploma Trainees, Technical Trainees and Ex-Servicemen, Verification of Master Records, Police Verification Record and Caste Certificate.

OBJECTIVES & LIMITATIONS OF THE STUDY

MAIN OBJECTIVE: The main objective of the study is to provide an insight to the student about the various functional aspects of a business establishment. OTHER OBJECTIVE: c familiarize the student as to how far the different theoretical concepts are To applicable to an organization that is engaged in the performance of business activities. c acquaint the student with its organization structure. To c provide a practical orientation of the companies function. To c in form the student about the various managerial aspects of the To organization.

LIMITATIONS: c The project is based on the information provided by the employees of the organization.

c project is limited by the period of study, being six weeks. The

INTRODUCTION
Aviation is one of the most significant technological influences of our time and empowers the nation with strength. It is a major tool for economic development and has a significant role in National Security and International Relations. India has been fortunate to start aeronautics related activities in 1940, with the establishment of HAL. ORIGIN OF THE INDUSTRYAerospace Engineering may be said to have been born when the Wright Brothers Welbre and Ornille Wright designed and built the first Aeroplanes, which they flew on December 17, 1903.The Aerospace industry has grown from Dayton bicycle shop, where the Wright Brothers evolved their simple Aeroplanes, to the largest and most technically complex manufacturing industry.

INTERNATIONAL SCOPEAerospace is basically an international industry. This is partly because its flying products compress time and distance and partly because the weapons it develops are a major ingredient of international politics. The US Aerospace industry competes and cooperates with the aerospace complexes of Western Europe and Japan. The biggest competitors in the military field are the USSR, which has the second largest Aerospace industry in the world. Britain has the third largest Aerospace and is the most formidable US competitor in the international export market.

INDIAN PRESENT STATUS IN THE WORLDRecent survey shows that Indias ranking in the Aerospace production league table as 16th and holds about 0.14% of market share. Even one does not assume export potential, there is tremendous scope in civil aviation sector for the development of local aviation industry. The main customers to Aerospace in India continue to be Government. This is because only Government has financial resources large enough to undertake research development and production in Aerospace frontier technology and because only the urgency of national survival can provide to spend such sums.

THE BEGINNING
The beginning of HAL can be traced to the year 1940 when a far-sighted industrialist, the late
SETH WALCHAND HIRACHAND

laid foundation stone on 24th

December and set up a company called HINDUSTAIN AIRCRAFT LIMITED in association with the government of Mysore. The company was registered on December 23rd, 1940 as a private limited company with an authorized capital of rs.4 Crores. In the late thirties Walchand Hirachand was invited by the U.S. transnational to build automobile and aircraft factories in India. The 1940s saw the start of a new era, a Golden Era of Indian Aviation. The aviation industry was set up at Bangalore with the object of establishing an aviation industry that can manufacture, assemble and overhaul aircraft under licence. Initially aircraft like Curtiss Hawk,Vultee Bomber and Harlow Trainer were taken up for manufacture and overhaul in collaboration with Inter Continental Aircraft Company of the USA.

With the escalation of the Second World War the government of India took over the management of the company in 1942 and handed it over to us Air force for repair and overhaul of various aircraft. Between 1942 and 1945 a total of 1000 aircraft and 3400 engines were overhauled. The main activity for the next few years after the war was reconditioning and conversion of war surplus aircraft for the use of IAF and Civil operators. In the six decades, HAL has spread its wings to cover various activities in the area of Design, Development, Manufacture and Maintenance. Today HAL has 16 production divisions spread over at Bangalore, Nasik, Koraput, Kanpur, Luknow, Korwa, Hyderabad and Barrackpore. These divisions are fully backed by nine Design Centers, which are co-located with the production divisions. These centers are engaged in Design & Development of combat aircraft, helicopter, aeroengine, engine test beds, aircraft communication and navigation systems and accessories of mechanical and fuel systems and instruments.

ACHIEVEMENTS
The company has successfully met the production and overhaul targets of the year 2002-03. HAL has so far produced over 3300 aircraft, 3400 Aero engines and overhauled over 7700 aircraft and 26000 engines. The company recorded overall financial results with a turnover of Rs.3120.42 crores, exports of Rs.103.89 crores and profit before tax of Rs.433.37 crores. HAL has declared highest ever dividend payment of Rs.777.99 crores which is 64.72% on the paid up share capital for the fiscal year 2002-03 as against the dividend of 57.22% for previous year 2001-02. In addition provision has been made for payment of Rs.9.99 crores as dividend tax. HAL has played a significant role for India's space programs in the manufacturing of satellite launch vehicles like PSLV (Polar Satellite Launch Vehicle), GSLV (Geo Stationary Launch Vehicle), IRS (Indian Remote Satellite) &

INSAT (Indian National Satellite). HAL has also two joint venture companies, BAeHAL Software Limited and Indo- Russian Aviation Limited (IRAL). Apart from the two, other major diversification projects are Industrial Marine Gas turbine and Airport Services. Several co-production and joint Ventures with international participation are under consideration. The company continues to enjoy the highest credit rating viz. A1+ & LAAA by ICRA and P1+ and AAA by CRISIL for short and long term debt programmes, respectively. First flight of Intermediate Jet Trainer (IJT) indigenously designed and developed, took off on 7th March 2003 and inaugural flight took off on 21st March 2003. The Jet Trainer was developed in a record time of 20 months from the metal cutting to first flight. HAL launched the Limited Series Production (LSP) of LCA (Tejas) and delivery to IAF will commence from 2006-07 and will be completed by 2007-08. HAL has conceptualized development of Light Combat Helicopter (LCH) based on experience gained in design and development of DHRUV. This Helicopter will incorporate number of stealth features for better survivability. M/s Global Rating, United Kingdom in conjunction with the International Information and Marketing Center (IIMC) has awarded the International Gold Medal Award at the international summit (Global Rating Leaders 2003) London, UK to HAL on 23rd May 2003, for corporate achievement in Quality and Efficiency. Hal has been conferred the TOP 10- MOU Award on 5th April 2003 by the department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises for Excellence in Achievement of MOU Targets for the year 2001-2002. Boeing, USA as per their Supplier Performance Measurement Systems (SPMS) has rated Aircraft Division, Bangalore Complex for its performance on supply of work packages to Boeing under the category GOLD. HAL has also received the Indira Gandhi Raj Bhasha Award in 2000-01 at New Delhi.

COMPANY PROFILE
THE COMPANYHINDUSTAN AERONAUTICS LIMITED founded as a private limited company in December 1941, concentrated in the repair and overhaul of military aircraft engines to support II world war. To fulfill the fresh mandate of independent India the mission of the company has been redefined as: To become a globally competitive Aerospac e industry while working as an instrument for achieving self reliance in design, manufacture and maintenance of Aerospace defence equipment and diversifying to related areas, managing the business on commercial lines in a climate growing professional competence. Over a past five decades, HAL has spread its wings to encompass various activities in the areas of design, development, manufacture and maintenance of Light Aircraft, Piston and Jet Engine trainers, Advanced Fighter/Combat Aircraft, Helicopters, Commercial Aircrafts, Jet Engines, Aircraft systems, Accessories and Avionics. The manufacturing divisions are fully packed by Research and Design center, new initiative in R&D such a Design and Development of the Advanced Lighter Helicopter (ALH), Light Combat Aircraft (LCA), New Jet Trainer (HJT-36) and update programme for MIG and Jaguar Aircraft, as well as co-production of Civil Aircraft, and many other joint ventures in several high tech field are expected to make HAL fly still higher in this century.

HINDUSTAN AERONAUTICS LIMITED is shortly called as HAL. It is the largest Aerospace complex in south-east Asia today, plays crucial role in Indias ambitious plans for broad base industrialization with emphasis on not only self reliance in defence production, but also to become an international partner in Civil Aircraft manufacturing and maintenance. HAL joins hand with Indian defence forces

to provide vigilance over the countrys extensive borders and skies through its sophisticated manufacturing overhaul and maintenance capabilities. It is also towards expanding its activities in Civil Aircraft and Helicopters and Nations space programme. Now HAL is a public sector unit fully owners by Government of India. The Board of Directors manages the company, which has a full time Chairman. The Board of Autonomous except certain powers reserved for the decision of the President of India, which includes:

Approval of operating plans and capital budgets. Approval of foreign collaboration agreements. Board of Directors/Chairman.

A wide variety of precision items, equipment and assemblies are exported by HAL to leading Aircraft and Airborne equipment manufacturers in UK, Europe, Canada and USA. Future projects of the Company: Basic Turboprop Trainer (HTT-35) Soft Exports. Transport Aircraft. Aviation Sector. HAL, BAe Joint Venture. HAL, Russia Joint Venture.

HAL LOCATIONSHAL groups divisions are spread over different parts of the country and also abroad viz., Bangalore, Korwa, Koraput, Kanpur, Hyderabad, Lucknow, Delhi,Bombay,

Madras, Vizaz, Moscow and in London. The HAL groups units located in different places are broadly classified into 4 groups. They are: Bangalore unit. Accessories complex. MIG complex. Liaison offices.

SOCIAL RESPONSIBILITIES UNDERTAKEN BY THE ORGANISATION The social responsibilities undertaken by the organization are as follows: Adoption of villages where the organization sets up schools, hospitals, road, electricity, waterlines etc. Undertakes pulse polio campaign in HAL hospitals and outside. Tree plantation. Volunteers for operation of the blind or cataract operation. Built schools for mentally challenged. Helps the schedule caste and schedule tribe association for their upliftment.

OUR MISSION

" To become a globally competitive aerospace industry while working as an instrument for achieving self-reliance in design, manufacture and maintenance of aerospace equipment, civil transport aircraft, helicopter and missiles and diversifying to related areas, managing the business on commercial lines in a climate of growing professional competence ".

OUR VALUES

CUSTOMER SATISFACTIONc We are dedicated to building a relationship with our customers where we become partners in fulfilling their mission. We strive to understand our customers ' needs and to deliver products and services that fulfill and exceed all their requirements. COMMITMENT TO TOTAL QUALITYc We are committed to continuous improvement of all our activities. We will supply products and services that conform to highest standards of design, manufacture, reliability, maintainability and fitness for use as desired by our customers. COST AND TIME CONSCIOUSNESSc We believe that our success depends on our ability to continually reduce the cost and shorten the delivery period of our products and services. We will achieve

this by eliminating waste in all activities and continuously improving all processes in every area of our work. c INNOVATION AND CREATIVITY We believe in striving for improvement in every activity involved in our business by pursuing and encouraging risk-taking, experimentation and learning at all levels within the company with a view to achieving excellence and competitiveness. c TRUST AND TEAM SPIRITWe believe in achieving harmony in work life through mutual trust, transparency, co-operation, and a sense of belonging. We will strive for building empowered teams to work towards achieving organizational goals. c RESPECT FOR THE INDIVIDUAL We value our people. We will treat each other with dignity and respect and strive for individual growth and realization of everyone's full potential. c INTEGRITYWe believe in a commitment to be honest, trustworthy, and fair in all our dealings. We commit to be loyal and devoted to our organization. We will practice self-discipline and own responsibility for our actions. We will comply with all requirements so as to ensure that our organization is always worthy of trust. OUR MOTTO

c Integrity,

c Credibility,

c Customer satisfaction.

ORGANISATION HIRARCHY

CHAIRMAN

GRADE 11MANAGAGING DIRECTOR GRADE 10- EXECUTIVE DIRECTOR GRADE 9- GENERAL MANAGER

GRADE 8- ASSISTANT GENERAL MANAGER

GRADE 7- DEPUTY GENERAL MANAGER

GRADE 6- CHIEF MANAGER GRADE 5- SENIOR MANAGER

GRADE 4- MANAGER

GRADE 3- DEPUTY MANAGER GRADE 2- OFFICER

GRADE 1- ASSISTANT OFFICER

ORGANISATION CHART

DIVISIONS OF HINDUSTAN AERONAUTICS LIMITED

PRODUCTS OF HINDUSTAN AERONAUTICS LIMITED

PRODUCT PROFILE

DIVIISIONS Aircraft

PRODUCT DETAILS Jaguar international, Kiran MK II basic jet trainer, composite/metal drop tanks, dornier 228 landing gear, airbus A320/321 forward pax doors. Boeing 757 owx doors pylons for tornado aircraft.

Overhaul

Overhaul of mirage, Jaguar, Kiran, Canberra, An 32 aircraft, its accessories and lycoming Piston-engines.

Foundry & Forge

Castings, forging, rubber components, cylinder liners. Bimetallic sector forbrakers and ceramic brake pads.

Helicopter Engien

Manufacture of ALH and manufacture of overhaul and Cheetah, Chetak. Adour MK-811, Artouste IIIB, qarrett TPE 331-5-2520 engines and their overhaul, overhaul and Avon, dart, gnome, Orpheus 70105.

`Aerospace Industrial and Marine Gas turbine

Light ally structures and assemblies for satellites and launch vehicles. Repair and overhaul of industrial and marine gas turbine.

SERVICES OF HINDUSTAN AERONAUTICS LIMITED

EXPORTS OF HINDUSTAN AERONAUTICS LIMITED

RESEARCH AND DEVELOPMENT CENTERS OF HINDUSTAN AERONAUTICS LIMITED

OUR CUSTOMERS

INTERNATIONAL CUSTOMERS:
Cosmic Air, Nepal Gorkha Airlines, Nepal Royal Nepal Army, Nepal Island Aviation Services, Maldives Royal Malaysian Air Force, Malaysia Royal Thai Air Force, Thailand Vietnam Air Force, Vietnam Corporate Air, Philippines Mistubishi Heavy Industries, Japan Coast Guard, Mauritius Namibian Air Force, Namibia Peruvian Air Force , Peru ELTA, Israel Israel Aircraft Industries, Israel Royal Air Force, Oman Transworld Aviation, UAE Airbus Industrie, France Dassault Aviation, France EADS, France Snecma, France APPH Bolton, UK BAE Systems, UK Chelton, UK Dowty Aerospace Hydraulics, UK Hampson, UK

Messier Dowty Ltd., UK Rolls Royce Plc, UK Smiths Industries, UK Strongfield Technologies, UK The Boeing Aircraft Company, USA Honeywell International, USA MOOG, USA

DOMESTIC CUSTOMERS:
Indian Army Indian Airforce Indian Navy Indian Coast Guard Border Security Force Defence Research & Development Organisation Indian Space Research Organisation Indian Airlines Air India Airports Authority of India Jet Airways Air Sahara Bharat Electronics Ordnance Factories Oil & Natural Gas Corporation Ltd. Coal India Kudremukh Iron ore Company ltd. NALCO Reliance Industries

United Breweries Govt. of Karnataka Govt. of Andhra Pradesh Govt. of Maharashtra Govt. of Rajastan Govt. of West Bengal Govt. of Jammu & Kashmir Govt.

ORGANISATION CHART OF AIRCRAFT RESEARCH & DESIGN CENTRE (ARDC)

SRI FATEH SINGH GENERAL MANAGER (PROTO)

A.K.SOOD ADDITIONAL GENERAL MANAGER FINAL ASSY EQUIPPING & ERECTION GROUND TEST

J.K.DAS GUPTA ADDITIONAL GENERAL MANAGER

LEAN MANAGEMENT

MANAGEMENT SERVICE DEPT & MAINTANCE

B.K.MISTRY DEPUTY GENERAL MANAGER

ALH COMPOSITIES MANUFACTURING

G.SUNDER RAJ CHIEF MANAGER

MANAGERS AND MANAGEMENT TRAINEES

N.SATHAPATHY CHIEF MANAGER

ALH PRODUCTION ENGINEERING

B.S.VIAHWANATHAN DEPUTY GENERAL MANAGER

PRODUCTION & MANUFACTURING

AIRCRAFT RESEARCH AND DESIGN CENTRE

The design activity commenced in 1948 led by Dr.V.M.Ghatage for the development of HT2 an elementary piston engine trainer. HALs capabilities include expertise in all facets of aircraft design & development with rich in service experience and state-of-the-art facilities including prototype manufacturing. Overall HAL has nine design centers, which are collocated with the production divisions. These centers are engaged in design and development of combat aircraft, helicopter, aeroengine, engine test beds, aircraft communication and fuel systems and instruments. The Aircraft Research & Design Center of Bangalore is currently engaged in the design and development of the intermediate Jet Trainer as a replacement to Kiran. Light Combat Aircraft (LCA) programme, yet another prestigious project is progressing well. Flight tests of Technology Demonstrators are in progress. Hal is concurrently gearing up for its production.

ORGANISATION CHART OF HUMAN RESOURCE DEPARTMENT

CHIEF MANAGER PERSONNEL & ADMINISTRATION AIRCRAFT RESEARCH & DESIGN CENTRE

MANAGER (PUBLIC RELATION OFFICER)

SENIOR MANAGER PERSONNEL & ADMINISTRATION & OFFICIAL LANGUAGE

PERSONAL ASSISTANT

SENIOR ASSISTANT SUPERVISOR

HINDI TRANSLATOR

SENIOR CLERK

PERSONAL OFFICER LEGAL & INDUSTRIAL RELATION

DEPUTY MANAGER HUMAN RESOURCE

DEPUTY MANAGER ESTABLISHMENT

ASSISTANT PERSONAL OFFICER

TRAINING

CHIEF SUPERVISOR

SENIOR CLERK

SENIOR CLERK

SENIOR CLERK

SENIOR CLERK

OFFICE ASSISTANT

SENIOR CLERK

OFFICE ASSISTANT

OFFICE ASSISTANT

OFFICE ASSISTANT

WORK PACKAGE

MESSANGER

HUMAN RESOURCE DEPARTMENT

One of the Companys defined basic objectives is to develop and maintain an organization which will readily respond to and adopt the changing matrix of sociotechno-economic relationship where a climate of growing professional competence, self-discipline, mutual understanding, deep commitment and a sense of belongingness will be fostered and each employee will be encouraged to grow in accordance with his potential for furtherance of the organizational goals. It is in this context that HAL has realized the need for intensifying its Human Resource Development activity matching with changing requirements. Emanating from the Company's mission sta tement, the strategic Human Resource Development (HRD) goal of HAL is to create an atmosphere of technological and managerial excellence to become a globally competitive Aerospace Industry. With the changing environment, rapid technological changes characterised by paradigm shift from license production to R&D based production duly balanced with co-development / co-production, technological upgradation etc. greater customer demand, focused diversification to civilian and export markets. The overall objective of Human Resource Development plan would be to build a vibrant and learning organisation, so as to meet the challenges of quality and excellence, recruitment and retention of competent human resources and develop high commitment and sense of belongings to the Company. Accordingly, Company's HR Vision, Mission, Objectives, Strategies and Policies have been identified and indicated herein under : -

VISION OF HRD To make HAL a dynamic, vibrant, value based learning organisation with human resources exceptionally skilled, highly motivated & committed to meet the current & future challenges. This will be driven by core values of the Company fully embedded in the culture of the organisation" MISSION OF HRD Enable all those working for HAL to give out their best to ensure their all round growth as well as that of the organization. CORPORATE GOALS The corporate goals for HRD as defined in the corporate plan 1990-2005 are as follows: To ensure minimum one potential executive as replacement for each position at the level of Head of the Department; To train, retrain and develop executives and employees continually in tune with the changing environments and organizational requirements; To introduce a scheme to develop multi-skill trades amongst employees; To introduce formalized plans for each division for training/retraining in the three vital trades. To improve the quality of life of HAL employee and their families and fulfill HALs social obligation towards the nation. OBJECTIVE Ensure availability of Total Quality People to meet the organizational goals & objectives. Continuous improvement in Knowledge, Skill & Competence (Managerial, Behavioral & Technical).

Promote a Culture of Achievement & Excellence, with emphasis on Integrity, Credibility & Quality. Maintain a motivated workforce through empowerment of Individual & Team building. Enhance Organizational Learning; As a strategic business partner, Human Resource to play a pivotal role directly & significantly to Productivity enhancement, Profitability & improve Quality of Work Life. STRATEGY

To be in total alignment with Corporate Strategy. Maintain Human Resource at optimum level to meet the objectives & goals of the Company. Competence Mapping, Analysis & Up gradation of Knowledge & Skills including Training, Retraining, Multi Skilling etc. Create Leadership with Shared Vision at various levels in the Organization. Focused Development of Core Competence in High-Tech areas. Building Cross functional Teams Bring Company wide awareness of Mission, Values & Organizational Goals. Personnel policies on Performance based criteria, ensuring Growth, Rewards, Recognition & Motivation.

HRD INTIATIVES/PLANS: Manpower planning. Performance Appraisal System. Promotion and Career Planning. Firm Organisational Structure. Improving Quality of Life. Social Obligation. Formation of HRD cells.

POLICY FORMULATION The policies are formulated on the following basis: The corporate office by the functional level directors formulates it. At the board of meeting. They are formed based on the agenda. Formed at complex office levels.

RECRUTIMENT
Recruitment is a process of finding and attracting capable applicants. The process begins when new recruits are sought and end when their applications are submitted. The result is a pool of applicants from which new employees are selected. Sources of recruitment in HAL: The provision of recruitment rules applies to all employees of HAL other than the personnel on deputation or contract.Recruitment is made by adopting one of the following measures:Advertisements in press;

Notification to the employment exchange/directorate-general of resettlement, New Delhi/Rajya Sainik Board/Special employment exchange for physically handicapped/Association of SC/ST, Commissioner for SC/ST, selected All Appointment by deputation or contract; India Radio Stations/Doordarshan Kendras;

Absorption of trainees under the various training schemes of the company; Appointment of talented Indians staying abroad; Campus recruitment; Appointment of outstanding sportsmen; Appointment by deputation or contract;

APPLICATION BANK:

Application should be submitted on printed application forms or on plain paper (as specified in the ads) for each post, preferable typewritten, furnishing full particulars of: 1) Name and address. 2) Age and date of birth. 3) Educational qualifications showing the details of subject studies, year of passing and university/institution. 4) Period of training indicating the nature of training and the names (s) of the institution (s) from which such training was received. 5) Experience in detail, salary drawn etc., under different employers, chronologically. 6) Minimum salary at joining time required. 7) Any other relevant information that the candidates are required to furnish or would like to give. Application has to be accompanied with copies of certificate and testimonials attested by a Gazetted Officer or an officer not below the rank of Tahsildar or Head Master of a School or Principal of a college in support of the qualifications, experience etc. or Photostat/Xerox copies of originals. Candidates who are employed in Government/Semi Government/Public Sector Undertaking should apply through their employers. If under unavoidable circumstances, advance copies of applications are entertained, the individual concerned should not be interviewed unless he produces a No Objection Certification from his present employer.

RECRUITMENT AT INDUCTION LEVELS WORKMEN:

The channels, scales of pay and corresponding skill levels to which workmen are inducted (w.e.f. 15.4.97) are as follows:Channel A B C D Scale of Pay Scale 1 Scale 3 Scale 4 Scale 5 Skill Level Un-Skilled Semi-skilled Skilled Highly Skilled

The minimum qualification(s) which are required to be possessed by candidates for appointment to the Scales of Pay indicated above are as follows:Channel/Scale of pay A/1 B/3 Technical No Induction ITI Non-technical SSLC PUC/Inter + Professional Certificates Stenography, case may be. C/4 NAC/NCTVT/B.Sc* Degree of a recognized University + Professional Certificates Stenography, case may be. D/5 Diploma in Engg/M.Sc* Post Graduate Degree of a recognized professional University+ Certificates in Typing, PC in Typing, PC

Operations etc. as the

Operations etc. as the

in Typing, Stenography, PC Operations etc. as the case may be.

case may be. * In specified trades only. Candidates must undergo a written test, practical test and an interview before they are finally selected.

RECRUITMENT AT INDUCATION LEVELS EXECUTIVES

 Inductions in the Executive Cadre are generally done in Grade-I or II. Fresh

Professionals inducted as Executive Trainees and Management/Design Trainees are absorbed in Grades-I and I respectively. Inductions in Grades-I and II are done, other than Executive/Management/Design Trainees, on need basis also.  The minimum qualification required to be possessed for appointment in the

Technical Disciplines is Degree in Engineering in the relevant Branch of Engineering. In respect of Non-Technical Disciplines, it would be University Degree plus relevant Professional Qualification in the concerned Discipline (like MBA, MSW, CA, ICWA, ACS etc).  Recruitment to posts in Grade-III & above is resorted in only when candidates

are not available within the Company who can be promoted/moved to such posts.  Candidates with a percentage of 70% are taken for the selection of executive

trainees and candidates with 75% and above are taken for the selection of management trainees. Candidates should undergo a written test and then an interview.

APPOINTMENT
Candidates who are selected for appointment to permanent posts will be issued with a letter proposing to offer the post or offering the post. If they accept the

appointment offer they are to reply in the form confirming his /her acceptance of the offer. If the offer of appointment letter issued to SC/ST candidates, a specific clause to the effect that the candidate is being appointed against a reserved vacancy; that his appointment is provisional and is subject to verification of caste status through proper channels; if the verification reveals that the claim to belong to Scheduled Caste or Scheduled Tribe, as the case may be, is false, the services will be terminated forthwith without assigning any further reasons and without prejudice to such further action as may be taken under the provisions of the Indian Penal Code for production of false certificates, is to be included. Candidates found fit and selected for appointment to a particular grade/wage group, but cannot be offered appointment for that post may be appointed to posts in lower grade/wage group, if so recommended by the Staff Selection Committee, subject to the following conditions: a) The post in the lower grade/wage group to which such candidate is proposed to be appointed was also advertised, but no one was found suitable for appointment; b) The candidate is suitable for appointment to the post in the lower grade/wage group; c) The candidate has no object to accept such appointment in the lower grade/wage group. Persons joining duty on fresh appointment in the Company from Central/State Government/Public Sector Undertakings will be paid traveling expenses, Daily allowance for journey time for self and members of their family and cost of transportation of personal effects as admissible under the Traveling Allowance Rules of the Company according to the grade and pay offered in the Company.

In the case of other persons joining the Company on fresh appointment, they will be paid train-fare for self and members of their family as per the entitled class governing the grade and pay offered in the Company. In addition, excess baggage allowance equal to the free baggage given by the carrier will also be admissible.

PROBATION
Standard periods of probation, both in cases of appointments and promotions, are as follows: Executives Workmen One Year Six months

If the candidate does not acquire the standards required of him or his conduct and work are considered unsatisfactory during the period of probation, he is liable to be discharged either during the period of probation or at the end of probation. However, at the discretion of the appointing authority, the period of probation may be extended. The reasons for extending the period of probation are to be communicated to the employee concerned in writing. The employee will be treated as on probation till he is confirmed or discharged. The employee is deemed as confirmed in his post, only if he is intimated to that effect in writing.

PROMOTIONS

Promotion means an improvement in pay, prestige and responsibilities of an employee within his organization. Promotion in the organization is divided into two categories: Promotion for workmen; Promotion for executives. I. PROMOTION OF WORKMEN: For the purpose of promotion, workmen in the Company are segregated into two categories as follows: Those who were on the regular rolls of the Company on 15th April, 1997. Those who have been appointed/will be appointed as regular employees on or after 16th April, 1997 1) Workmen who are on the regular rolls of the company on 15th April, 1997 are promoted to higher Scales of Pay, under the Time Scale Promotion Scheme, on completion of specified years of service in each Scale of Pay. 2) Workmen who have been appointed/will be appointed as regular employees on or after 16th April, 1997 are classified into four Skill Levels/Channels. Promotion/Career Growth of Workmen falling into this Category are under two modes, one within each Channel and the other from one Channel to the next based on required conditions. II. PROMOTION OF EXCECUTIVES: 1) In respect of executives, there is only one mode of promotion from one grade to the next. Promotions from Grade-I to II and from Grade-III to IV are effected without reference to vacancies (as these promotions are within the same cadre), based on paper selection, on completion of un-interrupted service in the immediate lower grade, depending on the qualifications possessed.

2) Promotions to Grade-III and to Grade-V and above are vacancy based. Posts to be filled up in these Grades are notified within the concerned Division/Office/Complex/Company and selections are made by interview. Qualifications required to be possessed and the minimum service eligibility in the Lower Grade, as on 1st July of the year of selection, to become eligible to apply for consideration against notified posts in Grades-III, V and VI as specified. 3) Minimum service eligibility for promotion to posts in Grades- VII& VIII is 3 years as on 1st April of the year of selection. 4) Promotions are processed and effected, as follows:Promotion to Grades II & III Promotion to Grades IV, V & VI Promotion to Grades VII & VIII On a divisional/office wise basis On a complex/office wise basis On a company wide basis.

Promotions to posts in Grades II & IV are effected on a half yearly basis, i.e., w.e.f. 1st January or 1st July of the year, depending on the date of completion of the requisite periods of qualifying service. Promotions to posts in Grades-III, V, VI & VIII are effected w.e.f. 1st July of the year only. 5) Promotions/appointments to posts in Grade IX/X are effected as specified in the Rules. Appointments to Board level posts are made by the Government. 6) All Executives should have secured the prescribed PAR Gradations besides fulfilling other prescribed Terms and Conditions, to become eligible for promotion.

PERFORMANCE APPRAISAL

A Performance Appraisal System is a strong tool in the development of Human Resources in an organization. It is considered as a feed back system to provide the management information about its personnel so as to assist Management to take appropriate decisions on career planning, manpower planning and other human resources development activities such as training, job rotation etc. An effective performance appraisal system demands: A realistic assessment/evaluation of the performance of an individual during the reporting period. Identification of developmental activities to be taken to enhance the performance of an individual. A high level of confidence among the employees about the purposive ness of the system. The performance appraisal system is not meant to be a disciplinary tool. The correct attitude would be to regard it as a collaborative device which enables an appraiser in his capacity as a superior to continuously take his subordinated into confidence, guide them and tell them where they are falling below expectations so that areas for improvement, if any, communicated to them need not be an unpleasant surprise. OBJECTIVE OF PERFORMANCE APPRAISAL: The objective of Performance Appraisal system is to assess the effectiveness, potential, developmental needs and career stretch of the individual for the Management to formulate HRD programmes and to meet the organizational needs.

PERFORMANCE APPRAISAL SYSTEM : The performance appraisal system is divided into two: Performance appraisal of system officers; Performance appraisal of system workmen.

TRAITS TO BE ASSESSDED IN PERFORMANCE APPREAISAL:

The following traits of the employees are assessed in the performance appraisal programme: Job Knowledge- Extent of theoretical knowledge and practical know-how as related to: a) Assigned tasks/jobs; b) Related jobs; Functional Skills- Ability to do jobs. etc. c) Knowledge of current development in his own field.

Managerial Ability- Effectiveness in decision-making, analyzing, planning Task Fulfillment- Achieving target within set time frame.

Quality of Work- General excellence of the work executed. to command and influence people. subordinates.

Man Management- Ability to manage people at work, achieve ability, ability Co-ordination- Ability to interact effectively with superiors peers and Self Motivation- Enthusiasm/ attitude shown to perform the job effectively. conscientiously and with effectiveness.

Commitment-Dedication to duty and ability to carry out assignments Self Discipline- Self imposed work discipline and practices.

Punctuality- General discipline in adhering to work timing and attendance. communication within and outside the organization. etc.

Communication Skills- Clarity of thought and expression in written and oral Conceptual Ability- Ability to apply imagination to job, to develop new plans,

SEPARATION

Superannuation, Optional Retirement, Premature Retirement, Resignation, Termination of Permanent Employment, Termination on the grounds of continued ill health separate employees from their employers. Separations are painful to both the parties and should, therefore, be administered carefully.  SUPERANNUATIONThe age of superannuation/retirement in the Company is 60 years and will be effective from the afternoon of the last day of the month in which the employee concerned attains that age, in respect of employees whose date of birth is not the 1st day of the month. Employees whose date of birth is the 1st day of the month will superannuate on the last day of the previous month.  OPTIONAL RETIREMENTPermanent employees who have completed 10 years of continuous service in the Company and attained 55 years of age, both as on the date of submission of the application, are eligible to opt for Optional Retirement from the Company. The following categories of Employees would not be eligible to apply for retirement under this Scheme: a) Those who are under Bond obligations to serve the Company for specified periods; b) Those who are on study leave; c) Those who have been sponsored/deputed for higher studies; d) Those who are on deputation to other organizations. e) Employees under suspension; f) Employees in respect of whom disciplinary cases have been initiated/are pending; g) Employees in respect of whom prosecution for a criminal charge is pending or sanction for prosecution has been issued or a decision has been taken to accord sanction for prosecution;

h) Employees against whom an enquiry/investigation on allegations of corruption/bribery or mis-conduct is in progress either by CBI or any other Agency. i) Employees opting for retirement under the Scheme would have to give a minimum of 3 months notice to the Company. Retirement under this Scheme is not automatic and employees whose request for Optional Retirement has been accepted would be intimated so in writing. Retirement would be effective from the afternoon of the last working day of the concerned month only. An employee whose request for Optional Retirement has been accepted will be eligible for all the normal Superannuation/retirement benefits of the Company (No extra benefits).  PREMATURE RETIREMENTEmployees in Grade-I & above, who have completed 50 years of age and who are found to have ceased to be useful to the Company or whose integrity is questionable, as determined by the Competent Authority, can be prematurely retired from the services of the Company in the interest of the Organization. Retention or otherwise of such employees will be determined by a Screening Committee constituted for the purpose which will submit is recommendations to the Competent Authority for approval /decision. The screening will normally be effected twice in the career of every Officer, first after his passing the age of 50 years and the second after passing the age of 55 years. In addition, the Management may at its discretion screen the case of any officer who has passed the age of 50 years at any time during his career thereafter.  RESIGNATIONA permanent employee may resign from the services of the Company by giving notice (3 months in the case of officers and 1 month in the case of workmen) or paying the company the basic pay (basic pay plus Dearness Allowance in the case of officers in Grade-I and above) for the period by which the letter of resignation falls short of the required notice period. In respect of employees covered under the Certified Standing Orders, the provisions of the respective Standing Orders will

govern resignation. The Management reserves the right not to accept the resignation of Executives if the circumstances so warrant. In the event of an Officer in Grade-I and above resigning from the Services of the Company, the Company will have the option to accept the resignation with immediate effect or from any day prior to the date of expiry of the notice period. In such cases, the officer concerned will be paid salary only for the period for which he has actually worked.  TERMINATION OF PERMANENT EMPLOYMENTThe services of employees recruited against permanent posts and confirmed can be terminated on three months notice in respect of officers and one months in respect of workmen. If the notice falls short of three/one months, the employee is to be paid basic pay only for the period by which the notice falls short of the prescribed period of notice ( in the case of officers in Grade-I and above, Basic pay and Dearness Allowance to be paid). In the case of workmen who are not covered under the industrial employment (Standing Orders) Act (Workmen of Corporate Office, Liaison Office, Delhi & HAL Management Academy), the HAL Conduct, Rules, 1967 and HAL Disciplinary Action Rules, 1967 as amended from time to time, will be applicable.  TERMINATION HEALTHThe services of an employee, who has rendered atleast 10 years of continuous service in the Company, who is medically unfit on account of continued ill health to perform the job for which he is employed can be terminated on grounds of continued ill health after due intimation to him and as per the procedure laid down. For the rehabilitation of such employees, additional compensation will be paid. ON THE GROUNDS OF CONTINUED ILL

ALLOWANCES

The organization offers the employees with various allowances. They are as follows: Dearness Allowance. Increment. House Rent.

House Rent Allowance. House Rent Recovery.

Leased Accommodation. City Compensatory Allowance. Special Allowance at Korwa. Conveyance Allowance. Cycle Allowance.

Non-Practicing Allowance for Company Doctors. Reimbursement of Expenditure incurred on Conveyance for official purposes.

Special Allowance to Blind and Orthopaedically Handicapped employees. Outstation Allowance. Split Shift Allowance. Canteen Allowance. Night Shift Allowance. Lunch/Meal Allowance Uniform and Washing Allowance to Nursing Staff working in Hospitals. Washing Allowance. Turnout Allowance. Welders Bonus Special Allowance to Cash Handling Staff. Reimbursement of school fees.

EMPLOYEE BENEFITS AND FACILITIES

Employee benefits and services include any benefits that the employee receives in addition to direct remuneration. However, employee benefits and services

are indirect compensation because they are usually extended as a condition of employment and are not directly related to performance. The various benefits and facilities offered are: 1) LEAVE TRAVEL CONCESSION (LTC): All employees on the regular rolls of the company who have completed a minimum of one years continuous service (2 years continuous service in the case of those appointed on contract basis) on the date of the onward journey and their dependent family members are eligible for concessions under this scheme. Once in a block of four years (2 blocks of two years each), the employee and dependent members of his family are entitled to: Visit his hometown twice (once in each block of 2 years) OR Visit his hometown once in one block of 2 years and visit any place in India in the other block of 2 years. OR Visit his hometown once in one block of 2 years and encash the visit to any place in India facility. If the concession available in one block of 2 years is not availed, the same can be carried forward to the first year of the next block of 2/4 years. If the concession so carried forward is not availed within the extended period of one year, it will lapse. 2) LEAVE TRAVEL ASSISTANCE (LTA): In lieu of the LTC Scheme, employees can opt for the Leave Travel Assistance (LTA) Scheme under which the Company will pay a lump sum amount. Employees who avail the facility of LTA will not be eligible for the LTC Scheme and vice versa. Employees will have to exercise their option to avail the facility of LTA or the LTC Scheme, in each Block of 4 years. Once the option is exercised, the same cannot be changed during that Block of 4 years. 3) MEDICAL FACILITIES: The Company has set up well-equipped Hospitals at Bangalore, Nasik, and Koraput and Dispensaries at Hyderabad, Lucknow, Kanpur, Korwa and Barrackpore.

All modern facilities including well-equipped Operation Theatres, Pathological Laboratories, dental, ENT and X-Ray Units, including Specialist Consultations are provided. Employees who are borne on the regular rolls of the Company and dependent members of their families are covered by one of the following schemes for their medical treatment: (a) Employees drawing emoluments of Rs. 6500/- p.m and below are covered under the ESI Scheme, in Stations where the ESI Scheme is in operation. (b) Employees drawing emoluments in excess of Rs. 6500/- p.m and also employees in stations where the ESI scheme is not in force are covered by the Medical Assistance Scheme of the Company. The medical facilities extended to the employees are as follows: Employees covered under the ESI SchemeThe Medical Treatment, Sickness Benefit, Accident Benefit and other Benefits under the ESI Scheme are regulated in accordance with the ESI Act, Rules and Regulations. Employees who are not covered under the ESI SchemeEmployees not covered under the ESI Scheme and their families are eligible for medical treatment under the Company Medical Assistance Scheme. Treatment in private/un-recognized hospitalsIf for any emergent or unforeseen reason, medical treatment is obtained by an employee in a Hospital other than a Government Hospital or other than those approved by the Management, reimbursement will be restricted to what would have been admissible had the treatment been taken in a recognized Government Hospital in that city subject to certification by the Chief Medical Superintendent of the Division/Complex.

4) CASUAL LEAVE: Employees who join service in the first half of the calendar year will be eligible for 12 days of casual leave and those who join in the second year of the Calendar Year will be eligible for 6 days of Casual Leave, during the 1st Calendar

year after appointment. Separate set of rules on casual leave exists for those workmen of Bangalore Complex/Design Complex/Kanpur/Hyderabad Divisions in their case are 7 days in a Calendar Year. Casual leave can be availed upto a maximum of 8 working days at a stretch, subject to the same being sanctioned. Sundays and Holidays falling within the Leave period, prefixed or suffixed will not be counted as part of Casual Leave. Casual leave can be availed for half a day also. Unavailed casual leave will lapse at the end of each calendar year. 5) VACATION LEAVE: Vacation Leave can be accumulated as follows:Executives Workmen Upto 300 days Upto 240 days

The minimum encashable vacation leave is 10 days (5 days in respect of workmen who have opted to continue under the leave rules prevailing prior to 1.1.1988). The maximum number of days of encashable vacation leave will be one half of the vacation leave at credit of the employee on the date of encashment. 6) SICK LEAVE: Sick leave is applicable only to workmen who have opted to be covered under the Leave Rules prevailing prior to 1.1.1988. 7) MATERNITY LEAVE: Maternity leave in terms of the provisions of the Maternity Benefit Act, 1961/ESI Act, 1948 would be available to regular married Female employees, as the case may be. 8) FACILITIES FOR ACQUIRING HIGHER QUALIFICATIONS: Employees who are within 35 years of age (relaxable by 5 years in case of SC/STs) as on 1st July of the year of selection and have put in a minimum of 2 years of regular service will be eligible to apply for Company Sponsorship for Post Graduate Courses / Programmes.

9) UNIFORMS: Two sets of uniform material are issued to all employees who are borne on the regular rolls of the Company, excluding Nursing Staff once in every 2 years. 10) CANTEEN FACILITIES: Canteens have been established at the Divisions/Offices as a welfare measure and in keeping with the statutory requirements under the Factories Act for the convenience of employees. These canteens serve coffee, tea, snacks and meals. While items served in the canteen are charged at actuals in Divisions/Offices who have opted for payment of Canteen Allowance as at II.19, items are issued at subsidized rates at other places. 11) HOUSING FACILITIES: Townships have been established at Bangalore, Hyderabad, Nasik, Koraput, Kanpur, Lucknow and Korwa. Townships are self-contained with facilities such as Schools, Hospitals/dispensaries, playgrounds, parks, post offices, banks, police station etc. Houses in the townships are allotted to employees according to their seniority and their eligibility for a particular type of quarter. House rent, Electricity Charges, and Water Charges are to be paid by employees occupying quarters, as prescribed. 12) TRANSPORT FACILITIES: Employees residing outside the Company Townships are provided with Transport Facilities (Company owned or arranged) at subsidized rates to extent possible, for commuting between the residence and the place of work.

13) EDUCATIONAL FACILITIES: The Company has established schools for the benefit of the employees children. The Company, to the extent possible, provides accommodation, furniture

and equipment for the schools. Besides, the Company also gives Annual Grants to enable them to meet the expenditure in running the Schools. 14) SUPPLY OF MILK AND VITAMIN TABLETS: Employees below Grade-I who are engaged on Hazardous jobs, according to the opinion of the Company Medical Officers, are given 8 ounces of milk and/or vitamin Tablets every day. The categories of employees who should be provided with milk and vitamin tablets are decided by the General Managers concerned. 15) PRESENTATION OF SERVICE GIFTS: All permanent employees on the regular rolls of the company would be eligible for presentation of gifts, on completion of continuous and un-blemished service in the company. 16) SAFETY EQUIPMENTS: Employees are provided with safety equipments/aids such as Helmets, Hand Gloves, Goggles, Safety Belts, Safety Boots etc. to ensure complete safety from risks involved during performance of duties, wherever necessary. 17) EMPLOYEES WELFARE FUND: Employees Labour Welfare funds have been established in all the Divisions with the object of undertaking Recreational, Educational and Cultural Activities for the benefit of employees and their family members. The fund is also meant to encourage self-help, mutual co-operation and to foster a spirit of goodwill and better understanding amongst the members. A committee consisting of representatives of the Management and the employees manages the Welfare Fund. 18) SPORTS CLUB: With a view to develop sports talent amongst the employees, sports clubs have been established in the complex/divisions. The company provides playgrounds, accommodation and grants for encouraging sports activities. 19) CO-OPERATIVE SOCIETIES:

Co-operative societies formed by the employees are functioning in the Townships with assistance provided by the Management. They run Stores for the supply of essential articles of daily use, fair price shops etc 20) OFFICERS CLUBS: The company encourages formation of Officers Clubs in the Divisions to facilitate the recreational and cultural activities of Officers and their family members. Accommodation on nominal rent is provided to the Clubs. The Company also provided financial assistance for the functioning of the Clubs. 21) HAL FAMILIES WELFARE ASSOCIATION: Families Welfare Associations, formed by the wives of officers, are functioning in the Divisions with the object of looking after the welfare of the employees and their families and also to assist the dependents of deceased employees. 22) ADVANCES AND SUBSIDIES: Some of the advances and subsidies offered by the organization are Interest Subsidy Scheme on House Building Loans; Vehicle Advance Scheme in respect of workmen; Interest Subsidy Scheme on Vehicle Loans Officers;

INCENTIVES
Incentives are monetary benefits paid to workmen in recognition of their outstanding performance. They are defined as variable rewards granted according to variations in the achievement of specific results.

INCENTIVE SCHEMES:The various incentive schemes offered by the organization are-

1) SUGGESTION SCHEME: Under this Scheme, workmen are encouraged to offer their suggestions for improvements in: Operations to eliminate wastages in labour, material, power etc. a) Methods, processes, tooling or machine operations. b) Departmental, executive and administrative procedures. c) Safety devices or methods to increase safety, and d) Any other matters which are calculated to effect economy and increased efficiency 2) GRANT OF INCENTIVE TO EMPLOYEES ACQUIRING HIGHR EDUCATIONAL COMPANYThe amounts of the Monetary Award at present ranges between Rs. 150/- and Rs. 750/-. In addition, examination fee paid for the last examination the passing of which has enabled the employee to qualify in the examination is also reimbursed. 3) MERIT SCHOLARSHIP SCHEMESHAL Merit Scholarship Scheme- I applicable to students studying in classes ranging from Lower Primary to Higher Secondary School Leaving Certificates, in Company managed/aided/sponsored Schools: HAL Merit Scholarship Scheme-II applicable to children of Company employees, studying in recognized Colleges/Institutions for a course leading to the award of a Degree in Engineering/Technology. HAL Merit Scholarship Scheme-III applicable to children of Company employees studying in recognized Colleges/Institutions for a course leading to the award of MBBS Degree. QUALIFICATIONS AFTER JOINING THE

4) INCENTIVE NORMS-

SCHEME

FOR

PROMOTING

SMALL

FAMILY

Permanent employees who/whose spouse undergoes Sterilization Operation after having one surviving child are granted special increment in the form of personal pay. The special increment will be deemed as pay for the purpose of payment/grant/recovery of:

a) b) c) d) e) f) g) h) i)

House Rent Allowance. Scooter Advance. Festival Advance. Leave Travel Concession. Overtime Allowance. Attendance Bonus. Salary Advance. Provident Fund. Gratuity etc.

5) MONTHLY INCENTIVE SCHEMEWith a view to motivate employees to improve their level of efficiency by which Productivity Levels can be increased, a productivity linked monthly incentive scheme is in operation in the company. The scheme is in nine parts (Part A to 1) of which parts A to C are applicable for Direct Labour, Parts D to F for Indirect Labour and Parts G to 1 for Officers.

6) QUARTERLY PERFORMANCE PAY SCHEME Quarterly tasks to be met and amount payable during each quarter (only on completing the tasks in full) are as indicated below: Quarter I Cum. % of Annual Tasks 20 Amount (Rs.) 700

II III IV For the year

45 70 100 (RE Task)

875 875 1050 3500

TERMINAL/INSURANCE BENEFIT
The organization offers the following insurance benefits: Group Insurance. Group Savings Linked Insurance Scheme. Employees Provident Fund. Employees Pension Scheme. Gratuity. Death Relief Fund. Scheme of Ex-Gratia Payment and Compensation to Employees terminated on Grounds of continued ill health. Post Retirement Medical Assistance Scheme.

1) GROUP INSURANCEThe Company has taken a Group Insurance Policy, in lieu of the Employees Deposit Linked Insurance Scheme under the PF Act. Under this Scheme, an amount of Rs. 62,000/- is paid to the dependents of workmen and officers who die while in service, irrespective of the balance in the Provident Fund account of deceased employees. 2) GROUP SAVINGS LINKED INSURANCE SCHEMEA contributory Group Savings Linked Insurance Scheme of LIC is being operated in the Company. The premium is fully borne by the employees.

3) EMPLOYEES PROVIDENT FUNDEmployers share: 12% of the pay (Basic pay + DA + Family Planning Increment + Non Practicing Allowance + Service Weight age Pay, as the case may be) 8.33% out of the Employers Share of the contribution to the PF Account (the pay for this purpose being limited to Rs. 6500/- p.m) is paid into the Employees Pension Fund for the purpose of Employees Pension Scheme, in respect of Employees who are members of the EPS. 4) EMPLOYEES PENSION SCHEMEThe Employees Pension Scheme 1995 introduced by the Government of India for Provident Fund Subscribers is in operation in the Company. 8.33% of the Employers Share of contribut ion to the PF Account (Pay for this purpose being limited to Rs. 6500 p.m) is diverted to the Pension Scheme. There is no separate contribution from the employees

5) GRATUITYGratuity shall be payable to an employee/his nominee on the termination of his employment after he has rendered continuous service for not less than five years: a) On his superannuation, or b) On his retirement or resignation, or c) On his death or disablement due to accident or disease. The completion of continuous service of five years shall not be necessary where the termination of the employment of any employee is due to death or disablement. 6) DEATH RELIEF FUNDDeath Relief Fund has been formed in the Divisions on a purely voluntary basis. A Committee elected by the members of the Fund runs the fund. Under the Scheme, each member makes contributions at the rates decided upon by the Death Relief Fund Committee from time to time. The contribution is recoverable through Pay rolls. The funds are utilized for providing immediate financial assistance to the bereaved family of a deceased member

7) SCHEME OF EX-GRATIA PAYMENT AND COMPENSATION TO EMPLOYEES TERMINATED ON GROUND OF CONTINUED ILLHEALTHWith a view to assist in the proper rehabilitation of employees who are terminated from the services of the Company on grounds of continued ill-health, the Company has formulated a Scheme for generous payment of Ex-gratia, at one and half months Basic + DA for each completed year of service put in by them OR Basic + DA for the balance period of service left for Superannuation OR Rs. 3.5 lakhs whichever is less. This payment is in addition to the normal Terminal Benefits. 8) POST RETIREMENT MEDICAL ASSISTANCE SCHEMEThe Scheme is applicable to all the superannuated employees irrespective of the service they have rendered in HAL. Retired employee who is a member of the Scheme and his/her spouse will be eligible for the following benefits: a) Consultation with the Companys Doctor/Retainers will be free of cost. Medicines will not be dispensed at the Hospital except in case of an emergency, which will be on chargeable basis. b) All other services in HAL Hospital/Dispensary (i.e. inpatient treatment, all kinds of tests, surgery, issue of medicines etc) will be on the basis of cash payment as per notified tariff. The tariff is subject to review from time to time. c) The treatment will be limited to the extent facilities existing in the HAL Hospital/Dispensary. d) Retired employees or spouse will be admitted in Companys Hospital only if beds are available.

ORGANISATION CHART PRODUCTION & MANUFACTURING

DEPUTY GENERAL MANAGER

PRODUCTION & MANUFACTURING

CHIEF MANAGER
WOOD WORKS/ SHEET METAL, WELDING, STRUCTURAL ASSEMBLY

CHIEF MANAGER CHIEF MANAGER

METHODS & PRODUCTION CONTROL CNC SHOP, CNC PROGRAMMING, MACHINE SHOP OUTSOURCING

SENIOR MANAGER
PROGRESS

SENIOR MANAGER LCA COMPOSITE & PAINTING SHOP

SENIOR MANAGER HEAT TREATMENT & PROCESS SHOP SENIOR MANAGER OUTSOURCING

MANUFACTURING AND PRODUCTION ENGINEERING

The design group of our organization plays an important role in building aircraft IN PRINCIPLE and the manufacturing engineering is the key for bringing these principles in to reality. The manufacturing engineering unit does not refer only to the manufacturing shops like machine shop etc, in the traditional sense. The manufacturing engineering unit can thus be categorized into seven major groups:  Production Engineering. Tool Engineering. 

 Manufacturing Shops.

 Management Services Division.  Quality Assurance Department.  Material Management.  Maintenance.

1. THE PRODUCTION ENGINEERINGThis is a group concerned with production control activities. This group is again divided into 4 sub-groups: a. Methods Planning-That is concerned with bringing out the number of steps in which the job has to be done, work center at which it has to be done etc. b. Work Order Control-Undertakes conversion of process sheets into job tickets, route cards and progress cards. c. Subcontract Cell- Takes care of work that has been subcontracted to outside agencies. d. Manufacturing Progress- Follow up of job till completion. 2. TOOL ENGINEERINGThis group is divided into 3 sub-groups functionally a. Tool Design- Designing of tools/jigs and fixtures as per job requirement. b. Tool Planning- The methods engineering work for the tooling components is done. c. Tool Progress- The follow up of fabrication of tools to completion. 3. MANUFACTURING SHOPSSeveral manufacturing shops are: a. Machine Shop- Manufacturing of components. b. NC Shop With Programming- Manufacturing complex components with non-conventional shapes. c. Sheet Metal & Welding Shop- Involves manufacturing of components by sheet stock less than or equal to 5mm thick.

d. Composites- Bonding of resin impregnated carbon fibre matrix to required shapes. e. Structural Assembly- Assembly of structural parts. f. Equipping & Erection- Installation of looms, equipments on aircrafts is done here. 4. MANAGEMENT SERVICES DIVISIONa. This group fixes timing for each job as per stipulated norms. b. Manages databases regarding time allowed and time taken for each job. c. Maintains database regarding the overall efficiency of each worker, department, division and incentive earned by each employee. 5. THE MATERIAL MANAGEMENTThis group is functionally divided into 3 sub groups: a. Material Planning- Concerned with procurement of material. b. Stores-Concerned with storing of material, issue against proper documents.

ORGANISAT ION CHART OF MANUFACTURING SHOPS

DY GENERAL MANAGER (PRODN & MFG)

PAINT SHOP

LCA COMP SHOP

PROCESS & HT

WELDING

COMP STRL ASSY

WOOD WORK

SHEET METAL

TOOL ROOM

M/C SHOP

CNC SHOP

CNC PROG

CHIEF MANAGER WOOD WORKS, SHEET METAL, WELDING, COMP ASSY.

CHIEF MANAGER CNC SHOP & PROGRAMMING

SR.MANAGER LCA COMPOSITE SHOP

SR.MANAGER HEAT & PROCESS SHOP

SR.MANAGER TOOLING

SR.MANAGER MACHINE SHOP

SR.MANAGER CNC

MANAGER LCA COMP SHOP

MANAGER PAINTING SHOP

MANAGER SHEET METAL

MANAGER ALH DOORS

MANAGER ALH COWING

MANAGER MACHINE SHOP

MANAGER NNC

DY.MANAGER LCA COMP SHOP

DY.MANAGER COMP STRLASSY ENGR ROUTER & WOOD WORKS

DY.MANAGER ALH DOORS

ENGR LCA COMP SHOP

ENGR TOOL ROOM

ENGR MACHINE SHOP

ENGR CNC SHOP ENGR CNC

ASST.ENGR LCA COMP SHOP

ASST.ENGR ROUTERS

ASST.ENGR STRL ASSY

ASST.ENGR WELDING

ASST.ENGR TOOL ROOM

ASST.ENGR MACHINE SHOP

ASST.ENGR CNC SHOP

MANUFACTURING SHOPS
The manufacturing shops are places where the various components required for the aircraft are prepared mainly the LCA parts which is then sent to other departments for the next process as per the route card. The manufacturing shops are divided into: a. Machine Shop- Manufacturing of components. b. NC Shop With Programming- Manufacturing complex components with non-conventional shapes. c. Sheet Metal & Welding Shop- Involves manufacturing of components by sheet stock less than or equal to 5mm thick. d. Composites- Bonding of resin impregnated carbon fibre matrix to required shapes. e. Wood Works- Involves making wooden tools required for sheet metal fabrication. f. Structural Assembly- Assembly of structural parts.

g. Heat Treatment Shop- Heat treatment of finished components as per design specification is done here. h. Painting Shop- Painting of finished aircraft parts both primer and final is done here. i. Equipping & Erection- Installation of looms, equipments on aircrafts are done here.

MACHINE SHOP:
 Scope- Fabrication of various components and tools on conventional  Purpose- To ensure that fabricated components and tools meet the design  Process Owner- Head of machine shop. specification. machines.

 Supporting Function- Management service department, Methods, Design,  Inputs- Component drawings, tool drawings, process sheets, job card, route  Output- Completed parts, feedbacks. card, raw-material, jigs and fixtures, cutting tools etc. Tooling, Progress, Tool Crib, Blue print, Quality Assurance.

 Documents Used- Component drawings, tool drawings, process sheets, job  List of Records card, route card, standards and instruction sheets. Maintained- Incoming and outgoing register for correspondence, office records, job loading register, shop queries, production  Measurements, Monitoring Activities- Preventive maintaince, periodic  Measurable Objectives for the process- COM formats viz. yield productivity, efficiency, rejection, machine utilization, manpower utilization, number of  System Review, Data Completion, Analysis and Review in respect of identified objectives- Number of parts loaded and completion status, purchase department orders and snags. parts completed. calibration of instruments, rejection analysis, take corrective action on snags. queries, drawing, time dockets record, machine utilization formats, snags.

 Resources Used- Personnel: 5 officers and 23 workmen, Infrastructure: space,  Additional Resources required- 1 PC and networking, 1 milling machine, 1 precision drilling machine. furniture, jib crane, machinery, PC work environment.

QUALITY MANAGEMENT SYSTEM PLAN FOR MACHINE SHOP

COMPONENT DESIGN

PROCESS SHEET

METHODS

DRAWINGS

INSPECTION

MACHINE
SHOP

TOOL PLANNING &

TOOL ROOM

Rework
FIXTURES PROGRESS

Acceptable Components
VIEW ROOM

RAW-MATERIAL JOB CARD, ROUTE CARD

SHEET METAL SHOP

FUNCTIONS: Fabrication of sheet metal components. Receiving of job cards and job tickets from the progress department. Getting required tools from wood works or tool shop. The required tools are straight tools and contour tools. Loading tools to the operator. Completion of job by the operator.

Send the manufactured parts for inspection for final approval.

ORGANISATION CHART FOR COMPOSITES TECHNOLOGY DEVELOPMENT & MANUFACTURE OF LIGHT COMBAT AIRCRAFT (LCA)

AIRCRAFT RESEARCH & DESIGN CENTER

GENERAL MANAGER

ADDITIONALGENERAL MANAGER
(DT-MS)

DEPUTY GENERAL MANAGER

MANUFACTURING

SENIOR MANAGER
LCA COMPOSITE

MANAGER
WING ASSEMBLY

MANAGER
CFC

CFC PROCESS PLANNING, LAYUP, AUTOCLAVE &

MANAGER

WING ASSY-IS BOX, SLAT, ELEVON, NOSE BOX ASSEMBLIES

SUPERVISOR

CFC TOOL MANUFACTURE & CFC MACHINE

SUPERVISOR

LIGHT COMBAT AIRCRAFT COPMOSITE SHOP (LCA)

The LCA composite shop is concerned with the making of composite parts for the light combat aircraft. Once the parts are ready and approved after inspection it is sent to the aircraft department for final assembly of the aircraft. The composite shop is divided into five groups/areas:  Lay-up area.  Composite tool manufacturing area  Autoclave area  Inspection.

 Wings Section. The functions performed by each area are as follows: 1. Composite Tool Manufacturing Manufacturing of the moulds is done.

The raw materials are placed on these moulds and the required tools for lay-up work is produced. Trimming of tools is done

2. Lay-up Area This area is concerned with doing of the lay-up work. Raw materials are stored in clod store that are subject to 18 degree. Final bagging. Transfer of parts to autoclave area for curing.

3. Autoclave Area In this area curing of the component parts are done by putting the parts into the autoclave and oven, where the parts are subject to a temperature of 175 degree. Post curing of the component parts is done. Demoulding and trimming of the component part is carried out. The parts once ready are sent for final inspection.

4. Wing Section Assembly of top and bottom wing skin along with the ribs is done in this area. Trimming work is also carried out. Finally painting of the wings is done.

5. Inspection Inspection of all the composite parts is carried out. The parts are subject to both destructive and non-destructive tests.

FLOW OF FUNCTIONS IN ADVANCED LIGHT HELICOPTER COMPOSITE SHOP

INTEGRATED MATERIAL MANAGEMENT

Controlled by

STORE (Of raw material)

SHOP FLOOR
(Parts of helicopter are made)

AUTOCLAVE

(Curing of parts is done)

DEMOULDING AND TRIMMING

ORGANISATION CHART OF EQUIPMENT & ERECTION

ADDITIONAL GENERAL MANAGER HOD (D-EQ & GT)

DEPUTY GENERAL MANAGER

INSTRUMENTATION

CHIEF MANAGER
STRUCTURE

DEPUTY GENERAL MANAGER

SYSTEMS

MANAGER
(3) SHOP SIDE

SENIOR MANAGER

SENIOR MANAGER

MANAGER

MANAGER

SUPERVISOR

DEPUTY MANAGER

ASSISTANT ENGINEER

ENGINEER

TECHNICIAN

EQUIPPING AND ERECTION DEPARTMENT

This department is concerned mainly in giving life to the aircraft. After installation of various parts like electric lines, hydraulic lines etc in the aircraft various tests are conducted to find out if the aircraft is meeting all the design and customer requirements. In the ground test department the testing is divided into two groups:  Structural tests.  System tests.

1. STRUCTURAL TESTINGThe ground test department is an expertise in following: Static strength testing. Static stiffness and influence co-efficient testing. Ground resonance and modal testing. Vibration qualification testing. Material data generation testing.

Structural development generation testing. Experimental stress analysis. Mass properties testing. In service stress/load measurement.

The facilities offered in structural testing are: Full aircraft test beds. Universal component test rigs. Axial load test machine. Strong floors. Computer controlled multichannel structural test system. Large computerized strain gauge data loggers. Multichannel source location AE system (physical acoustics). Strain gauge laboratory. Centralized hydraulic power source and rig main system. Servo actuators and hydraulic jacks. Full aircraft suspension rig. Inertia measurement test rig. Sensors and calibration facilities.

2. SYSTEM TESTINGThe department is an expertise in the following kinds of system tests: Component level testing. Sub-system level testing. Integrated system testing for9 Fuel system. 9 Hydraulic system. 9 Electrical system.

9 Environmental control system. 9 Landing gear system.

9 Safety and pilot egress system.

9 Flight control system.

9 Brake pad and brake management system. The system testing offers following facilities: Brake dynamometer. Fuel system test rig. Hydraulic test lab. Pneumatics/ECS test rigs. Landing gear drop test rigs. Electrical system test rigs. Actuator test facility. Iron bird. Pilot egress test rig. Computerized data loggers. Spectrum analyses. Multichannel high-speed records. Sensors and calibration facilities. Multiaxes vibration shakers. Environmental chambers. Electrostatic fluid cleaner. Online contamination monitoring.

SALIENT FEATURES OF MAIN AIRFRAME STATIC TEST(M.A.S.T)

Computer controlled and channel digital servo hydraulic loading system. Flexible test rig to simulate realistic conditions. Over 4000 strain gauge channels to monitor stresses. Acoustics emission system for real time early failure warning. Computer controlled high-speed data acquisition system.

Remote hydraulic operation. Multi level safety features. Wide network for accurate load distribution over the airframe. Automated test case changeover system.

ORGANIZATION CHART OF INTEGRATED MATERIAL MANAGEMENT (I.M.M)

DEPUTY GENERAL
MANAGER (IMM)

CHIEF MANAGER
(IMM)

SENIOR MANAGER
PROJECT MATERIAL

SENIOR MANAGER
COMMERCIAL MATERIAL

SENIORMANAGER (STORES) -RECEIVING

COM-3 -LINE REPLACEMENT

UNIT -BOUGHTOUT ITEMS.

COM-1 -TOOLS

-COM. RAW MATERIALS -MAINTANANCE & MISC.

- HOLDING STORES

COM-2 -GROUND SUPPORT

EQIUPMENT -GROUND HANDLING

COM-7
-STD.PARTS -RAW MATERIALS

COM-8
-CONSUMABLES
-ALH RAW MATERIALS

INTEGRATED MATERIAL MANAGEMENT

The main function of IMM is to plan for materials in line with the production requirement for various projects. The materials are procured at post economical prices from approved vendors. The materials categorized into various groups like capital assets, raw material, consumables, tools and spares, commercial items.

The method of planning for materials differs for different categories. In case of capital asset long term planning of assets is done without affecting the financial aspects of the organization. The requirement of raw materials are planned well ahead as the lead-time for them is 6-9 months. The requirement for consumables is planned based on their needs and shelf life. Tools requirement is based on the needs of the shops. Whereas commercial items like pen, paper etc is purchased as when its required. Once the materials are purchased it is inspected and sent to their respective stores from where its send to the departments as per their requirements.

STORES
There are many stores like bonded stores, commercial stores etc. The main function of the stores is to receive and issue materials. The main document that is required to carry out stores activity is the purchase order. The mode of dispatch of the materials should also be known, as this information will be useful at the time of damages or shortage of materials. There are different kinds of receipts/documents received from the different modes of delivery like hand delivery, air, sea, courier, road and postal. The documents are then converted into Way Bill. Way Bill is an acknowledgement given to the vendors when the goods are received in good condition. Finally the way bill is converted to a receiving report that will contain the quantity of items actually received, items that has been rejected etc. Goods from the stores are issued against the material requisition receipt only in the presence of the material-planning department.

ORGANISATION CHART OF QUALITY DEPARTMENT

DEPUTY GENERAL MANAGER QUALITY

STR,EQP &ERE SYS,ELEC; FIELD SERVICE(LCA).

QA OF ALH COMP

RAW MATERIAL NDT, COMP & WING ASSY.

STR,EQP &ERE SYS,ELEC; FIELD SERVICE.(IJT)

SHEET MEATL WELDING LAB (LCA)

STORES & QUALITY ENGG.

MACHINE & CNC SHOP, VIEW ROOM & SUB ASSY.

METROLOGY CMM & TOOLING

QUALITY DEPARTMENT
A detailed quality assurance (QA) plan has been prepared to ensure quality at design, manufacturing and assembly stages of the most sophisticated projects like LCA, ALH etc. the quality assurance plan covers the total quality assurance activities of the projects. This document brings in a change of philosophy from control and inspection to one of total quality assurance. The design QA group has been formed to ensure that the product in each and every stage of its evaluation right from its design to its production is in compliance with technical requirements. Prediction, Self Audit Systems and Design Review Systems have been established. QA units in aerodynamic design, control law development groups and software groups have been constituted to build quality in design. Detailed snag design analysis has been identified respective snags and corrective actions have been implemented due to which repetitive snags have reduced seriously. Based on the past

inspection data, periodic inspection schedule has been optimized, enhancing inspection intervals for airframe, gear boxes and other systems.

QUALITY POLICY:
ARDC is committed to Design and develop fixed wing aircraft and aerospace system and equipments using state of art technologies in design, manufacture and project management to give a world-class product to the customer.  Provide upgrade solutions of existing aircraft so that the customer is able to exploit full potential of the aircraft.  Evolve new technologies to self-reliant and build confidence through continuous product improvement. Adapt process and system approach for quality management.

MANAGEMENT SERVICES DEPARTMENT (MSD)

Management services department is one of the most important departments in the in the aircraft research and design complex. This department mainly acts as an advisory committee. It also uses management information system to supply required information to various departments to help them to take corrective measures and correct decisions in the interest of the organization. It also studies the work done by employees by dividing it into two heads i.e. method simplification and work implementation. The department also looks into manpower assessment, which is done on bases of workload norms that is used to assess manpower. Apart from this it does manpower budgeting. The department undertakes tasks like monitoring the incentive schemes by splitting it into financial and non-financial incentive schemes. The department performs the function of value engineering which means changing the process or materials without affecting the functions and thereby reducing the cost. Main functions of MSD are: 1. Management information system (MIS)-

Implementation of MIS at the division level. System analysis. Committee of management. Statistical data.

2. Work study Work measurement. Rate fixing Standard data development Methods improvement Administering of incentive scheme Calculation of bonus Capacity utilization of officers, direct and indirect workmen. Manpower planning.

3. Organization and methods Organization analysis. Maintaining and preparing organization charts. Job evaluation. Office layout/equipment designing. Special assignments.

4. Additional functions Suggestion committee. Enquiry committee. Plant level committee.

ORGANISATION CHART OF FINANCE DEPARTMENT

DIRECTOR FINANCE

ASSISTANT GENERAL MANAGER CORPORATE OFFICE

ASSISTANT GENERAL MANAGER DESIGN COMPLEX

DEPUTY GENERAL MANAGER FINANCE (ARDC)

CHIEF MANAGER BILLS PAYABLE SECTION

CHIEF MANAGER MATERIALS

CHIEF MANAGER COSTING

CHIEF MANAGER BILLS RECEIVABLE SECTION

CHIEF MANAGER PAYROLL

CHIEF MANAGER FINANCE

CHIEF MANAGER BOOK KEEPING

FINANCE
Hindustan Aeronautics Limited maintained the trend of growth during the financial year 2002 2003 and achieved all - time sales, profits and exports. The turnover for the year was Rs. 3120 crores and profit was Rs. 433 crores. The export turnover was Rs. 103.89 crores resulting in a growth of 55% over the previous year. For the first time exports crossed Rs. 100 crore mark. The highlights are given below: Rupees in Crores Particulars Sales Depreciation Profit before tax Provision for tax Profit after tax Gross Block 2002-03 3120 45 433 43 390 1211 2001-02 2775 38 373 28 345 1085

The organization follows integral system of accounting. It makes use of enterprise resource planning in accounting work. The companies authorized capital consists of preference shares and equity shares. Only the Ministry of Defense holds the shares of the company. Only one share is held by the chairman of the organization as per the minimum standard required set in the companies act. The share held by the chairman is transferable to his successor of the organization once he retires from the organization. He has no right to sell the share. Neither can he be the owner of the share once he retires. The finance department is sub-divided into 6 departments they are: 1) Bills Receivable departmentThey collect payments from customers. 2) Bills Payable DepartmentThey make payments to the vendors. 3) Book Keeping DepartmentActs as a liaison with auditors. It also prepares profit and loss account, and, balance sheet after collecting information from various divisions. 4) Costing DepartmentPrepares the costs the various projects taken up by the organization. The various items of income and expenditure recorded in the financial books are collected in the coating books under the following heads: Labour cost, Material cost, Sundry direct cost.

5) Payroll DepartmentIs concerned with the salaries and allowances of the employees. 6) Inventory Planning DepartmentIt is concerned in finding out what inventory is required, in what quantity it is required and what is the cost that will be incurred.

BUDGET
The finance department also plans the budget. A budget is an overall blue print of a comprehensive plan of action expressed in physical and financial terms; it includes plan for each of the activity/responsibility centers of the business and provides a link between the physical and financial plans of various department of a organization. The budget period is the financial year commencing from April-March and the budgetary exercise will commence in mid June. The budget is projected in a 3-year time frame covering estimates for:  Current year.  Budget year (next year).

 Forecast year (year following budget year). The different types of budget are: Capital budget. New projects budget. Welfare budget. Performance budget. Production budget. Sales budget. Purchase budget.

Foreign exchange budget. Manpower budget. Salaries and wages budget. Training budget. Overtime budget. Design and development budget.

PLANT ENGINEERING DEPARTMENT

The Plant Engineering Department of ARDC is involved in maintenance activities under the following heads: a) Mechanical Maintenance b) Civil Maintenance. c) Electrical Maintenance. d) Work Package. 1) MECHANICAL MAINTANENCEUnder the Mechanical Maintenance, we have the following categories: Automobile Maintenance. Air Conditioning and Compressor Maintenance. NC Maintenance. The major task of mechanical maintenance is to keep all the machines in working condition and to provide service in case of breakdowns and minor repairs.

This department carries out the work either departmentally or through maintenance contracts. Two types of contracts are generally operated, they are: Annual Maintenance Contracts (without supply of spares), Comprehensive Annual Maintenance Contracts (including supply of spares).

The other types of contracts are: Petty works. Sub contracts. Petty purchases through imprest.

Material Purchase Requests (MPRs) are raised for p rocurement of spares required for repair of machines and sent to purchase department for action after coordination of the competent authority. Petty WorksPetty works are operated for works limited upto Rs. 5000/- each. Quotations from the outside agencies are received and work allotted on L-1 basis. The papers are later processed for payment and the works ordered within the powers of Deputy General Manager. The works are carried out after ensuring the availability of funds generally allotted in the start of that respective financial year. Sub-contractsThe work is assessed and an note sheet is raised for competent authoritys approval. Tenders are floated and an agency fixed for carrying out the jobs.The financial limit of Rs. 50,000/- can be operated by this procedure.

Imprest PurchaseSmall value items required for maintenance of machines are generally purchased through open market by the employees of the department. The bills are later processed and re-imbursed by finance department. The total value of Rs. 10,000/- is allotted to the department head for imprest purchases and the value of each bill restricted to below Rs. 1000/- each.

Air conditioners and compressor maintenanceThere are a number of small compressors and about 5 big air conditioners in ARDC to be maintained by this group. Long duration breakdowns are unacceptable and are hence generally maintained through AMCs or CAMCs. Maintenance of room air conditioners is al so a part of this group. Automobile MaintenanceThis group is involved in servicing of all the automobiles either used for transportation of materials or conveyance purposes of the divisions. There are a number of vehicles viz., open trolleys, fork lifters, ambulance, cars, scooters etc., which are in operation and inter/intra divisional activities which need to be overhauled for running condition. A number of service engineers and mechanics are inducted for this purpose. Work PackageA special task for inducting of manpower like contract engineers and technicians on work package basis is generally subcontracted through outside agencies by this group. 2) CIVIL MAINTANENCEThis group undertakes routine maintenance buildings and minor repair works. Major contracts handled are: -

Sanitation works. Horticulture works. Labour contracts. Civil contract works. (Term contract, sub-contracts and petty works) Planning and drafting. Estimation and costing. Tenders and processing.

This group also undertakes various activities like:

3) ELECTRICAL MAINTANENCEThis department of Plant Maintenance looks after electrical installations within the division.66 KV supply for KPTCL is received at Main Receiving Station with a power down voltage of 11 KV on HT line. This is in turn powered down to 440 V and distributed to 4 sub-stations. Out circuit brakers are used for HT lines and air circuit breakers are used for LT lines. There are 3 DG sets available in areas as mentioned below: Iron bird test rig. Design department. Structural Assembly Hangar (Mobile set from ADA). 3 sets of 625 KVA DGs are to be procured for the ALH Composite Blade Shop. 6 to 7 UPS and 20 KVA and 30 KVA UPS are maintained by CAMCs and Generators by AMCs.

4) WORK PACKAGEA special task for inducting of manpower like contract engineers and technicians on work package basis is generally subcontracted through outside agencies by this group.

LEAN-MANUFACTURING CONCEPT
Lean means
MANUFACTURING WITHOUT WASTE.

Waste in this concept is two

kinds first is material waste and second is activities waste. Material waste is further divided into 3 types necessary and value adding, necessary and non-value-adding, and, not necessary and non- value adding. LEAN MANUFACUTIRNG TOOLS:  ANBAN. K

 IX SIGMA. S

 ETUP REDUCTION. S

 EAM MOTIVATION. T  5S-HOUSEKEEPING. 1) KANBAN: Kanban is a form of just in time (JIT)- system. A withdrawal electronic signal is sent from shop to main store. Main store immediately replenish the item consumed. In the same way main store is connected to the supplier. This system thus minimizes inventory and as a result cuts the inventory carrying cost.

2) SIX SIGMA: Six sigma is a disciplined, data-driven approach and methodology for eliminating defects. A sis sigma defect is defined as anything outside the customer specifications. To achieve six sigma, a process must not produce more than 3.4 defects per million opportunities.

3) SETUP REDUCTION: Setup reduction and fast, predictable setups enable lean manufacturing. It reduces setup cost, allows small lot production and smoothes flow. 4) TEAM MOTIVATION: Dedicated lean teams are required for successful implementation of lean management. The team must consist pride, competence, training and good performance. 5) 5S-HOUSEKEEPING: The 5S of housekeeping are sorting simplifying, sweeping, standardizing and self-discipline. SPECIFIC GOALS UNDERTAKEN FOR LEAN MANAGEMENT: Change from prototype setup to production setup. Improvement of quality. Reduction of cost. Increase in production capacity. Reduction in cycle time. ACTIONS UNDERTAKEN TOWARDS ACHIVEMENT OF GOAL:

Removal of waste i.e. junk, rejected parts and tools. Preparation of job groups. Shifting of machines and core cutting. Utilization of lectra machine. Have a tool preparation workstation. Setting up demoulding workstation. Setting up trimming workstation. Maintain online documentation. Setting work centers in lay-up areas. Provide Teflon coating on tools. Make use of reusable vacuum bags.

CONCLUSION Lean-concept if implemented will: Eliminate waste material and non-value adding activities. Cuts material and labour cost. Reduces cycle time. Increases the productivity.

SWOT ANALYSIS
SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats Analysis) is a tool commonly used to plan future activities to maximize their positive impact on an individual or organization. The aim of a SWOT analysis is to guide the design a effective strategies for future development. A SWOT analysis is carried out under four categories: Strengths- In what ways are you strong? What advantages do you have over competitors? Weaknesses- What are you not good at? What limitations are there on the activities you can undertake? What advantages do competitors have? Opportunities- Given where you are now, what avenues are there for development and growth? What external trends might be of benefit? Threats- What internal characteristics threaten future development? What external trends might create risk?

The use of a SWOT analysis allows you to take maximum advantage of opportunities, while being aware of potential threats and understanding the strengths and weaknesses of your current position. Strengths and Weaknesses refer to where you are currently; Opportunities and Threats refer to the future. Each of the four areas of a SWOT analysis can be applied to a wide variety of aspects of an organization, including financial, personnel, technology, and products.

STRENGTHS:
Industry enjoys monopoly power. It has defense budgetary support and orders. It has the biggest overhaul center in the east. Till recent, it was the only industry to supply parts to the squadron aircrafts. It has also penetrated the export market. It has a good experience in technology as it has an experience of 50 years in the industry. It has a large research and development center, and, foundry and forge center.

WEAKNESS:
Since the organization is a public sector it lacks a strategic competition in the global market.

There has been considerable idle time in the labour force in the recent times due to lack of orders. In a public sector retrenchment is not easy.

OPPORTUNITIES:
For the last 7 to 8 years the company has been able to get good export orders. As the labour cost is cheaper when compared to other nations the company has better chances to get more export orders.

THREATS:
Recently the manufacturing operations overhaul of aircraft and light aircraft maintenance is opened to private parties. Thus this may affect the corporate plan of the organization.

ASSIGNMENTS  
The assignments undertaken in the organization are:  Preparation of the master record of Executive Trainees; Diploma Trainees; Ex- Servicemen.

 Verification of the master records.  Verification of Police Verification Report; Caste Verification Report; Pre-Experience Records.

CONCLUSION
In the six decades, HAL has spread its wings to cover various activities in the area of Design, Development, Manufacture and Maintenance. From aircrafts to air force, HAL has been a monopoly power. The perfection MIG engines and Marine Gas turbines show that it has been a leader for a considerable span of time and innovation has been their driving force. It was a fruitful experience working in Personnel Department of HAL as a management trainee.. The working of an organization was understood indepth. Not only did it give a learning experience but also gave an idea on how we could incorporate the various functional and cultural aspects, discovered by the masters, into a good planning package. This Internship has given me an opportunity to correlate the theoretical knowledge and the classroom learning to the actual corporate world. It was a great opportunity to work in such a premier enterprise and the lessons learnt were very valuable.

BIBLIOGRAPHY
 Organization manuals.  Employee handbook.  Website: www.hal-india.com