durga steel

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DURGA STEEL

LTD.


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INTRODUCTION

Durgapur Steel Plant was built in 1950s and commissioned in 1959

It is in Durgapur, West Bengal

DSP is one of the six plant under the holding of SAIL

One of the two loss making plant under SAIL

It is under the balance sheet SAIL

DSP had 29224 employees, 26724 workers and 2500 executives

The blue collar employees of DSP are from local areas of West Bengal while the

supervisors and managers were from different parts of the country


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PROBLEM IDENTIFICATION

Poor product quality

High production cost

Inadequate development of infrastructure

Under utilization of capacity and consequent low production

High energy consumption

High level of pollution

High manning ratios relative to its output

Militancy of the unions

Inter union rivalry supported by the state government


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SPECIAL ATTENTION

Change in work attitude

Intervention needed to develop positive relation

Excess manpower would have to be released

Work methods need to be rationalized

No drift in administration

Growth and development of the organization as well as the employee


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PROBLEM GRAPH

Managementapproaches

Workmensparticipation


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WHAT WAS THE SOLUTION ????

Managementapproaches

Workmensparticipation

A logical and rationalattitude from the

employees and workers

Formation joint counciland shop councils

Collaborativeapproaches by thethree trade unions

Suggestion from alldirections and strict

guidelines to follow it

Investment inmachineries to increase

the yield

Decentralizing theorganizational structure


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MANAGEMENT APPROACHES

Towards technological changes:-

Preparation of the degradation report by MECON

Invitation to the expertise from outside INDIA to advice on the current scenario and

technological up gradation

An investment of Rs. 40000 million for technological changes

Replacement of some machinery plants and equipments like LD convertor replaced with

open hearth(OHF) process, concast casting with ignot casting and TNT & Slit rolling

technology in the merchant mill

Greater automation and application of electronic instruments in the computer

controlled processes

Recovery of the by products


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Identification ofproblems

Investment forpurchase andmaintenance around

Rs 40000 million

Adding capacity

Replacing somemachinery, plantsand equipments

Introducing newtechnology

aintenance amountand structure for the

newer machines


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Evaluation:-

A supporting hand from the mother plant SAIL as well as the state government

Well planned process of the operation

Good mingling between foreign purchase and local purchase of the machinery

Proper and exact manpower planning and subsequent planning for their growth and

training

Good utilization of inflows in purchasing the new and second hand machineries

Excellent co-ordination between the management and the plant engineers

No intervention of any third parties

Good adaptation of computer and electronics adopted systems


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The long awaited outcomes:-

Technological aspects

Improvement in the cost and the quality of production in the preparatory stages

Improvement of yields from liquid steel to finished steel by 8%-10%

Reduction in energy requirements

Improvements in hot metal productivity as well as labour productivity

Attainment of higher level of production

Reduction of environmental pollution by possible conversion of waste materials into

meaningful byproducts , lesser emission and reduced level of effluents


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0

200

400

600

800

1000

1200

1960-1969 1970-1979 1980-1989 1990-1993

Crude Steel

Saleable Steel

Pig Steel

Hot steel

BEFORE TECHNOLOGY

ADAPTATION


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BENEFITS FROM TECHNOLOGICAL

CHANGES IN DSP

0

100

200

300

400

500

600

700

800

900

1993 1994 1995

Crude steel

Saleable steel

Pig steel

Hot steel


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The average saleable steel price had increased from Rs. 6843 to Rs. 6551

Labour productivity had increased from 46 TCS/man/year to 96 TCS/man

/Year

Energy consumption had also increased

The by products recovery process were made more faster and efficient

The product mix became more beautiful


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Other aspects : -

A vibrant changes in relation with the trade unions

Gained confidence in handling critical problems

Improvement in work culture

Urge of success in future

Training programme had boosted the confidence of the existence employees and the

workers

Trade unions had subdivided themselves into co-operatives


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Contributing Factors:-

Support from mother plant SAIL

Co-ordination between higher, middle and lower managements

Even the supervisors and the executives played a helping hands

The three unions felt the need of the plant and contributed equally in economic

development of the plant and co-operated with the management by logical reasoning

rather than collective bargaining

An unparalleled contribution from the employees and workers in understanding the

basic needs of up gradation and current economic, political and social scenario

Arrangement of regular workshops, seminars and training programmes

regularly, attained by all classes

Regular meeting sessions between managements and operation team


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ROLE OF TRADE UNIONS

Played a typical role

Sort out the problems analytically rather than thinking politically

Hold meetings with management regarding the transfer, Voluntary retirement schemes

and payment of wages on behalf of the workers

Sort out the critical issues in manpower placing

All the three unions acted and participated equally and collaboratively

Managed to gather confidence from the employees and workers individually by their

good works


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Communication Consultation

Joint decision making Participation

Role of the three

Trade unions toevolve out from thecrisis situation of DSP


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All workingcollaborativelyfor the success

HIGHER

MANAGEMENT

MID- LEVELMANAGEMENT

ANDSUPERVISORS

EMPLOYEESAND

WORKERS

TRADEUNIONS

THE

SUCCESS

STORY


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Replenishment ofinfrastructure, equ

ipments, inflowsand investment innew machineries

that boost up sales

ncoura ed theunions and theemplo ees tothin for the

futuredevelopment ofthe or anization

Increasedjob

satisfaction


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Improved work

culture

Managersmaintainedsympathetic

but firmrelationships

Three tierconsultativesystem andemployee

workshops

Strengtheningbonds amongunions and

management


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THE BEST PART

The were handled with no third party interference i.e. no involvement

of arbitrator, adjudicator and conciliator

The mother plant SAIL had extended their helping hand

MECON had played the advisory role


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OTHER ISSUES

Stabilization of the emerging social system

Matching the requirements, production along with the modernization procedures

Hiring fresh manpower to possibly eliminate the hurdle of overtime and shift sessions

To capitulate upon the future changes in the political scenario of West Bengal

Matching economic situations in deciding the wage and salary structures

Time constraint to overcome the huge loss and run in profit

Future requirement in higher quality and quantity production level to match the

capacities of the plants


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RECOMMENDATION

Reduction of intended and unintended consequences

May have a profit sharing approach along with shorter working days / week to enhance

employee satisfaction

Role of trade union in implementation as well as installation

Career progression of the employees as well as the workers to be highlighted by proper

training facilities and job transfer

A proper and scheduled categorization must be there between temporary and

permanent department for the workers


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Informationsharing

Consultation

Managementcommitment

Works skillstraining andup gradation

Measuringworkers

health andsafety

Sharinggains withemployees

Trade unionparticipation


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To continue with the current performance standards the bonding between the

unions and the management need to be much more stronger.

It is better to maintain the equipments rather than purchasing new one as per

requirements will only solve the production problems . Lastly employees and

workers to be kept satisfied by greater compensation packages and benefits to

keep healthy work culture and increase the production simultaneously.


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THANK

YOU

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