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Main Campus, Bangalore
Master of Business Administration
2013-2015
Organisation Structure
Training (OST) Report on
Study of Organisation Structure of TATA STEEL
Abhishek Vats
Reg. No. 1321402
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Acknowledgement
I take this opportunity to express my profound gratitude and deep regards to my guide Mr.
Bhavuk Gupta, his exemplary guidance, monitoring and constant encouragement
throughout the course of this thesis. The blessing, help and guidance given by him time to
time shall carry me a long way in the journey of life on which I am about to embark.
I also take this opportunity to express a deep sense of gratitude to our mentor, Mr. N.
Ramakrishnan for providing us with such an interesting topic to deal with and providing
cordial support, valuable information and guidance, which helped me in completing this task
through various stages.
I am obliged to staff members of TATA STEEL, for the valuable information provided by
them in their respective fields. I am grateful for their cooperation during the period of my
assignment.
Lastly, I thank almighty, my parents and friends for their constant encouragement without
which this assignment would not be possible.
.
Abhishek Vats Reg. No. 1321402
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TATA STEEL- THE BEGINNING
FOUNDER: JAMSHETJI NUSSERWANJI TATA (1839-1904) Jamshetji Nusserwanji Tata ranks among
the greatest visionaries of industrial
enterprise of all time. Gifted with the
most extraordinary imagination and
prescience held the foundations of Indian
industry, contributed to its consolidation
and became a key figure in I dia s
industrial renaissance. Born on 3rd March
1839, in a family descended from Parsi
priests in Navsari, a centre for age-old
Parsi culture, he was educated in
Elphinstone College, Bombay. Initiated
early into the techniques of trade by his
father, he travelled wide, gained a
scientific outlook and first set up textile
business in India, introducing new
machinery that vastly improved the
production of cotton yarn in the country.
He however realized that I dia s real
freedom depend upon her self-sufficiency
in scientific knowledge, power and steel and thus devoted the major parts of his life and
fortune to three great enterprises- Indian Institute of Science at Bangalore, Hydro-electric
schemes and the iron and steel work at Jamshedpur. Wealth to him was not the end, but
the means to an end- the increased prosperity of India. His attitude to labour was
remarkably ahead of his times, constantly reinforcing the norms that the success of the
industry depended upon sound and straight forward business principles, the interest of the
shareholders, the health and welfare of the employees. As early as 1892, he established J.N.
Tata endowment for higher education abroad of outstanding Indian students. A pioneer in
town planning, he was mainly responsible for modernizing Bombay; he envisaged and
conceived a steel town to the very last detail, the town that was later to be named
Jamshedpur after him. The first stake for the steel plant was driven on a forest-covered
plateau in Sakchi on 27th February 1908. The dream had come alive, but the dreamer
himself was no more for Jamshetji had died at Nauheim in Germany in 1904 after his
successors to preserve the family name. His spirit continued to inspire his sons to carry their
fathe s dreams to fruition well after his death. He is one of the most widely travelled
Indians of his time, said to possess knowledge that was encyclopaedia. Not only did he have
a great love for it, he also had a passion to impart it to others, for, as early as 1892, he
established the J.N. Tata endowment for higher education abroad of outstanding Indian
students.
Jamshetji Tata won himself an enduring place in I dia s history with his unique courage,
commitment and vision. TATA STEEL was established in 1907 by its founder JN Tata, Asia s
first and India s largest integrated private sector steel company. The company s four- phase
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modernization programme has enabled it to acquire the most modern steel making facilities
in the world.
TATA GROUP OF COMPANIES:
The Tata Group of companies has always believed strongly in the concept of collaborative
growth, and this vision has seen it emerge as one of I dia s and the o ld s most respected
and successful business conglomerates. The Tata Group has traced a route of growth that
spans through six continents and embraces diverse cultures. The total revenue of Tata
companies, taken together, was $83.3 billion (around Rs3, 796.75 billion) in 2010-11, with
58 per cent of this coming from business outside India. In the face of trying economic
halle ges i e e t ti es, the Tata G oup has stee ed I dia s as e t i the glo al ap through its unwavering focus on sustainable development. Tata companies employ over
425,000 people worldwide. It is the largest employer in India in the Private Sector and
continues to lead with the same commitment towards social and community responsibilities
that it has shown in the past.
The Tata Group of Companies has business operations (114 companies and subsidiaries) in
seven defined sectors – Materials, Engineering, Information Technology and
Communications, Energy, Services, Consumer Products and Chemicals. Tata Steel with its
acquisition of Corus has secured a place among the top ten steel manufacturers in the world
and it is the Tata G oup s flagship Co pa . Othe G oup Co pa ies i the diffe e t se to s are – Tata Motors, Tata Consultancy Services (TCS), Tata Communications, Tata Power,
Indian Hotels, Tata Global Beverages and Tata Chemicals.
Tata Motors is I dia s la gest automobile company by revenue and is
among the top five commercial vehicle
manufacturers in the world. Jaguar and
Land rover are now part of Tata
Moto s po tfolio.
Tata Consultancy Services (TCS) is an integrated software solutions provider with
delivery centres in more than 18 countries. It ranked fifth overall, and topped the list for IT
services, in Bloo e g Busi ess eek s 12th annual 'Tech 100', a ranking of the world's best
performing tech companies.
Tata Power has pioneered hydro-power generation in India and is the largest power
generator (production capacity of 2300 MW) in India in the private sector.
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Indian Hotels Company (Taj Hotels, resorts and palaces) happens to be the leading
chain of hotels in India and one of the largest hospitality groups in Asia. It has a presence in
12 countries in 5 continents.
Tata Global Beverages (formerly Tata Tea), with
its major acquisitions like Tetley and Good Earth is at
present the second largest global branded tea operation.
When Jamsetji Tata gave shape to his vision of nation building by forming what was to
become the Tata Group in 1868, he had envisaged India as an independent strength –
politically, economically and socially. In order to become a force that the world has to
reckon with, the Tata Group has always ventured into path breaking territory and pioneered
developments in industries of national importance.
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TATA STEEL
Established in 1907, Tata Steel is among the top ten global steel companies with an annual
crude steel capacity of over 28 million tonnes per annum (mtpa). It is now one of the
o ld s ost geog aphi all -diversified steel producers, with operations in 26 countries and
a commercial presence in over 50 countries.
The Tata Steel Group, with a turnover of US$ 26.13 billion in FY 2011-2012, has over 81,000
employees across five continents and is a Fortune 500 company.
Tata “teel s isio is to e the o ld s steel i dust e h a k th ough the e elle e of its people, its innovative approach and overall conduct. Underpinning this vision is a
performance culture committed to aspiration targets, safety and social responsibility,
continuous improvement, openness and transparency.
Tata “teel s la ge p odu tio fa ilities include those in India, the UK, the Netherlands,
Thailand, Singapore, China and Australia. Operating companies within the Group include
Tata Steel Limited (India), Tata Steel Europe Limited (formerly Corus), NatSteel, and Tata
Steel Thailand (formerly Millennium Steel).
In 2008, Tata Steel India became the first integrated steel plant in the world, outside Japan,
to be awarded the Deming Application Prize 2008 for excellence in Total Quality
Management. In 2012, Tata Steel became the first integrated steel company in the world to
win the Deming Grand Prize 2012 instituted by the Japanese Union of Scientists and
Engineers.
Tata Steel India: 105 years old: still young & flourishing
o Building & nurturing long term relationship with customers: large percentage of
them have greater than 10 years of business relationship (many distributors for two
generations) .
o Only private company in India maintaining a township.
o Large employee base (35,000 employees) and respect for people (many, for many
generations).
o Pioneer in Industrial harmony: 85 years without any labour unrest.
o Sustaining cost leadership by ensuring raw material security; 100% Iron Ore, 45%
Coal.
o Equity partnership for key commodities in entire value chain: Ferro Alloys, Rolls,
Refractories, Shipping , Service Centres.
o Reference site selected by United Nations (Global Compact) for Corporate Social
Responsibility.
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GLOBAL
NETWORK
The Tata Steel Group has a
balanced global presence in
over 50 developed European
and fast growing Asian
countries, with
manufacturing operations in
26 countries and various
ongoing projects in different
parts of the world. It is the
first integrated steel plant in
Asia and the world's second
most geographically
diversified steel producer.
The Tata Steel G oup s growth and globalisation strategy is driven by its business expansion
while maintaining profitability and mitigating risks. The Tata Steel Group over the years has
focused on enhancing raw material security and announced major joint ventures in various
parts of the globe.
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PROFILE OF THE PRODUCTS
The endeavour at Tata Steel is one of vision and enterprise, a combination which has made the
Company an integral part of Indian economy.
In keeping with commitment to redefine the future of Indian Steel, Flat products business group
at Tata Steel, today, is country's largest manufacturer of world class steel products. Integrated
supply chain starting with captive raw materials, state of the art technology, continuous pursuit
for innovation & knowledge and an elaborate domain of highly skilled manpower has steered this
business group to enviable performance records.
With a stretched capacity of 2.5 million MT of Hot Rolled, Cold rolled & Coated Products, Flat
Products business group produces approx. 65% of total saleable steel. A constant pursuit to
increase customer focus, enrich product mix, energy efficient technologies & optimum utilisation
of raw materials have resulted in a long term competitive advantage.
This transformation has come about as a result of a paradigm shift in corporate focus.
Renewed focus towards value added hot rolled, cold rolled & coated products and capability
enhancements has led to increased customer loyalty resulting in invincible market position.
Newer initiatives in branding steel products, innovative channel management approaches &
thrust on steel promotion has resulted in considerable product premium. Introduction of futuristic
products like galvannealed for the first time in the country and intensive market development
activities will shape up the Flat Products business group as an undisputed leader in the near
horizon.
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With a century of experience in sourcing raw material through scientific research &
de elop e t a d sustai a le i i g, Tata “teel s th ee ai a eas of a ate ial operations are iron-ore, chromites a d oal. The Co pa s lo g-term strategy has been
designed to have greater control over raw material resources and achieve its security across
global operations.
A pioneer in prospecting, discovering and mining ore, coal and other minerals, Tata Steel
has nearly a century of experience in scientific and sustainable mining; mine planning,
development and research. Company-owned and operated mines and collieries have since
its i eptio , et ost of the a ate ial eeds of the Co pa s “teel Wo ks. The ‘a Materials Division of Tata Steel raises over 14 million tonnes of ores from its captive
collieries, iron ore mines and quarries spread over the states of Jharkhand and Orissa.
Di isio that a ts a sepa ate p ofit e t e. I o -ore and coal being the two key raw
materials for steel making, efficient and scientific mining operations give the Company a
competitive edge in steel production.
Steel production in India is projected to grow to over 120 million tonnes by the year 2015.
To cater to the raw materials requirement of increasing steel demand and other mineral
based industries, Tata Steel has entered into an agreement with MMTC Limited, a Central
Government undertaking to establish a joint venture company for acquiring, developing and
operating mines and processing of minerals and metals. The company has also signed a
RAW MATERIALS
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Memorandum of Understanding (MoU) with NMDC for exploring possibilities of entering
into joint ventures for the purpose of acquisition, exploration and development of mines,
extraction and processing of minerals, setting up integrated steel plant etc.
Iron Ore and Coal
Ever since the discovery of the mineral in 1903, Iron ore mining has become an integral part
of steel making at Tata Steel. The iron ore units are located in Noamundi, Joda and Katamati
in the states of Jharkhand and Orissa. Tata Steel Limited also has manganese mines and
dolomoite quarries in Orissa, located around 150 kms from Jamshedpur, home to the Steel
Co pa s a ufa tu i g fa ilit . The “teel Co pa s i o o e u its p odu e a ious grades of high quality iron ore including rich blue dust ore. Operations at the mines,
including services are managed by Integrated Management Systems.
Ferro Alloys and Minerals
Tata “teel s Fe o Allo s & Mi e als Di isio FAMD) is the market leader of chrome in India
and is among the top six chrome alloy producers in the world, with operations spanning two
continents. It is also the leading manganese alloy producer in India and is a leading supplier
of dolomite and pyroxenite. FAMD has leveraged the core strengths of Tata Steel to grow
successfully into a strategic business unit and separate profit centre within the Company.
FAMD produces and supplies charge chrome, high carbon ferro chrome, high carbon silico
manganese, high carbon manganese, chrome concentrate, pyroxenite and dolomite.
FAMD operates the largest chromite mine and the largest reserves of high grade manganese
ore in India. It has state of the art chrome beneficiation and ferro alloy plants in Bamnipal,
Joda and Attaghar, Cuttack (as a wholly owned subsidiary, TS Alloys Ltd.) besides rendering
marketing services for Tata Steel Kwa Zulu Natal Pty Ltd. (TSKZN – a subsidiary of TSL in
Richards Bay, South Africa).
In Financial Year 2011-12, FAMD achieved year-on-year growth of 17% in Ferro Alloys sales.
Going forward, there are plans to augment the production of Ferro Alloys. Accordingly,
55,000k tonnes of Ferro Chrome and Silico Manganese each are expected to be operational
in Gopalpur and Nayagarh respectively by 2014. Order for capital equipment for the
Gopalpur project has already been placed post the environmental clearances. Preliminary
jobs for site clearances are underway at Nayagarh.
The division is in the fo ef o t of the Tata “teel G oup s fo a i to the glo al fe o allo s a d minerals business, leveraging upon its status as the only Indian ferro alloy player to build
long term relationships with the most reputed global steel companies like Nippon Steel,
Hitachi, JFE, SMI, POSCO, etc. Internationally acclaimed for the excellent and refined quality
of its products, FAMD is a leader in supply of customised and niche products to customers
worldwide.
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BEARINGS
A wide variety of bearings and auto assemblies are manufactured by Tata Steel at its
Bearings Division, with a production capacity of 30 million bearing numbers per annum. Tata
Bearings and auto components happen to be the preferred choice of key players in the
targeted industry segment.
Over the years, a highly performance-driven approach has helped Tata Bearings achieve an
influential and crucial position in its target industry segment. Tata Bearings Division of Tata
Steel Limited is one of India's largest quality bearing manufacturers, with a production
capacity of 37 million bearing numbers. It is the only bearings manufacturer in India to win
the TPM Award (2004) from Japan Institute of Plant Maintenance, Tokyo.
The company is foremost in the manufacturing of a wide variety of bearings and auto
assemblies and the product range includes:
1. Ball Bearings
2. Tapered Roller Bearings
3. Magneto Bearings
4. Double Row Angular Contact Bearings
5. Clutch Release Assemblies
6. Fan Support Assemblies
7. Cylindrical Roller Bearings (under development)
Tata Bearings is suppo ted Tata “teel s ide et o k of offi es i I dia a d a oad. It has technical collaboration with NACHI Fujikoshi Corp., of Japan for development and testing of
new generation automotive bearings and special application bearings. Tata Steel's bearings
and auto components happen to be the preferred choice for key players of the Indian
Industry.
Tata Bearings was one of the first to start the concepts of ship to line and JIT delivery and it
is presently extending such facilities to customers in different segments.
FLAT PRODUCTS
Galvanised corrugated sheets under brand name Tata Shaktee has been consistently
delivering on its promises of longevity and strength. Tata Steelium, another product of the
Flat Products Division happens to be the world's first branded Cold Rolled Steel and has a
strong presence in the retail segment through exclusive shops called Steelium zones.
World class steel products are manufactured at the Flat Products Division of Tata Steel
under three basic categories- Hot Rolled Products, Cold Rolled Products and Galvanised
Products. With commanding brands like Tata Shaktee, Tata Steelium and Galvano under its
umbrella, the Company is continuously surging ahead in its commitment to re-define the
future of Indian Steel.
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LONG PRODUCTS
Thermo Mechanically Treated (TMT) rebars from the Long Products Division are produced under the brand name ‘Tiscon’ and are the first of its kind to have been introduced in India. Tiscon has been the first rebar in the country to be awarded the ‘Super brand’ status in the construction rebars category. The Long Products Division of Tata Steel operates as a separate profit centre and was the
first to introduce the Thermo Mechanically Treated (TMT) rebar under the brand name Tata
Tiscon in the Country. Controlled processes, supervision by expert metallurgists and
engineers coupled with highly advanced processes make Tata Tiscon the leading rebar in the
country. Tata Tiscon is available for both residential and project applications. The residential
seg e t is ate ed to the Co pa s e te si e deale / dist i uto et o k a d the project applications segment is handled by the Division's sales offices.
In 2011- , the Co pa s Lo g P odu t Di isio lau hed ‘AI“E ‘espo si le A hite tu al Initiatives and Structural Engineering), an initiative promoted with INSDAG, to engage with
architects and structural engineers across India. The programme aims at driving responsible
construction practices and creating brand ambassadors in the process.
TUBES
Pipes a ufa tu ed the Co pa s st ategi usi ess u it Tata Tu es, is the ost prominent brand in the industry today which is retailed through a wide distribution
network. A deeply thought out branding exercise was undertaken in order to unleash the
po e of the Tata Pipes' a d i the elded steel atego . In 1985, the Indian Tube Company (a joint venture between Tata Steel and Stewarts &
Lloyds of UK) merged with Tata Steel to form the Tata Steel-Tubes Division. The Tubes
Strategic Business Unit (SBU) today is a leading manufacturer of welded pipes and tubes in
the Country with an annual production capacity of around 4,00,000 tonnes, with expansion
pla s fo the futu e. Its a ket sha e at p ese t is 6%. The tu es Di isio s ai o ks is situated at Jamshedpur and the marketing Head Office is in Kolkata.
Its three main lines of business are –
1. Commercial Tubes – for the conveyance segments, sold under the brand name of
"Tata Pipes".
2. Structural Tubes – for the construction segment, sold under the brand name of "Tata
Structura".
3. Precision Tubes – for the Auto, Boiler and Engineering segments.
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WIRES
Steel wires under the brand name Tata Wiron comprise 30% market share of the organised wire market in India. A wide range of wires manufactured by Tata Steel’s Wire Division cater to the needs of the various industry segments such as automobile, infrastructure, power and general engineering.
To bring about a greater focus to the steel wires business, Tata Steel has brought all its wire
manufacturing under the scope of the Global Wires Business. It is amongst the largest steel
wire manufacturers in the world (and largest in India, Thailand & Sri Lanka) in terms of
product portfolio, production volumes and market share in each product segment. The
Division was the first to brand its galvanised wires for the retail segment under the TATA
Wiron brand.
Tata Steel Wires is the first choice for key players in the wire industry and it services the
discerning needs of its customers across global markets. It has a 30% market share of the
organised wire market in India. Tata Steel Wires meets the most exacting specifications and
requirements of customers and is manufactured with the latest technology coupled with a
wealth of experience and expertise in the wire industry. A wide range of wires cater to the
needs of various industry segments such as automobile, infrastructure, power and general
engineering. The products are well established across the markets of Europe, USA, Middle
East Asia, Australia, South Asia and Asia - Far East. The range includes:
1. Auto Segment (Tyre Bead Wire, Spring Wire, Spoke Wire, Ball Bearing Wire)
2. Construction Segment (LRPC, PC Wires)
3. Power Segment (Cable armour, ACSR)
4. Textile industry (Card Clothing Wire)
5. Galvanised Wires (Farming/ Fencing)
6. Welding (Mig Welding Wire)
7. Steel Wool Wires for miscellaneous use.
Tata Steel's Global Wires Business has manufacturing facilities spread across the
geographies of India, China, Thailand and Sri Lanka. The products are manufactured in fully
integrated manufacturing cycles, from sourcing of raw materials to in-house steel making
and wire rod rolling facilities. All the units of operation adhere to strict quality parameters
and are ISO certified.
The Wire Division in India operates Wire Plant 1 and Wire Plant 2 at Tarapur, two wire
plants at Indore and one wire plant in Bangalore. It has been the sole supplier of pre-
stressed concrete strands used in the construction of precast segments for the 4.7 kms , 8-
lane- cable-stayed Bandra-Worli Sea Link at Mumbai, India.
A holistic approach to the use of natural resources led to improvements in the productivity
of customers who manufacture continuous electrodes for the auto industry from WR3M /
Low Ca ER70S6 grades of wire rods. The 100% increase in speed and productivity has led to
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a reduction in power consumption and water that makes up for consumption in different
pa ts of the p odu t s alue hai .
PLANTS AND EQUIPMENT
Multidisciplinary engineering approach for design, manufacture and supply of high precision
e uip e t is offe ed to a ious i dust se to s Tata “teel s G o th “hop di isio . Services include erection and commissioning of all types of equipment in plants and
industrial buildings in addition to a wide variety of jobs in machining and assembly.
Tata Steel Growth Shop (TGS), a division of Tata Steel Ltd. is one of the largest designers and
manufacturers of plants and equipment in India. Spread over an expanse of more than 350
acres of land at Gamharia, Dist - Seraikela, about 16 Kms from steel city Jamshedpur, TGS
has a massive and advanced manufacturing unit accredited with ISO: 9001 and ISO: 14001
certifications. The Company is at par with the finest international companies supplying
heavy engineering plant facilities and equipment and has also been certified with the ASME
U-Stamp certification.
Mission
Consistent with the vision and values of the founder Jamshetji Tata, Tata Steel
strives to strengthen I dia s industrial and effective utilization of men and matters.
The means envisaged to achieve this are high technology and productivity consistent with
modern management practices. Tata Steel recognizes that while honesty and integrity are
the essential ingredients of a strong and stable enterprise and profitability provides the
main spark for economic activity. Overall, the company seeks to scale the heights of
excellence in all that it does in an atmosphere free from fear and thereby reaffirms its faith
in democratic values.
Vision and values
TI“CO s isio is to e the glo al steel i dust e h a k fo value creation and corporate
citizenship.
It will make a difference through:
People
By fostering teamwork, nurturing talent, enhancing leadership capability and acting
with pace, pride and passion.
Offer
By becoming the supplier of choice, delivering premium products and services and
creating value for our customers.
Innovative approach
By developing leading edge solutions in technology, processes and products.
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Conduct
By providing a safe workplace, respecting the environment, caring for our
communities and demonstrating high ethical standards.
And by embracing performance culture throughout the Tata Steel Group
ORGANISATION DESIGN AND STRUCTURE
Abbreviations: A&IG- Aspire & Improvement Group/ Corp. Comm.- Corporate Communications/ CIO- Chief
Information officer / CSD- Customer Service Division/ HRI- Human Resources and Implementation/ HR/IR-
Human Resources and Industrial Relations/ M&S- Marketing and Sales/ OM&Q- Ore Mines & Quarry/ RMP-
Raw Material Procurement/ SS&FI- Social Services and Family Initiatives/ Cons. Sol- Construction Solutions/ CSI-
Coke Sinter and Iron/ OLD- Organisational Learning & Development/ PEO- Principal Executive Officer/ WD- Wire
Division/ ISWP- Indian Steel & Wire Products.
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POLICIES
AFFIRMATIVE ACTION POLICY
Tata Steel recognizes that diversity in the workplace positively impacts business. The
company will ensure employment opportunities and provide training to develop the
socially disadvantaged.
Tata Steel will volunteer its training resources to the extent possible to improve
employability of disadvantaged sections of society. The company will encourage
business entrepreneurs from socially disadvantaged communities through
monitoring and inclusion in supply chain on the basis of equal merit.
Tata Steel will assist in upward mobility of talented youth from marginalized
communities by increasing their access to quality higher education.
Tata Steel will report Affirmative Action initiatives in its annual sustainability report.
ALCOHOL AND DRUGS POLICY
Tata Steel believes that the loyalty and commitment of its employees depend upon the
quality of life they are offered at work and at home.
We recognize that indiscriminate use of alcohol and drugs is injurious to the well being of
individuals, their families and the community as a whole. We acknowledge that the misuse
of these psychoactive substances is a major health and safety hazard. Tata Steel is therefore
committed to creating an alcohol drug-free environment at the work place. This would be
achieved through the involvement of all employees and the Joint Department Councils in
spearheading appropriate initiatives. The initiatives would include:
Raising awareness, through the dissemination of information education, education
and training and by promoting healthy life styles among our employees and their
families.
Motivating those employees who have an alcohol / drug problem, to seek assistance,
while maintaining confidentiality about such cases.
HIV/AIDS POLICY
Tata Steel is committed to contribute to the
global effort towards halting and reversing the
course of HIV/AIDS.
The Company would take measures to actively
disseminate information & education regarding
HIV/AIDS within our workplace and surrounding
communities, with the objective to reduce its
transmission.
The Company would ensure a safe working
environment, confidentially and non – discrimination of affected employees, if any.
The Company would provide appropriate medical management for all affected employees
and their families.
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CSR AND ACCOUNTABILITY POLICY
Tata Steel believes that the primary purpose of a business is to improve the quality
of life of people.
Tata Steel shall volunteer its resources, to the extent it can reasonably afford, to
sustain and improve healthy and prosperous environment and to improve the
quality of life of the employees and the communities it serves.
Tata Steel shall conduct its business ever mindful of its social accountability,
respecting applicable laws and with regard for human dignity.
Tata Steel shall positively impact and influence its partners in fostering a sense of
social commitment for their stakeholders.
QUALITY POLICY
Consistent with the group purpose, Tata Steel constantly strives to improve the quality of
life of the communities it serves through excellence in all facets of its activities.
We are committed to create value for all our customers and key stakeholders by continually
standardizing, improving and innovating our offerings, systems and processes involving all
our employees.
This policy shall form the basis of establishing and reviewing the Business Objectives and
Strategies and shall be communicated across the organization. The policy will be reviewed
to align with business direction and to comply with all the requirements of TQM Principles.
HUMAN RESOURCE POLICY
Tata Steel is an equal opportunity employer.
Tata Steel recognizes that its people are the primary source of its competitiveness.
It will pursue management practices designed to enrich the quality of life of its employees,
develop their potential and maximize their productivity.
It will aim at ensuring transparency, fairness and equality in all its dealings with its
employees.
Tata Steel shall strive continuously to foster a climate of openness, mutual trust and
teamwork.
In the process Tata Steel shall strive to be the employer of choice by attracting the best
available talent and ensuring a cosmopolitan workforce.
SAFETY PRINCIPLES AND
OCCUPATIONAL HEALTH
POLICY
Tata “teel s safet a d occupational responsibilities are
driven by our commitment to
ensure zero harm to people we
work with and society at large
and are integral to the way we do
business.
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Safety Principles
Safety is a line management responsibility.
All injuries can be prevented.
Felt o e a d a e fo the e plo ee o hou s safet shall e de o st ated by Leaders.
Employees shall be trained to work safely.
Working safely shall be condition of employment.
Every job shall be assessed for the risk involved and shall be carried out as per
authorized procedures / checklist / necessary work permit and using necessary work
permit and using necessary personal protective equipment.
We are committed to continual improvement in our S&OH performance. We shall set objective-targets, develop, implement and maintain management
standards and systems, and go beyond compliance of the relevant industry
standards, legal and other requirements.
ENVIRONMENTAL POLICY
Tata Steel’s environmental responsibilities are driven by our commitment to preserve the environment and are integral to the way we do business.
We are committed to deal proactively with Climate Change issue by efficient use of
natural resources & energy; reducing and preventing pollution; promoting waste
avoidance and recycling measures; and product stewardship.
o We shall identify, assess and mange our environmental impact.
o We shall regularly monitor, review and report publicly our environmental
performance.
o We shall develop & rehabilitate abandoned sites through a forestation and
landscaping and shall protect and preserve the bio-diversity in the areas of our
operations.
o We shall enhance awareness, skill and competence of our employees and
contractors so as to enable them to demonstrate their involvement,
responsibility and accountability for sound environmental performance.
We are committed to continual improvement in our environmental performance.
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We shall set objective-targets, develop, implement and maintain management
standards and system, and go beyond compliance of the relevant industry standards
legal and other requirements.
We will truly succeed when we sustain our environmental achievement and are
valued by the communities in which we work.
RESEARCH POLICY
Tata Steel believes that research provides the foundation for sustained, long-term,
stakeholder delight.
Tata Steel shall nurture and encourage innovative research in a creative ambience to ensure
that the competitive advantages in its overall business is retained and surpassed. Towards
this goal, the Company commits itself to providing all necessary resources and facilities for
use by motivated researchers of the highest calibre.
Research in Tata Steel shall be aligned to the technological initiatives necessary to evolve
and fulfil the overall business objectives of the Company.
LIST OF DEPARTMENTS- HEIRARCHY VIEW
DIRECT REPORTS OF MD:
MD s Ho e Page Corporate Ethics
Corporate Audit
Vigilance
Orissa Project
CP & IR website
CQA
VP CORPORATE SERVICES
Corporate Affairs & Communication
Centre for Excellence
Legal Services
CSS
TMH
Town Services
Sports
TSAF
Security
Page | 20
HRM:
Human Resource Implementation
Information Department
SNTI
TMDC
Legal Cell
Personnel and Industrial Relations
FINANCE:
Mergers & Acquisition
Natural Resources Division
OTHER SITES:
Ergonomics
Industrial Liaison Programme
Joint Consultation
“upe iso s Ne s Lette
Liaison Cell
HP Managed Services
IBM Managed Services
Office Automation
Tata Wo ke s U io Working Capital Management
Total Operational Performance
TOP in Marketing
Improvement Groups
Aspire
Cost Research and Standard Costing
Knowledge Management
Six Sigma
TPM
Value Engineering
MD OFFICE:
Flat Products
LD2 & SC
FPTG
Long Products
LD1
LPTG
Lime Plant(RPD)
Page | 21
ISWP
Merchant Mill
New Bar Mill
RM & IM
A-F Blast Furnace
RMH
Coke Plant
G Blast Furnace
Raw Materials
Sinter Plant
IMTG
Engineering & Projects
SP#4 Project
Safety Services
Telecommunication
Financial Performance
Maintenance Expert Group
o Mechanical
o Electrical
MED (Electrical)
Iron & Steel Electrical Maintenance
MED (Mech)
MS (Elec)
Power System
Sandhan
Spares and Services
o Engg Services
o Spares Manufacturing
o Equipment Maintenance
o Waste Recycling Plant
o Gas Pipeline Maintenance
Procurement Division
o CPO
o RMP
o MRO
o RMC
o LEPAC
o SMD
o SS
R & D and Scientific Services
o R & D
o Scientific Services
o RTG
ITS
o SAP Competence Centre
Automation
Safety
Page | 22
Environment Management
o Tata Tubes
o FAMD
FUNCTION OF VARIOUS DEPARTMENTS
CORPORATE AUDIT DIVISION
Corporate Audit carries out an independent evaluation of the Systems and Controls in
vogue, compliance to lay down policies and procedures. It carries out root cause analysis in
case of failure/ weaknesses and suggests suitable control measures to prevent recurrence.
Introduction The internal audit function of Tata Steel is performed by its Corporate Audit Division,
headed by Chief Corporate Audit, who reports administratively and functionally to the
Managing Director (MD) of the company with a dotted-line reporting relationship to the
Audit Committee (AC). The Division is guided by the authority and directives of the AC,
thereby providing the desired independence to the audit function for enforcing and
encouraging good governance. The appointment, removal and terms of remuneration of
Chief Corporate Audit are in accordance with corporate governance the guidelines. Chief
Corporate Audit has an unrestricted access to the Chairman/other members of AC, MD and
Senior Management.
KRAs of CAD: Corporate Audit Division is responsible to provide assurance to the AC and Management on
the ade ua a d effe ti e ess of the o ga isatio s isk a age e t, o t ol a d governance processes, as designed and implemented by the management, in a manner
which ensures that
Risks are appropriately identified and managed.
All operational and related activities are performed efficiently and effectively.
Significant financial, managerial, and operating information is accurate,
reliable, and is provided timely.
E plo ee s a tio s a e i a o da e ith the Co pa s poli ies, procedures and applicable laws and regulations.
Resources are acquired economically, used efficiently and safeguarded
adequately.
Envisaged benefits are realized from capital schemes.
Significant legislative and regulatory provisions impacting the organization
are recognized and addressed appropriately.
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CP & IR
The two broad verticals of CP&IR are:
Corporate Planning: scan the internal environment, formulate & review LTP and ABP of
Corporate, and evaluate current and future business proposals & scenarios for setting
direction.
Industry Research: continuously scan the external environment to develop scenarios and
facilitate corporate objective setting & Long Term Planning.
Primary roles and responsibilities for CP & IR are:
Provide inputs for Corporate direction setting: CP & IR would continuously scan the
external and internal business environment and amplify the weak signals that are likely to
assume corporate importance in future, and put-up reports / scenarios on new trends and
opportunities for TSL.
Determine competitive position: A regular monitoring of Indian and global competitors
ould e do e to dete i e T“L s o petiti e positio a d to e h a k fo st ategi opportunities and improvements (proposed areas of expansion projects, products, services,
technologies & business processes).
Develop Long-Term Plans (LTP): CP & IR would formulate and propose the rolling LTP.
The LTP would focus on development & deployment of green. CP &IR would provide the
input required to help the corporate leadership team manage priorities & resource
allocation.
CQA (CORPORATE QUALITY ASSURANCE)
Organization Profile of Corporate Quality Assurance During the 2008 DAP journey, the Deming examiners had commented on the importance of
Quality at the foundation of business and visualization of Quality across the organization.
The organization also wished to bring focus on Quality at the Corporate, so that Quality
integration could be achieved.
A Corporate Quality Assurance (CQA) Department was formed in September 2009. Within
the Indian steel industry, we are the first company to start the CQA function.
To develop the CQA role and activities, visits were made to observe similar function in
Japanese companies which were recipients of the DAP and external experts were consulted.
It was decided that the CQA Department will play a facilitating and advisory role.
The overall scope of CQA is organization-wide Quality Assurance. The role of the
department is shown below:
Secretariat to the quality board
Visualisation of Quality
Reporting status of Quality to Senior Management
Standardization and development of QA system framework
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CORPORATE AFFAIRS AND COMMUNICATION
Corporate Affairs and Communications department is focused on positioning Tata Steel as
the most admired and respected corporate entity and augmenting positive mindshare
among stakeholders by informing and engaging them through appropriate communication
vehicles. The department seeks to build sustainable relationships with key stakeholders and
manage issues for achieving strategic objectives of the company.
The department is divided into three broad functioning groups. The Corporate Affairs
function is located in Jharkhand, Odisha, West Bengal, Chhattisgarh and Mumbai, and is
engaged in relationship-building with targeted stakeholders/stakeholder groups such as civil
society, political and community leaders, media and in the management of issues relating to
the Company.
The Co te t tea ge e ates edito ial atte fo Co pa s pu li atio s a d e e ts, fo management messaging to civil society, for addressing queries raised by the media and for
the Corporate Affairs team.
The Corporate Brand Management team is based at Kolkata and oversees corporate
campaigns, advertising, web communications, audio visuals/ films and events/ exhibitions.
IR LEGAL
IR Legal provides you with the information to accelerate the development of people in your
organization, create compelling results, and help you reach your objectives.
We provide industrial relations legal services that are –
Accurate
Client – Responsive
Commercially Reasonable
Cost Effective
Qualitative
Timely
Value Added
CORPORATE SUSTAINABILITY SERVICES(CSS)
In facilitating sustainable development and inclusive growth, Tata Steel Corporate
Sustainability Services (CSS) has been taking steps through its operating social arms:-
1. Tata Steel Rural Development Society
2. Tribal Cultural Society
3. Tata Steel Family Initiatives Foundation and
4. Urban Services,
to address the needs of the community. In its area of operations, capacity building for
Page | 25
human, social and financial value creation has spawned initiatives in sustainable livelihood,
education, health, renewable energy and affirmative action with the objective of improving
the economic and social status of the communities.
Through its various Initiatives, Tata Steel has been successfully impacting the Human
Development Indices of the areas in which it operates and also addressing the Millennium
Development Goals to a greater extent.
TSAF (TATA STEEL ADVENTURE FOUNDATION)
Mission Statement
The Tata Steel Adventure Foundation will act as a catalyst & enabler for building
personality and character among employees of Tata Steel and the community, through the
process of group work, achievement & fun.
To ultimately build an adventure culture in Jamshedpur & its environs, revitalizing people
to live happily, sportingly and committed to safety and environmental protection.
TSAF's care for the Environment
TSAF is committed to good Outdoor practices of
conservation and preservation through the use of bio-
degradable materials.
Integral in all its programs is the effort to consciously
create awareness on Environmental protection through
Environmental Education on the following:
1. Minimum Camp Impact or camping without trace
2. Disposing off non Bio-degradable material in
environmental friendly manner
3. To leave Flora and Fauna undisturbed
4. Use of only deadwood on the ground, if urgently required
INFORMATION DEPARTMENT
J N Tata, the fou der father of Tata “teel, elie ed i letti g the I dia s lear to do thi gs for the sel es . This as o e sure ay, he re ko ed, to ards self-reliance and
increased productivity.
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Realizing information as power and a component of growth and prosperity, Tata Steel setup
Information Department in 1955 with the modest collection of 8,000 books. The objective of
the department was to enable the technical, research and managerial personnel to keep
abreast of their knowledge in the areas of activities. The several publications and services
were introduced later on to meet the concurrent information need of the organisation.
To upkeep the social commitment of Tata Group, the Information department extended its
facilities not only to the families of the employees, but also to the citizen of Jamshedpur.
Information Department has transformed into a pro-active and IT based information
provider. It supports Libraries, Information Centres and Knowledge Centres at 180 locations
dotting the country- such as departmental, medical, social, schools and club libraries.
Information Department has enriched its collections:
From basic science to metallurgy, advance engineering, information technology and
medical services.
From social science to the management.
From fiction, art, and music to philosophy and spiritualism, and
From sport to pastime in the physical media of books, CDs, and audio-visual
materials and web-based resources.
Information Department is the only department in Tata Steel, which has been awarded
o se uti el the Best We site a d Best We site - a a d i the I t a et-“ite Co petitio , the e e elli g i the field of eati it a d k o ledge
imparting.
SNTI (SHAVAK NANAVATI TECHNICAL INSTITUTE)
Backdrop
ShavakNanavati Technical Institute (SNTI), the erstwhile "Jamshedpur Technical Institute"
(JTI) as esta lished i , ith the i spi atio of the Fou de Let the I dia s lea to do thi gs the sel es . Toda “NTI, a i teg al pa t of the Hu a ‘esou e Di isio of Tata Steel, has rendered commendable service in nation building through the development
of technical manpower, not only for Tata Steel but, for many other Tata organisations,
private and public sector Steel Plants and manufacturing industries.
Products and Services
Further, SNTI can also design and deliver customized training programme for SMEs at SNTI
or at the client's premises.
SNTI conducts training programmes under the following categories -
i. Pre-Employment training: Training for the cadres at various levels like
Management Trainees, Junior Engineer Trainees, Trade Apprentice Trainees and
other new joinees.
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ii. Post employment training (Day): Training for those who are already working
in Tata Steel and are nominated by respective departments for knowledge and
skill development in their respective work areas. Such training programmes are
planned annually, based on requirement of the respective departments. The
e plo ees a e ithd a f o the depa t e ts fo this pu pose. Th ust A ea programmes are also conducted with a focus on specific topics or requirement
as indicated by the departments. Some growth related competency
development programmes are also organized under this category.
iii. Post employment training (Evening): imparted to the supervisory/ associate
category of employees basically for their competency development and
qualification enhancement. Such programmes are conducted off-duty hours on
o igi al a d epeat asis at the e plo ees o ti e.
iv. External Training: as a measure Corporate Sustainability Services (CSR),
SNTI also takes up many programmes like –
o Vocational training - for Engineering Students, through guided
project work,
o Industrial/ Plant visits – for Technical Institutes and other industries
o Customised programmes for other organizations.
Operations and Facilities
Operations at SNTI are segregated into the following five groups/ sections –
Process operation: responsible for training in Iron making, Steel making and Rolling
technology primarily in the Metallurgical area
Electrical, Electronics and Instrumentation (EEI): responsible for training in the IEM
maintenance related areas.
Mechanical: responsible for training in the mechanical maintenance areas.
IT: IT Application (ITA) responsible for training in IT and Automation related training
programmes.
Cadre Training, Recruitment and Administrative (CTRA) : responsible for the
recruitment activities, coordinating training for the cadres and entire administrative
jobs of SNTI covering all the locations.
Class rooms, laboratories and other training facilities are spread over 4 locations –
N-Road campus: This campus includes the main office, the auditorium, the
conference room and the class rooms of different capacities and styles, all air-
conditioned. The campus also has a world class library facility.
Training Shop: This campus, located inside the Works, constitutes class rooms and
the laboratories in various disciplines viz. Mechanical assembly, Fluid power,
Automobile, Welding, Digital and Analog drives, Process control and
Instrumentation, Electrical, Electronics and Communication, Refractories and
Information technology. All the laboratories are equipped with facilities to deliver
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demonstration and hands-on training for development of entire range of skills
e ui ed to u the steel pla t i ludi g t ade testi g fa ilities. The Ad ance
T ai i g Fa ilit uildi g, ith all the state-of-the-art training facilities, came up in
i olla o atio ith the the Hoogo e s Te h i al “e i es i Nethe la ds for upgrading the existing technical training systems here.
Crane Training Centre (CTC): This is also situated inside the Works at a separated
location and is specifically dedicated for training on crane operations and rigging.
Employee Training Centre (ETC): This centre is situated outside but very near to the
plant, 1.5 KM away from the N-Road campus. Presently it is used for training of the
Co t a to s la ou s a d so e spe ial e ui e e t like fo the e pa sio programmes.
TMDC (TATA STEEL MANAGEMENT DEVELOPMENT
CENTRE)
The Tata Steel Management Development Centre (TMDC) in Jamshedpur has been
positioned as an in-house training centre for Tata Steel. It endeavours to provide primarily
managerial training and also functional training to all officers of Tata Steel and its Associate
companies.
From a humble beginning as the 'Staff Training Institute' of Tata Steel set up in 1954,
primarily to impart a once year course in 'Foremanship and Supervision', the Tata Steel
Management Development Centre has indeed come a long way. TMDC has served as a
model for in-house management development for several Indian and multi-national
corporations in the country while catering actively to the management of learning needs of
Tata Steel officers. In a world where both organizational and product life-cycles are getting
relentlessly compressed, fifty six years in the life of an in-house management learning
centre conveys both performance of the past as well as a promise for the future.
TMDC's training programmes are designed to develop managerial competencies and
leadership behaviour consistent with Tata values and practices. Training interventions are
designed to facilitate learning of leading-edge knowledge and skills for building
organizational capability.
KRAs:
TMDC engages in the following activities:
Orientation training for new recruits
Management Development Programmes
Functional training programmes
In-company programmes for Tata group
Customised programmes for non-Tata group companies
Business Simulation Games
Foreign language courses in Chinese (Mandarin) & French
Window-on-the-World programme
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One year part-time(evening) certificate course in Foremanship & Supervision
Faculty
TMDC's core faculty consists of facilitators who have considerable experience in
management training. It also draws on the large pool of experienced managers from within
Tata Steel and its Associate companies to deliver training based on practical experiences.
With a view to enrich the pedagogy in the programme TMDC has professional arrangements
with academic such as XLRI, Jamshedpur and the Indian Institute of Management (IIM's) as
well as distinguished professionals in the field of management.
The Dimna Centre
The Dimna Centre was inaugurated by J. R. D. Tata, the late chairman of the Tata Group, on
March 2, 1988. Since then it has evolved into a leading management development centre as
well as a venue for strategic management workshops. The Centre is housed in an elegant
building, on a hill overlooking the scenic Dimna Lake surrounded by the Dalma range of hills.
Facilities
TMDC operates from two campuses one is located within the XLRI Campus at Jamshedpur
and a residential campus at Dimna which is located approx. 10kms. from Jamshedpur. The
Dimna Centre can accommodate people on a double occupancy basis in its well-appointed,
air-conditioned residential chalets. It has two seminar rooms. It also has a well-stocked
library of management books and journals and facilities for indoor sports. The seminar
rooms at both campuses are equipped with state-of-the art electronic equipment for audio-
visual presentations.
NNAATTUURRAALL RREESSOOUURRCCEESS DDIIVVIISSIIOONN OObbjjeeccttiivveess
To meet the growing Raw Materials demand for our expanding operations.
To strengthen Geological Team by:
o Retaining the existing talents.
o Bringing in fresh talents and experienced experts.
o Upgrading the skills.
To provide opportunities for growth of Geologists.
To build a world class Geological Team.
RReessppoonnssiibbiilliittiieess
Quality Assurance Programme.
Identifying, assessing and ensuring security of Raw Materials for Tata Steel Group.
Page | 30
5-yearly intensive reassessment of our deposits.
Appropriate support in mineral beneficiation by characterization, assessment and
process monitoring.
Application of Geophysics and Remote Sensing to:
o Identify potential resources.
o Provide periodic updates and meet statutory requirements.
Hydrogeology and Geo Technology (Rock Mechanics/ Engineering Geology) for:
o Mine Planning, Mine Management and Water Management.
Total Mining Plan including closure of mines and reclamation.
ERGONOMICS
“Ergonomics is the science which ensure optimal output from the human being”
Ergonomics is the study of work in relation
to the environment in which it is performed
(the workplace) and those who perform it
(workers). It is used to determine how the
workplace can be designed or adapted to
the worker in order to prevent a variety of
health problems and to increase efficiency;
in other words, to make the job fit to the
worker. One simple example is raising the height of a work table so that the worker does
not have to bend down unnecessarily to reach his or her work. An ergonomist studies the
relation between the worker, the workplace and the job design.
There are many obvious benefits of applying ergonomics in the workplace. For the worker,
the benefits are healthier and safer working conditions. For the employer, the most obvious
benefit is increased productivity.
In TATA STEEL
In Tata steel Ergonomics has always been an important aspect to strengthen our health and
safety condition of workplace. Since last two decades we are working to improve our
workplace with the aid of ergonomics. A high level committee was formed in 2002 under
the leadership of Mr. O B Krishna to strengthen the ergonomic function. The committee
took many initiatives for awareness of people, designing training packs, developing
standards etc. Few of their initiatives are as follows:
Ergonomics Committee Charter has been formulated and presented to the
management.
Ergonomics Facilitators from various departments/ divisions of Tata Steel have been
identified.
5 Lead Facilitators have been trained at Central Labour Institute Mumbai.
Intensive/ extensive training programmes for Ergonomics Facilitators have been
organized with the help of faculties from IIT Kharagpur.
Page | 31
Checklists for Ergonomics problems identification have been developed and made
available to all Ergonomics Facilitators.
Company-wide involvement on Ergonomics is being ensured through Quality Circles
& CIP.
Ergonomics Web-site launched.
Late E go o i s as st e gthe esta lishi g a sepa ate se tio a ed E‘GONOMIC“ which is primarily focused on strengthening the ergonomics awareness and function at the
shop floor.
Even though there is no law in India which forces to implement the ergonomics at the shop
floor for the benefit of the employees and employer we are practicing this since last two
decades. As an integral part of safety and health Tata steel has always worked to improve
the workplace ergonomics. Providing ergonomic workplace has been incorporated in our
Tata code of conduct also to strengthen our belief.
LIASION CELL
It is mandatory that to run an industry or a business unit a number of statutory norms/
other allied activities are required to be fulfilled from time to time. Such activities in Tata
Steel were co-ordinated in the past independently by different agencies/units. In fact, Cash
Office was the Custodian for all licences of the company and on the advice of different units
to the then Controller of Accounts, the licences were forwarded to the concerned
Government Authorities for periodic renewal. Such an arrangement had lead to a situation
when a number of licences were elapsed and the company not only had to incur a
substantial amount of penalty to revalidate all such licences but also had to undergo
stringent legal procedures.
To eliminate recurrence of such instance, a Task Force was formed to identify all such
licences/ other allied activities with Government Authorities and relevant information was
collected organization-wide. Thereafter, the work related to integration of various
licensing/statutory activities started and the need for a nodal points to co-ordinate all such
a ti ities as felt. A o di gl , the fo atio of Liaiso Cell took pla e i Ja ua , , with reporting relationship to the Sr. Executive Officer under the then General Manager
(Operations).
Broadly, following jobs are centralized with Liaison Cell:
All factory related matters – such as registration/renewal of factory license, plan
approval to carry out modifications/installation of new facilities within the Main
Works, etc.
Approval/Operating License from WPC, Ministry for Communication for data/voice
communication organisation-wide including out-locations.
Approval/Operating Licenses from Department of Explosives for oil
installations/pressure vessels/storage of gas cylinders/storage of magazine etc.
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Approval for registration/renewal of other licenses such as Timber Depots/storage of
Narcotics Drugs, permission for installation/renewal of weigh bridges, Shops &
Establishments License, etc.
All vehicles related matters such as registration, road tax, fitness, insurance, road
permit, sale process, etc.
LD1
Tata “teel s ele tless th ust to a ds i easi g usto e o ie tatio led to the eatio of the Long Products Profit Centre in the year 2001-02 by bringing under one umbrella all the
Longs finishing mills (WRM & MM), the Steel melting and Billet casting shop LD 1, Marketing
and Sales, Planning, EPA management and Technology Group.
It strives to create business and operating processes which are best in its class and the
organizational structure has the flexibility to meet the changing needs of the customer. The
main strength of the department lies in the spirit of continuous improvement of its
employees, which has enabled the department to consistently reduce cost, improve quality
and increase productivity to enable the LPPC to attain its business objectives and targets.
LD 1 has developed an Organizational Culture that is in line with the core values of Tata
Steel i.e. transparency, integrity, respect for the individual, credibility & excellence. The
Long Product BE Council ensures alignment of Strategic Goals, Quality policy and BSC of
DMD (S) with the BSC of VP (LP), BSC of Chief LD 1 and KRAs of officers. The department
encourages employees to take initiatives and accept responsibility and follow participate
style of decision making through the joint departmental council, which has representation
of management as well as workers and supervisors. Workers feel equally responsible for the
departmental performance as management. All the employees of the department keep
acquiring new skills and knowledge through various activities like Knowledge Management,
Quality Circle, Continuous Improvement projects and Positional Training. By pursuing these
activities the department has embarked on the process of modernization of the e plo ee s minds and emerged as the top department in QC as well as KM activities. This fosters a
climate of excellence in performance and result into surpassing the targets. The department
has also the ability to meet the ever changing business needs and other environmental
factors.
REFRACTORIES PRODUCTION DEPT
Refractories-Production department came in existence due to demand of refractory
ate ial fo steel aki g. Du i g 6 s, ef a to as a ufa tu ed i the fo of la , mixes and bricks. These were manufactured at Super Basic plant and erstwhile Refractory
Manufacturing plant. In addition, flux dolomite was also manufactured for use in steel
making.
Page | 33
This depa t e t la gel o t i uted to the o issio i g of the G Blast fu a e i -
93 and subsequently its operation by developing and manufacturing tap hole clay and
trough mix in-house.
In 1983-84, when LD technology was adopted for steel making, Tar Dolo Plant was
commissioned to meet the demand of dolomite refractory bricks for lining of ladle and
vessel.
The inherent process of lime making involves handling lot of air borne dust. This makes air
pollution control a very critical activity of the department. Tata Steel, being committed to
environment, commissioned bag filters and dust suppression systems in all critical dust
generation points to control pollution effectively. Today environment management at
Refractory production department is visible and appreciable by one and all.
MERCHANT MILL
Merchant Mill, Tata Steel, Jamshedpur was started in the year 1958 and since then
has been contributing significantly to this organization.
The mill has the capability to produce TMT bars of various cross-sections.
The major customers include DLF and Larsen & Toubro.
Merchant Mill is the oldest mill of Tata Steel commissioned in 1960 and is a part of the Long
Products Profit Centre.
Originally designed to utilize 75mm. square billets rolled at Rolling Mill #1.
After the closure of Rolling Mill #1, in-house modifications were done to utilize 100mm
sq.billets produced at LD#1. Otherwise, the mill would have closed down due to lack of
suitable input material.
Further challenge was accepted by the mill and again in-house modifications were carried
out to roll from 127mm sq.billets.
In 1988 Thermo Mechanical Treatment (TMT) facility was added to the mill and since 2001
the mill is producing only with the help of TMT.
R M H (RAW MATERIAL HANDLING)
Introduction
Raw Material Handling Department provides all types of raw materials to the production
departments situated inside the works through the following sections:
Raw Material
o Planning of all raw materials for all departments.
o Monitor quality & quantity of all raw materials.
o Co-ordinate with all depts. & source.
o Accounting of all raw materials including coke & nut coke.
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o Maintaining Inventory of all Raw Materials.
o Sampling of all Incoming purchased raw materials.
o Determination of coke yield.
o Reconciliation of supply & consumption of raw materials.
Inbound
o Receive rakes of raw materials from Railways.
o Placement of all raw material wagons at different unloading points.
o Collection of empty wagons from different unloading points & making empty
rakes.
o Hand over the empty rakes to Railways.
o Accounting of demurrage, wagon deficiency etc.
o Intra movement of local wagons.
o Provide services of loco to different depts.
Stock Yard
o Store & maintain varieties of raw materials in different plots.
o Handle coke track hopper for unloading boom loaded coke wagons.
o Tranship Sponge Iron trucks, Converted Coke trucks into wagons/dumpers by
Hydraulic Truck Unloader.
o Supply of raw materials to consuming depts. in case of shortage of incoming
raw materials.
o Maintenance of heavy mobile equipments like pay loaders, dozers etc.
MRH (Ore)
o Unloading of Sized Iron Ore at track hopper.
o “uppl of “ized I o O e & flu es to A-F last fu a es & G fu nace.
o Maintaining buffer stock of Sized Iron Ore & Fluxes.
MRH (Coal)
o Unloading of coal wagons at tipplers.
o Supply of coal to silos of Batt#8, 9 of Coke plant.
o Shifting of coal from Tippler area to Stock Yard.
MRH (Coke)
o Unloading of coke wagons at PH#3 tippler/ Coke Tippler.
o Stacking of coke in covered shed at PH#3/near Discharge chute.
o Supply of coke to Storage Bin.
o Supply of coke to H furna e sto k house th o s ee house.
o Shifting of coke from PH#3 Discharge chute/covered shed to Stock Yard/Coke
Tippler.
General
o Raising Purchase Requisition for different jobs.
o Processing of Solid Wastes.
o Evacuation of muck bins.
o A ou ti g of o t a to s ills.
Road Transport
o I t a o e e t of a ate ials Co pa s hea ehi les.
o Evacuation of by-p odu ts bins/bunkers.
o Reclamation of lime stone at RPD.
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o Evacuation of lime fines bunkers.
WMHS
o Unloading of bulged out wagons, covered wagons.
o Providing services to others sections of RMH.
MED (Electrical)
Maintenance Engineering Department (Electrical) came into existence in May, 2001, after
the reorganization process in Tata Steel.
The key objective of this department is to provide engineering services to various
departments.
The department extends its engineering services through the following sections:
Electrical Repair Shop.
Electrical Development Maintenance Shop & Heavy Winding.
Electronics Development Section.
Electronics Maintenance Section.
Service & Transmission.
Crane Inspection & Revamping section.
Testing & Calibration.
Field Task Group.
SPARE SERVICES
This Department includes following sections:
Spare manufacturing
Waste recycling plant
Equipment maintenance services
Engineering services
ENGINEERING SERVICES
Air-conditioning: It maintains all the central AC plants for processes, room air conditioners,
water coolers, panel coolers, industrial process water coolers and central drinking water
plants at Works & TMH. Total installed capacity of the plants and various units is nearly
10000 TR (Ton of Refrigeration).
Pipe Line: This section is responsible for maintenance of all services water trunk mains for
works and associate companies. It also maintains drinking water pipelines and compressed
air lines at Works.
Weighing Machine Repair: It is responsible for certification and maintenance of Rail and
Road weigh bridges, Family scale, Portable Platform scale, Dormant Scale, Hopper scales.
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Permanent Way Engineering: This section maintaining 250 kms of broad gauge tracks inside
as well as outside the works.
Civil: It is responsible for maintenance & construction of civil structure inside works &
boundary walls.
Roads: This section is responsible for maintenance & construction of VIP Roads
Departmental roads.
Public Health Engineering Services: PHES takes care of maintenance and upkeep of all
drains, Sewer lines along with the toilets. It also takes care of all the wild growth cleaning
inside the works. PHES maintains the cleanliness of the VIP roads along with all the other
roads.
Building Inspection and Maintenance: BIM takes care of regular inspection and
ai te a e of all the st u tu al uildi gs i side the o ks alo g ith the hi e s a d steel bridges. Along with these it also takes care of all the cladding work inside the works.
Othe tha uildi gs BIM is i ol ed i i spe tio a d ai te a e of last fu a es out igge a d high li e .
Paint Application: PA is the nodal agency carrying out all the painting related requirement
of the steel works.
Supply Cell: This section maintains procurement of material, spares and services
as and when required by the department or customer department through SAP.
EQUIPMENT MAINTENANCE SERVICES
Equipment Maintenance Services has came into existence on 1st May, 2001. This
department formed with Mobile equipment unit of Works General Services Department,
Loco & Loco crane department, Equipment Section of CE&DD and Road Transport section of
MHS department.
Equipment Maintenance Services office is located just behind the Steelanium Hall. This
department has two unit managed by two unit leader. There are eleven sections each is
managed by individual Cost Centre Managers. The Loco Running Shed, Loco Crane, Major
Overhaul section (MOS) are located in between the LD#1 and Blast furnace laddel repair
shop. Wagon repair shop of Loco unit is located near the Structural shop canteen.
WASTE RECYCLING PLANT
Introduction
Waste Recycling Plant was first commissioned in the year 1986 after the closure of M/s.
Ferro Scrap Nigam Ltd.
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Recovery from Slag by M/s. F.S.N.L. was only 88% whereas recovery from Slag by Waste
Recycling Plant is 92.2%. The capacity of W.R.P. is 1 Million Tonnes of slag per year.
Waste Recycling Plant was commissioned with the expertise from M/s. Erich Friedrich
Technology of West Germany.
The total capital cost of Waste Recycling Plant is Rs. 39 Crores.
Objective
To handle slag of LD#1, LD#2 and Blast Furnace and to recover Fe from it.
To allow minimum (near to Zero) Fe to go out of Works along with slag.
To conserve natural resources.
PROCUREMENT DIVISION
Procurement Division of Tata Steel has a critical role in ealizi g ope ati g depa t e t s quest for manufacturing & service excellence by relentlessly focusing and contributing in
cost management, ensuring product and service quality superiority and speed in the overall
delivery process.
The Procurement Division is exploring newer & unconventional areas of sourcing and
delivery mechanism by redesigning and re-organizing the existing supply chain processes. At
a time when prices of input materials are steadily rising in a buoyant market environment,
Procurement division is working towards effective containment of the prices by taking
alternate sourcing routes like raw material conversion, consolidation of buy to generate
economies of scale, tier II sourcing, introduction of total management contract concepts-
these being some of the initiatives amongst many other that are being conceptualized,
designed and implemented by the division.
Given the responsibility and challenge of managing the expenses side of P&L statement of
the o pa , P o u e e t di isio s sou i g and execution strategies will continue to
dete i e the o pa s a ilit to e ai the o ld s ost ost o petiti e steel company.
R M P (RAW MATERIAL PROCUREMENT)
Raw materials viz. Iron ore, Coal, Limestone etc, are the basic inputs for producing steel.
Quantity, quality and economics of the raw materials strongly influence the fortune of Steel
Industry.
Raw materials used for steel making are naturally occurring ores/minerals, which can
neither be created nor manufactured by mankind. Hence to procure quality raw materials at
minimum cost is the main objective and key process of the Raw Material Procurement
Department.
Raw Material Procurement Strategy
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RMP procures raw materials on the request of its customers like Sinter Plant, Blast Furnaces,
Coke Plant and Refractory Production Dept. Tata Steel obtains iron ore and substantial
quantity of coal from its captive sources. Other raw materials such as limestone, pyroxenites
are purchased both from domestic and international markets including balance coal
requirement.
Working in close association with Strategic Sourcing, RMP evaluates various sources both
technically and commercially to deliver the most cost effective quality raw material to its
customers.
S M D (SUPPLY MANAGEMENT DEPARTMENT)
Introduction
The department is responsible for meeting the requirement of General Stores, Spares,
Refractories, Ferro Alloys and Steel for various Departments inside Works. The Department
carries out the Receiving of material, Issue of Road Permits, Invoice Verification,
Warehousing, Issues and Home Delivery.
We do planning of Stock Item Materials. There are approximately 25 stocking points spread
all over the Works. The Department also gives services to the Town Division and Agrico
through their stores. The service is also given to Ring Rolling Mill for all their requirements.
The services are also given to the mines / collieries for steel materials.
R & D (RESEARCH & DEVELOPMENT)
The department is responsible for meeting the requirement of General Stores, Spares,
Refractories, Ferro Alloys and Steel for various Departments inside Works. The Department
carries out the Receiving of material, Issue of Road Permits, Invoice Verification,
Warehousing, Issues and Home Delivery.
We do planning of Stock Item Materials. There are approximately 25 stocking points spread
all over the Works. The Department also gives services to the Town Division and Agrico
through their stores. The service is also given to Ring Rolling Mill for all their requirements.
The services are also given to the mines / collieries for steel materials.
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Product Range of SM
Raising GRN
Issue of Stock Items
Home Delivery
Raising of PR
Invoice Verifications
Issue of Road Permits.
ITS (INFORMATION TECHNOLOGY SERVICES):
Information Technology Services (ITS) is an in-house IT service provider to all departments
of Tata Steel. The department is entrusted with the responsibility of assessing customer
requirements, architecting IT Solutions, and delivering IT services to Tata Steel. ITS is also
responsible for supporting the Information Management process which is one of Tata
“teel s key business processes. ITS has committed itself to create business value for its
customers and aspires to take Tata Steel to new levels of excellence through e-
transformation.
Tata Steel has been an early adopter of IT. From the batch processing systems of the 1960s,
custom-built solutions of 1990s on IBM mainframe platforms to the integrated ERP systems
of the millennium, Tata Steel has shown how IT can be used to manage business. Acquisition
of SAP R/3 competency, introduction of e-business, Data warehouse, Business intelligence
and Advance Planning optimization solutions are some of the leading edge technologies that
ITS has recently brought to Tata Steel. The reach and range of information technology have
been significantly expanded, through the use of best communication practices
The IT services are delivered through support groups, competency teams and helpdesks
with appropriate service level targets.
FAMD (FERRO ALLOYS & MINERAL DIVISION)
The Ferro Alloys and Mineral Division, commonly known as FAMD, is a profit center of Tata
Steel Limited. It has an integrated value chain starting from Mining, Beneficiation,
Production and Marketing and Sales. It has Chromite Ore, Manganese Ore and Dolomite
Mines in Orissa, Ferro-Alloy Production units (own and out-sourced) across many states and
markets Ferro Alloys and Chrome Concentrate in India and abroad. The three distinct
business lines are – Chrome, Manganese and Flux. The customers of FAMD are the Carbon,
Alloy and Stainless Steel producers, Refractory & Specialty Chemical manufacturers and DRI
units worldwide.
The Ferro Alloys and Mineral Division, commonly known as FAMD, is a profit center of Tata
Steel Limited. It has an integrated value chain starting from Mining, Beneficiation,
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Production and Marketing and Sales. It has Chromite Ore, Manganese Ore and Dolomite
Mines in Orissa, Ferro-Alloy Production units (own and out-sourced) across many states and
markets Ferro Alloys and Chrome Concentrate in India and abroad. The three distinct
business lines are – Chrome, Manganese and Flux. The customers of FAMD are the Carbon,
Alloy and Stainless Steel producers, Refractory & Specialty Chemical manufacturers and DRI
units worldwide.
FAMD is a leading supplier of Ferro Chrome in India and is among the top six chrome alloy
producers in the world, with operations spanning two continents. It is also the leading
Manganese Alloy producer in India and is a leading supplier of Dolomite and Pyroxenite.
FAMD embodies the pioneering spirit of our Founder, who laid the foundation stone for
setting up the first integrated steel plant in Asia. At the time of planning for a steel plant, it
was realized that assured supply of raw material is key to sustainable operations The
Natural Resources Division of the Company played a pivotal role in carrying out exploration
for Iron ore, Coal, Chromite Ore, Manganese ore, Dolomite and other essential raw
materials for steel making. It was this exploratory zeal of TSL, which led to the discovery of
the first Manganese deposit in India at Joda (1929) and Chromite deposit in the Sukinda
valley of Orissa (1949), when the world was still to fully appreciate the value of Manganese
and Chrome. It was also around this time that the Ferro Alloys Plant at Joda was established
(1957) making it the oldest continuously operating Ferro Alloy plant in India. In order to
bring more focus to this business, FAMD was formed as a separate profit center in 1993.
Realizing that for the country, it was important to convert ore into Ferro Alloys and Chrome
Concentrate, instead of selling the Chrome and Manganese ore, FAMD adopted the path of
value addition aggressively. The capacity of its Beneficiation plant in Sukinda was increased
and Ferro Chrome Plant at Bamnipal was acquired in 1991. An innovative model for
increasing product basket through outsourcing was also developed in 1990s. In the year
2007, FAMD acquired TS Alloys, which is a 100% subsidiary and operates as a conversion
agent. In 2008, FAMD stopped the sale of Chrome and Manganese Ore.
To purse the policy of value addition and to emerge as the 5th largest producer of Chrome
ore, FAMD has embarked on an aggressive growth plan. It is commissioning three new
plants for Ferro Alloys and enhancing the conversion base through appointment of exclusive
conversion agents with long term contracts. It has also undertaken project for Underground
mining at Sukinda to increase and sustain production of Chrome Ore.
The o e sto e of FAMD s su ess has ee its focus on community development. It
pursues process of engagement, need identification and implementation of various projects
that help improving the lives of people in and around the areas it operates in.
Pursuing a customer focused strategy; FAMD has emerged as the 6th largest FeCr producers
in the world, with global market share of 4.6%. It is second largest supplier of HC FeCr in
India. It is one of the largest Mn Alloy players in India with a focus to supply to TSG In house
(TSL-Jsr, TSTh, and Natsteel). Tata Steel Kwa Zulu Natal Pty Ltd (TSKZN), South Africa, a 100%
subsidiary of TSL, for which FAMD is the sole Sales & Marketing arm provides the distinction
to FAMD of being the only supplier of Ferro Chrome and Charge Chrome. It has build long
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term relationship with the most reputed Steel Companies in the world like Hitachi, JFE,
Sumitomo, Posco, Nippon Yakin, Panchmahal, Viraj etc., apart from meeting 100% internal
requirements of the Tata Steel India, Thailand and Singapore in Manganese Ferro Alloys.
Continuous improvement, teamwork and partnership with suppliers have helped FAMD to
achieve Nil LTIF and earn many awards in the fields of Safety, Innovation and Improvement.
FAMD has always been EVA positive profit center since inception and in FY11, achieved a
Sales Revenue of ~ Rs. 2,300 Crores with Profit ~ Rs. 810 Crs.
In order to achieve the above, steps were taken to develop competencies in the areas of
systematic Mineral Exploration, Mine Planning, Mineral Excavation, mineral beneficiation,
environment management and community development. These attributes have been
su ed up as the st o e o pete Mi i g . O the othe e d of the alue hai , Buildi g usto e elatio ship as pu sued as the d o e o pete , hi h i ludes
focus service reliability, customized offerings, long term relationship with target customers
and focus on production with consistent quality. These core competencies are leveraged
across the value chain for a sustainable and profitable Ferro Alloys and Mineral business.
PRODUCTIVITY SERVICES DEPARTMENT
Productivity Services Department addresses the organizational needs of improving
productivity of entire organization viz. Raw Materials, Operations, Marketing and Sales,
Commercial, Finance & Accounts, R&D and Scientific Services, Corporate Services, Shared
Services, Profit Centres, JUSCO and also Associated Companies of Tata Steel.
The group has earned credibility for its analytical skills and providing recommendations
which are in the best interest of the organization without having any bias and prejudices.
Given below are some of the major roles:
Formulation of manpower proposals of both Officers & Unionized category of
employees
Organization Design and Manpower requirement for growth projects.
Manpower Planning & Forecasting
Zero base manning studies
Benchmarking studies to improve operations in the areas of Labour, Equipment and
Capital
Methods Improvement & Work Simplification studies to reduce cost, cycle time and
yield
Design and Administration of Incentive Bonus Schemes for increased production and
motivated workforce
Re-engineering and Debottlenecking of existing operations and business processes to
improve response time and simplified process
Simulation studies suggesting improvement in the area of cost reduction, efficiency
improvement and EVA enhancement
Logistics & Layout studies suggesting significant improvement in project cost
Study of Capital investment proposals
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PSD officers contributes significantly as a member in various Task Forces
Examine TWU grievances with regard to level, grade, designation and IB earnings which
will help in maintaining congenial IR environment and contended workforce.
CUSTOMER SERVICE DIVISION
Organisational Environmental The Customer Service Division (CSD) is the single point interface between manufacturing &
the usto e , espo si le fo o de e e utio . This di isio s ole has e ol ed o e the years from that of production control to customer service. The division is predominantly
matrix organisation to enable focus on customer service requirements while maintaining
synergies across various business units. CSD delivers its services through Planning,
Transportation, and Warehousing & Secondary Processing through External Processing
Agents. Logistic systems provide analytics to optimise these activities.
The Customer Service Division translates customer orders into physical deliveries. This is to
be done at the lowest possible cost whilst maintaining the promised delivery conditions.
Aspirational Environment
CSD along with Marketing & Sales is the face of Tata Steel to its customers. Delivering goods
& services as per our promise involves a strong customer orientation.
CSD manages a large number of interfaces across the supply chain including Customers,
Marketing & Sales, Production, Procurement of services (Freight, Warehousing & External
Processing Agents), etc. Management of these relationships is the key to the success of the
business.
CSD runs 19 stockyards throughout the country. These stockyards deploy various handling &
warehousing facilities
Competitive Environment
C“D s, effi ie t fu tio i g di e tl o t i utes to the o petiti e positio of Tata “teel. I terms of delivered costs, Tata Steel finds itself in a disadvantageous position vis-à-vis other
steel companies due to its geographical location. Our Geographic Location also currently has
poorer infrastructure and lower reliability of services.
The TISCO Jamshedpur plant is the largest steel plant in the country dispatching 4 million
tonnes annually, which is to increase to a level of 5 million mt by FY05. Despatches are
made from this city to 35 main routes with more than 200 destinations.
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The principal factors that determine our competitive success is Cost and Service and hence
C“D s ke goals to attai se i e diffe e tiatio a e:
Delivery Accuracy
Lead Time
Total Delivery System Cost
Optimal Inventory
SWATI (STEEL WOMEN’S ASPIRATIONAL TEAM
INITIATIVE)
Vision
To sensitize the women employees towards organizational
challenges
Objective
Raise the potential of women working in organization by addressing the personal and
professional requirements as per organizational challenges
Create a visibility, awareness about WEC in the organization.
Mentoring/Counselling and Guidance-specially younger workforce.
Have a desk whereby anyone can approach.
Scope
It was decided that the forum would be for both officers and non officers.
The employees of Tata Steel;
Only in the later stage will the forum extend its scope of operation to contract
employees/spouse/rural ladies.
H BLAST FURNACE
On May 31st 2008, TATA Steel successfully commissioned
its new blast furnace ''H'' at its Jamshedpur works in
Jharkhand. With an inner volume of 3,800 cubic meters
and a daily production of 7,200 tonnes of hot metal, this
new blast furnace is the biggest one ever built in India.
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The foundation stone for this 2.5 MTPA Blast Furnace was laid in June, 2006. The project
broadly involved a total of 80,000 m3 of civil work, 28,000 tons of structural work, 20,000
tons of equipment erection, 22,000 tons of refractory work and 1.5 km of rail track and 1500
km of electrical cabling involved. All the shells and major pipe line were fabricated in-house
by Growth Shop of Tata Steel and most of the equipments have been procured from
reputed OEMs Overseas. The whole plant has been designed within an area of 63 acre due
to space constraints and this is an engineering marvel. Also the project has been completed
in 25 months from the groundbreaking which is the shortest possible time ever taken for
construction of such a large furnace anywhere in the world.
The furnace is equipped with all modern features. Integrating state-of-the-art technology,
blast furnace ''H'', which is cooled with copper and cast iron staves, features a new
generation bell less top charging system. Two flat cast houses operating four tap holes are
fitted with TMT cast house machines. The high-performance hot blast stoves with internal
combustion chamber are equipped with a heat recovery system, recovering the waste heat
from the stoves'' exhaust so as to save on the fuel rates. Energy in terms of electrical power
is also recovered from the BF gas through a top gas pressure recovery turbine. Finally, the
scope of supplies also included a pulverized coal injection system and two slag granulation
plants.
The commissioning of the largest Blast Furnace of 3800 m3 in Jamshedpur Steel Works was
in the year when Tata Steel was celebrating its Centenary and this was a moment of great
pride not only for Tata Steel, but also the nation as a whole.
FLAT PRODUCTS
The endeavour at Tata Steel is one of vision and enterprise, a combination which has made the
Company an integral part of Indian economy.
In keeping with commitment to redefine the future of Indian Steel, Flat products business group
at Tata Steel, today, is country's largest manufacturer of world class steel products. Integrated
supply chain starting with captive raw materials, state of the art technology, continuous pursuit
for innovation & knowledge and an elaborate domain of highly skilled manpower has steered
this business group to enviable performance records.
With a stretched capacity of 2.5 million MT of Hot Rolled, Cold rolled & Coated Products, Flat
Products business group produces approx. 65% of total saleable steel. A constant pursuit to
increase customer focus, enrich product mix, energy efficient technologies & optimum
utilisation of raw materials have resulted in a long term competitive advantage.
SWOT ANALYSIS
The steel industry is subject to risks and opportunities arising from external business environment such as regional demand - supply imbalances, volatile swings in market demand and prices, more recently exacerbated by swings in input prices, rising interest rates, exchange rate volatility as well as the euro zone crisis and the global
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slowdown. Tata Steel’s Long Term Plan takes into account such risks and opportunities.
Strength High functional quality of the product and grades suitable for different applications of
CRS.
High awareness and preference among retail customers in all locations.
Established, highly capable and motivated channel partners supported by able Tata
employees (account managers and application engineers).
Value addition through dedicated and high quality service centres.
Long emphasized service culture in all stages like presales, sales, and after-sales.
Enduring relationships with customers already established by the distributors/dealers
Major supply chain improvement initiatives through ‘TOC’ will help improvement of supply chain effectiveness.
Association with TATA name brings special trust among the Indian customers.
Weaknesses Limited availability with increasing demand may force the existing customers and
channel members to look for other sources.
Production being located at only one place (Jamshedpur in India), logistics
disadvantage is likely for supplying to certain parts of India.
Brand identity (logo) of Steelium is lost when processed further (like slitting,
blanking, etc.) in a service centre.
Raw Materials Security and Price Volatility
Raw material availability depends, to a large extent, on worldwide supply and demand
relationships. Tata Steel is exposed to risk of non-availability and price volatility of essential
raw materials.
The existing operations are fully self-sufficient in iron ore. Around 60 per cent of our coal
requirement is imported (mainly from Australia) exposing us to risk of raw material supplies
and volatility in prices mainly due to natural calamities, labour issues and port congestions.
Also, for limestone Tata Steel is dependent on supplies from Gulf countries, which are
exposed to geopolitical risks.
The Company Raw Material Strategy proactively tracks the factors affecting availability and
prices of raw materials and plans its sourcing strategy accordingly. Alternate supply sources
are explored to reduce the risk exposure.
Technology Risks
A key challenge for the Company is to ensure that its plants are equipped with updated
technologies in order to se e lie ts a d se u e ost o petiti e ess. The Co pa s Technology Roadmap provides the way forward.
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Continuous R&D efforts, with the support the Technology Group, are aimed at advancing
our position in technology for both products and processes.
Opportunities Contract production by maintaining quality standard and other parameters can enlarge
customer base and sales volume.
Within the present market size, there exists considerable room for Steelium to expand
and enhance profitability.
Improvement of sales and realization potential is possible by increasing the supply of
drawing and deep drawing grades.
Further value can be created and captured by innovative marketing strategies like
production and sales of exclusive and branded furniture. If the existing distributors are
inducted, this will fulfill their growth needs too.
Continual improvement in service will help in sustaining competitive advantages.
As economies grow the demand for steel increases. India has been a net importer of steel,
especially the high value added end products, and is likely to remain a net importer for
some time to come. The demand for steel in India will continue to grow strong given the
need for infrastructure growth and urbanisation, providing market opportunities that
warrant further expansion of steel capacity.
Threats
By far the most significant threat ‘Steelium’ faces is that of losing some of the important customers and distributors in the hand of competitors like Essar and Jindal
that can also become a quality national supplier.
On the back of this uncertainty, ‘Steelium’ has to continue investing on relationship with channel members and customers.
In absence of any real differentiation in material quality, Steelium will have to
compete solely on the strength of intangibles.
LABOUR MANAGEMENT RELATIONS
All employees of the Company have the freedom to express their opinion freely and raise
rights-based issues through forums for two-way communication, participative management
and joint consultations.
Non-officers of the Company interact with the top management through the monthly MD
Online and a minimum of 56 Joint Departmental Council meetings held to ensure that issues
related to operational changes, production, productivity, quality, safety, welfare, training,
etc. are addressed in a timely and effective manner.
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Free and fair elections via secret ballot are periodically held across all locations for unions
representing its workforce.
Officers are free to express their opinion at the quarterly General Dialogue. Issues, concerns
and suggestions related to career planning, compensation and growth, training and
development, infrastructure, amenities for employees and creating a safe and healthier
work environment are addressed through these meetings. A new HR Desk was launched in
2011-12.
A spe ial fo u fo o e s e po e e t add esses issues elated to o e .
Tata “teel s ultu e of o ti uous i p o e e ts ests e ti el o the o t i utio of its employees through their participation in initiatives under the Business Plan Meeting, Total
Quality Management journey, Small Group Activity (SGA) including TPM Circles, Quality
Ci les a d MA““ tea s to e gage e plo ees i i p o e e t a ti ities a d the e create a vibrant work place. Employees directly contribute through Suggestion
Management, Joint Works Council & Joint Departmental Councils, Quality Board Meetings,
Safety Committees, Communication Meetings and the like.
Deeper involvement and empowerment of frontline employees has also been achieved
through the drill down of Key Performance Indicators under the Total Quality Management
process.
TRAINING MEASURES
Tata Steel recognises the importance of continuous enhancement of knowledge, skills and
capabilities of its employees and has invested greatly in education, training (both on and off
the job) and development. The Company's learning and development initiatives are geared
to meet the Group's vision. The Tata Steel Group has continued to invest in and improve its
managerial and technical capabilities through the internal development of its own
employees across Europe, India and South East Asia. It has adopted a multi faceted
approach in Training and Development of employees and this area has gained lot of
momentum in recent years. A climate conducive to enhancement of knowledge, skills and
capabilities of its employees is an integral part of the training process and Tata Steel's
training and education programmes are designed keeping career progression and employee
performance into consideration.
At Tata Steel, the process of training and development is focused on needs and outcomes
with the objective of technical and managerial competency building. The Company recently
adopted the To ota o ept of the Fou Quad a t Method a oss the o ga isatio , i which the critical skills required to perform a job are identified and the employees are
mapped against those skills by the Positional Training Facilitators, mentors or immediate
supervisors. Training needs are identified on the basis of the gap between desired and
existing skill levels and training is imparted accordingly. The process also provides a
managerial tool for reviewing training effectiveness.
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The training and development needs of the workforce are assessed regularly, for officers
with a Personal Development Plan (PDP) and for non-officers with a Training Needs Survey
(TNS). The process for addressing training and development needs follows this method:
70% - On-the-job inputs
20% - Conversations, Mentoring and Coaching
10% - Classroom training
Training Facilities
Tata Steel has in-house training facilities both for technical and managerial training, through
the Technical Training Institute and Tata Management Development Centre (TMDC),
respectively. Advanced level training requirements, both technical and managerial, are met
through external programmes.
Training Facilities in Focus Areas
Safety training, based on Dupont guidelines has been of paramount importance as
Safety is an important area of focus for the Company.
Programmes are also rolled out in-house by TMTC, XLRI and IIMs for its officers.
Development in managerial competencies and leadership elements, especially for
the officers, is now also being addressed through on-the-job assignments, rotations,
working in task forces and committees.
In addition the company gives study leave facility for higher education and also
provides sponsorship for Masters/ Doctoral level programmes at world-class
institutes.
Tata Steel’s comprehensive agenda of training and development comes across through two institutes mainly:
Shavak Nanavati Technical Institute (SNTI)
Based on the belief of Shri. Jamsetji Tata that technical training is one of the basic pillars of
economic growth in a developing country, the Jamshedpur Technical Institute was
established in 1921, and was later rechristened Shavak Nanavati Technical Institute (SNTI). It
has an illustrious history of having developed skilled manpower for many leading
enterprises in the country for decades. SNTI has kept pace with changing technologies by
constantly evolving new training schemes and developing infrastructure to meet every
emerging need. Over the years, it has advanced from being an institute that imparted
training in the maintenance areas to being a reputed centre for operational training. It has
revamped its training methods and become thoroughly learning oriented.
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SNTI also takes care of the overall development of individuals by carrying out various
exploratory tasks. Along with pre-employment training programmes, the Institute also has
provision for necessary post-employment training. In all cases, SNTI ensures that at the end
of any training course the learners become proficient to shoulder the responsibilities
required in the hierarchy of management. The Institute has stood the test of time by
producing leaders who have taken the company to the pinnacles of performance and
progress.
The Tata Steel Management Development Centre (TMDC)
The Tata Steel Management Development Centre (TMDC) in Jamshedpur has been
positioned as an in-house training centre for Tata Steel. It endeavours to provide primarily
managerial training and also functional training to all officers of Tata Steel and its Associate
Companies. It also conducts customised programmes on request from other organisations.
From a humble beginning as the 'Staff Training Institute' of Tata Steel in 1954, primarily to
import a once-a-year course in 'Foremanship and Supervision', the Tata Steel Management
Development Centre has indeed come a long way. TMDC has served as a model for in-house
management development for several Indian and multi-national corporations in the country
while catering actively to the management learning needs of Tata Steel officers. TMDC's
training programmes are designed to develop managerial competencies and leadership
behaviour consistent with Tata values and practices. Training interventions are designed to
facilitate learning of leading-edge knowledge and skills for building organisational capability.
TMDC engages in the following activities:
Orientation training for new recruits
Management Development Programmes
Functional training programmes
In-company programmes for Tata Group employees
Customised programmes for non-Tata group companies
Business Simulation Games
Language courses in Chinese (Mandarin) & French
Window-on-the-World programme
One year part-time (evening) certificate course in Foremanship & Supervision
In a world where both organisational and product life-cycles are getting relentlessly
compressed, fifty two years in the life of an in-house management learning centre conveys
both performance of the past as well as a promise for the future.
Skills Development – Non-officers
Skills training are a process that begins at the time of an employee joining the company and
continues throughout his or her career. Employees work in clusters of multi-skilled workers
and move across and within clusters on improving their skills levels. The Technical Training
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Institute imparts vocational and basic skills training; the departments impart on-the-job
training.
In order to promote self-directed learning, the Company has introduced e-learning whereby
employees can access electronic courses from their departmental e-Learning centres.
Skills Development- Officers
Tata Steel Management Development Centre conducts a number of managerial and
functional competency based programmes for officers and supervisors. The objectives of
these programmes are:
To build individual capability by enhancing managerial and functional competencies
which are critical to operations, service and support functions.
To build a leadership pipeline in the organisation to prepare the people to meet the
challenges of growth, globalisation and change.
Officers Development
People development for business continuity is managed in Tata Steel through its patented
EDGE E su i g De elop e t & G o th of E plo ees i itiati e fo Offi e s. This i ludes a Talent Review system for identification of competencies for 100 per cent of its executives
for current and potential positions.
Gaps identified are then bridged through Learning and Development programmes so that
right skills, competency and values prepare its people to perform even more efficiently
and meaningfully.
The overall learning and development needs of the officers is addressed through a well
established 70:20:10 framework, which ensures holistic learning where 70 per cent of the
development happens through on the job assignments, 20 per cent through coaching &
mentoring and 10 per cent through classroom training. New programmes - aligned to stated
managerial competencies - were developed in the last two years and Management
Development programmes incorporating Tata Values integrated with them.
Well known speakers were invited to address the employees through the programme
Wi do o the Wo ld o su je ts su h as Co po ate “ustai a ilit , Outlook of Glo al Steel Industry, Ethical Leadership and Values in management practices based on the
ideology of Mahatma Gandhi, Management of Change or Sustainability - Challenges,
Options and Trends.
The lea i g a d de elop e t tea i stituted The ‘ou d Ta le i -12. Aligned to the
contemporary need for informal learning, its sessions are theme- ased su h as: Does Ethi s have a Bou da ?
Succession Planning was introduced for middle management. Further, HR policies are being
reviewed to take into account the employee spread in different locations.
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Employee Learning & Development
For workers and supervisions, the 4Q model is followed for need identification accompanied
by Training Need Surveys for job clusters and identification of Job specific customer
requirements. Based on the gap between the desired skill level and the existing skill level of
employees, training needs are met through Cluster Training, Positional Training and Right
Skilling.
To reskill and retrain its unskilled workers in 2011-12 the Company adopted a new approach
to Training & Development. While it continued with the o e ge e i a to le el / luste appi g app oa h i its e isti g u its, the u ge t eed to eet spe ifi jo elated skills
for the new 2.9 MTPA units led to a radical shift in the approach for manning them. The new
app oa h of a to positio appi g as i t odu ed, ased o the e isti g skill gaps a d requirements specified by internal customers.
These right skilling initiatives ensured that the Company achieved its goal of reducing the
number of unskilled employees by 50 per cent over the base of 2009-10.
Leadership Development
A systematic process was adopted for tracking talent demand, selection based on the needs
of the job and a real time view of the talent bench strength for top management, leading to
an increase in the ratio of leadership positions being filled through internal sources. To
create a talent pool of leaders for spearheading its growth plans a Global Leadership
Development programme has been initiated.
Developing Technical Experts:
The technological capability of the Company is being strengthened through tie-ups with
premier educational institutes like IITs and XLRI for programmes aimed at technical learning.
Directed Learning:
The Directed Learning Policy motivates officers to take on higher professional education,
which may be fully or partly sponsored. The need for flexibility in learning approaches both
i the ode of lea i g o the ti e fa to is et th ough e lea i g odules . Li e Digital workshops offer easy access to learning and permit participants to benefit from
world- lass fa ult statio ed i I dia o a oad. The Co pa s K o ledge Ma age e t po tals as ell as the T ai i g Ce te s e sites, hi h a e a essed e plo ees at all times, offer theme based learning.
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HRD MEASURES (including WELFARE
MEASURES)
Welfare activities in Mines Division are one of the prime agenda of our operations
and catering to the employees and also the villagers living around the mines.
Welfare Departments of Mines Division catering to the employees and villagers
through its social activities, promotion of sports and games, health awareness
programmes, family benefit and medical benefit schemes, energy conservation
drive, educational grants etc. Some of the highlights:
Employees Family Benefit Fund Scheme.
Games & Sports for employees & villagers.
Counselling for Energy Conservation.
Malaria Control Programme.
Cable TV Network in all Quarters.
Organising Cultural Programmes, Farewell functions & functions during
Republic Day, Independence Day, Gandhi Jayanti etc.
Educational grant to schools & reimbursement of school fees of e plo ees
children.
Recreation clubs in camps.
Welfare activities for women.
Picnic grants, utensils for social functions etc.
Immediate financial grant to deceased employees'.
Hospital
The mine town of Noamundi is having an ultra modern hospital which caters not
only to patients of Noamundi but also to the people living in this stretch right from
Chaibasa (65 km from Noamundi) to Kiriburu (25 km from Noamundi) in Jharkhand
and up til Rourkela in Orissa (150 km from Noamundi).
This 60-bedded hospital is equipped with modern equipment's and facilities like ECG,
Baby incubator, well equipped operation theatre and so on. A team of professionally
qualified doctors are engaged in serving the patients round the clock.
Several other facilities like child health care clinic, diabetic & hypertension-affected
patient's clinic, etc are conducted regularly.
Educating the Future Citizens
Tata Steel's Mines Division is fulfilling the need and aspirations of students by
supporting and promoting a number of schools in its units at supporting and
promoting a number of schools in its units at Noamundi, Joda, Gomardih and
Dodkanya. The Tata DAV Public School, Tisco ME School, Prof. Abdul Bari Memorial
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High School, Lions School, Indira Gandhi High School etc. are aided by the steel
company. The Local Managing Committee (LMC) comprising of company's official,
union official and governing body members of the schools are looking after the
overall management of these schools. Similarly there are number of schools in Joda
group, Gomardih are also aided by the company. These schools are equipped with
modern laboratories, play ground, libraries, computers etc. and providing quality
education to the students.
Places for Unwinding-The Clubs of Noamundi
For the executives and workforce of Tata Steel and other government & private
organisations, the clubs of Noamundi are the best joints to unwind after a day of
tiring schedule. The plush premises and airy atmosphere of Noamundi Club gives a
soothing relief to its member. The crystal clear blue water of the swimming pool is
the best place to take care of your fatigue as well as learning the art of floating in
water.
This club is having a modern gymnasium, Billiards room, Tennis court, Badminton
court, Card room, TT board, Carrom board, TV room, Library and many other such
recreational facilities and games. Recreation Club at Noamundi is also having such
similar facilities where the employees gather after dusk set in.
Watershed – A New Beginning
Noamundi unit of TSRDS has registered a good
achievement in Forest Protection. The Forest
protection, with other benefits, has helped improve the
vegetation of land, which was almost on the margin of
degradation until 1988, the year when save forest
movement was started in a village called, Uishia.
At present there are 42 Save Forest Groups protecting
the forest in over 5,000 Acres of land. The annual
average rainfall in Noamundi is recorded approx. 1500 m.m. which is almost 2-3 times more
than the Rainfall in Punja . But the u -off is o e ajo th eat to the a ea, hi h ight convert the success of save forest in to partially failure.
Further, the indices of Human development is major concern and invites attention of all
Govt. & Non-Govt., Private or Public Sector organisations to focus in the area of Human
development programs so that the poverty can be eliminated. With good forest and rainfall,
a need is felt to convert these strengths in to opportunities. The only way it can be done is
through watershed.
Noamundi unit of TSRDS revisited the entire efforts which it had taken in past in order to
reinforce them so that they do not remain in isolation rather help strengthen the watershed
project.
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During the period under review 6 L.I. schemes, aggregating to a total of 17 L.I. schemes since
1998 were installed. L.Is. along with pond digging/renovation, canal
construction/renovation & Deep Bore Well has increased the potential of irrigation from 2-
4% in 1998 to 20% with the increase of irrigation, the productivity of land has gone up and
fi all the people ha e ee sho the ag i ultu e as thei ai sou e of i o e. As a result the employment in agricultural sector has gone up with changes in nutritional habit,
which ensures household nutrition security. Migration is checked and enrolment of children
in school apparently has gone up.
TATA STEEL PARIVAR - A Unique Resettlement and Rehabilitation Programme
To safeguard the fundamental rights of displaced families, including indigenous
communities, while implementing Greenfield projects at Kalinganagar and Gopalpur in the
state of Odisha, the Company has created a unique Resettlement and Rehabilitation (R&R)
programme - Tata Steel Parivar.
The Company is conscious of the promise that entry of industry brings to Greenfield
locations. Therefore, to provide long-term support for displaced families Tata Steel has
exceeded requirements under the Resettlement and Rehabilitation Policy of the
Government of Odisha.
Awareness on the opportunities and benefits available is created among beneficiaries
Through Tata Parivar a ds, issued to all e e s of displa ed fa ilies i p o e e ts i their quality of life are tracked. The Company is also striving to meet the Millennium
Development Goals in 21 villages, 14 of which are directly project impacted.
Resettlement:
To ensure minimum disruption and displacement of people at Gopalpur in Odisha, only
three villages Patrapur, Badapur and Sindhigaon were relocated entirely for the proposed
plant site and rehabilitated in separate geographical areas within well-planned colonies
complete with all urban civic amenities. The sociocultural identity of the communities and a
sense of continuity with their old village have been preserved with the structure of the
“ahi ha lets ei g ai tai ed.
Employment and Employability training:
304 students were trained till 2011-12, with another 190 students currently undergoing pre-
employment training while a third batch of trainees has been enrolled for vocational
training. Twenty-nine members of Tata Steel Parivar from Kalinganagar, who trained in
welding technology, have joined its construction partner Punj Lloyd Company for further on-
site training.
About 600 families have been employed in various construction sites as semi-skilled and
unskilled workers.
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SAFETY AT TATA STEEL
The Tata Steel Group Vision speaks of creating value for all its
stakeholders. Goal 2012 encompasses key drivers in the area of Safety
with a focus on high hazard facilities, increase in occupational safety
and a keen eye on the overall health of Tata Steel employees.
Ensuring safety in all its operations has always been a strategic priority
for Tata Steel and it has adopted the outstanding safety programme of
M/s. DuPont Safety resources for establishing safety culture by
inculcating safe behaviour among its employees. Every activity in Tata
Steel is carried out not only with a cost efficient, quality conscious
purpose but also with the highlight always on safe practice. The
Group's Lost Time Injury Frequency Rate for Financial Year 2011-2012 was 0.68, an
improvement of 14% over last year. Workplace fatality is addressed separately through the
Fatality Risk Control Protocol, which aims at eliminating potential fatality hazards. The
Company aims at achieving a Lost Time Injury Frequency Rate of (LTIFR) of 0.4 by 2012,
which is the worldwide matrix for the measurement of safety.
Given the nature of steel- a ufa tu i g ope atio s, Tata “teel s ele tless fo us o the safety and health of the employee is evident from the launch of an interminable Safety
Excellence Journey, to which new aspects of safety are added every year, and the
Wellness@Workplace programme. These are designed to provide an injury-free working
environment for a healthy and happy workforce.
Health a d “afet is e ie ed at all Boa d eeti gs of the Co pa ith a Health, “afet and Environment committee established to carry out more detailed reviews. The integrated
and systemic Health and Safety Management System, introduced in TSE in 2008 with a
governance process for improvement actions and regular safety tours by the Board and
executive members, has been developed for Group-wide application.
Specifically in India, a series of safety initiatives helped achieve an LTIFR (Lost Time Injury
Frequency Rate) of 0.51. Some of these initiatives are given below:
Special drive focusing on Fatality Risk Control Programme (FRCP) and Elimination of
Commonly Accepted Unsafe Practices (ECAUP), through which more than 10,000
unsafe conditions and 969 unsafe practices have been corrected.
The Stock Yard Safety Management System was rolled out at all the 40 stockyards.
A 15-point safety rule-book on stockyard management was launched, followed by
training for all workers and supervisors.
The Safety Excellence Journey has set out standards and procedures and resulted in
many improvements to processes, visual management and communications – all
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helping to raise awareness and foster a culture of safety. A 100-day Safety Excellence
Journey campaign included safet t ai i g fo se io leade s, a d a t ai the t ai e programme for 24 plant managers.
The Safety Excellence Journey has also been extended at Group companies in India
namely JUSCO, ISWP, Dhamra Port Company Limited, TS Alloys, Tata Sponge Limited
and TRL Krosaki Refractories Ltd. Tata Steel has also established a safety organisation
for the greenfield project at Odisha.
For sustainability of its operations and reducing Process Hazards by strengthening safety in
processes, Tata Steel has implemented Process Safety and Risk Management (PSRM) in high
hazardous operations. A comprehensive safety review process was conducted at
Jamshedpur for the start-up of the new hot strip mill, blast furnace and a number of other
key installations, helping to assess risks on new or modified facilities before the handover
from project to operations team. Nine high-hazard installations were modelled for toxic
releases and explosions using specially-created 'Phast Risk' software. Tata Steel is the first
steel company in India to use this advanced software, which is also in use at the Company's
European facilities.
Process safety has been a constant focus for all high hazard facilities (HHF) in Tata Steel
since 2008, when dedicated teams were put in place. They have identified high hazard
facilities across the European operations, and are now carrying out process hazard reviews.
Work is going on to determine the required safety integrity level with respect to identified
safety critical systems.
Realising the importance of Community Safety, the Company is working with SAFE
organisation and has engaged external consultants to arrange a systematic safety education
drive for school children in Jamshedpur and at the different mines and collieries.
Tata Steel in Europe has strengthened its Health and Safety Management systems with
comprehensive tools, standards and procedures. Its structured approach covers 15
fundamental principles including accountability, management of change, audit and review
and is based on best practices from BlueScope Steel – recognised as a leader in the steel
industry in this aspect.
A “afet E elle e Jou e as olled out at the G oup s i e ills i Thaila d, hile NatSteel has also been recognised for its efforts in this area. NatSteel Singapore has
embarked on the two-year DuPont Safety journey in FY 09. The various initiatives include
continuous active involvement of senior management, safety training, formation of Apex
council for review, formation of risk containment groups to identify and contain high risk
activities and STOP (solve this on-going problem) teams to observe safety behaviour and
interact with employees on safety. The other subsidiaries will gradually be aligned to the
DuPont safety management system.
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SAFETY COMMITIES
The Safety Committees of Tata Steel were formed in order to facilitate the procedures that
would help to reach the safety targets laid down in Goal 2012. The Committees involve
employees at diverse levels thereby instituting a sense of responsibility across functions.
The Apex Safety Sub Committees have been restructured with effect from 1st April 2009,
with eight new Apex Safety Sub Committees, responsible for developing new policies and
standards and / or upgrading the existing policies and standards, formulating strategy and
guidelines to improve and facilitate implementation by Divisional Implementation Councils
(DIC).
The eight Apex Safety Sub Committees, as listed below, work in different thrust areas under
the guidance of the Apex Safety Council, which is chaired by the Managing Director.
Apex Safety Standard Sub Committee
o Positive Isolation
o Fire Prevention and Protection
o Safety Standards
Apex Incident Analysis Sub Committee
Apex Safety Training and Communication Sub Committee
Apex Safety Audit and Observation Sub Committee
Apex Rail and Road Safety Sub Committee
Apex Occupational Health safety sub committee
Apex Contract Management Safety Sub Committee
Apex Process Safety Sub Committee
The various objectives that have been set are meant to:
Revitalise the working of these policy making committees, by merging and creating a
new Committee, as required.
Involve new members of the leadership.
Rotate the Chairman and the champions so as to encourage innovative thinking and
ideas, thereby enthusing policies.
Ensure, wherever possible, that one person is placed in not more than one
committee so that implementation receives appropriate focus.
Emphasise process safety, which is essential for the sustenance of the Company in
the years to come.
Bring synergy with the other entities of the Tata Steel group by adopting best
practices and overcoming concerns.
CAREER PLANNING
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Human Resource Development Program:
The Human Resource Development Program (HRDP) was initiated in 2006 in recognition of
the corporate leadership and specialist roles that HR managers are required to fulfil.
Each year HRDP recruits the best talent from premier Indian business schools and Tata
companies, based on their performance, interest and capabilities, and trains them for a year
with rotations through sub-functions such as recruitment and sourcing, performance
management system, training and development, employee relations, community
development, etc. The programme ensures accelerated long-term growth through
customised as well as certified training and development during this period.
HRDP process:
All HRDP managers are selected by senior HR and business executives in Tata
companies after undergoing a rigorous three-stage process of filtering, post which
they are placed on a project-basis at Tata companies for three-month periods.
Managers undergo three rotational stints in core HR functions. They also undergo a
community development stint, where they work with the Tata trusts on assignments
in the domain of corporate sustainability for eight weeks.
Managers are then placed with a Tata company on a full-time basis after completion of the
four rotational stints.
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Indian Steel Capacity o Opportunities seen in the Indian steel market have brought in significant
investments in both Greenfield and Brownfield steel projects.
o Crude steel making capacity is set to grow from 90 million tonnes currently to 120
million tonnes by 2015.
o Bulk of the immediate capacity expansions are on the Brownfield sites and in final
stages of completion.
o Greenfield projects have been delayed after global economic slowdown in 2008 and
2009 period.
To sell its 13 million tonnes of flat steel, which it will produce every year from 2016, the
largest Indian steelmaker is betting on small and medium enterprises (SMEs), with focus on
those that do not supply to the auto sector.
The annual capacity in Jamshedpur is increasing to 10 million tonnes of steel—7 million
tonnes will be flat steel, the rest will be long steel (used largely in the construction sector).
The Kalinganagar plant, being built in two phases and expected to be complete by 2016, will
have a capacity of 6 million tonnes per year, all of it flat steel. It will make Tata Steel the
largest producer of flat steel in India, and one of the largest in the world.
With the auto sector going through tough times, and car sales experiencing negative growth
for the first time in 10 years, in March, SMEs will be all the more important. But Tata Steel
will have to be wary of SMEs selling to the auto sector.
The focus is yielding results. From selling about 20,000 to 30,000 tonnes of steel to SMEs
every month earlier in the 2012-2013 financial years, the company now sells 90,000 tonnes
a month. Tata Steel is aiming to sell about 2 million tonnes a month by 2016.
Awards and Recognitions
Over the years, Tata Steel has won many rewards and recognitions. Be it corporate excellence where the company engages in best practices, its state-of-the-art products or their social endeavour, the Company has been rewarded in each sector over and over again.
Deming Application Prize Awarded to Tata Steel
About the award Deming Grand Prize (DGP) is the highest honor in Quality, awarded to a company for
excellence in Total Quality Management (TQM). The award is given by the Japanese Union
of Scientists and Engineers (JUSE) to companies for demonstrating practising of TQM in the
areas of production, customer service, safety, human resource, corporate social
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responsibility and environment etc. Worldwide, 22 companies have won the DGP since the
time it was instituted in 1969, of which 3 are Indian companies.
Tata Steel has created history by becoming the first integrated steel company in the world
to be awarded the coveted DGP.
Tata Steel India becomes the first integrated steel company in the world, outside Japan, to
be awarded the Deming Application Prize for Excellence in Total Quality Management for
the year 2008.
CII-ITC Sustainability Prize 2012 for Tata Steel ~Tata Steel recognized for its exemplary performance in economic, social and environmental
facets of Indian business in the Large Independent Company category~
Tata Steel has been awarded the Sustainability Prize (in the 'Category A' for
Large Independent Company- for companies with turnover of above 500 Crores) earlier in
the years of 2006, 2007, 2008 and 2011. The award this year makes it the 5th time for the
steel maker since 2006 and for two years in succession, underlining Tata Steel's ethos built
on a commitment for values beyond steel.
In addition to this, Tata Steel has been recognized with other prestigious awards like Safety
and Health Excellence Recognition Award 2010 by the World Steel Association, Winner in
'Corporate Social Responsibility' at the Procurement Leaders Forum- 2011, UK and
honoured with the 'Rashtriya Khel Protsahan Puruskar' from the Government of India for
the second consecutive year in 2010. It has also been rated amongst the most Ethical
companies of the world by the Ethisphere Institute of USA in 2011.
~Tata Steel honoured for its contribution towards safety programmes~
Tata “teel, Jha ia di isio s u de g ou d oal i es o total a a ds. Bhelatand A
Collie o the a a d fo ei g the Lo gest a ide t f ee i e under difficult mining
o ditio fo the ea & a d Lo est i ju f e ue ate LIF‘ fo the Yea 2009 while the Sijua Colliery was adjudged the runner up in the same category for the year
2008.
Tata Steel conferred with the prestigious Asian MAKE(Most
Admired Knowledge Enterprise) Award for Transforming
Enterprise Knowledge into Stakeholder Value
~ Tata Steel also included in 2012 Asian MAKE Hall of Fame for being Asian
MAKE Finalists in each of the past five annual studies ~
Tata Steel in its continuous endeavour to be a world leader in the Steel Industry, has
once again proved its status globally by being recognized by the 2012 Asian MAKE panel for
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transforming enterprise knowledge into stakeholder value. Tata Steel has previously been
recognized by the Asian MAKE awards on eight accounts including 2008 Overall Asian MAKE
Winner.
Tata Steel has also been highlighted in an even more select list of 10 organizations that form
the 2012 Asian MAKE Hall of Fame. These 10 organizations have been Asian MAKE Finalists
in each of the past five annual studies conducted by the group.
Tata “teel Co fe ed With the P estigious AWA‘D FO‘ LEADE‘“HIP i H‘ E elle e at the CII National HR
Conclave 2012 ~Tata Steel awarded for its benchmarking talent and HR practices~
About the Award CII National HR Excellence Assessment / Awards derive their strength from being aligned
with the much tried and tested and well respected Assessment process of CII Exim Bank
Award.
The Award / Assessment process involves companies sharing the data in the form of an
Application document as per the HR Excellence Model criteria. A team of 3 assessors then
does a site visit to ascertain the veracity of the application document. It also understands
the maturity level of Approaches / Deployment / Analysis, integration of various policy
approaches and to gain a feel of the organization. The benefits the company derives
from the process are invaluable as it gets an external perspective and detailed feedback
from certified assessors. It also understands how to strengthen its processes / policies
further.
Tata “teel ags P i e Mi iste s T oph fo est pe fo i g Integrated Steel Plant
~The Ministry of Steel has awarded Tata Steel Limited with the Prime
Minister’s Trophy for 2008-09 and Certificate of Excellence for the year 2009-
10~
About the Award: The trophy, instituted in 1992-93 on the suggestion of the then Prime Minister P V
Narasimha Rao, recognises the outstanding performance of the integrated steel plants. The
award is intended to spur steel plants to achieve international standards of efficiency,
quality and economy in their operations. The primary objective of the scheme is to generate
a sense of competition among the steel plants so that they continuously benchmark
themselves with the best and improve their performances.
As per the recommendations of the Expert Committee and amendments carried out by
the Government of India, 13 main parameters have been evolved for evaluating
the performance of the integrated steel plants. They are: Steel capacity utilisation,
Efficiency of operations, Financial performance, Export performance, Quality of products,
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Environment Management, Corporate Social Responsibility, Safety, Thrust on R&D,
Custo e “atisfa tio , E a li g Pa a ete s, E plo ees Satisfaction Index and Observation
of the Panel of Judges based on plant visits.
ADVANTAGES OF FLAT ORGANISATION
STRUCTURE
o Flat Organisation is less costly because it has only few managers.
o It creates fewer levels of management.
o Quick decisions and actions can be taken because it has only a few levels of
management.
o Fast and clear communication is possible among these few levels of management.
o Subordinates are free from close and strict supervision and control.
o It is more suitable for routine and standardised activities.
o Superiors may not be too dominating because of large numbers of subordinates.
DRAWBACKS OF FLAT ORGANISATION
STRUCTURE
o There are chances of loose control because there are many subordinates under one
manager.
o The discipline in the organisation may be bad due to lose control.
o The relations between the superiors and subordinates may be bad. Close and
informal relations may not possible.
o There may be problem of team work because there are many subordinates under
one manager.
o Flat organisation structure may create problems of coordination between various
subordinates.
o Efficient and experienced superiors are required to manage a large number of
subordinates.
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