A Study on Cost Analysis and Benefits of Metro Project of BEML Ltd, Bangalore.

Abstract

BEML Limited is aimed at the study of Cost analysis and cost benefits of Metro rails in Bangalore manufacturing unit, Since the foremost segment of the total turnover of the company is metro. The problem in this learning is to know the cost manufacturing metro rail coaches and its pricing strategies and how to reduce cost of the manufacturing of metro rail and metro rail coaches. Cost regulator and saving is a continuous process that begins with an annual budget of the firm. It is very significant to compare actual results to the project result, in sort to defeat the crisis of excess expenditure. Therefore, this study is conducted to recognize the tools and techniques followed in cost control at BEML Limited and suggestion are given for reducing the cost in sequence to improve the profitability, currently the project is focused in the Bangalore region. The main objective is to understand about the BEML’s manufacturing unit in Bangalore, to know how BEML get its projects and how it gets its funds and the investment patterns. It capital budgets and the capital requirement and its investing partners, The primary focus is to know the technique which company uses two controls its cost reduction process and even to know the company maintains its cost benefits of metro rails, It is found that the raw material cost is more which accounts up to 55 to 60% and the company is known for labor intensive. Next get to identify each department works, The sequence of operation needs to be placed on building the metro for effective time consumption. Cost analysis and inventory analysis is done. Based on these relevant recommendations are prepared to progress the cost control of BEML metro rail manufacturing.