PRESENTATION ON

TQM AT TATA STEEL

TATA STEEL- INTRODUCTION• Tata Steel Limited is an Indian multinational steel-making company • Established in 1907 as the Asia’s first integrated private sector steel

company• Founder- Jamsetji Tata • Chairman- Cyrus Pallonji Mistry• Headquarter in Mumbai• Tata Steel Group is among the top-ten global steel companies • Annual crude steel capacity of nearly 30 million tonnes per annum.

• It is now the world's second-most geographically-diversified steel producer. • Also the second largest steel company in India with an annual

capacity of 9.7 million tonnes after SAIL• The Group recorded a turnover of Rs. 139,504 crores in FY 15.• It has manufacturing operations in 26 countries including Australia,

China, India, the Netherlands, Singapore, Thailand and UK• It is the first steel company in the world to win the Deming

Application Prize

TQM AT TATA STEEL• Tata Steel has been practising TQM since the late 1980s which was

when the company initiated several quality activities – quality circles, ISO certification, quality improvements using Juran methods, etc. • It has placed a continuous emphasis on improving processes, with a

view to consistently increasing efficiencies, enhancing quality, and thereby achieving better performance benchmarks in all areas. Company specifically looked at:

1. Strategic aspects or policy management: committed towards sustainable development and growth of its business.• looking at areas needed to change the business

2. Daily management: Company established a standardized approach for integrating daily management activities in various functions such as operations, maintenance, customer services etc.•Managing the day-to-day operations, ensuring that they are stable, looking for incremental improvements, etc

3. People involvement: involving people in thinking about improvement activities such as quality circles, suggestion management, knowledge manthan, etc. for achieving targets and goals

WHY NEED OF TQM IN TATA STEEL• World’s top steel makers today, but 25 years ago Tata Steel went

through a dark period.• Company wants to strengthened competitive position, higher

productivity, elimination of defects and waste, reduced costs and better cost management and many more.• Tata Steel needed to accept was the need for improvement.• So the company invested in a quality and business excellence

movement and adopting TQM in 1990• It has successfully transformed the Indian steel major into a world-class company

TQM IMPLEMENTATION IN TATA STEEL Understanding customer needs•With understanding of TQM, started changing the levers of improvement from an internally focused efficiency driven culture to a culture of value creation with customers and suppliers.•Tata Steel started some approaches like Customer Value Management (CVM), Retail Value Management (RVM) and Solution for Sales (SFS). •These approaches generally focused on the “needs” rather than “wants” of the customer.

Infrastructure strengthening •Vigorous daily work management practices, a clean and safe work environment and consistency and stability of processes are essential building blocks to weather the economic storm

The improvement philosophy •The company’s ASPIRE technique helps to set goals and choose the appropriate tools. •Aims to combine tools of best practices and improvement methodologies

• The future belongs to organizations that can increase the pace of standardization (to have a robust base), improve quickly on their current operations and continuously innovate to differentiate themselves from the rest and it can be achieved by

JOURNEY FOR BUSINESS EXCELLENCE AT TATA STEEL• Company redefined and reoriented itself in a turbulent environment• First adopting the Total Quality Management (TQM) as a part of

Competitive Strategy • The process improvements done through Quality Improvement

Projects (QIP's), Value Engineering Projects , Statistical Process Control projects and Operations Research Projects• Quality Circles and 5S as strategic tool for employee involvement and

improvement were adopted in all departments of the company

SUCCESS AREAS BY USING TQM• Higher usage of processed reverts at Scunthorpe and Port Talbot • Reduction in hot metal manganese at Port Talbot • Bottom stirring at IJmuiden leading to improved converter life and

yield • Higher usage of Low Cost Carbon Source (LCCS) in the blend at

Ijmuiden, Port Talbot and Scunthorpe • Vessel life improvement at Jamshedpur• Improvement in caster speed at LD2, Jamshedpur by implementing

shop tracking system • Improvement in HSM productivity, Jamshedpur by mill pacing model

and effective shutdown management

BENEFITS OF TQM IMPLEMENTATION IN TATA STEEL • Reducing production cost and the cost of production by 2.5 per cent• Improvement of the working of the coal washeries has brought down

ash content in domestic coal from 17 per cent to 13 per cent • Elimination of defects and waste• Company’s dependence on imported coal has declined• Also helped Tata steel in improving productivity of blast furnaces• Raw materials division kept pace with producing highest ever iron ore

at 10.72 million tonnes (previous best 10.09 million tonnes )

• Company’s continuing focus on safety resulted in a 10% reduction in Lost time injury frequency (LTIF) rate in the works and an 80% reduction in the Raw Material division • Company’s TQM initiatives benefits both in manufacturing processes

and selling finished products in a competitive environment• Improved customer focus and satisfaction

WINNING THE DEMING PRIZE• Tata Steel is the first steel company in the world to win the Deming

Application Prize• The steel giant won the 2008 prize for achieving distinctive

performance improvements through the application of TQM• The Deming Application Prize is considered to be the highest award in

the area of TQM. • Total quality stands for not just quality of products and services, but

also the processes and activities that are needed to achieve quality. • In the world of quality awards, this prize is like a gold standard.

• The criteria include for the company achieved this award are:1. Objectives and strategies of the company and whether they are

challenging and customer-focused2. How TQM has been applied to achieve these objectives, and the

thoroughness, consistency and depth of its application across the organisation

3. The outstanding effects achieved as a result of the application of TQM