Organization Study Conducted at NTPC, Korba
Organization Study Conducted at NTPC, Korba
Organization Study Conducted at NTPC, Korba
SUBMITTED TO
BANGALORE UNIVERSITY
IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE AWARD
OF THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
VIKAS KUMAR SONI
REG NO: 11XWCMA117
UNDER THE GUIDANCE OF
Mr. SIBA PRASAD SARANGI
(Lecturer, SAMS)
SCHOOL OF MANAGEMENT, SAMS, BANGALORE
SEPTEMBER, 2012
Sambhram Academy of Management Studies, Bangalore
EXECUTIVE SUMMARY
The organizational study is done in NATIONAL THERMAL POWER
CORPORATION LIMITED, KORBA. This study tells about the function of
company. Electricity is an important energy and it is uses in most of the industry,
etc. NTPC, Korba produced 2600MW Approved investment are Rs 2324 crores.
NTPC, Korba having its clients in various parts of India. It supplies to Madhya
Pradesh, Chhattisgarh, Maharashtra, Gujarat, Goa, Union Territories of Daman,
Diu, Dadra Nagar Haveli
To produce 2600MW electricity its requirements is 11.4 Million tons (approx.)
annual coal and 2.80 lakhs Cu.M/day water.
As a part of MBA programme under the Bangalore University a study has been
undertaken in NTPC. This internship training enables to know the realities of the
business and application of theoretical knowledge in practical environment.
Primary data has been collected from face to face interview with department heads,
managers and workers. The secondary data has been collected through website of
NTPC, company documents, annual reports, magazines and so on. A SWOT
analysis was done to find the strength, weakness, opportunities and threats of the
organization.
It was found that the organization encourages employee participation in the
management. With the help of formation of quality circles and mutual discussion
among the employees the company has been successful in solving work related
problems.
ACKNOWLEDGEMENT
This project is a product of the valuable insights, facts and experience I had with
various people in the organization.
Its my pleasure to express my deep sense of gratitude to Miss. PRACHI
CHAUHAN (HR department) for permitting me to undergo an in-plant training
in their esteemed organization and being my external guide. I thank him for his cooperation and valuable suggestions throughout the period of internship.
I convey my heart full thanks to my Principal Mr. K.C.JHON, Director Mr.
K.C.MISHRA, Internal guide Mr. SIBA PRASAD SARANGI, my parents and
all my friends for their support, encouragement and help, without which this report
could not have been successfully completed.
I am also grateful to the entire staff and professionals of NTPC for their guidance
and constructive co-operation in completion of this project.
Date:
Place: Bangalore
DECLARATION
I VIKAS KUMAR SONI hereby declare that the contents of this internship report
entitled AN ORGANISATION STUDY conducted at NTPC LIMITED,
KORBA SUPER THERMEL POWER STATION, KORBA are the outcome
of my original work. Further this report has not been submitted to any
Institution/University for award of any degree.
Place: - Bangalore
Date: -
GUIDE CERTIFICATE
This is to certify that the internship report entitled AN ORGANIZATION
STUDY conducted at NTPC LIMITED (KORBA SUPER THERMEL
POWER STATION), KORBA is an original work undertaken by VIKAS
KUMAR SONI in partial fulfillment of MBA course requirement of Bangalore
University. Throughout the process of the study, the candidate has worked under
my direct supervision and guidance.
Place: BANGALORE
Date:
CONTENTS
CHAPTER
PAGE
No.
1
TOPIC
INTRODUCTION TO THE INTERNSHIP STUDY
INDUSTRY PROFILE
COMPANY PROFILE
No.
1
2-7
8-37
RESEARCH METHODOLOGY
38-40
FUNCTIONAL DEPARTMENTS
41-66
SWOT ANALYSIS
67-70
71-73
APPENDIXES
LIST OF TABLES
TABLE
DESCRIPTION
NO.
PAGE
NO.
1.1
10
1.2
18
1.3
18
1.4
19
1.5
20
1.6
20
1.7
21
LIST OF FIGURES
FIGURE
DESCRIPTION
NO.
PAGE
NO.
1.1
GROWTH OF NTPC
08
1.2
28
1.3
31
1.4
32
1.5
35
1.6
ORGANIZATIONAL STRUCTURES
37
3.1
FUNCTIONAL DEPARTMENTS
41
3.2
42
3.3
51
3.4
60
DEPARTMENT
CHAPTER- 1
INTRODUCTION
Internship training program is vital and essential part of the educational curriculum
which helps students to know how the organization functions and also to know
how various interrelated departments work together to achieve their common goal
and it also helps the students to have a particular exposure to the problem faces,
functions, department and their business operation.
This is a generally meant to develop students aptitude towards business
environment practically training given which will make students prepare for a
future job as a manager of an organization. So it is observed that the project work
is an invaluable part of the educational curriculum.
The main purpose of this study is to assess overall performance of the Company.
The study is conducted at NTPC Plant the search is basically on empirical enquire
a about the approaches towards the concept and its role in the organization.
INDUSTRY PROFILE
Electricity is the most versatile energy source that we have; it is also one of the
newest: homes and businesses have been using it for not much more than a
hundred years. Electricity has played a vital part of our past. But it could play a
different role in our future, with many more buildings generating their own
renewable electric power using solar cells and wind turbines. Let's take a closer
look at electricity and find out how it works.
Electricity is a type of energy that can build up in one place or flow from one place
to another. When electricity gathers in one place it is known as static electricity
(the word static means something that does not move); electricity that moves from
one place to another is called current electricity.
Despite its great importance in our daily lives, most of us rarely stop to think what
life would be like without electricity. Yet like air and water, we tend to take
electricity for granted. Every day, we use electricity to do many jobs for us from
lighting and heating/cooling our homes, to powering our televisions and
computers. Electricity is a controllable and convenient form of energy used in the
applications of heat, light and power.
Electricity Industrial Profile
The electricity in India is predominantly controlled by the Government of
India's public sector undertakings (PSUs). Major PSUs involved in the generation
of electricity include National Thermal Power Corporation (NTPC), National
Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of
India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra
State Electricity Board (MSEB), are also involved in the generation and intra-state
Sambhram Academy of Management Studies, Bangalore
10
11
Current
installed
base
of Coal
Based
Thermal
Power is 96710.78
The state of Maharashtra is the largest producer of thermal power in the country.
12
Hydro Power
India was one of the pioneering countries in establishing hydro-electric
power plants. The power plant at Darjeeling and Shimsha (Shivanasamudra) was
established in 1898 and 1902 respectively and is one of the first in Asia. The
installed capacity as of 2011 was approximately 33874.43. The public sector has a
predominant share of 19.51% in this sector.
Nuclear Power
Currently, 17 nuclear power reactors produce 4149.66 MW (2.39% of total
installed base).
Renewable Power
Current installed base of Renewable energy is 21286.54 MW which is 12.26% of
total installed base with the southern state of Tamil Nadu contributing nearly a
third of it (5008.26 MW) largely through wind power.
Transmission
Transmission of electricity is defined as bulk transfer of power over a long distance
at high voltage, generally of 132kV and above. In India bulk transmission has
increased from 3,708ckm in 1950 to more than 165,000ckm today (as stated by
Power Grid Corporation of India). The entire country has been divided into five
regions for transmission systems, namely, Northern Region, North Eastern Region,
Eastern Region, Southern Region and Western Region. The Interconnected
transmission system within each region is also called the regional grid.
13
The transmission system planning in the country, in the past, had traditionally been
linked to generation projects as part of the evacuation system. Ability of the power
system to safely withstand a contingency without generation rescheduling or loadshedding was the main criteria for planning the transmission system. However, due
to various reasons such as spatial development of load in the network, noncommissioning of load centre generating units originally planned and deficit in
reactive compensation, certain pockets in the power system could not safely
operate even under normal conditions. This had necessitated backing down of
generation and operating at a lower load generation balance in the past.
Transmission planning has therefore moved away from the earlier generation
evacuation system planning to integrate system planning.
While the predominant technology for electricity transmission and distribution has
been Alternating Current (AC) technology, High Voltage Direct Current (HVDC)
technology has also been used for interconnection of all regional grids across the
country and for bulk transmission of power over long distances.
Certain provisions in the Electricity Act 2003 such as open access to the
transmission and distribution network, recognition of power trading as a distinct
activity, the liberal definition of a captive generating plant and provision for supply
in rural areas are expected to introduce and encourage competition in the electricity
sector. It is expected that all the above measures on the generation, transmission
and distribution front would result in formation of a robust electricity grid in the
country.
Objectives
Sufficient power to achieve GDP growth rate of 8%.
14
Reliable power.
Quality power.
Optimum power cost.
Commercial viability of power industry.
Power for all.
Rural electrification
Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttaranchal, Madhya Pradesh etc are some
of the states where significant number (more than 10%) of villages are yet to be
electrified.
15
COMPANY PROFILE
Introduction to NTPC
Established in 1975, NTPC, the largest power company the country has been
consistently powering of the growth of India. An ISO 9001:2000 certified
company; it is worlds 3rd largest thermal power generator and second most
efficient capacity utilization.
Apart from power generation, which is the mainstay of the company, NTPC has
already ventured into consultancy, power trading, ash utilization and coal mining.
NTPC ranked 337th in the 2012, Forbes Global 2000 ranking of the Worlds
biggest companies. NTPC became a Maharatna company in May, 2010, one of the
only four companies to be awarded this status.
With this, NTPC reaffirms as one of the very Best Employers in India, second only
to Google and Intel. NTPC has also been ranked first amongst PSUs, 1st amongst
large organizations (more than 10,000 employees) and 1st amongst manufacturing
and production industries. Shri S.P. Singh, Director (HR) and Shri S. Roy,
Executive Director (HR), NTPC Ltd. received the award.
Fig-1.1 Growth of NTPC
The total installed capacity of the company is 39,174 MW (including JVs) with 16
coal based and 7 gas based stations, located across the country. In addition under
JVs, 7 stations are coal based & another station uses naphtha/LNG as fuel. The
company has set a target to have an installed power generating capacity of
1,28,000 MW by the year 2032. The capacity will have a diversified fuel mix
comprising 56% coal, 16% Gas, 11% Nuclear and 17% Renewable Energy
Sambhram Academy of Management Studies, Bangalore
16
Sources(RES)
including hydro. By 2032, non fossil fuel based generation capacity shall make up
nearly 28% of NTPCs portfolio.
Year of Establishment: 1983
Korba the Power City of Chhattisgarh is endowed with natural resources
such as coal and bauxite. Being rich in coal, Korba was chosen for setting up of
pithead power plants. In early stages, two power plants of MPEB (Now CSEB)
were installed in the vicinity of Korba city. Thereafter in January 1978 NTPC got
clearance from the government to set up Thermal Power Plant of 2100 MW
Capacity at Korba.
In tune with the need for massive capacity addition in the changing scenario, 500
MW Unit was commenced operation in mid 2010 and the installation cost would
be Rs 2,448.49 crore. Now Korba will added another feather in its cap by having
the first Merchant Power plant of NTPC and will thus help the company in taking
one more step in its Mission 2017.
In present day scenario, only the most economical, Qualitative and efficient
power generating station will meet the requirement of survival of the fittest. Korba
17
Super Thermal Power Station is constantly raising the bar of efficient and
economical power generation for excellence.
Despite over 25 years, NTPC Korba achieves over 97% PLF and is thus
treated as one of the best stations when we talk about Power Generation in India
today. Meritorious Performance Awards of twenty times in the last 28 years is a
testimony to the fact that this project has created a niche in the domain of
Operation and Maintenance of thermal power stations. The station has in fact set a
benchmark in producing power at the lowest cost.
Table - 1.1 Growth of Power Generation in Korba
Stage
Unit Number
Total
Seven
2600
1st
200
1983 March
1st
200
1983 October
1st
200
1984 March
2nd
500
1987 May
2nd
500
1988 March
2nd
500
1989 March
3rd
500
2010 December
Date of Commissioning
18
AN OVERVIEW
Name & Location:
Approach:
Nearest Airport:
Installed capacity:
Coal Transportation:
Annual Coal:
Water Source:
Water requirement:
Beneficiary States:
External Financial:
19
20
21
Driven by its vision to lead, it has charted out an ambitious growth plan of
becoming a 66,000 MW plus company by 2017.NTPC has been rated as one of the
top most Best Employer of the country for the year 2003, 2004 and 2005 in a
row. Best Companies to Work for in India Business Today Survey 2004, it has
developed into multi-location and multi-fuel company over the past three decades.
These achievements have been made possible by the 23500 strong and motivated
work forces that with their dedication are ever willing to take NTPC to greater
heights.
HISTORY OF NTPC
NTPC Company was incorporated on November 7, 1975 under the
Companies Act as a private limited company under the name National Thermal
Power Corporation Private Limited, and the word 'Private' was deleted on
September30,1976 consequent upon the notification issued by the government.
Exempting government companies from the use of word 'private' in their name On
September 30, 1985, NTPC Company was converted from a private limited
company into a public limited company. Subsequently, the name of Company was
changed to its present name NTPC Limited and a fresh certificate of incorporation
was issued on October 28, 2005. The name of Company was changed to reflect the
diversification of our business operations beyond thermal power generation to
include, among others generation of power from hydro, nuclear and renewable
energy sources and undertaking coal mining and oil exploration activities.
NTPC Company is not operating under any injunction or restraining order.
In July 1976, the registered office of our Company was changed from Shram
Shakti Bhawan, New Delhi to Kailash Building, Kasturba GandhiMarg, and New
22
Delhi. Subsequently, in May 1979 the registered office of our Company was
shifted to NTPC Square, 62- 63, Nehru Place, New Delhi and thereafter in October
1988 to its present location for administrative and operational efficiency.
MAJOR EVENTS
1975:-
1978:-
1982:-
1984:-
1986:-
1988:-
1989:-
1990:-
23
1992:-
1993:-
Parliament of India.
1994:-
1995:-
1998:-
1999:-
2000:-
24
2003:-
2004:-
2005:-
The award of contract for the first Super Critical Thermal Power
Plant at Sipat Reached a total installed capacity of 22,249MW
with the Talcher Unit V getting synchronized on May 13, 2004Our
Companys Feroze Gandhi Unchahar Thermal station achieves
record PLF of 87.43% in current year up from 18.02% in February
1992 when it was taken over by us LIC extends credit facility for
Rs. 70 billion. Rs. 40 billion is in the form of unsecured loans
andRs.30 billion is in the form of bonds Our Company makes its
debut issue of euro bonds amounting to USD 200 million in the
international market First coal mining block allotted Listing of our
Equity Shares on the Stock Exchanges.
2006:-
NELP
Our
Company
adopted
core
values
25
Pride, Mutual Respect and Trust, Innovation and Speed and Total
Quality for Excellence).
2007:-
2008:-
2009:-
2010:-
2011:-
2012:-
Bagged 3rd rank in Indias Best Companies to Work for the year
2012 by The Great Place to Work and The Economic Times, in a
glittering award ceremony in Mumbai on 13th July, 2012.
26
NTPC is the largest power utility in India, accounting for about 17.75% of Indias
installed capacity.
PRESENT INSTALLED CAPACITY
The generating capacity as well as plant performance or operational efficiency has
been continuously growing without break since its inception. NTPCs Installed
Capacity and performance depicts the companys outstanding performance across a
number of parameters.
Table 1.2 Performances across Number of Parameter
NTPC Owned
Coal
Gas/Liquid Fuel
Total
Owned By JVs
Coal & Gas
Total
NO. OF PLANTS
CAPACITY (MW)
16
7
23
30,855
3,955
34,810
7
30
4,364
39,174
COAL
8,515
9,840
4,600
7,900
2,424
33,279
GAS
2,312
1,293
350
1,940
5,895
TOTAL
10,827
11,133
4,950
7,900
4,364
39,174
27
of
NTPC.
It is one
biggest
coal
The
in
1.
2.
3.
Coal
Based(Owned
by NTPC)
Singrauli
Korba
Ramagundam
4.
5.
Farakka
Vindhyachal
6.
7.
8.
9.
10.
11.
12.
Rihand
Kahalgaon
Dadri
TalcherKaniha
Unchahar
Talcher
Simhadri
13.
14.
15.
16.
Tanda
Badarpur
Sipat-II
Mauda
Total
S.No
State
Uttar Pradesh
Chhattisgarh
Andhra
Pradesh
West Bengal
Madhya
Pradesh
Uttar Pradesh
Bihar
Uttar Pradesh
Orissa
Uttar Pradesh
Orissa
Andhra
Pradesh
Uttar Pradesh
Delhi
Chhattisgarh
Maharashtra
Commissioned
Capacity(mw)
2,000
2,600
2,600
of
the
users of
India.
entire
2,100
3,760
2,500
2,340
1,820
3,000
1,050
460
2,000
440
705
2,980
500
30,855
generation back bone of NTPC is based on its coal fired stations. Following are the
coal based stations of NTPC.
Table 1.4 Coals Based Power Station
28
29
S.N
o
1.
2.
3.
4.
5.
6.
7.
Total
Gas Based
(Owned by NTPC)
Anta
Auraiya
Kawas
Dadri
Jhanor-Gandhar
Rajiv Gandhi CCPP
Kayamkulam
Faridabad
State
Commissioned
Capacity(mw)
Rajasthan
Uttar Pradesh
Gujarat
Uttar Pradesh
Gujarat
Kerala
413
652
645
817
648
350
Haryana
430
3,955
With a combined gas based commissioned capacity of 3955 MW, NTPC caters to
the peeking demand for power.
Table - 1.5 Gases/Fuel Based Power Station
Table 1.6 Gases Based Joint Ventures
S.No
1.
2.
3.
4.
5
6.
Total
State
Maharashtra
Orissa
Chhattisgarh
West Bengal
Bihar
Haryana
Commissioned
Capacity
1480
120
574
120
110
500
3,364
30
S.No
Hydro Based
State
1.
Koldam (HEPP)
2.
Himachal
Pradesh
Uttarakhand
3.
TapovanVishnugad
(HEPP)
Uttarakhand
Total
Approved
Capacity(mw)
800
600
520
1,920
31
32
Plan and speedily implement power projects using state-of- the art
technologies.
Be an integrated utility by implementing strategic diversifications in areas
such as power trading distribution, transmission, coal mining, coal
beneficiation etc.
CORE VALUES BE COMMITTED
B
Business Ethics.
Customer Focus
Devoted
33
OBJECTIVES OF COMPANY
Business Portfolio Growth
To further consolidate NTPCS position as the leading thermal power
generation company in India and establish a presence in hydro power
segment. To broad base the generation mix by evaluating conventional
sources of energy to ensure long run competitiveness and mitigate fuel-risks.
To diversify across the power value chain in India by considering backward
and forward integration into areas such as power trading, transmission,
distribution, coal mining, coal beneficiation, etc.
To develop a portfolio of generation assets in international markets.
To establish a strong brand in the domestic & international market
Customer Focus
To foster a collaborative style of working with customer growing to be a
preferred brand for supply of quality power.
To expand the relationship with existing customers by offering a bouquet of
services in addition to supply of power e.g. trading, energy consulting,
distribution consulting, management consulting, management practices.
To expand the future customer portfolio through profitable diversification
into downstream business, inter alia retail distribution and direct supply.
To ensure rapid commercial decision making, using customer specific
information with adequate concern for the interests of the customer.
34
35
Agile Corporation
To ensure effectiveness in business decisions and responsiveness to change
in the business environment by Adopting a portfolio approach to new
business development. Continuous and coordinated assessment of the
business environment to identify and respond to opportunities and threats.
To develop a learning organization having knowledge based competitive
edge in current and future businesses.
To effectively leverage information technology to ensure speedy decision
making across the organization.
Performance Leadership
To continuously improve on project execution time and cost in order to
sustain long run competitiveness in generation.
To operate & maintain NTPC stations at par with the best run utilities in the
world with respect to availability, reliability, efficiencies.
To aim for performance excellence in the diversification businesses.
To embed quality in all systems and processes.
Human Resource Development
To enhance organizational performance by institutionalizing an objective
and open performance management system.
36
37
38
electricity, but they waste quite a lot of the energy they produce. The energy has to
flow from the plant, where it is made, to the homes, offices, and factories where it
is used down many miles of electric power cable. Delivering electricity this way
can waste up to two thirds of the power originally produced.
How does electricity get from a power plant to your home?
The heart of a power station is a large generator that extracts energy from a fuel.
Some power stations burn fossil fuels such as coal, oil, or gas. The heat produced is
used to turn water into steam at high pressure. This steam turns a windmill-like
device called a turbine connected to an electricity generator. Extracting heat from a
fuel takes place over a number of stages and some energy is wasted at each stage.
Fig 1.2 Steps to Generate Electricity
39
1. Fuel: The energy that finds its way into your TV, computer, or toaster starts
off as fuel loaded into a power plant. Some power plants run on coal, while
others use oil, natural gas, or methane gas from decomposing rubbish.
2. Furnace: The fuel is burned in a giant furnace to release heat energy.
3. Boiler: In the boiler, heat from the furnace flows around pipes full of cold
water. The heat boils the water and turns it into steam.
4. Turbine: The steam flows at high-pressure around a wheel that's a bit like a
windmill made of tightly packed metal blades. The blades start turning as the
steam flows past. Known as a steam turbine, this device is designed to
convert the steam's energy into kinetic energy (movement). For the turbine
Sambhram Academy of Management Studies, Bangalore
40
41
42
MARKET SHARE
NTPC has been operating its plants at high efficiency levels. Although the
company has 17.75% of the total national capacity, it contributes 27.40% of total
power generation due to its focus on high efficiency.
Fig 1.3 NTPC Vs Rest of India
PERFORMANCE STATISTICS
In terms of operations, NTPC has always been considerably above the national
average. The availability factor for coal based power stations has increased from
78.00% in 1997-98 to 88.00% in 2011-12, which compares favorably with
international standards. The PLF has increased from 76.6% in 1998-99 to 85.00%
during the year 2011-12.
43
TATA POWER
Tata power is Indias largest private sector power utility. Its revenues are $ 1 bn. Its
Profit after tax is $ 137 mn. Its generation capacity is 2300 MW. Out of that in
Mumbai, the capacity is 1800 MW. It has presence in generation, transmission and
distribution of power. It supplies power to Mumbai and Delhi regions.
Business strategy:
The core business of Tata Power Company is to generate, transmit and distribute
electricity. The Company operates in two business segments: Power and Other
services. The Power segment is engaged in generation, transmission and
distribution of electricity. The other services segment includes electronic
equipment, broadband services, and project consultancy and oil exploration.
RELIANCE ENERGY
Reliance Energy Ltd (REL) formerly known as Bombay Suburban Electric Supply
(BSES) is a part of the Anil Dhirubhai Ambani Group. It is an integrated power
utility company in the private sector in India which came into existence when it
took over BSES in 2002.
Sambhram Academy of Management Studies, Bangalore
44
petrochemicals
complex.
In
addition, GAIL
has
major
45
46
NTPC, Korba maintains healthy and mutually enriching relationship with all
representatives (Unions & Associations) of its people. Award and Reward scheme
is effectively developed to recognize the contributions of our people who are
making NTPC, Korba a success story.
In tune with the need for massive capacity addition in the changing scenario,
adding another 500 MW Unit was commenced on end of 2010. Once completed,
Korba will added another feather in its cap by having the first Merchant Power
plant of NTPC and will thus help the company in taking one more step in its
Mission 2017.
In present day scenario, only the most economical, Qualitative and efficient power
generating station will meet the requirement of survival of the fittest. Korba Super
Thermal Power Station is constantly raising the bar of efficient and economical
power generation for excellence.
Despite over 25 years, NTPC Korba achieves over 97% PLF and is thus treated as
one of the best stations when we talk about Power Generation in India today.
Meritorious Performance Awards of twenty times in the last 26 years is a testimony
to the fact that this project has created a niche in the domain of Operation and
Maintenance of thermal power stations. The station has in fact set a benchmark in
producing power at the lowest cost.
47
CMD NTPC
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
DIRECTOR
FINANCE
PRODUCTION
MARKETING
HR
TECHNICAL
REGIONAL DIRECTOR
GENERAL MANAGER
DEPUTY GENERAL
MANAGER
ASSISTANT GENERAL
MANAGER
SENIOR MANAGER
MANAGER
48
CHAPTER- 2
RESEARCH METHODOLOGY
DESIGN OF THE STUDY
An organizational study at National Thermal Power Corporation Ltd (NTPC),
Korba. It is a study of organizational activities in all functional areas in an
organization which is to relate the theoretical knowledge acquired. Further the
study could include study of a specific management problem of any specific
department or a case study focusing on any specific issue.
OBJECTIVES OF THE STUDY:
An objective is specific statement of the outcome we aim for in a learning activity.
We want to state your objectives in a measurable way, so that we can evaluate
whether it has been met. When we talk about an objectives or goals we would like
to achieve the future.
To have knowledge of the formal functional activities of the organization.
To know about the work culture followed by the company.
To know the organization structure.
To know the manufacturing process.
To gain firsthand experience.
To relate the theoretical studies with the practical style of management
followed in organization.
49
50
LIMITATIONS
There are some limitations to the study done, they are as follows:
The study was restricted for 45 days; due to time constraint an in depth study
of all the departments was not possible.
All the inherent limitations of the secondary data are applicable to this study
and are static for the given frame of time.
A comprehensive study using all the tools of analysis couldnt be made due
to the limitation of time.
51
CHAPTER- 3
FUNCTIONAL DEPARTMENTS
Functional
Departments
Finance &
Admin
Human
Resource
Operation &
Mgmt
52
OBJECTIVES OF DEPARTMENT:
a. Ensuring regular & sufficient supply of capital to business.
b. Ensure affair rate of return to the supplier of the capital.
c. Ensure the best utilization of capital by following the principals of liquidity,
profitability & safety.
d. Coordinating the activities of the finance department with those of other
department of the enterprise.
Fig 3.2 STRUCTURE OF F&A DEPARTMENT
HOD
(F&A)
DGM
SMF
Purchase
Sr. MANAGER
MANAGER
Sr. MANAGER
MANAGER
Asst. MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
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F&A DEPARTMENT
Finance department is very essential for any organization to be set up. It is
the backbone of any organization. Similarly the finance department plays a vital
role in the set up and running of NTPC Chief Accountant manager and chief
finance manager work under the direct control of finance Director at NTPC. Other
top executives in the finance department are senior executive (finance), divisional
officer (finance), accounts officers; assistant accounts officers, senior assistants
(Accounts) and assistant (accounts). The chief finance manager and accounts
manager handle various activities in the finance department. Each of them has their
tasks cut out systematically in these areas.
Different sections of Korba Super thermal power Station (KSTPS) Finance
Departments. This section Work on a system that is online integrated material and
Finance accounting system (OLIMFAS). The language of the system is Indresh.
Now new programme come is enterprise resource planning system (ERP).Workmaintenance of fixed assets, make register. Provide depreciation threw its Stateline
method on the fixed assets. When the Value of assets comes down 5% of its total
value than no depreciation will charge on the assets. The rate of depreciation
giving by central electricity authority (CEA).This section also make budget-Firstly
a cost centre is allocated in each department and each cost centre is handling by a
responsibility centre. They make estimation and give to book and budget section.
This section collects all estimation from each responsibility centre and make final
estimation and send it to corporate office then corporate office finalize this budget
estimate. In each six-month the budget estimate is revised and if any change are
required then it sent to corporate office and then it finalize.
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corporate
office
weekly and
daily
basis and
it is required. Also interface with banks, make payment and receive payment
Take custody of monetary and non-monetary instrument for security. It is
also take bank guarantee for performance; it is also called documentary
credit.
d) Prosperity audit: - This audit is done for check the system to see that all
going properly or not. It is done once in five year.
COMMERCIAL SECTION
This section does the accounting of sales of the project. It makes oil and coal
payment voucher. It also maintain priced store ledger (PSL).
STORE BILLS SECTION
This section does the payment of inventory as per terms of purchase order, advance
and
final payment
and maintains
account. Make
advance schedule
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II.
Managerial function
a. Planning
b. Organizing
c. Directing
d. Controlling
Operative function
a. Employment
b. Human resource development
c. Compensation
d. Human relation
OBJECTIVES OF HR FUNCTION:
To Place manpower of required quality and in required number in position
so as to ensure fulfillment of companys objectives, plans and policies. The
department would forecast on a continuous basis in advance, manpower
requirement at various stages of the construction and operation of companys
projects, the organization structure, the type of manpower etc. and plan
advance action to meet the above objective. Through proper recruitment and
selection process, the department would Endeavour to attract persons with
potential and select those with high degree of knowledge, skill and caliber.
To formulate design, review and implement suitable pre-employment and
post-employment training and in-company and external management
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DEPUTY GENERAL
MANAGER
SENIOR MANAGER
MANAGER
ASST. MANAGER
OFFICER
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NTPC believes in the power of people and it is the professional philosophy of the
management to create an enabling organizational culture for people to demonstrate
their creativity, initiative and involve in holistic development, through recognition
and celebration of achievements. Although NTPC has formulated many HR
policies for employees development and growth, it was felt that there is still space
for enhancing employees motivation and morale on a continued and sustained
basis. Therefore, a bouquet of rewards and recognition schemes is evolved with an
objective of reinforcing good work and behavior of employees in order to achieve
Organizational excellence.
To enhance organizational performance by institutionalizing an objective
and performance management system.
To individual and organizational needs and develop business leaders by
implementing a career development system.
To enhance commitment of employees by recognizing and rewarding high
performance.
To build and sustain learning organization of competent world- class
professionals.
To institutionalize core values and create a culture of team-building,
empowerment, equity, innovation and openness which would motivate
employees and enable achievement of strategic objectives.
We recognize that our employees are our prime assets and we always strive to
create an environment where employees feel they belong. We value their
contributions, support their development and help them balance their work and
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organization
structure,
development
of
manpower
norms/
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training also forms once the basic segments of this function. The design,
organizing and conduct of trainee schemes for Finance & personnel Executive
Trainees and Supervisor (Personnel) & Accountant Trainees is another area under
this function.
Establishment:
This area covers personnel activities from the time an employee joins the
organization to the time he leaves or superannuates. These include the joining
formalities, postings and transfers, confirmation/absorption, promotion & seniority,
forwarding of applications, processing of resignations etc. for the executives of the
entire and the non-executives of Delhi based offices apart from employee
entitlement like Leave encashment, LTC, Loans & Advances, terminal benefits,
group insurance for the executives and non-executives of Delhi based offices.
Maintenance of personnel records/files also forms one of this areas major tasks.
Policies & Rules:
This area includes various activities pertaining to formulation, implementation and
auditing, monitoring of various personnel policies like wages & salary, allowances
& reimbursements, Safety etc. Also covered under this area are the development,
implementation and issue of clarifications relating to service rules, conduct,
discipline and appeal rules, rules on entitlements, overtime & pay fixation rules,
etc. Dealing with parliament questions and coordination of various consultative
committees, joint machineries, personnel heads meeting etc. also forms a part of
this area.
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Energy audit
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HOD (O&M)
DGM (OPN)
DGM (EMG)
DGM (MTP)
AGM
AGM
AGM
Sr. MANAGER
Sr. MANAGER
Sr. MANAGER
MANAGER
MANAGER
MANAGER
Asst. MANAGER
Asst. MANAGER
Asst. MANAGER
ENGINEER
ENGINEER
ENGINEER
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Primarily it is the operation and maintenance of the power projects which holds the
key for being successful as an Independent Power Producer. NTPC with its proven
world class track record of operating and maintaining the power stations and
having provided this service successfully to many domestic clients is now
positioned to offer this service to International clients through its International
Cell. The O&M service has been tailored for international clients and consists of
the following modules and sub-modules. However, this can be further tailored to
meet any clients expectations
Maintenance Management
The term maintenance means to keep the equipment in operational condition or
repair it to its operational mode. Main objective of the maintenance is to have
increased availability of production systems, with increased safety and optimized
cost. Maintenance management involves managing the functions of maintenance.
Maintaining equipment in the field has been a challenging task since the beginning
of industrial revolution. Since then, a significant of progress has been made to
maintain equipment effectively in the field. As the engineering equipment becomes
sophisticated and expensive to produce and maintain, maintenance management
has to face even more challenging situations to maintain effectively such
equipments in industrial environment.
Functions of Maintenance Department
Following are the major functions of maintenance department:
Maintenance of installed equipment and facilities
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Management of inventory
Supervision of manpower
Keeping records
Material Management
According to Lee & Dobler - Material management as a confederacy of traditional
material activities bound by a common idea- the idea of an integrated management
approach to planning, acquisition, conversion, flow and distribution of production
material from the raw material state to the finished product state.
Function of Material Management
To arrange the facilities required for the material management.
To dispatch the material to the production department.
To look for new materials and suppliers that can contributes to company
profits.
Keep record of the material received, issued and balance.
To receive the finished goods from the production department, to verify
them and store them properly till they are distributed.
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To maintain the material handling equipment and other incidental items like
pallets, containers, etc.
Environment Management, Occupational Health and Safety Systems
NTPC has actively gone for adoption of best international practices on
environment, occupational health and safety areas. The organization has pursued
the Environmental Management System (EMS) ISO 14001 and the Occupational
Health and Safety Assessment System OHSAS 18001 at its different
establishments. As a result of pursuing these practices, all NTPC power stations
have been certified for ISO 14001 & OHSAS 18001 by reputed national and
international Certifying Agencies.
7S MODEL
The 7-S-Model is better known as Mc Kinsey 7-S. this is because the two persons
who developed their model, Tom Peters and Robert Watermen, have been
consultants at McKinsey & Co at that time. They published their 7-S-Model in
their critical Structure is Not Organization (1980) and their books. The Art of
Japanese Management (1981) and In Search of Excellence (1981). The model
starts on the premise that an organization is not just Structure, but consists of seven
elements.
Those seven are distinguished in so called hard Ss and soft Ss. The hard elements
are feasible and easy to identify. They can be found in strategy statements,
corporate plans, organizational charts and other documentations.
The four soft Ss however, are hardly feasible. They are difficult to describe since
capabilities, values and elements of corporate culture are continuously developing
and changing. They are highly determined by the people at work in the
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strategy of the organization, away from the traditional model of capital and land.
Staff deals with the human resource management processes used to develop
managers, socialization process, ways of introducing young recruits to the
company, ways of helping to manage the careers of employees.
Staff means that the company has hired people, trained them well and assigned
them to the right job for which they are best suited according to their
qualifications, skills, knowledge and experience. An enterprise may have a
comprehensive business play, a sound organization structure, but it cannot
accomplish results per plan without effective staff in the company. At present in
NTPC there are no recruitments as they are overstaffed. They only training and
development for the existing employees. NTPC maintained cordial and
harmonious relationship with the employees.
Skills
The capabilities and competencies that exist within the company. What it does best.
To improve the efficiency of the company. NTPC is giving full training to our
workers for better utilization of skills.
Shared Value
All members of the organization share some common fundamental ideas or guiding
concepts around which the business is built. This may be to make money or to
achieve excellence in a particular field. These values and common goals keep the
employees working towards a common destination as a coherent team and are
important to keep the team spirit alive. Shared values means that the companies
share the same guiding value. Values are things that would strive and even if they
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CHAPTER- 4
SWOT ANALYSIS
Strenghts: Largest market share in domestic power generation and a broad customer
portfolio across the country.
Excellent track record of performance in project implementation and plant
operation.
Diversified thermal generation portfolio multiple sizes and fuel types.
Highly skilled and experienced human resources, exposed to state of the art
technologies in project execution and power generation.
High brand equity among shareholders.
Strong balance sheet ability to raise low cost debt.
Engineering skills in project configuration and package design.
Turnaround ability for old plants-demonstrated in the takeover plants of
Talcher, Tanda & Unchahar.
Thrust on reducing social costs of capacity growth strong execution of
Resettlement and rehabilitation plans.
High credit rating that is indicative of the confidence of lenders.
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Weakness: Role ambiguity and dilution within different lends of the organization.
Low risk-diversification of business portfolio consists primarily of
generation assets.
Poor financial health of customers.
Functional orientation hampering cross functional perspective in decision
making.
Long and multi layered procurement process leading to long lead times and
process delay.
Fragmented IT architecture.
Gaps in HR systems such as performance management, rewards and
incentives and career development.
Inadequate deployment of a strong knowledge management system that
could assist in improving efficiency and effectiveness in all aspects of the
business.
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CHAPTER- 5
SUMMARY OF FINDINGS, CONCLUSIONS & SUGGESTIONS
Findings
Following are the findings arrived at from the study carried out at NATIONAL
THERMAL POWER CORPORATION LIMITED, Korba.
I observed from the study that the co-ordination and co-operation between
the workers and the top management is good.
The used zero based technique to prepared a new budgets which is very
beneficial for any company.
The labours who worked under contractors, NTPC will pay payment through
banks.
It was seen during the study that the company has provide safety
instruments for employees for their better performance.
NTPC, Korba are face shortage problem of coal which is decrease the
efficiency level.
Management has provided all welfare facilities required to the employees.
Meetings of AGM & DGM are held daily basis in every department which
are very much helpful to improve the efficiency.
I found that the company has their own transportation facility for the
employees who come from the city and remote areas.
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It was heard that the company possess least percentage of accident rates
compare to similar organization.
It was observed that the company has taken up lot of initiates for
protecting the environment.
It seen during my stay in company that the company has best art of
technology.
Conclusions
Although from the above data and analysis it is concluded that the condition of
the villages is note that good. There are still problems related to the water
sources, ash pollution, drainage and sanitation but what I am analyzed during
my training period that NTPC has installed many new technologies in its plant
for reducing the pollution and specially the ash pollution. NTPC has adopted
measures to effectively utilize the ash by making ash brick sand also selling
them to other nearby organizations. It do a lot of plantation every year, recently
it had planted 3, 00,000 plants and is planning to plant around 10, 00,000
plants in coming years.
NTPC are also doing well to developing the village, It has provided many
syntax, constructed wells, installed hand pumps, arranged adult education
centers, skill up gradation centre for the adults so that they can earn their own
livelihood. It has also provided jobs to many villagers on contract basis.
Recently NTPC has promised to give Rs 10, 00, 00,000 for an Engineering
College in Korba and for IIT which is going to start in Raipur. For which it had
already given the first installment of Rs 4, 00, 00,000.
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Suggestions
If they have their own mines it is very easy to get raw material.
They should keep on improve good relationship with the customers to get
more orders.
Provide good commission to the traders for further increase of sales.
Conduct more training and development programs in the organization for
Employers.
They should try to conduct safety awareness programs are regularly
arranged.
Provide awareness about the facilities provided in township.
Teamwork is essential for the development of any organization.
NTPC should try to capture all regions of India.
Develop the modern equipments which are in market.
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