PRODUCTION

Production is defined as the act of manufacturing, mining or growing a commodity usually in bulk for
sale. Production is a term also used in connection with plays, movies, radio or television programmes.
A person who produces something is known as a producer.
A product is the result of the producer's efforts and ability to pool in resources to create a final
commodity. Production is the output of a commodity created over a specified period of time.
Production is also the act of creating wealth from the activities or processes involved in the
manufacturing of goods and services.
The way that businesses create products and services is known as the production process. There are
three main parts to the production process as can be seen in the diagram below:

A firm must purchase all the necessary inputs and then transform them into the product (outputs) that
it wishes to sell. For example a football shirt manufacturer must buy the fabric, pay someone for a
design, invest in machinery, rent a factory and employ workers in order for the football shirts to be
made and then sold.
How well-organised a firm is at undertaking this transformation process will determine its success.
This is known as the productive efficiency of a firm and it will want to be as efficient as possible in
transforming its inputs into outputs (i.e. using the minimum number of inputs as possible to achieve a
set amount of output). This will reduce the cost per unit of production and allow the firm to sell at a
lower price.
Ultimately, the objective of the production process is to create goods and services that meet the
needs and wants of customers. The needs and wants of customers will be met if a business can
produce the correct number of products, in the shortest possible time, to the best quality and all at a
competitive price.
 PRODUCTION MANAGEMENT
Planning, implementation, and control of industrial production processes to ensure smooth and efficient
operation. Production management techniques are used in both manufacturing and service industries.
Production management responsibilities include the traditional “five M's”: men and women, machines,
methods, materials, and money. Managers are expected to maintain an efficient production process
with a workforce that can readily adapt to new equipment and schedules. They may use industrial
engineering methods, such as time-and-motion studies, to design efficient work methods. They are
responsible for managing both physical (raw) materials and information materials (paperwork or
electronic documentation). Of their duties involving money, inventory control is the most important.
This involves tracking all component parts, work in process, finished goods, packaging materials, and
general supplies. The production cycle requires that sales, financial, engineering, and planning
departments exchange information—such as sales forecasts, inventory levels, and budgets—until
detailed production orders are dispatched by a production-control division. Managers must also
monitor operations to ensure that planned output levels, cost levels, and quality objectives are met.
Effective production management considerate the characteristics of various types of production
systems, identification of the different phases of the management process, to realize the impending of
different analytical tools, learning the nuances of the implementation of these tools, visualizing the
impact of various uncertain situations and developing the ability to react under various scenarios to
achieve consistently excellent business results.
Steps for Production Management:

i. Understanding of production/operation functions

ii. Manufacturing planning & control

iii. Materials (supply chain ) Management

iv. Project Management

v. Maintenance Management

vi. Quality Management

 MATERIAL MANAGEMENT
Materials management is the branch of logistics that deals with the tangible components of a supply
chain. Specifically, this covers the acquisition of spare parts and replacements, quality control of
purchasing and ordering such parts, and the standards involved in ordering, shipping, and warehousing
the said parts.
Material Management is concerned with control of materials in such a manner which ensures maximum
return on working control material management is concerned with the location & purchase of needed
their storage & movement. it also arranges to keep on account for them .it is also responsible for
planning their movement through manufacturing processes, store rooms and distribution channels .
Planning and control of the functions supporting the complete cycle (flow) of materials, and the
associated flow of information. These functions include (1) identification, (2) cataloging, (3)
standardization, (4) need determination, (5) scheduling, (6) procurement, (7) inspection, (8) quality
control, (9) packaging, (10) storage, (11) inventory control, (12) distribution, and (13) disposal. Also
called materials planning.
Primary Objective of materials management
1. Low prices- to be lowest - includes transportation: enhances profit
2. High inventory Turnover- value of inventories to be low in relation to sales. Reduces storage
costs
3. Low cost acquisition and possession- reduced handling and storage costs.
4. Continuity of supply- alternative sources, , captive suppliers, flexible suppliers
5. Low payroll costs- Low operating costs of material management personnel
6. Favorable supplier relations- supplier development
Secondary objectives of Materials management
1. New materials and products- working closely with Design and research departments for
development of new materials and products
2. Economic make-buy- Coordinating and assisting other departments in Make-Buy decisions
3. Standardization- coordinating with Design departments in reducing no. of items.
4. Product improvement- Contribution towards product improvement by giving appropriate inputs
and assisting Design department.
5. Interdepartmental Harmony- Success of materials management department depends on the
success of other departments . hence relations are to be harmonious
6. Forecasts- Forecasts in terms of prices, availability and general market conditions are to be
regularly monitored towards taking important business decisions.
 TATA STEEL
Tata Steel, formerly known as TISCO and Tata Iron and Steel Company Limited, is the world's sixth
largest steel company, with an annual crude steel capacity of 31 million tonnes. It is the second largest
private sector steel company in India in terms of domestic production. Ranked 315th on Fortune Global
500, It is part of Tata Group of companies. Tata Steel is also India's second-largest and second-most
profitable company in private sector with consolidated revenues of Rs 1,32,110 crore and net profit of
over Rs 12,350 crore during the year ended March 31, 2008. Established by Indian Parsi businessman
Jamshetji Nusserwanji Tata in 1907.
Its main plant is located in Jamshedpur, Jharkhand, has a crude steel production capacity of 6.8 MTPA,
with its recent acquisitions; the company has become a multinational with operations in various
countries. The Jamshedpur plant contains the DCS supplied by Honeywell. The company was also
recognized as the world's best steel producer by World Steel Dynamics in 2005. The company is listed
on Bombay Stock Exchange and National Stock Exchange of India, and employs about 82,700 people
Tata Steel annually produces 18 million tonnes of steel in India and 52.32 million tonnes overseas,
making it the fifth largest steel producer in the world. It produced a record-breaking 10.32 million
tonnes of salable steel in its Jamshedpur works in 2009-10. The company's gross revenue in that
financial reporting year was Rs. 20196.24 crores. Its PBT was Rs.621261.65 crores and PAT was
Rs.422212.15 crores in the same year.

Location
Located in the East Singhbhum district of Jharkhand on the Chota Nagpur plateau, it is the district
headquarters and is surrounded by the beautiful Dalma Hills. The rivers Subarnarekha and Kharkai
border the North and West of the city, respectively. The areas surrounding Jamshedpur are rich in
minerals, including iron ore, coal, manganese bauxite and lime. The Tata Steel is situated almost at the
center of the city

Raw Material
Tata Steel Limited has two collieries in West Bokaro and Jharia, in the state of Jharkhand. While West
Bokaro unit is an open cast mine, the Jharia unit is underground. The coal mines are about 150 kms
from the steel plant at Jamshedpur and produce superior grades of clean coal. Tata Steel's collieries use
'Surpac', a state-of-the-art mine planning software that estimates the volume of coal in every seam. This
software is coupled with qualitative detailing that focuses on output consistency. To maximize
productivity and utilization, a voice and data equipped Global Positioning System is used, which helps
to supervise mining activity for machine movement and engine status. The collieries division is
equipped with in-house washeries, which use the beneficiation process to separate coal from impurities.
The Dense Media Cyclone process utilized over here refines coal particles smaller than 13mm while
Froth Floatation Cells processes coal below 0.5 mm.
Iron ore Mining is an integral part of steel making in Tata Steel Limited. The iron ore units are located
in Noamundi, Joda and Katamandi in the states of Jharkhand and Orissa. Tata Steel Limited also has a
manganese mines and dolomite quarries in Orissa. These mines are located at an approximate distance
of 150 kms from Jamshedpur, home to the steel company's manufacturing facility. The Steel
Company's iron ore units produce 9 million tons per annum of various grades of high quality iron ore
including rich blue dust ore. The mineral ore is crushed, right-sized and washed in-house at the site and
transported to the steel works in Jamshedpur and to other customers.
As a truly adventurous enterprise, Tata Steel Limited was a pioneer in discovering the rich mineral
wealth of the Jharkhand and Orissa region nearly a 100 years ago. It has also been a leader in
introducing modern mining techniques. Tata Steel Limited has several decades of experience in
scientific and sustainable mining, mine planning, development and research. The raw materials division
of the steel company raises over 14 million tones of ores from its captive collieries, iron ore mines and
quarries spread over the states of Jharkhand and Orissa. Coal, iron ore, manganese ore, chrome and
dolomite are produced at various mines and quarries. The Company's steel plant in Jamshedpur and its
customers consume the high-grade raw materials from these units.
Tata Steel Limited is fully committed to preserve nature's balance for posterity and is awakened to the
dangers of reckless mining, which may lead to ecological devastation. The entire mining operation of
the Company is safe guarded against accident occurrence. Proactive measures are undertaken to ensure
the employee's health and productivity through ergonomically designed work stations and by protecting
them from occupational hazards. All its mines are ISO-14001 - Environmental Management System
Certified.
In addition to conducting massive tree plantation campaigns, locations specific, environmental
management initiatives have been taken. To mention a few:
Collieries: Close circuit effluent management, Auto dust suppression, Centrifuges to check the ore
fines in waters, Recycling washery rejects in power plants, Electro static precipitators, transformation
of subsided area into natural landscapes, utilization of fly ash to land field, A forestation and waste land
development.
Mines: First slime dam in the country, Check dams to arrest rain runoff, Environment laboratory,
Botanical park, Back filling etc.

EMPLOYMENT AT TATA STEEL

As on 31.03.2006, Tata Steel had a total permanent workforce of 38,182. The breakup of workforce is
furnished in the Table In addition, there were approximately 5,631 contractor’s employees in works &
non- works area.
Location Officers Non-Officers Total

Jamshedpur 2769 18139 20908

Noamundi (Iron Mines) 201 1787 1988

Jamadoba (Collieries) 187 6871 7058

West Bokaro (Collieries) 181 3436 3617

Kolkata (M&S) 128 234 362

Mumbai (Head Office) 28 31 59

Adityapur Complex 104 528 632

CRC West & Wire Division 230 1202 1432

CRM Sisodra 51 242 293

Kharagpur 62 568 630

FAMD 152 1033 1185

CRE Offices- Delhi, Bhubaneshwar, Ranchi & 13 5 18

Raipur

TOTAL 4106 34076 38182

The benefits given to employees beyond those legally mandated are summarized below and also
presented in Table
Facilities Diverse work groups

Preferential house allotment Working couples

Free water and medical services, subsidized All employees

electricity

Metro allowance Metro employees

Monetary incentives Employees acquiring higher education in related

field

Work allowance / Night shift allowance Graduate Trainees / People working in shift

The steel company has spent a sum of Rs.381,366,444.47 on medical services in the year 05-06 as
against Rs 344,649,299.19 in 04-05 and Rs. 102,047,596.13 in 05-06 as against Rs. 83,570,769.81 in
04-05 on Educational facilities for the employees and their families at Jamshedpur.
• Early Separation Scheme: a monthly pension of 1 time /1.20 times of an employee’s salary
depending upon his age and length of service, till the time the employee would have attained
the age of 60 is given on separation.

• Family Benefit Scheme: in case of fatality in the Works, a monthly pension equal to the amount
of the last drawn salary of the deceased is given to the legal heir until the time the deceased
would have attained the age of 60.

• Special leave to Women: leave is given to women executives, with children of less than 5 years
of age to take care of their children, in case of sickness.

• Basic Plant training: 18 months training with stipend to employees’ wards to enhance their
employability.
 Coal
Fluxes
Iron ore

Blast Furnace

Iron Processer

LD1

Steel Processer

LD2

Hot Mill Slabs

Cold Mill

Production Process
Iron ore fines are not suitable for use in the Bast Furnace. Hence, the ironore fines are agglomerated
into larger porus lumps, which is suitable for use in the Blast Furnace. A green mix of carefully
proportioned ironore fines, fluxes and coke breeze is prepared in granular form in Mixers. Heat
generated through combustion within the mass itself produces large lumps of hot Sinter. This Sinter is
cooled, sized and stored for use in the blast furnace.
Ironore fines are recycled to make sinter, to help produce hot metal of predictable and standard quality
in the Blast Furnace.
Naturally found coal contains Fixed carbon(FC), Volatile matter (VM), Ash, Moisture and other
impurities. Its poor crushing strength and the volatile matter content makes it unsuitable for use in Blast
Furnace. Hence, naturally found coal is converted into coke in the coke oven for use in Blast Furnaces.
Heating coal in the absence of air carbonising it to form a hard porous mass, devoid of volatile matter
produces coke. Coal after carbonisation, which gives blast furnace quality coke is called metallurgical
coal. Coal is graded as prime, medium and blendable, based on its coking properties. Blending of
different grades of coal is necessary in order to conserve metallurgical coal, yet ensure uniform coking
properties. Currently, there are 6 batteries of coke oven supplying coke to the blast furnaces.
The coke plant blends coal from different sources, converts coal to coke and cuts to the correct size for
use in the blast furnace.
The Blast Furnace is a ceramic refactory lined tall reactor, used for the production of liquid iron called
Hot Metal. Iron oxide, present in the iron bearing raw materials, is reduced inside the reactor by coke
and carbon monoxide.
Coke is used for combustion to attain the high temperatures required for reduction. Coke on
combustion generates carbon monoxide , which acts as the reducing agent and converts the iron oxides
into molten iron. Fluxes are used to make low melting slag and control the quality of Hot Metal.
Hot Metal and Slag are collected in the hearth and tapped periodically. Blast Furnaces A, B, C, D, E
and F together produce 2.8 million tons of hot metal, annually. G-Blast Furnace produces 1.30 million
tons of hot metal annually. Blast Furnace F has been rebuilt in 2002 to enlarge its capacity to 1 million
tonnes.
Blast Furnaces are used for producing Hot Metal.
Hot Liquid Iron(commonly called Hot Metal in Tata Steel) is converted to Steel in the Steel Melting
Shops. Hot Metal from the Blast Furnace is stored in Mixers in LD#1 shop. The Hot Metal is converted
to Steel in the LD converters by removing its carbon, silicon, sulphur and phosphorous contents.
The liquid steel from the converter is converted to billets using Continuous Casting machine. A small
portion of steel is teemed into ingots through Bogie Bottom Poring process using cast iron moulds. The
liquid steel is treated in On line purging, Ladle Refining Furnace or Argon Rinsing station before
continuous casting. Special grades of steel, which are cast as ingots, are processed in On-line purging,
followed by the Vacuum Arc degassing & Refining unit.
The Steel Melting Shop requires an Oxygen Plant to cater to the requirement of oxygen for steel
making. The Lime Calcining Plant and the Tar Dolo Plant are auxiliary units required for the
manufacture of Steel.
Hot metal is converted to Steel and cast into Billets.
The LD#2 Shop has three Converters of 140 tons capacity each, producing 2.6 million tons of crude
steel per annum. Hot Metal is brought from A, D, E, F and G Blast Furnaces in Torpedo ladles. The
metal from the Torpedo ladle is taken into the Hot Metal for Desulphurisation. It is then charged into
the vessel.
Primary refining of steel is done in the Ladle Furnace(LF) and RH Degasser(RH) to make cleaner steel
of different value added grades.
LD 2 makes superior & cleaner grades of steel required to process Flat products of world-class
standards.
 Products
Apart from the main steel division, Tata Steel's operations are grouped under strategic profit centres
like tubes, growth shop (for its steel plant and material handling equipment), bearings, ferro alloys and
minerals, rings, agrico and wires.
Tata Steel's products include hot and cold rolled coils and sheets, tubes, wire rods, construction bars,
structurals, forging quality steel, rings and bearings. In an attempt to 'decommoditise' steel, the
company has recently introduced brands like Tata Steelium (India's first branded cold rolled steel),
Tata Shaktee (galvanised corrugated sheets), Tata Tiscon (re-rolled bars), Tata pipes, Tata bearings,
Tata Wiron (galvanised wire products) and Tata Agrico (hand tools and implements).
Environment management Jamshedpur was India's first planned industrial township. In more recent
times, Tata Steel has received ISO 14000 certification for environment management for most of its
works, plants, mines and collieries.
Corporate social responsibility Tata Steel is one of the few Indian companies to be invited to join the
UN-sponsored Global Compact. It has also been conferred the prestigious Global Business Coalition
Award (GBC) for Business Excellence in the Community in view of its outstanding work in the field of
HIV / AIDS awareness.

Conclusion
The company is backward integrated with owned iron ore mines and collieries. With its competitive
advantage in raw materials, efficient operations and the benefits of a recently-completed $2.3 billion
programme of modernisation, Tata Steel is among the lowest cost steel producers in the world.

The steel major has won the Prime Minister's Trophy four times. This award is instituted by the Indian
ministry of steel and awarded to the country's best integrated steel plant. In 2000, it became the first
Tata company to win the JRD Tata QV award, given to the company with 'world class' operations
under the Group's Tata Business Excellence Model.