Introduction

CHAPTER 1 INTRODUCTION
1.1 EARLY HISTORY :

The importance of training has been realised since the inception of manned flight. From the early days of gliding it was usual for "pilots" to sit in the glider, which was exposed to a strong facing wind and "feel" the controls by keeping the wings in a horizontal position. Thus, even before the glider flew, the pilot had some experience of the lateral controls. The fliers of the first powered aeroplanes learnt by proceeding through a graded sequence of exercises on real aircraft. After passenger flights, a student would perform taxiing, where a low powered machine is driven along the ground enabling rudder control to be practised. He would then graduate to a higher powered machine and would first make short hops using elevator control. After longer hops he would eventually achieve flight. A variation of this method, known as the "penguin system", in which a reduced wingspan, land borne aeroplane was used, was developed during World War I. In this machine the student pilot could learn the feel of the controls while proceeding along the ground. This method was used at the French Ecole de Combat with a cut-down Bleriot monoplane, but was considered as early as 1910. Other early devices attempted to achieve the same effect, especially for the testing of new aircraft prototypes, by using aircraft moving at speed supported by balloons, overhead gantries or railway bogies. Related to these ideas were the first proposals for truly ground-based trainers which were, in effect, aircraft tethered to the ground, but capable of responding to aerodynamic forces. One such device was the Sanders Teacher. The Teacher was constructed from components which could in fact be used to build an actual flying machine, and was really an aircraft mounted on a universal joint in an exposed position and facing into the prevailing wind. In this way it was able to respond in attitude to the aileron, elevator and rudder controls as would an actual aeroplane of the type. Unfortunately, as was the case with many of these early
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devices, it was not a success, probably because of the unreliability of the wind. A similar device was that constructed by Eardley Billing, the brother of Noel Pemberton Billing, at about the same time, and was available for use at Brook lands Aerodrome. Also around this period was made one of the first truly synthetic flight training devices. This photograph was published in 1910, as can be seen, it consisted of two half-sections of a barrel mounted and moved manually to represent the pitch and roll of an aeroplane. The prospective pilot sat in the top section of this device and was required to line up a reference bar with the horizon.
DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft (German acronym for "German Airship Transport Corporation") was the world's first airline .it was founded on November 16, 1909 with government assistance, and operated airships manufactured by Zeppelin Corporation. Its headquarters were in Frankfurt. The five oldest non-dirigible airlines that still exist are Australia's Qantas, Netherlands's KLM, Colombia's Avianca, Czech Republic's Czech airlines and Mexico's Mexican a. KLM first flew in May 1920 while Qantas was founded in Queensland As governments met to set the standards and scope for an emergent civil air industry toward the end of the war, it was no surprise that the U.S airline companies
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were not devastated by the war, as European companies and the few Asian companies had been .World war 2 brought new life to the airline industry. Many airlines in the allied countries were flush from lease contracts to the military ,and foresaw a future explosive demand for civil air transport ,for both passengers and Cargo .They were eager to invest in the newly emerging flagships of air travel such as the Boeing Stratocruiser ,Lockheed constellation ,and Douglas DC-6 rnosl of this new aircraft were based on American bombers such as the B-29 ,which had spearheaded research into new technologies such as pressurization. Most offered increased efficiency from both added speed and greater payload.
EUROPEAN AIRLINE INDUSTRY :

The Imperial Airways Empire Terminal, Victoria, London. Trains ran from here to flying boats in Southampton, and to Corydon Airport. The first countries in Europe to embrace air transport were Finland, France, Germany, the Netherlands, and the United Kingdom. KLM, the oldest carrier still operating under its original name, was founded in 1919. The first flight (operated on behalf of KLM by Aircraft Transport and Travel) transported two English passengers to Schiphol, Amsterdam from London in 1920. Like other major European airlines of the time (see France and the UK below), KLM's early growth depended heavily on the needs to service links with far-flung colonial possessions (Dutch Indies). It is only after the loss of the Dutch Empire that KLM found itself based at a small country with few potential passengers, depending heavily on transfer traffic, and was one of the first to introduce the hub-system to facilitate easy connections. France began an airmail service to Morocco in 1919 that was bought out in 1927, renamed Aerospatiale, and injected with capital to become a major international carrier. In 1933, Aerospatiale went bankrupt, was nationalized and merged with several other airlines into what became Air France. In Finland, the charier establishing Aero O/Y (now Finn air, one of the oldest still-operating airlines in the world) was signed in the city of Helsinki on 12
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September 1923. Junkers F 13 D-335 became the first aircraft of the company, when Aero took delivery' of it on 14 March 1924. The first flight was between Helsinki and Tallinn, capita! of Estonia, and it took place on 20 March 1924, one week later. Germanys Lufthansa began in 1926. Lufthansa, unlike most other airlines at the time, became a major investor in airlines outside of Europe, providing capital to Varig and Avianca. German airliners built by junkers, Dornier, and Fokker were the most advanced in the world at the time. The peak of German air travel came in the mid-1950s, when Nazi propaganda ministers approved the start of commercial zeppelin service: the big airships were a symbol of industrial might, but the fact that they used flammable hydrogen gas raised safety concerns that culminated with the Hindenburg disaster of 1937. The reason they used hydrogen instead of the notflammable helium gas was a United States military embargo on helium. The British company Aircraft Transport and Travel commenced a London to Paris service on 25 August 1919, this was the world's first regular international flight. The United Kingdom's flag carrier during this period was Imperial Airways, which became BOAC (British Overseas Airways Co.) in 1939. Imperial Airways used huge Handley-Page biplanes for routes between London, the Middle East, and India: images of Imperial aircraft in the middle of the Rub'al Khali, being maintained by Bedouins, are among the most famous pictures from the heyday of the British Empire. Deregulation Deregulation of the European Union airspace in the early 1990s has had substantial effect on structure of the industry there. The shift towards 'budget' airlines on shorter routes has been significant. Airlines such as Easy jet and Ryan air have grown at the expense of the traditional national airlines. There has also been a trend for these national airlines themselves to be privatized such as has occurred for Air Lingus .(Ireland) and British Airways. Other national airlines, including Italy's Alitalia, have suffered - particularly with the rapid increase of oil prices in early 2008. The company has approval to make any changes in the engine design by its license, which involves huge expenditure.
LATIN AMERICAN AIRLINE INDUSTRY :

LAN jet at Santiago, Chile (SCL) Along the first countries have regular airlines in Latin America were chile with LAN chile (today LAN Airlines), Colombia with America, Mexico with Mexican a de Aviation , Brazil with varig, and TACA as a bound of several Airlines of central American Countries (Honduras, EI Salvadar, Costa Rica, Guatemala and Nicaragua) All the previous airlines started regular operation before world war II. Aero Maxico is also in service since 1934, but was initially called Aero Naves De mexico . The same situation happened with other regional Airlines, such as Airlines Argentines. All of these airlines are still in service. The air travel market has evalued rapidly over recent years in Latin America. Some industry estimations over 2000 new aircraft begin services over the next five years in this region. These airline serve domestic flights within their countries, as well as connections within Latin America and overseas flights to North America, Europe, Australia, Africa and Asia. Just one airline, LAN (Latin American Networks) has international subsidiaries; chile as the central operation along with Peru, Ecuador , Argentina and some operations in the dominican republic. The main hubs in Latin America are Sao poulo in Brazil, Bogota in Colombia, Caracas in Venezuela, Guayaquil in Ecuador, Lima in Peru, Maxico city is Maxico. Buenos Aires in Argentina and Santiogo in Chile.
1.2 ASIAN AIRLINE INDUSTRY :
Some of the first countries in Asia to embrace air transport were India, Hong Kong, Indonesia, Malaysia, and the Philippines. One of the first countries in Asia to embrace air transport was the Philippines. Philippine Airlines was founded on February 26, 1941, making it Asia's oldest carrier and the oldest operating under its current name. The airline was started by a group of business persons led by Andres Soriano, hailed as one of the Philippines' leading industrialists at the time. The airline's first flight was made on March 15. 1941 with a single Beech Model 18 NPC-54 aircraft, which started its daily services between Manila (from Nielson Field) 'and Baguio, later to expand with larger aircraft such a the DC-3 and Vickers Viscount. Notably Philippine Airlines leased Japan Airlines their first aircraft, a DC-3 named "Kinsey". On July 31 1946, a chartered Philippine Airlines DC-4 ferried 40 American servicemen to Oakland, California from Nielson Airport in Makati City with stops in Guam, Wake Island, Johnston Atoii and Honolulu, Hawaii, making PAL the first Asian airline to cross the Pacific Ocean. A regular service between Manila and San Francisco was started in December. It was during this year that the airline was designated as the Philippines flag carrier. Air India Boeing 747-400. The Government of India is the majority stakeholder in Air India and Indian Airlines. Another airline company to begin early operations was Air India, which had its beginning as Tata Airlines in 1932, a division of Tata Sons Ltd. (now Tata Group) by India's leading industrialist JRD Tata. On October 15, 1932, J. R. D. Tata himself
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flew a single engwwl De Havilland Puss Moth carrying air mail (postal mail of Imperial Airways) from Karachi to Bombay via Ahmedabad. The aircraft continued to Madras via Bellary piloted by Royal Air Force pilot Nevill Vincent. With the outbreak of World War 2, the airline presence in Asia came to a relative haft, with many new flag carriers donating their aircraft for military aid and other uses. Following the end of World War II, regular commercial service was restored in India and Tata Airlines became a public limited company on 29 July 1946 under the name Air India After the Independence of India, the Government of India acquired 49% of the airline. In return, the airline was granted status to operate international services from India as the designated flag carrier under the name Air India International. Neighboring countries also soon embraced air transport, notably with the beginning of a new nation, Pakistan began Orient Airways Ltd (Pakistan International Airlines), Cathay Pacific in 194, Singapore Airlines and Malaysian Airlines in 1 Malayan Airways), Garuda Indonesia in 1949, Japan Airlines in 1951, and Korean Air in 1962.
1.3 OBJECTIVES :
1. Ensure availability of total quality people to meet the organizational goals and objectives 2. continuous improvement in knowledge, skill and competence (managerial, Behavioral and Technical ) 3. Promote a cultural of Achievement and Excellence, with emphasis on integrity, credibility and quality. 4. Maintain a motivated work force through empowerment of individual and team building.
CHAPTER - 2 COMPANY PROFILE

2.1 HISTORY OF THE COMPANY :
Hindustan Aeronautics Limited (HAL) came into existence on 1st October 1964. The Company was formed by the merger of Hindustan Aircraft Limited with Aeronautics India Limited and Aircraft Manufacturing Depot, Kanpur. The Company traces its roots to the pioneering efforts of an industrialist with extraordinary vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at Bangalore in association with the erstwhile princely State of Mysore in December 1940. The Government of India became a shareholder in March 1941 and took over the Management in 1942. Today, HAL has 19 Production Units and 9 Research and Design Centres in 7 locations in India. The Company has an impressive product track record - 12 types of aircraft manufactured with in-house R & D and 14 types produced under license. HAL has manufactured over 3550 aircraft , 3600 engines and overhauled over 8150 aircraft and 27300 engines. HAL has been successful in numerous R & D programs developed for both Defence and Civil Aviation sectors. HAL has made substantial progress in its current projects :

Dhruv, which is Advanced Light Helicopter (ALH) Tejas - Light Combat Aircraft (LCA) Intermediate Jet Trainer (IJT) Various military and civil upgrades.
Dhruv was delivered to the Indian Army, Navy, Air Force and the Coast Guard in March 2002, in the very first year of its production, a unique achievement. HAL has played a significant role for India's space programs by participating in the manufacture of structures for Satellite Launch Vehicles like

PSLV (Polar Satellite Launch Vehicle) GSLV (Geo-synchronous Satellite Launch Vehicle) IRS (Indian Remote Satellite) INSAT (Indian National Satellite)
HAL has formed the following Joint Ventures (JVs) :

BAeHAL Software Limited Indo-Russian Aviation Limited (IRAL) Snecma HAL Aerospace Pvt Ltd SAMTEL HAL Display System Limited HALBIT Avionics Pvt Ltd HAL-Edgewood Technologies Pvt Ltd INFOTECH HAL Ltd Apart from these seven, other major diversification projects are Industrial
Marine Gas Turbine and Airport Services. Several Co-production and Joint Ventures with international participation are under consideration. HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as well as State Governments of India. The Company has also achieved a foothold in export in more than 30 countries, having demonstrated its quality and price competitiveness. HAL has won several International & National Awards for achievements in R&D, Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfillment of Social Responsibilities.
HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for
Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the International Information and Marketing Centre (IIMC).
HAL was presented the International - ARCH OF EUROPE Award in
Gold Category in recognition for its commitment to Quality, Leadership, Technology and Innovation
At the National level, HAL won the "GOLD TROPHY" for excellence in
Public Sector Management, instituted by the Standing Conference of Public Enterprises (SCOPE). The Company scaled new heights in the financial year 2006-07 with a turnover of Rs.7,783.61 Crores
2.2 BACKGROUND AND INCEPTION :

1940-1950
Formulation of HAL by late Sri Walchand Hirachand on 23rd December 1940 First flight of Harbor trainer on 17th July 1941
Government of India took over a HAL & handed over to US Air force (September 1942 to December 1946) for repair/ overhaul of SEAL Aircraft Design and development pf HT-2 aircraft elementary piston engine trainer, the first indigenous project sanctioned in October 1948 1950-1960
HAL was placed under ministry of defense government of India on 1st January
1951 License agreement signed for manufacturer of VAMPIRE & GNAT Design of jet aircraft, the MARUT (MF-24) started in august 1956
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Jet engine factory set up at Bangalore by 1959 1960-1970 Aeronautics India ltd formed in august 1963 and factories and Nasik , Koraput and Hyderabad were set up for manufacture of MIG air farms, engines and avionics AMD merged with aeronautics India in June 1964 Hindustan aircraft ltd and aeronautics (India) ltd merged to form Hindustan aeronautics ltd in October 1964 1970-1980 Hyderabad and Lucknow divisions were set up for manufacture of helicopter and accessories in July 1970 and November 1973 respectively Design and development of BASANT, HPT-32, AJEET TRAINER, KIRAN MK 1/11 and ALJ were sanctioned 1980 - 1990 License agreement for MIG-27(m) Aircraft launched in march 1982 New divisions of KORWA sanctioned in august 1982 manufacture of advanced system equipment
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2.3 VISION :
To make HAL a dynamic, vibrant, value based learning organization 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 organization.
2.4 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 .
2.5 {A} ORGANISATION STRUCTURE :

Salient features of Organization chart (e.g. degree of hierarchy, extent of centralization/ decentralization) and interconnections within the organization.
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{B} CORPORATE LEVEL :
CHAIRMAN
MD (Bangalor e) MD (Accessor y)
MD (Design)
MD (MiG)
Director (P & A)
Director (Finance ) Group Executiv e
Director (Corporate Planning)
MD (Mgt. Services )
GM (Planning )
AGM (Product Support)
GM (Quality)
AGM (Marketin g)
DGM(PS) DGM (PS)
GM (Finance )
AGM (Commerce )
(Cell New Delhi)
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{C} DIVISIONAL LEVEL :
MD (Bangalore)
GM (Engine)
GM (F & F)
GM (Helicopter)
GM (Aircraft )
GM (Overha ul)
GM (Aerospac e)
GM (Services)
AGM (Fin)
AGM
Chief Mgr.
DGM (Export Mktg.)
DGM (Quality Control)
DGM (PS)
Senio r Mgr (Pers l).
DGM (Mtrl. Mgt.)
DGM (Assembly Plant )
DGM DGM (Prod. Engg) (Mft. Toolin g)
DGM (Mgt. Services).
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{D} DEPARTMENTAL LEVEL :

Board of Directors
MD(DC)
MD(BC)
MD(AC)
MD(MIG.C)
Executive Director(ED)
General Manager (GM)
Additional GM (AGM)
Chief Manager (CM)
Senior Manager(SM)
Managers
Deputy Managers
Engineer/Officer
Assistant Engineer/Officer
Chief supervisor
SR ASST. Supervisor/ SR Master Technician (PROD)
ASST. Supervisor/ Master Technician (PROD)
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Workers
2.6 QUALITY POLICY :

Quality Approvals of HAL :
The Aircraft Division has been credited with ISO 9002 certificate from
December 1995 onwards. Laboratory is approved by Honey well, USA as authorized SOAP
(Spectrometric Oil Analysis Programme) facility for Garrett Engine. Laboratory & Quality organization are approved by civil & military
Air-worthiness Authorities, DGCA & DGAQA. The division is also approved by Honeywell, Rolls Royce, &
Turbomeca. Honeywell Authorized Service Centre for repair/ overhaul of Garrett
TPE 331 series Engines. Approved by Directorate of warship equipment for manufacture of
Friget components.
2.7 OUR VALUES :

Customer Satisfaction Commitment To Total Quality Cost And Time Consciousness Innovation And Creativity Trust And Team Spirit
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Respect For The Individual Integrity
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2.8 PRODUCT PROFILE :

{A} AIRCRAFTS OF RUSSIA ORIGIN :
Products in Current Manufacturing Range
Su 30 MKI
Twin-seater, Multi-role, Long range Fighter / Bomber / Air Superiority Aircraft
MiG-27 M Single-seater Tactical Fighter / Bomber with variable sweep wings
MiG-21 VARIANTS
Single-seater Front line Tactical Interceptor / Fighter Aircra
METALLIC DROP TANKS
The Division manufactures different types of metallic drop (Jettisonable) tanks with capacity of 490 and 800 litres
UNDERCARRIAGE
The Division has facilities and expertise in the
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manufacture and overhaul of Undercarriages of both MiG-27M and MiG-21 variants. The landing gears are of a conventional tricycle type and consist of one steerable Nose wheel leg and two Main wheel legs to roll the aircraft in motion, on the ground, during take-off run and landing run. The Landing Gear legs have Pneumatic shock absorbers EJECTION SEAT
The Ejection Seat is installed to provide safe escape to the Pilot from the Aircraft while catapuling is effected with the help of a combined Ejection Gun. The Division has the facilities and expertise in the manufacture and overhaul of ejection seats for both MiG-27M and MiG-21 variants.
CANOPY
The Division manufactures and overhauls canopies of MiG-21 variants and MiG-27M Aircraft.
FLEXIBLE RUBBER FUEL TANKS The Division manufactures and supplies all
types of Rubber Fuel Tanks required for MiG-21 Variants. The Rubber Fuel Tanks are provided with special protection coating against Ozone/heat and adverse climatic conditions. The Division has exported a large number of Rubber Fuel Tanks
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AEROSPACE FASTENERS The Division has a separate complex for manufacturing of Aerospace Fasteners,
approximately 7000 types under 400 different standards. Some of the typical items are nuts, bolts, screws, washers, rivets of various configurations, studs, dowels, pins, plugs, JO Bolts, pipe connections and springs.
{B} AIRCRAFTS OF WESTREN ORIGIN : Products in Current Manufacturing Range Jaguar International HAL commenced production of Jaguar International - deep penetration strike and battlefield tactical Support Aircraft in 1979 under licence the from British Aerospace, and including avionics. Jaguar aircraft is designed with 7 hard points ( 4 under wing, 2 over wing and 1 under fuselage) capable of carrying a huge load of various of weapons in different combinations to meet the Customers needs. Basic Data Dimensions Wing Data Weight Fuel Capacity Power Plant engine, accessories
Length: 16.955 m Wing Span: 8.691 m Height: 4.813 m
Area: 24.03 m2 Sweep: 40o 2' Aspect Ratio: 3.12
Maximum Take Off: 15700 kg Pay Load: 4000 kg
Internal : Rolls Royce Adour 4.171 litres MK 811 Turbofan With ext. Max. thrust at sea tanks (max level: usable capacity): Dry - 2549 kg 7726 litres Reheat - 3810 kg
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INTERNATIONAL CO-OPERATION AIRCRAFT DIVISION, HAL IS AN ESTABLISHED EXPORTER TO BOEING, USA

Up lock box assy. for Boeing 777 Over wing exit doors for Boeing 757 To MHI Japan Bulk cargo door for Boeing 767
AIRBUS, FRANCE
Forward passenger doors for Airbus A320
BAE SYSTEMS, UK
Jaguar airframe spares
ROYAL AIRFORCE OF OMAN
Jaguar airframe spares
AEROSPACE EQIPEMENT :
Aerospace Division is engaged in the manufacture of Aluminum alloy riveted structures and welded tank ages of conical, cylindrical and other shapes with different types of detailed parts such as sheets, rings, brackets, stiffeners, bulkheads, panel bolts, nuts, rivets etc. Some of the important structures manufactured are Heat Shield Assembly, Nose Cone Assembly and Tank and Shrouds used in Satellites.
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{C} AERO RUSSIAN
ENGINE ORGINE :
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ADOUR MK 811 Jaguar Aircraft is powered by two Adour MK 804 / MK 811 Engines. MK 811 Engines are manufactured from 1981 under licence from RR/TM [ Rolls Royce Turbomeca ].Adour MK 804 Engines are also overhauled and repaired under the above licence. Adour Engine is a bypass Jet Engine of modular construction.
GARRETT 331 5 The Garrett TPE 331-5 Turbo prop
Engine is being manufactured, overhauled and repaired for various Customers under licence
from Garrett Engine Division of Honey Well Company [earlier Allied Signal Aerospace Company, USA] since 1988 and belongs to one of the most popular series of small Turbo prop Engines powering a large number of Commuter and Corporate Aircraft such as Dornier DO-228.
ARTOUSTE III B Artouste III B Engine powers both
Cheetah and Chetak Helicopters. Manufacture of the Engine commenced in 1962 under license from Turbomeca, France. The Engine has side air intake, one axial and one centrifugal compressor connected to a three-stage Turbine. The power output is 550 SHP at 33500 RPM. The reduction Gearbox in the front transfers the power to Helicopter. More than 665 Engines have been manufactured and 2950 Engines overhauled and repaired for various Customers. DART 533 - 2 AND 536 - 2T The Dart series of Engines were
manufactured since 1966 under license from Rolls Royce, UK. At present, these Engines are being repaired and overhauled. Two Dart Engines power HS-748 aircraft. This engine has two-stage Centrifugal Compressors, three- stage Turbine and utilizes water methanol injection to increase the shaft Horse Power.
ORPHEUS 70105 Orpheus 70105, indigenously modified by
HAL, is a derivative of Orpheus 701 at lower rating and is the Power Plant for Kiran MK II Aircraft indigenously designed by HAL.
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AVON Avon is a Turbo Jet Engine designed and
developed by Rolls Royce and is being overhauled / repaired under licence at HAL from 1959. Avon MK 1 is used in Canberra Trainer Aircraft. Avon MK 109 is used in Canberra Bomber and Avon MK 203 / 207 power the Hunter Fighter.
ADOUR MK 804 E The Adour MK 804 Engine is being
repaired and overhauled under license from Rolls Royce, UK. This is similar in construction to the MK 811 engine.
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GNOME 1400 - IT The Gnome 1400 - IT engines
being repaired and overhauled under licence from Rolls Royce, UK and is the Power Plant for Seeking Helicopter. It is a Turbo shaft single spool with 10-stage Axial Compressor, two-stage Turbine and free Turbin
2.9 SERVICE PROFILE :
As part of customer service, technical and Logistic support including training is provided. Technical support rendered to the customer in:
Maintenance and repair of aircraft Compliance of modification and technical instructions. Accident and incident investigations. Training of Customer personnel.
On the logistic side, the support is rendered in:

Supply of spares and ground handling and ground service equipments. Supply of items against priority demands like AOG, USR / URR demands. Repair of rotables. Landing gears/retraction jacks repair & overhaul. Forecasting spares requirements. The manuals and publications include Servicing manuals, General and
Technical instructions, illustrated parts catalogue, Maintenance manuals. Flight manuals, Repair manuals, etc., to enable the customers to take first hand transformations and clear idea of maintenance of aircraft. Repairs, Major Servicing and Supply of Spares ; As part of Customer service, Technical and Logistic support including training are provided. Technical support is rendered to the Customer in the following areas:

Maintenance and Repair of Aircraft Compliance of Modification and Technical Instructions Accident and Incident Investigations Training of Customer's Personnel
On the Logistic side, the support is rendered in the following areas:

Supply of spares and Ground Handling and Ground Service Equipment Supply of items against priority demands like AOG, USR / URR demands Repair of Rotables Landing Gears / Retraction Jacks - Repair and Overhaul
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Forecasting spares requirement Product literature is also supplied and amendments are issued from time to
time to incorporate modifications ratified. Product Literature includes Servicing manuals, General and Technical instructions, Illustrated parts catalogues, Maintenance manuals. Flight manuals, Repair manuals, etc., to enable the customers to learn about the changes and have a clear idea of the maintenance of aircraft. Customers operating personnel are provided training in servicing and maintenance of aircraft manufactured by the Division through in-plant training courses, workshops and operators conferences.
AIRCRAFT DIVISION, BANGALORE HAS CARRIED OUT :
{A}. Modifications ;

Section 41 Modification on Boeing 747/200 Aircraft of Air India at Mumbai SB228 Modification on A300 Aircraft of Indian (Previously Indian Airlines) Cargo conversion modification on FOKKER F27 Aircraft 'S' band modification on Boeing 737
{B}. Repairs ;

Composite Repairs Structural Repairs Welding Repairs Parts Fabrications
{C}. Manufacture of ;
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Structural sub-assemblies such as Doors, Pylons, Fairings, Drop Tanks, Control Structures, etc.
Precision sheet metal forming (Cold or Hot Forming) of Aircraft components out of Light alloys,Steel and Titanium.
Precision machined components. Honeycomb Sand witch bonded structures, metal-to-metal bonded
components, Composite components in Carbon, Kevlar etc.

Glass Fibre Reinforced Plastic components like Fairings, Ducts, Pipes etc. Aircraft Transparencies like Windshields, Canopies, Helicopters Panel, etc. Electrical Cable Looms (Harnesses) Landing Gears.
{D}. Design and Manufacture of ;

Jigs Fixtures and Templates Press Tools Composite Moulding Tools Forming Tools for Transparencies Acceptance Gauges / Jigs Tooling Masters Structural Assembly Jigs
Ground Support Equipment for Aircraft
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In the year 1951, when HT-2 the first indigenously designed primary trainer made its first flight, it heralded the era of Research & Design at HAL This aircraft served as the back bone of IAF's training fleet for more than three decades. Subsequently, HAL's R&D capabilities have grown from strength to strength and have been harnessed to achieve greater heights of self reliance. The Advanced Light Helicopter - ALH (DHRUV) is the latest new generation helicopter designed and developed by HAL. It is under production since 2002. The test flights on Technology Demonstrators (TD-I and II) and Prototype Vehicles (PV-1 and 2) of Light Combat Aircraft - LCA (Tejas) are progressing satisfactorily. The Intermediate Jet Trainer (IJT) is undergoing test flights.
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In addition, HAL has successfully completed many systems updates and integration tasks. HAL has 9 Research & Design Centres engaged in the design and development of combat aircraft, helicopters, aero engines, gas turbines, engine test beds, aircraft communication and navigation systems and mechanical system accessories. The indigenously upgraded MiG-27M aircraft has received Initial Operation Clearance (IOC) and the first batch of aircraft has been delivered. First flight test on Jaguar Nav WASS upgraded aircraft with indigenously developed mission computer with weapon delivery capabilities has been carried out and retromod of fleet has been taken up. Equipped with the latest facilities, the company is backed by high profile, highly skilled manpower with an impressive track record of more than five decades of rich experience in all disciplines of aeronautics.
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2.10 FUTURE GROWTH AND PROSPECTUS :
The company has in the recent past has been pursuing and consolidating various avenues of diversification, such as manufacture of structures for space launch vehicles, development & marketing of aircraft simulators, Center for Excellence in CNC manufacturing and others. As part of the diversification into civil Aviation, HAL has participated in the design of 14 seater multipurpose aircraft named Saras along with NAL. HAL also plans to co-develop a 100-seator multi role transport aircraft jointly with Russian companies. The company has, in the recent past, been pursuing and consolidating various avenues of diversification, such as manufacture of structures for space launch vehicles & satellites, assembly, testing and maintenance of industrial &marine gas turbines, airport services, development & marketing of aircraft simulators and others. HAL has prepared steady growth in the financial performance of the company, seek to bring about a paradigm shift from license production to R&D based production while maintaining technology up gradation and enhanced outsourcing. As the part of the growth strategy, HAL has taken a policy decision to subcontract and off-load low technology job to ancillaries and vendors to the tune of 20% of its sales turnover, so as to concentrate on high tech areas & achieve targeted growth with optimum investment. HAL has to take up these low- tech jobs as well as participate in the indigenous development of aerospace equipment. A host sophisticated CNC machines such as five axis CNC profiles, horizontal, & vertical machining centers etc. will be installed. The center will utilize CAD/CAM facilities, Lean Manufacturing and Group technology concepts to optimize manufacturing cycle times. The plan aims to be a billion dollar firm by the end of 2005-2006. Outlining the strategy for the future, the chairman has stated that the company is poised to take up several projects and R&D programmes to prepare itself to meet the new challenges of aviation industry. KAVERI ENGINE TEJUS SUKOI
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2.11 NATURE OF THE BUSINSS IN HAL :

Design and Development of fixed and Rotary Wing Aircrafts, Avionics and
Accessories. Manufacture, Maintenance, Repair and overhaul of * * * * * * Fighter, Transport and Trainer Aircraft Helicopters Aero Engines Avionics Accessories Ground Support Equipments.
Manufacture of Structural Components for Satellites and Launch Vehicles. Design Consultancy.
2.12 EVOLUTION AND GROWTH OF THE COMPANY :
The Company's steady organizational growth over the years with consolidation and enlargement of its operational base by creating sophisticated facilities for manufacture of aircraft / helicopters, aero engines, accessories and avionics is illustrated below.
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2.13 ACHIEVEMENTS :
HAL Ranked 45th in the World ; In 2006 the Hindustan Aeronautics Limited (HAL) has climbed 6 notches up to reach the 45th position in the list of top 100 defense companies in the world. The list, released by US-based Defense News, has Lockheed Martin in No 1 position followed by Boeing, Northrop Grumman, BAe Systems and Raytheon battling for the Top 5 slots. HAL bags WORLD QUALITY COMMITMENT International Platinum Star Award ; Hindustan Aeronautics Limited (HAL) has bagged the World Quality Commitment International Platinum Star Award from Business Initiative Directions (BID), Spain during the 21st World Quality Commitment (WQC) Convention held at Paris recently. The award was presented to HAL as an entity in recognition of the corporate commitment to Quality, Leadership, Technology and Innovation. HAL bags GOLDEN PEACOCK INNOVATION Award-2004 ; Hindustan Aeronautics Limited (HAL) has bagged the prestigious Golden Peacock Innovation Award-2004 for the innovative development work in re-enjoining of Cheetah Helicopter with a modern light weight, fuel efficient engine. With a view to create competitiveness, Golden Peacock Award for Innovation is one of the several awards instituted by the Institute of Directors (IOD). HAL bags Top Exporter Trophy & Award Hindustan Aeronautics Limited, which is a leading Defense Public Sector Undertaking of the country, received the ENGINEERING EXPORT PROMOTION COUNCIL (EEPC) SOUTHERN REGION, TROPHY & AWARD for the years 2001-02 and 2002-03. The Top Exports Award/Trophy is instituted by the EEPC,
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India for outstanding export performance every year to recognize and honour the exporters who have achieved distinction.
2.14 WORK FLOW MODEL:
Work flow model includes all the steps which are taken by the organization to convert raw material into finished goods to meet the organizational goals and needs. HAL adopted the following process as a work flow model.
Raw Material Stores Department Quality Approval Product Disposition Assembling Final Inspection Packing
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Dispatch / Customer
2.15 INFRASTRUCTURE :
Training Halls ; HMA has five air-conditioned and acoustically-treated training halls with seating capacity varying from 15 to 50, with flexible seating arrangements. Each classroom is equipped with an Overhead projector, writing board, Public Address System, Digital Light Processing Projector (DLP), computer with the necessary stateof-the-art software to make presentations.
Library ; A good library with over 12000 books mainly on management topics, a number of professional journals and an impressive collection of audio-visual aids supplement classroom learning and assignments.
Auditorium ; An auditorium air-conditioned and acoustically designed with 180 seats is also available for viewing films / videos and conducting seminars. A well-lit dais is also suitable for cultural Programs by participants.
Accommodation ; Forty fully furnished twin occupancy rooms and five dormitories provide accommodation for a hundred participants. A neat and tidy cafeteria within the campus provides nutritious food and caters to the palate of the participants from all over the country
Recreation Centre ; The recreation centre is equipped with a home-gym, facilities for indoor and outdoor sports and also a television set, which provide the participants the much
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needed relaxation during the off-hours and holidays. A lot of newspapers and magazines are also available.
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2.16 CUSTOMERS OF HAL :
DOMESTIC CUSTOMERS ;
Air India Air Sahara

Airports Authority of India
Bharat Electronics
Border Security Force
Coal India
Defense Research and Development Organization
State Governments
Indian Air Force
Indian Airlines Indian Army

Indian Cost Guard Indian Navy Indian Space Research Organization
Jet Airways
Oil and Natural Gas Corporation Ltd Ordinance Factories Reliance Industries United Breweries
INTERNATIONAL CUSTOMERS ; Airbus Industries, France
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APPH Bolton, UK
BAE Systems, UK Coast Guard, Mauritius
Corporate Air, Philippines Cosmic Air, Nepal Dassault Aviation, France

Doulty Aerospace Hydraulics, UK
EADS, France ELTA, Israel Gorka Airlines Nepal

Hampison, UK
Honey well International, USA

Island Aviation Services, Maldives
Israel Aircraft Industries, Israel

Massier Dowty Ltd, UK
Mitsubishi Heavy Industries, Japan MOOG, USA Namibian Air force, Namibia Peruvian Air force, Peru
Rolls Royce, UK Royal Air Force, Oman
Royal Malaysian Air force, Malaysia Royal Nepal Army, Nepal Royal Thai Air force, Thailand Smiths Industries, UK Sneema France
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Strong Field Techniques, UK
CHAPTER - 3 BRIEF OVERVIEW OF FUNCTIONAL DEPARTMENTS

3.1 SALES & MARKETING DEPARTMENT :
Primary Functions : Receipt & Screening of Enquiry from customers. Obtaining estimates & submitting quotations. Receipt of order & issue of sales orders. Closure of sales order after restoration of invoice.
Secondary Functions :
Disposal of surpluses & scrap materials (if not handled by central salvage). Issue sales orders for deputation of HAL Teams for defect rectification at customers bases, to facilitate drawl of necessary items.
Obtaining advances CCPs/ Licenses for duty free importing of raw materials against Export orders & discharging of export obligation.
Objectives : To research into the market & obtain market trends, study future customers requirements. To ensure that customer enquiry is effectively converted to a contract or order, which proper identification of customer satisfaction is achieved, by ultimately customer satisfaction is achieved, by regular correspondence with customers. To execute the order well within time cost & at the desired performance / technology level while the utilizing the available resources effectively &
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efficiently, coordinating with various functional groups, making various analysis related to customer order, & preparing various reports.
3.2 PERSONNEL AND ADMINISTRATION DEPARTMENT :

HAL has nearly 30000 employees working in different division all over the India. Manpower plays very important broad role in the HAL and also here Human Resource may be divided into 2 categories viz. Technical Employees Non-Technical Employees. In this division the required people is forecasting through current on going project, future work load, superannuation etc., Corporate office will carry out HR functions like Recruiting, Selecting, Placement, Orientation and Training & Development towards the various jobs. The HRD manager asses the training needs through performance appraisal of each employees for better needs through performance appraisal of each employee for better imparting of skills. In todays scenario Employees participation to management is very important to take decision regarding organization growth and employee helps to achieve organization goal. In this division employees participation in the management are the following activities. They are: Plant level committee. Safety committee. Canteen managing committee. Hindustan Aeronautic Employee Association. Hindustan Aeronautic Officer Guild. Dividend Declaration. Setting of wage policy once in 10 years.
In this division also provide Fringe benefits to employees i.e. the benefits that the employee receives in addition to direct remuneration.
It helps to increase
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employees earnings. employees are:
The following are the benefits and services provided to
Leave Travel Concession Medical facilities Sick leave and Maternity leave Canteen facilities Uniform and Education facilities.
STAFF :
Personnel categories within the organization e.g. academics, administrators, technicians. According to Waterman, the term Staff refers to the way organizations introduces young recruits into mainstream of their activities and the manner in which they manage their careers as the new entrants develop into future managers. HAL has highly committed and devoted workforce. Its HR mission is to enable all those working for HAL to give out their best to ensure their all-round growth as well as that of the organization.
CLASSIFICATION OF STAFF :
The organization has to look into its people, their backgrounds, and competencies, staff also includes, the organizations approaches to recruitment, selection and specialization. How people are developed, how recruits are trained, socialized, integrated, and how their careers are managed? HAL is one of the largest PSU which is having more than 26,000 employees as on 31st March 2005. Besides this it has gives Apprentice trainees, Helpers, Messengers, etc., within the company premises. Manpower is the main strength of any organization. HAL which is having highly skilled and well experienced employees who are much capable in doing the task efficiently.
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The total manpower of the HAL is classified into two broad groups that is officers group and workers group. It is clearly stated as under; ORGANISATIONAL HIRARCHY : Schedule A Schedule B Grades - Chairman - Managing Director Executive Director
- General Manager - Additional General Manager - Deputy General Manager - Chief Manager - Senior Manager - Manager - Officer - Assistant Officer GROUPS F E D C B A - Senior Assistant Supervisor - Assistant Supervisor - Highly Skilled Technician - Skilled Technician - Semi Skilled Technician - Helper
CLASSIFICATION OF STAFF
Schedule A Schedule B Grades Grade X
- Chairman - Managing Director
- Executive Director
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Grade IX Grade VIII Grade VII Grade VI Grade V Grade IV Grade III Grade II Grade I GROUP Scale - 10 Scale - F Scale - E Scale - D Scale - C Scale - B Scale - A
- General Manager - Additional General Manager - Deputy Manager - Chief Manager - Senior Manager - Manager - Deputy Manager - Officer - Assistant Office
- Chief Supervisor - Senior Assistant Supervisor - Assistant Supervisor - Highly Skilled Technician - Skilled Technician - Semi Skilled Technician - Helper
As the HAL is a huge organization the employees are classified into various groups as mentioned above. The each and every class or group of employee are having there own duty and responsibility to perform. The completer information of the duty and responsibility are clearly given to the concerned worker. The duties and responsibilities of Supervisor are clearly explained according to the nature of there work. In each department say in shop floor there will be a supervisor for the different nature of activities. The supervisors in the shop floor say assembling section is the whole incharge. He has many duties and responsibilities to perform which are clearly mentioned as follows:
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Duties of the Supervisor at assembling section :
Duty to carry out the assigned work. Duty to get the work done by the subordinates. Duty to meet the target in the given period. Duty to keep the account for the receipt and issue of the goods. Duty to inspect the spares before receiving. Duty to make note of spares issued to the concerned worker.
Responsibility of the Supervisor at assembling section :
Responsible for the spares received from other sections. Responsible for his higher authorities. Responsible to take suitable care on the spares and finished product which is in his control. Responsible for not meeting the target within the given period. Responsible for the lost and damaged spare and finish products. Classification of human resources is purely based on the work done by a individual and the educational qualification of the employee. There are mainly three categories are Technicians, supervisors and managers. Based on their work company gives the wages/salary as a reward for work rendered for the organization.
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3.3 FINANCE DEPARTMENT :

Finance is lifeblood of every organization. Finance is the basic foundation of all kinds of economic activity. Therefore, efficient management of every organization is closely linked with efficient management of finance. It expresses the strength and weakness shows through financial performance of every business organizations. But, in HAL government in favor of nation welfare takes everything, which related to finance decisions. The decisions like capital budget, dividend decision, working capital decisions. The decisions like capital budget, dividend decision, working capital management, investment to fixed assets and other financial decisions which crosses above one crore rupees is need to obtain a permission from its corporate office that was established under preview of government and also aims to meet the requirement with its product is supplying mainly to the defense organization of our nation. HAL is running as a cash rich government sector undertaking. Government itself holding the entire HAL share capital (300 crores) and major financial activities are organized by its corporate office and also controlling all division of HAL. The aircraft division being carrying a 300 crores turnover in the every the year the that turnover 80% finance go in to purchasing of materials from foreign countries 50% of profits declared as a dividend in the year 2002-03. The aircraft division as a major finance department which sub-divided into 7 sections they are:
Bills Receivable section. Bills Payable section. Book-Keeping Section. Material Accounting section.
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Payroll section. Cash Section. Costing section.
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Hindustan Aeronautics Limited (HAL) has cruised past the Rs.10, 000 crores mark for the first time with a sales turnover of Rs.10, 260 crores during the Financial Year 2008-09. The profit of the Company (Profit before Tax) soared to Rs.2260 crores. The highlights are given below : Annual Accounts 2007-08 :
Rupees in Crores 2008-09 (Provisional) 10260 11162 2260 1559 2661 Growth over Previous Year 18.96% 26.97% 4.44% -4.47% 18.00%
Particulars
2007-08
Sales VOP Profit before tax Profit after tax Gross Block
8625 8791 2164 1632 2255
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FINANCIAL STATEMENTS HINDUSTAN AERONAUTICS LIMITED BALANCE SHEET As at 31st march 2008 SOURCES OF FUNDS Shareholders fund Capital Reserves and surplus Loan funds Secured loans Unsecured loans Deferred liabilities (net) 4 1 2 3 202.52 233.73 168.80 Scheme 31st Mar 2008 12050.00 516322.34 528372.34 31st Mar 2007 12050.00 391391.74 403441.74
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Deferred Tax liabilities (net)
137904.62 666479.48
111693.68 515537.95
APPLICATION OF FUNDS .Fixed assets Gross block Less: depreciation Net block Capital work in progress 7 5 6 225496.85 117490.00 108006.85 24269.85 132276.70 Special tools and equipments Investments Current assets, loans &advances Inventories Sundry debtors Cash and bank balances Loans and advances 10 11 12 13 861463.82 148610.50 1964631.86 421341.58 3396047.76 Less: current liabilities and provisions 722251.99 128117.86 1670552.11 380034.82 2900956.7 8 9 295410.66 1920.26 208089.31 105991.03 102098.28 21027.12 123125.40 255355.79 1527.76
Liabilities
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3237223.16
2883490.30
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Provisions
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117671.82 3354894.98
76880.72 2960371.03 -59414.24
Net current assets Miscellaneous expenditure (to the extent not written off/adjusted Gross carrying amount Less: cumulative Amortization and loss 15
41152.78
228528.33 32809.25 '.95719.08
214270.38 19327.14 194943.24 515537.95
Net carrying amount
666479.48
HINDUSTAN AERONAUTICS LIMITED PROFIT AND LOSS ACCOUNT For the year ended 31st march 2008 PARTICULARS INCOME Gross sales Less: excise duty Net sales Changes in WIP\SIT\scrap Other income 23a/b 17 16 862533.06 221.42 862311.64 16820.49 171484.50 1050616.63 778360.90 169.33 778191.57 141855.62 114347.28 1034394.47
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Scheme
Current year
Previous year
EXPENDITURE Consumption of raw material Amortization Salaries and wages Other expenses Interest Depreciation Provisions 18 19 20 21 22 6 22A 468443.05 35552.83 175927.94 123164.87 1323.96 11795.00 530074.88 869282.53 Deduct : Expenditure related to capital And other accounts Net expenditure Profit for the year Less; Provision for Taxation (net) Provision for fringe benefit Tax Provision for deferred taxation (net) Profit after Tax Profit available to appropriations APPROPRIATIONS 26274.01 750.00 26210.94 163187.97 163187.97 19500.00 800.00 39184.27 114875.60 114875.60 23 35088.82 834193.71 216422.92 40397.61 860034.60 174359.87 598039.81 26470.17 105446.47 113934.39 1594.23 10028.43 44918.71 900432.21
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Interim dividend Proposed final dividend Tax on dividend
28794.68 390.32 5557.37 38257.37
23795.00 1205.00 354Z06 86333.54 114875.60 95.3.3
General reserve Total of appropriation Earnings per share
124930.60 163187.97 135.43
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3.4 PURCHASE DEPARTMENT :

Purchase department comes under integrated material management. The main objective of purchase department is timely procurement and supply material to the indenting departments as and when required to production departments. Non-receipt of material in time may result in production hold-ups and receipt of materials a head of time would be a burden on the cash flow of the company and add to inventory carrying cost. Objectives : To buy competitively and wisely authorized supplies to desired specifications from approved / reliable sources at the available reasonable prices within the time schedule to support production plans and other requirements. To ensure that fair & open purchase practices are followed and a healthy & good relationship develops with suppliers to foster the commercial interest of HAL in the local, relationship develops with suppliers to foster the commercial interest of HAL in the local, national and international market. To ensure timely formulation and commitment of purchase budget, including foreign exchange requirements. To ensure that investment made on inventory is at an optimum level. Training of purchase personnel in the latest techniques of materials management. To keep management apprised of the likely shortfalls in purchase performance by introducing appropriate reporting systems with a view to seek managements intervention in time. Functions : Creation of a comprehensive & continuously updated register of selected reliable vendors. Maintenance of vendor evaluation & rating records.
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Market survey with a view to establishing/ developing new reliable & better sources of supply by providing information on latest products/ developments.
Analyzing bids/offers for decision-making by the competent Authority. Arranging negotiations with the parties when necessary. Issue of purchase orders in time. Timely release of Foreign Exchange, obtaining technical Clearance & Import License when required.
To finalize the required rate contracts for regular stock items. Maintaining up to date information regarding sales tax, excise & customs duty-rates etc.,
Maintaining a library of products catalogues and manufactures/ distributors price lists etc.,
Submit MIS reports on performance of purchasing organization. Entering into service contracts for Transportation, Customers Clearance and other miscellaneous services like repairs to capital equipment/ plant, advertising, printing, packing, tailoring, maintenance service contracts, materials handling services etc.,
Finalization & operation of license agreement. To be alert about & responsive to the changes in production programmed & change in requirement of material.
Modes of tenders called by HAL : Open Tender Global Tender Limited Tender Single Tender Proprietary Tender Spot Tender.
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3.5 STORES DEPARTMENT :
The stores departments play a key role to Integrated Material Management (IMM). The duties and responsibilities of stores manager is vast this department receives all the materials ordered by the purchase department. After receiving materials are stored properly and issuing to production departments whenever needed. The objective of store survive (which form a part of material management) is to support to production activity by ensuring availability of the material required at least final cost. Functions of Stores department comprises of : Planning requirement as decided by management. Indenting. Receipt, storage, issue of store/ materials. Accounting of stores. Supporting inventory control management. Disposal of surpluses and scrap.
Stores responsibility in HAL can be broadly classified into 3 main groups as under : Transit stores or Goods Inward (GI) stores. Holding stores. Salvage and disposal stores.
Transit Stores or Goods Inward Stores : This group is responsible for all the activities starting from receipt of intimation to collect till the materials are handed over to the holding stores. The transit stores consist of the following cells:
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Collection and Receiving Cell Documentation Cell Goods Inward Cell Custom clearance, Insurance declaration and claims Shipping cell.
Collection & Receiving Cell : This Cell is responsible for Scrutinizing all the documents and plan collection of materials expeditiously. On receipt of carrier receipt note and related documents, this cell will be responsible for collection of materials from various agencies and firms. Receiving materials. Preparing pay wills. Inspection of in-coming material for any outward damages of cases and lodging claims on carrier for damages or discrepancies. To arrange for return of the rejected goods. Management of quarantine stores. Arranging periodical rejection reviews for disposal of rejected items/ acceptance of items, liquidation of GIT. Intimation purchase department about Goods Receipt & custom cleared Bill of Entry Information to enable them to inform Vendors. Receipt of materials / packages along with waybill and preparation of RECEIVING REPORTS. This document will form main document on the basis of which other transaction like inspection, bill payment, stores crediting (acceptance) takes place later on. Arranging to forward receiving reports and all other documents to GI Cell for inspections and acceptance.
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Goods Inward Cell Open the packages and offer material for inspection. To count, weigh, measure as the case may be, the material received in relation to the receiving reports and then offer the material for inspection.
To accept materials passed by inspection and segregate the goods rejected. Raw material received for aircraft use has to be processed separately as per the quality standard (processing like- cleaning, preservative coating, color coding, stenciling of specifications).
Arrange to send samples of raw materials to laboratory for analysis / send for end user certification/ acceptance.
To raise DPSA (Discrepancy Pending Status Advice) for any damages, shortages and any other discrepancy.
Forwarding DPSA along with PDO (Part Disposal Order) raised y Inspection to claim section.
To arrange and send rejected materials to rejected stores/ vendor and intimation to purchase.
To send accepted materials to respective Holding stores along with RR and acceptance Tags.
Customs, Insurance and Claims Cell Customs Cell : Liaison with customs clearing agent form collection of documents/ delivery order till collection of item from MSIL/ JW godowns by the agent and handing over to receiving cell. Payment of freight amount. Payment of customs duty. Payment of agency charges.
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To link the documents with pay bill and handover to document cell & prepare RL.
Insurance Cell Entering into Divisional Agreements with Insurance Companies based on Corporate Office Guidelines. Declaration of insured value for all incoming and outgoing items to insurance company. Arranging insurance premium.
Claims Cell: This Cell is responsible for arranging and insurance & surveys, lodging claims with carrier, vendor, insurance, customs and intimation to purchase department for any shortage, damages, wrong delivery, excess collection of custom duty and follow up. Shipping cell: Shipping activities are carried out as prescribed below: To receive materials meant for dispatch to outside parties as well as to other divisions of HAL towards sales, repair/ modifications, return of rejected materials/ excess supplies. Preparations of documentation like Invoice, DC, materials gate pass, dispatch advise, obtaining RBI or AD clearance/ waiver (applicable for import/ export items only). Holding Stores Activities performed at holding stores are mainly To receive accepted material from GI cell. Update stores records (receipts and issues) Forwarding of RR and MR to material accounts after assigning voucher number.
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Preservation of material. Life monitoring & life extension jobs. To ensure proper identification of materials according to project classes and rational codes
Issue of materials against authorized documents only. Stock Transfers To assist MPD with regard to allocation and fixation of stock levels. To co-ordinate with finance department in progressing stock verification programs by way of identification of materials.
To arrange for segregation of surplus materials and transferring them to salvage stores.
Physical stock verification. Stock Re-classification. Disposal of non-moving / slow moving materials Maintenance of records of shelf life items in co-ordination with Inspection like rubber, paints, pre-pregs etc.,
Write voucher numbers in all the documents, which are either depleting or increasing the stock like RR, MR, stores credit, stock transfer, stock reclassification etc.,
The Holding stores are broadly grouped into two categories : 1. 2. Holding stores for Project Material (Bonded Stores). Holding stores for non-project items.
SALVAGE STORES :
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The responsibility of salvage stores is collection and acceptance of all scrap as been subdivided into different lots for auction. Disposal of salvage items received from various divisions is done centrally by
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Aerospace division : Receipt of scrap generated form machine shop Receipt of surplus/ obsolete/ redundant/ rejected/ non-moving items etc., Condemnation of items after PRC recommendations. Segregation of material according to the category. Reserve price to be fixed by advisory committee to recommend the reserve price before auction. To arrange for disposal by public auction only. Realization of money for the salvage.
Selective Control : The aircraft division aims to achieve inventory control through selective inventory control technique to achieve maximum cost/ effect effeteness. The common purpose of analyzing the inventory is to formulate selective control techniques suitable in sense operating condition. The extent of attention paid, cost incurred and controls exercised have a definite relationship to the pay-offs achieved.
3.6 PRODUCTION ENGINEERING DEPARTMENT :
The Aircraft divisions Production Department is conducting with activities of production, planning and control. This states the manufacturing, repair and overhaul of Aero Engines and their components. It includes spares, Accessories, Ground handling equipments, tools and test equipments and also services includes technical assistance & training of customers personal in operations and maintains of Aircrafts and other engines. The main objective of this department is projecting the future production task in accordance with available direct man power machine capacity and monitoring performance in shop floor activities. It ensures effective utilization of production facilities and inventory control.
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This department is equipped with three types of manufacturing process they are: Production based production is used in the pipe line, gear shop and blade shop etc., Process based production is used in the heat treatment etc., Transfer line based production is used in continuous process designed activities. The management of task of production department through following steps they are: Centre Planning Shop Scheduling Shop Progress Store Credit Dispatch Offloading Sub Contract Annual Physical Verification.
Classification of Production Plan : Long range plan takes 5 to 10 years. Aggregate Plan takes 2 to 3 years. Short term plan covers quarterly and monthly.
Organization of Production Planning and Control : Project Planning : In the project planning the activities defined projecting future plan with the requirements of resources, facility planning, Design specification, manpower, machine/ material and decision regarding make or buy plant layout etc.,
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Method Engineering : The objective study of production planning is Method Engineering. It
Design the manufacturing in prescribed specification adopting in production process with requirement like Design specification, Drawings, Process sheet, tools jigs fixtures, standard tools, machine tools, equipment and machine etc., Tool Engineering : The tool engineering is technical based production engineering and design activities like process installation design, fabrication, moving, shortage issue and serving of tools etc., Material Engineering : Material planning in the production engineering is a plan for future requirements like bill of material, procurement of material, as per production plan and lead times shortage and issue of materials in co-ordination with scheduling group bars, sheet, forging and casting etc.,
3.7 MANUFACTURING DEPARTMENT :
This department mainly focused on manufacturing process of Aero Engines after planning is done by production planning Department. It has being executing through sequence of operation (i.e., Materials to Final product) by using machines, tools and methods according to pre-specified drawings. Each and every activity of manufacturing process is pre-planned according with master production schedule. On that basis, job card and work order is prepared for authorization of work, time, and data along with root card (Sequence of operation) to complete the assigned job and also maintained job ticket (i.e., Authority of person for doing particular work) weekly, monthly to manufacture effectively and efficiently to meet requirements of customers. In this division also using CAD and CAM and Robotics, CNC machine shop and other advanced world class technology imported through licensers and
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collaborates (i.e., Rolls Royce, UK.
Turbomeca, France etc.,) to manufacturing
various types of Aero Engines for domestic and foreign customers. And this division is running production process has been divided into three shifts (24 hours) in every day. Due care and attention is being given at all stages of manufacturing process to ensure quality. This division has been certified as ISO-9001:2000 company. Functions : To manufacture respective products of that shop in order to supply parts/ subassemblies / assemblies, as the case may be, to meet Engine production/ overhaul / repair / rotable / RMS tasks as laid down in the annual production plain. To manufacture components / assemblies for EXPORT tasks. To carry out repair on repairable components & assemblies as per the approved rework schemes. In association with Development Department, to provide manufacturing facilities for developing new products. To provide manufacturing facilities for indigenization programme.
3.8 MANAGEMENT SERVICE DEPARTMENT :

In the Management Service Department (MSD) the major important activities relating to effective allocation of man power (i.e., direct labor and indirect labor ) through budgets and its effective utilization of direct labor and shop machinery with in this division. This department serves all the information pertaining to all department heads to exhibit the manufacturing capability in the organization and it helps to take various management decisions. Management Information System (MIS) also plays vital role supporting the statistical current information used to make use estimation in advance for smooth functioning of various departments.
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Functions of MSD : The various functions of MSD are as follows: Rate fixing of operations in the fabrication and assembly shops using rationalized standard data/ estimation/ observations. Analysis of requirement of direct labour rate wise / machine group wise form time to time analysis of requirement of indirect strength for various departments. Administration of incentives schemes. Analysis and improvement of systems and procedures for various departments as and when required. Suggestions committee. Allocation of work centre number Management Information System. Analysis of computer data on labor and machine and provide information to shop machine utilization etc., Maintenance of statistical data pertaining to production, manpower, labour utilization, machine utilization etc., Arrange and provide information for division COM, MD (BC) COM and production review meeting and release of minutes for COM. Provide information to corporate office and MD (BC) in various subjects as and when required.
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3.9 CUSTOMER SERVICE DEPARTMENT :

Customer Service section caters to all requirements of customers from the 3 military services, civil operators, state government agencies & customers form foreign countries The sections responsibility is designed to cater to all the projects tasked on the division. This involves interaction with, departments/ sections within the division to ensure all requirements are met within the time frame specified for supply. Considering customer satisfaction as the prime criteria, the section personnel are geared up to meet the demand placed by any customer. Regular customer Service Meetings are arranged to interact and define areas, which need improvement. Similarly In-plant training is carried out to improve field service and maintenance. Functions : The Functions of CSS are oriented to provide for Technical Services o Providing assistance infield servicing of engine where HAL expertise is required. o o o o o HAL entrusted took to provide assistance in I & II line servicing. In plant training of technical personnel. Conducting workshops. On site survey, inspection & Defect investigation. Supply of technical literature, Publications etc.,
Logistic Services. o Recommend and assist in preparing list of TTGE (Tools, Test, Equipments) requirement. o o o Recommend scale of spares and rotables requirement. Arranging supply as per customer requirement. Assuring rotables repair/ overhaul task.
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Collecting statistics from customers on utilization rate.
3.10 QUALITY MANAGEMENT SYSTEM DEPARTMENT :

General requirements : HAL has established, documented, implemented and maintains as QMS to continually improve its effectiveness by Identifying the processes needed for the QMS & their application through the division. Determining the sequence and interaction to these processes. The interaction of the processes identified in the respective process procedure and as Flow Chart as under. Determining Criteria and methods needed to ensure that both the operation and control of these processes needed are effective. Monitoring, measuring and analyzing these processes. Implementing actions necessary to achieve planned results and continual improvement of these processes, this is achieved by PDCA approach in each procedure and by the identified procedure for this activity. Achieves its objectives. Is under continual review for improvement. The structured documentation of the management system identifies what activities are carried out in the business & provides as base line from which improvements can be identified and best practices implemented. Special purposes are not outsourced. However manufacturing processes which are outsourced, the quality management system of the division. Management responsibility : HALs top management defines, develops and implements the Quality Management System. The E.D as the head of the division ensures that employees at all levels within their Groups understand the goals and objectives of programmes and circulars.
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Planning QMSP : When a new product, project, or contract is evaluated for adoption into Engine Division HALs quality system, the appropriate staff members meet to define and document how the requirements for quality will be met. The integrity of the QMS is maintained, when changes to QMS are planned & implemented.
3.11 QUALITY CONTROL DEPARTMENT :
The Quality Control is the major achievement in the every organization. Poor quality creates a problem to the customers and it reduces productivity. In the engine division of HAL maintains high quality to meet the required specification of customers in global level. This division also certified ISO- 9001:2000 so, HAL itself established many quality approval authorities like Direct General of Civil Aviation(DGCA), Directorate General of Aviation Quality Assurance (DGAQA) etc, with association of customers quality specifications in the different stages if manufacturing from raw materials to final testing of Aero Engine, and also inspection will takes place for repair and overhaul of Aero Engines. It aims to avoid rework, rejection and salvages. The functions of Quality Control Department are detailed below: Control during receipt of materials from stores. Control during the manufacturing. Control during Assembly, Overhaul and Repair. Control during Test. Process control and defect prevention. Defect Analysis and Quality Cost. Failure Analysis.
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Laboratory test and Non Destructed test. Co-ordinating quality committee meeting.
Duties of Quality control includes : Ensuring that all inspections are properly performed as per requirements on complicated work and that proper inspection records, reports properly executed towards releasing the product for service. Ensuring periodic checks of all inspection tools and calibration of precision test equipments. Ensuring that the including materials parts and all supplies meet the specifications. Maintain files of completed work orders and inspections forms to ensure traceability. Continuous investigation of prematurely withdrawn components / engines from service and institute corrective measures.
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CHAPTER 4 SWOT ANALYSIS

STRENGTH :
It is a premier defense production industry of the country catering to the needs of IAF, army, navy & other civil customers
Has diversified into industrial & marine gas & turbine business. Has well equipped engine & test bed control specialized in the development of small gas turbines & engines.
R & D center of the division has designed &installed engine test beds, for Russian & western origin aero engine.
Has entered into license agreements with many foreign companies in the design, development & manufacture of engines.
Has acquired the state of technologies for manufacture repair & overhaul of engines.
Has been credited with ISO 9002 certificate & has rank as one of the top public sector undertaking for sustained excellent performance & figure in the first 50 global defense companies.
WEAKNESS :
As HAL is a public sector undertaking it cannot carryout its business on competitive lines.
Is largely dependent on its licenses in international business transaction Investments made R&D are inadequate. Infrastructure facilities in Division are needed to be improved further.
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There is a need for re distribution of man power than required in the organization.
Excess of man Power than required by the organization.
OPPORTUNITIES :
Can get into manufactured parts exports in a big way. HAL scope for expanding it expert business as it has received export orders. Worth as against the target of 452Cr in the year 2002-03.
HAL entered into a license agreement with Rolls Royce U.K. for servicing of DART engines in South East Asia.
New initiatives in R & D like ALH (Advanced Light Helicopter), LCA (Light Combat Aircraft), MIG & Jaguar update programmes provide scope for future expansion of business.
Has started new projects like Kaveri engines, pilot less target air craft engines, Pegasus engines, etc., developed by the companies own ETBR & DC.
Has Scope for diversifying for its activities in the manufacturing of engines for multi role & civilian Aircraft.
THREATS :
HAL is facing competition in the international market by its licensees. The License agreement has restricted the company to enter into business with other countries without the approval of its licenses.
Fluctuations in foreign exchange have resulted in an increased expenditure on its imports and here by increase the cost of production.
The company has to take approval to make any changes in the engine design by its license which involves huge expenditure.
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75
CHAPTER 5 FINDINGS , CONCLUSION & RECOMMENDATIONS

FINDINGS :
Enter into co-development, co-production and joint marketing routes to get better access to international customers.
Long term plan for recruitment and HRD to take care of organizational and individual needs.
To
be
rationalized
through
automatic
workflow
providing
greater
transparency.
Advertisement cost is minimum because they manufacture based on the orders mostly placed by the government itself.
Professional management to replace personalized management and there will
be widespread delegation of power.
The unit is environment friendly coolant for all the operation.
The review discussion which is conducted should provide more opportunities to know the strengths and weakness of the employees.
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The existence of an atmosphere of confidence and trust should be created so that both supervisors and employees may discuss matters firmly and offer suggestions that are beneficial for the organization.
The company has provided high level of safety to employees and very good security arrangements for men and materials.
Women employees are provided safe and secure job in this unit.
HAL has provided bus facilities to the workers and employees.
CONCLUSION :
Every report has its own conclusion. It has always been the practice in the academic work of this nature to analyze and come out with some conclusion that tends to pass judgment on the efficiency and effectiveness of an enterprise under study. In the contest of this report, it can be said that the product of the company is stable and efficient with proper inventory and working capital management. The workers are committed to their work duty. There has been good iniating measure undertaken by the company to upgrade the quality and efficiency of its product and machinery. The firms commitment towards quality is worth appreciating the financial position of the company is good in terms of high returns. There has been good co-ordination among all departments of the company. The companys commitment towards its consumers, employees, and the society in general is tremendous. HAL, over the last six decades, has grown progressively into an integrated Aerospace Organization and has spread its wings to cover various activities in the areas of design, development, manufacture and maintenance of advanced fighters, piston and jet engine Trainers, commercial aircraft, helicopters and the associated aero-engines, aircraft systems, equipment and avionics.
RECOMMENDATIONS :
HINDUSTAN AERONAUTICS LIMITED should make efforts in advising the employees, so that they are very clear about the purpose/goal/objective of the performance Appraisal system.
HINDUSTAN AERONAUTICS LIMITED must make attempt to know about the needs and requirements of the employees and conduct the appraisal system accordingly.
The review discussion which is conducted should provide more opportunities to know the strengths and weakness of the employees.
The existence of an atmosphere of confidence and trust should be created so that both supervisors and employees may discuss matters firmly and offer suggestions that are beneficial for the organization.
78
In order to attract, recruit and retain more talented people who are diversifying their careers to words MNCs HALL is required to increase its remuneration in accordance to the standard of MNCs.
Reduce manpower and improve technologies to be competition in prices. More investment in Research and Development for companys growth. Managers / senior employees should make enquiries regarding the
performance of the employees in their department and other departments also.
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Introduction

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CHAPTER 1 INTRODUCTION

1.1 EARLY HISTORY :

Bangalore Institute of Management Studies, Bangalore

Bangalore Institute of Management Studies, Bangalore

EUROPEAN AIRLINE INDUSTRY :

Bangalore Institute of Management Studies, Bangalore

Bangalore Institute of Management Studies, Bangalore

LATIN AMERICAN AIRLINE INDUSTRY :

Bangalore Institute of Management Studies, Bangalore

1.2 ASIAN AIRLINE INDUSTRY :

Bangalore Institute of Management Studies, Bangalore

CHAPTER - 2 COMPANY PROFILE

Bangalore Institute of Management Studies, Bangalore

HAL has formed the following Joint Ventures (JVs) :

Bangalore Institute of Management Studies, Bangalore

HAL was awarded the INTERNATIONAL GOLD MEDAL AWARD for

HAL was presented the International - ARCH OF EUROPE Award in

2.2 BACKGROUND AND INCEPTION :

Bangalore Institute of Management Studies, Bangalore

Bangalore Institute of Management Studies, Bangalore

Bangalore Institute of Management Studies, Bangalore

2.5 {A} ORGANISATION STRUCTURE :

Bangalore Institute of Management Studies, Bangalore

{B} CORPORATE LEVEL :

Director (Finance ) Group Executiv e

Director (Corporate Planning)

AGM (Product Support)

DGM(PS) DGM (PS)

(Cell New Delhi)

Bangalore Institute of Management Studies, Bangalore

{C} DIVISIONAL LEVEL :

DGM (Export Mktg.)

DGM (Quality Control)

Senio r Mgr (Pers l).

DGM (Mtrl. Mgt.)

DGM (Assembly Plant )

DGM DGM (Prod. Engg) (Mft. Toolin g)

DGM (Mgt. Services).

Bangalore Institute of Management Studies, Bangalore

{D} DEPARTMENTAL LEVEL :

General Manager (GM)

Chief Manager (CM)

SR ASST. Supervisor/ SR Master Technician (PROD)

ASST. Supervisor/ Master Technician (PROD)

Bangalore Institute of Management Studies, Bangalore

2.6 QUALITY POLICY :

Turbomeca. Honeywell Authorized Service Centre for repair/ overhaul of Garrett

2.7 OUR VALUES :

Bangalore Institute of Management Studies, Bangalore

Respect For The Individual Integrity

Bangalore Institute of Management Studies, Bangalore

2.8 PRODUCT PROFILE :

Products in Current Manufacturing Range

Twin-seater, Multi-role, Long range Fighter / Bomber / Air Superiority Aircraft

MiG-27 M Single-seater Tactical Fighter / Bomber with variable sweep wings

Single-seater Front line Tactical Interceptor / Fighter Aircra

METALLIC DROP TANKS

The Division has facilities and expertise in the

Bangalore Institute of Management Studies, Bangalore

Bangalore Institute of Management Studies, Bangalore

Length: 16.955 m Wing Span: 8.691 m Height: 4.813 m

Area: 24.03 m2 Sweep: 40o 2' Aspect Ratio: 3.12

Maximum Take Off: 15700 kg Pay Load: 4000 kg