TQM at TATA Steel

TOTAL QUALITY MANAGEMENT@TATA STEEL

TOTAL QUALITY MANAGEMENT

• TQM is an process oriented approach which focuses on process efficiencies to achieve results.

• Customer satisfaction will be achieved only with an collective effort from all the employees

TQM Systems and Tools

TQM Philosophy

TQM PHILOSPHY

Employee Empowerment and

development

Employee Empowerment and

development

Absolute Customer Focus

Absolute Customer Focus

Continuous ImprovementContinuous

ImprovementSystemic Approach

to ManagementSystemic Approach

to Management

OBJECTIVES OF TQM

Quality as first priority leading to Total Customer Satisfaction

Market In-Customer Orientation

Management by facts-the data driven scientific approach

Process Management-Preventive Planning and Control

Upstream Control-Marketing is the key to control

Employee Respect-Total Satisfaction

Top Management Commitment

FRAMEWORK OF TQM

SCOPE OF TQM

Quality System Process of Continuous Improvement

Development of the staff involved

Lack of focus in the mission statement

Lack of attention to some critical points implementation

of TQM.

Absence of proper performance management system.

Excessive focus on company’s image instead analyzing facts

and outcomes.

CONS OF TQM

• To improve upon the organizational performance practices and capabilities.• To facilitate communication and share best practices among the group companies.• To serve as a working tool for managing performance and guiding organizational

opportunities for learning.

CORE VALUES OF TBEM

Visionary Leadership Customer driven Excellence

Organizational & Personal Learning Agility

Leadership

• Credited for creating a sustainable organization focus

Strategic Planning

• Deployment and measurement of action plans

Customer & Market Focus

• Ensuring long term competitiveness of the firm

Measurement Analysis & Knowledge Management

• Alignment and integration across the organization

FRAMEWORK OF TBEM

Workforce focus

• Employee engagement and agility of employees

Process Management

• Cost and cycle time reduction are primary drivers

Business Results

• Analysing all the six outcomes on the whole

FRAMEWORK OF TBEM (Contd..)

• Market driven realizations• New players, glut and fight for survival• Lower import tariffs • Emergence of buyer’s market

INDUSTRY CHALLENGES OF TATA STEEL

• Financially burdened• Human resource under utilization• Lack of competitive culture in the firm

CHALLENGES OF TATA STEEL (Contd..)

Lower prices and

margins

Domestic demand

slow down

Overcapacity in

domestic markets

Slow down in global markets

“If we don’t take care of our customers, somebody else does”- Tata Steel CMD

STEPS TOWARDS EXCELLENCE

Lead the change process and avoid delegation

Pave way for endless two way communication in the company

Set up a small group of handpicked personnel to drive change in the organization.

Including even the top management for accountability by rolling out Key Result Areas (KRA’s)

Implementation 3C Model of Excellence

• Operational Improvement– Reduce cost of production– Manage investment and maximize return– Improve capital structure– Improve supply chain/ logistics

• Strategic Priorities– Refine product mix as per customer

requirement– Manage human resources in effective manner– Strategize long term goals in line with industry

attractiveness

INITIATIVES IDENTIFIED FOR EXCELLENCE

CHANGE

COST

CODE OF CONDUCT

CUSTOMER

TOTAL OPERATIONAL PERFORMANCE

TOOLS USED FOR DELIVARABLES

Minimal investment

Shortest time span

Impacting the

company bottom line

PRODUCT & CUSTOMER RATIONALIZATION

Fragmented

Customer Base

Data Duplication & over burden on employees

Rationalize customer requireme

nt with SAP

• CUSTOMER VALUE MANAGEMENTIt is used to plug any gaping holes of the process and maximise customer returns.

TOOLS USED (Contd..)

• RETAIL VALUE MANAGEMENTFor better estimates of the market prices and demand planning.

TOOLS USED (Contd..)

• STRATEGIC SOURCING

TOOLS USED (Contd..)

Understand the category

Supplier market assessment

Prepare a supplier survey

Building the strategy

Selection and communication

Change

• Specific fuel consumption was reduced by 80% and 3097 new ideas were initiated

Cost

• Raw material consumption had reduced by 56.7% and net 15% reduced cost of steel

Quality

• 400+ personnel was exposed to initiatives and safe working place

Investments

• Labour productivity increased by 95%

RESULTS

Financials

• Company’s debt to equity ratio reduced from 1.5 to 1 & higher margin realization

Specific Energy Consumption

• Bottom line savings of Rs.720 crore

Lowest of cost of production

RESULTS (Contd..)

S.No Commodity POSCO NIPPON SAIL TATA STEEL

1 Coke 65 107 99 56

2 Sinter 30 29 18 15

3 Hot Metal 87 119 106 75

4 Liquid Steel 123 160 154 109

5 HR Coil 156 233 221 151

• Optimizing controls in BF units• Direct reduced iron- EAF

Alternative ways of production

• Product diversification• Reuse of SlagIncrease R&D spend

• Coking coal imports• Iron ore alternativesRaw Material

• Tapping in to infrastructural schemes of Govt. of India

• Distribution networkUntapped Rural Markets

RECOMMENDATIONS

• INVESTING IN EMERGING TECHNOLOGIES

RECOMMENDATIONS (Contd..)

FINEX

• Adopted by POSCO and lowers emissions

FASTMELT

• Lower raw material consumption and better energy efficiency

HISMELT

• Direct Smelting process with lower capital investment and operational costs

THANK YOU

1. http://www.tataquality.com/- TBEM assessment related data

2. http://www.emeraldinsight.com/journals.htm?issn=0954478X&volume=17&issue=

2&articleid=1464335&show=html-

Journal on Components of TQM

3. http://www.emeraldinsight.com/journals.htm?issn=0954478X&volume=15&issue=

6&articleid=842084&show=html-

Journal on Impact on productivity

4. http://www.emeraldinsight.com/journals.htm?issn=1355252X&volume=4&issue=1

&articleid=871929&show=html-

Journal on Total Quality Management in a nutshell

5. www.emeraldinsight.com/0265-671X.htm- Enhancing customer satisfaction

6. www.emeraldinsight.com/0267-6521X.htm- Frame work proposal for TQM

7. http://www.tatasteel.com/- Tata Steel annual report

REFERENCES