Siemens – global network of innovation

THIS IS SIEMENS

Over 150 years of innovation have made Siemens a world leader in electrical engineering and electronics. Today, Siemens is on its way to becoming a worldwide leading e-business company with the help of networked know-how of their nearly 460,000 employees in over 190 countries to benefit their customers and win new business – and live up to the motto:

Siemens – global network of innovation.

Like in other countries, Siemens also has a subsidiary in India called Siemens India Ltd. It is a leading electrical and electronics engineering company. Established in 1922, it was incorporated as a company in 1957 and in 1962 was converted into a public limited company with 51% of its equity held by Siemens AG and the remaining 49% held by Indian shareholders. It operates in the energy, industry, health care, transportation, information, communications and components business segments. It also operates joint ventures in the fields of telecommunications and information technology. In addition, Siemens Group in India has presence in the field of Power Design, Renovation & Modernisation of existing power plant, Lighting, and Household goods. The Siemens Group in India has a widespread marketing and distribution network in addition to multiple manufacturing facilities in India. It also has a well-organised up-market value addition in Engineering, Software, System Integration, Erection, Commissioning and Customer Services.

Siemens has played an active role in India’s technological progress. Siemens provides both indigenously manufactured and imported products and systems. By harnessing innovative technologies and comprehensive know-how, Siemens helps its customers meet their business and technical needs. It also has an advantage of access to latest global technologies on account of its close association with its parent companies Siemens AG.

As know by now, Siemens Germany promotes this company. India has a Managing Director taking care of the working of the company. Also the parent company is 51% Stakeholder of Siemens India Ltd.

PRODUCTS: –

As such Siemens covers wide variety of electrical and engineering products. In India it operates in

a)    Energy;

b)   Industry;

c)    Health Care;

d)   Transportation;

e)   Information;

f)    Communications;                                       and

g)   Components business segments.

We have covered the Industry sector, which has various divisions under it. They are as follows:

(i)                   Industrial Solutions and Services;

(ii)                 The Standard Products;

(iii)               Automation and Power Electronics;

(iv)                Industrial Products and System and Sales;

(v)                  Lower Voltage Distribution System ;

(vi)                Power Transmissions and Distribution Systems.

Within the Industry sector too we have covered Power Transmission and Distribution System Division. It manufactures an entire range of Switchboards and Relay & Control Panels at their factory in Joka, Calcutta. The factory in Mumbai at Thane-Belapur Road has 3 units within it Switchboard, Switchgear and Motor Units.

ORGANISATION STRUCTURE: –

Managing director

Director1              Director2              Director3              Director4

U1      U2     U3     U4     U5     U6     U7     U8     U9     U10    U11

(DH)  (DH)  (DH)  (DH)  (DH)  (DH)  (DH)  (DH)  (DH)  (DH) (DH)

Production Strat.Purchase Sales R&D Finance

Purchase manager

Explanation: –

Ø At the top we have the Managing Director (MD).

Ø Below him are 4 Directors, who also constitute the BOD. These

Directors have to take care of the 11 units in India. Each Director has to strictly look after minimum 2 units, also the responsibility is given on the basis of how capable the Director is.

Ø Usually the factory has 3 units in one campus. Each unit has its own Production, Sales, Purchases, Finance and R&D department.

Ø Also recently the company has added STRATERGIC PURCHASE department. In case where there are 3 units in a factory premise there is Strategic Purchase department.

This departments fixes

(i)                  the price at which raw materials have to be bought,

(ii)                the Terms and Conditions of purchases and

(iii)               also they select the vendor.

Then the respective unit purchase manager does the real purchasing.

Ø Here the hierarchy followed is the unit purchase manager reports to the Strategic Purchase manager who in turn report to his divisional head and the divisional head to his respective Director.

Ø The company has Decentralised approach with Integration amongst all divisions and departments. It’s decentralised because all work is divided. A manager doesn’t have more than 20 people under him. All work is allotted to different people.

PROFIT CENTRE CONCEPT: –

Ø The company follows Profit Centre Concept. It’s actually divisional Profit Center Concept. The Parent company doesn’t ask for anything else but profit from all its subsidiaries.

Ø For Siemens India its 1 unit is a Profit Centre.

Ø Here if 1 division has some extra material and is usable by other division, then material is given to the unit. The Divisional Head is informed about it and together with the Strategic purchase manager they decide whether profit is to be made on such transaction or not. The main aim is to earn Profit.

Ø Also profit earned by a unit is profit earned by company and incase any 1 unit makes loss then it is covered under the profits made by the other units that year.

Ø One important fact to be noted about Siemens is that the whole company works on ERP system.

Ø Siemens makes use of SAP and feels it is important in a company as it makes their work easier and systematic.

Ø Everything is computerised from purchase to payment. Each and every action noted in the computer. This in a way joins the company units- as in any unit in any part of the country can access to what is happening in the other units.