BHEL ancillary units double output

TIRUCHI: BHEL-Tiruchi has met with encouraging response to its strategy of identifying ancillary units with potential for rapid expansion and entering into memorandums of understanding with them for delivery of stipulated tonnage on a monthly basis.

The combined output of 13 such units, with which the MoUs were signed last fiscal, has gone up by more than 100 per cent. As on March 2008, the level of output could touch the mark of 3,600 tonnes per month from the range of 1,500 to 1,600 tonnes at the time of agreement.

The MoUs were signed with two categories of industries. As per the understanding, companies that had so far been delivering 150 tonnes a month had to scale up their target to 500 tonnes, and the ones with a capacity of 200 tonnes were expected to ramp up their productivity to 1,000 tonnes.

Nevertheless, the productivity that these industries could attain in a year’s time was in itself a good effort, A. Chandrababu, General Manager – Outsourcing, said.

Buoyed by the success of the strategy, the BHEL has entered into a similar understanding with an additional 15 vendor units this fiscal. Ancillary units with a track record of delivering 100 tonnes of output each on a monthly basis were identified and a target of 250 tonnes a month was set.

To facilitate these industries to achieve the targeted productivity, the outsourcing department held review meetings on a monthly basis, said Mr. Chandrababu, adding that these industries enjoyed the advantages of out-of-turn concessions for loading and unloading; orders for the next two to three months, and availability of raw materials for the next 1.5 to two months.