This action might not be possible to undo. Are you sure you want to continue?
SANKET S SAKPAL
TOTAL QUALITY MANAGEMENT AT TATA STEEL TATA STEELS Introduction Established in 1907. new product development. As part of developing and deploying an integrated strategy process across the Company. Tata Steel Europe Limited (formerly Corus). operations cost reduction and procurement cost savings.2012. the UK. Strategy. in its downstream operations. Operating companies within the Group include Tata Steel Limited (India). During the Financial Year 2011. the Netherlands. has over 81.13 billion in FY 2011. Since the formal incorporation of Total Quality Management (TQM) for Business Excellence in the late 1980’s Tata Steel has adopted a number of improvement initiatives popular around the world. Tata Steel is among the top ten global steel companies with an annual crude steel capacity of over 28 million tonnes per annum (mtpa). Tata Steel introduced the OGSM (Objective. and Tata Steel Thailand (formerly Millennium Steel). It is now one of the world's most geographically-diversified steel producers.000 employees across five continents and is a Fortune 500 company. The implementation of the Total Operational Performance (TOP) initiatives helped Tata Steel’s upstream operations in Singapore achieve considerable savings while the Company also undertook a productivity enhancement drive. Tata Steel’s larger production facilities include those in India. Similar initiatives in NatSteel’s Australian operations also yielded significant results.12. which included most of the Company’s improvement projects covering areas like product portfolio optimization. Singapore. Goal. . Project Phoenix. China and Australia. and Measure) process throughout its European operations to ensure that actions undertaken in the coming years meet the long-term goals of the Company. with operations in 26 countries and a commercial presence in over 50 countries. Thailand. Tata Steel Thailand (TSTH) launched the ‘Turnaround plan’ in Thailand. NatSteel. Tata Steel maintains a systematic approach towards improving productivity and enhancing quality while reducing cost at the same time. The Tata Steel Group. with a turnover of US$ 26.
requiring the involvement of management. High-performance work systems integrate continuous improvement efforts with normal business operations. A process is a series of steps that take inputs from suppliers (internal or external) and transforms them into outputs that are delivered to customers . when empowerment has occurred. TQM takes into account all quality measures taken at all levels and involving all company employees. Self -managed work teams are one form of empowerment. or buying new measuring tools —the customer determines whether the efforts were worthwhile. integrating quality into the design process. It uses strategy. Customer-focused The customer ultimately determines the level of quality. upgrading computers or software. Total employee commitment can only be obtained after fear has been driven from the workplace. workforce. Total employee involvement All employees participate in working toward common goals. TQM is based on the premise that the quality of products and processes is the responsibility of everyone involved with the creation or consumption of the products or services offered by an organization. No matter what an organization does to foster quality improvement— training employees. to meet or exceed customer expectations. and customers. TQM looks at the overall quality measures used by a company including managing quality design and development. suppliers. The Primary Elements of TQM Total quality management can be summarized as a management system for a customer-focused organization that involves all employees in continual improvement.TOTAL QUALITY MANAGEMENT Introduction Total Quality Management (TQM) is an approach that seeks to improve quality and performance which will meet or exceed customer expectations. and effective communications to integrate the quality discipline into the culture and activities of the organization. and management has provided the proper environment. Process-centered A fundamental part of TQM is a focus on process thinking. and quality assurance. This can be achieved by integrating all qualityrelated functions and processes throughout the company. data. quality control and maintenance. quality improvement.
data on performance measures are necessary. Integrated system Although an organization may consist of many different functional spe cialties often organized into vertically structured departments.(again. The steps required to carry out the process are defined. and other stakeholders. it is the horizontal processes interconnecting these functions that are the focus of TQM. called strategic planning or strategic management. and goals. This process. and guiding principles as well as the quality policies. and performance measures are continuously monitored in order to detect unexpected variation. either internal or external). an integrated system connects business improvement elements in an attempt to continually improve and exceed the expectations of customers. effective communications plays a large part in maintaining morale and in motivating employees at all levels. Thus. and timeliness. Business performance must be monitored and communicated continuously. and it is virtually impossible to achieve excellence in its products and services unless a good quality culture has been fostered. Fact-based decision making In order to know how well an organization is performing. objectives. and allow prediction based on past history. Strategic and systematic approach A critical part of the management of quality is the strategic and systematic approach to achieving an organization’s vision. An integrated business system may be modeled after the Baldrige National Quality Program criteria and/or incorporate the ISO 9000 standards. Every organization has a unique work culture. Everyone must understand the vision. achieve consensus. and critical processes of the organization. TQM requires that an organization continually collect and analyze data in order to improve decision making accuracy. Micro-processes add up to larger processes. . includes the formulation of a strategic plan that integrates quality as a core component. Continual improvement drives an organization to be both analytical and creative in finding ways to become more competitive and more effective at meeting stakeholder expectations. mission. mission. Communications During times of organizational change. method. Communications involve strategies. Continual improvement A major thrust of TQM is continual process improvement. employees. and all processes aggregate into the business processes required for defining and implementing strategy. as well as part of day-to-day operation.
which was completed in February 2010. Retail Value Management. Tata Steel in Europe seeks to create a single. global and strategic marketing team with a goal to become the "best supplier to best customer" and deliver profitable growth. identifying quick wins and developing a customer satisfaction tool. training of CI coaches and knowledge sharing through operations. identifying initiatives for executing these plans. . The Xiamen operations have also adopted measures to reduce vulnerability caused by price fluctuations. Programme include those on Customer Value Management. NatSteel maintains a systematic approach towards improving productivity and enhancing quality while reducing cost at the same time. and Solution for Sales and Supplier Value Management. To this end. The Singapore operations concentrated on yield improvement. The Company emphasizes effective daily work management practices. Subsequent phases are now in progress. Tata Steel has initiated a culture of value creation with customers and suppliers. around 100 people across the sales & marketing teams worked on the first phase. reduction in power consumption and a significant bottom line benefit. a common strategy deployment process. Continuous Improvement activities are focused on providing Business Units with the ability to drive business through Lean Management. A Customer Centric Approach With the Company’s better understanding of TQM and the Theory of Constraints (TOC) on the Deming Application Prize journey.TQM AT TATA STEELS Tata Steel has maintained the confidence to improve performance globally even in the face of a challenging economic climate in which the steel industry happens to be severely affected. One factor that contributes to this confidence is the Company’s adherence to Total Quality Management (TQM) to achieve its goals. its customer focus and market orientation have undergone a sea-change. Since the formal incorporation of TQM for Business Excellence in the late 1980’s Tata Steel has adopted a number of improvement initiatives popular around the world. At Tata Steel’s European operations. Product catalogues have been developed and high-level metrics have been defined. which include developing three to five year plans for each of eleven industry-focused sectors. a clean and safe work environment and consistency and stability of processes as important factors in sustaining development and growth. The activities included: Categorizing customers to ensure the right level of focus and developing account plans for the highest opportunity customers. Specific approaches focus on the 'needs' of the customer as opposed to 'wants'.
Performance Improvement Initiatives Performance Improvement Teams Tata Steel set up the Performance Improvement Committee (PIC) in January 2008 to accelerate performance improvement on a continual basis. in 2009-2010 the Procurement Division of Tata Steel India focused its efforts on keeping these trends in check by leveraging long-term contracts and relationships. Improve quickly on existing operations. Innovate continuously in order to be differentiated from others. Seven (7) PI groups have started functioning under the PIC identifying Key Performance Indicators (KPI) to be improved and improvement projects to be undertaken. so that process and performance improvement becomes a way of life. At the moment. charged with improving manufacturing processes. Considerable progress has been made in strengthening the work of the Performance Improvement Teams (PITs). and on minimizing risk by hedging and through various other strategic sourcing tools. Tata Steel’s TQM journey has encompassed in its fold all the people down th e line. Ensuring value creation for the system as a whole is the only means of achieving success in the long run. 17 of these teams are operating across the Tata Steel Group and initial estimates indicate the value of PIT-facilitated projects being undertaken in FY 11 to be more than £ 110 million. In the face of high raw materials price volatility and an overall trend of rapidly increasing prices. Creating group-wide key performance indicators for marketing & sales. including innovations and improvement initiatives using Total Quality Management precepts. Change in Performance Culture The Performance Improvement journey has resulted in some positive changes in the performance culture. . Increasing the pace of standardization to strengthen the base. implementing a customer satisfaction programme and developing a single products and services catalogue. The Improvement Philosophy Keeping up pace with the different changes in the global business arena. Tata Steel believes that to be prepared for the future it needs to ‘plan’ improvements with three main areas o f focus.
2 blast furnaces at Ijmuiden and Port Talbot were salamander tapped as part of temporary blow-down due to the contraction in market demand.202 heats in November 2009. compared to earlier rates of 13%. Steelmaking Group Increasing the number of tuyeres at both Ijmuiden and Port Talbot from 4 to 6 is improving the yield from the BOS vessels. People Involvement The People Involvement team meetings have had a positive influence on having more people participate actively in different performance improvement initiatives PIT Improvement Initiatives Iron making Group Usage of cheaper coals (LCCS) in the coke making blend increased to an all-time high of 41%. This process is useful in reducing the risk of hearth failures while still allowing quick restarts.6% and 29% this year at Ijmuiden. thus saving on the cost of relining the vessel. LD #2. LD #1 in Jamshedpur achieved its highest ever vessel life of 5. Port Talbot and Scunthorpe. Bottom Line Orientation Most projects are being conceptualized with an expected financial benefit to consider. The slag volumes at the Port Talbot blast furnaces were reduced from the initial baseline of 245 kg/thm to 221 kg/thm in FY 10. Improved fleet management systems and the introduction of ladle coordinators helped increase the life of steel ladles from 110 heats in 2008 to 120 heats in February 2010 at Port Talbot. The changing of the tuyere design at the BOS converters at IJmuiden to bottom stirring is bringing benefits through improved converter life and yield. 33. compared with baseline usage of 128 kg/tcs and 72 kg/tcs.KPI Comparisons KPI comparisons across groups have led to identification of performance gaps within the Company enabling the initiation of improvement projects in the area of concern. 20% and 8% respectively. t he number of coke ovens in Batteries 5. at Jamshedpur achieved an increased . 6 and 7 at Jamshedpur that were subject to down-time during the year fell to zero from 48 in 2008. The usage of iron-rich steelmaking waste reached record levels of 164 kg/tcs and 143 kg/tcs during the year at Port Talbot and Scunthorpe respectively. As a result of shared best practice from Corus’ Scunthorpe and Teesside plants.
0t to 20. The Hayange Rail Mill in France is developing the capability to produce 108-metre rails through sharing experience with Scunthorpe’s Medium Section Mill.153 heats in January 2010. improving the yield from the BOS vessels. Learnings achieved through the PIT process enabled Vessel 1 at Scunthorpe to achieve its highest ever vessel life of 6. average casting speed of 1. . achieving significant fixed cost reductions. coupled with back-up roll changes. The Cold Rolling Mill at Jamshedpur achieved zero roll failures after implementing mill and roll shop Practices learnt from Corus plants.5 kwh/t in FY 10.6t over the period April 2008 to March 2010. thus saving the cost of relining the vessel.2t to 21. the Hot Strip Mills at IJmuiden and Port Talbot have been able to increase their coil weights from 20. The Hot Strip Mill at Jamshedpur successfully implemented a planned maintenance schedule that was followed at IJmuiden.7t and from 19. Port Talbot reduced the electricity consumption of its HSM from baseline 92 kwh/t to 88. Flat Rolling Group Based on learnings from Jamshedpur and facilitated through the PIT.19 m/min from 1. resulted in a higher number of net operating hours. There was an increase in yield at the Teesside Beam Mill and improvement in yield across plate mills of Scunthorpe and Dalzell. Long Rolling Group An energy saving campaign was rolled out and various initiatives taken across the Sections Mills in TSE resulted in 12% year-on-year savings across all section mills. This initiative. The number of tuyeres at Scunthorpe was increased from 3 to 4.17 m/min year-on-year after implementing a shop tracking system learnt from IJmuiden. ASPIRE As the new millennium was ushered in with a growth and globalization plan supported by several technological interventions it also became imperative that an all-inclusive improvement model be evolved to give a systematic direction to the myriad measures that had to be taken.
a strong improvement framework which supports a culture of inclusive growth has been put into place. The broad improvement processes relate to TQM principles of Daily Management. Problem Solving and Task Achieving under the Aspire model. TOC and some others. TOC is primarily being applied to improve service quality for customers and develop a competitive edge based on reliable delivery service. TPM.T3 The most important milestone in Tata Steel’s history has been its transition from a company operating in a controlled economy to one that is flourishing in a globally competitive environment. Policy Management. Focusing on the tenet that aspirations. a few modifications evolved in the existing system. . and customer satisfaction in the improvement focus along with cost-competitiveness. Knowledge Management. and also sustaining and improving EVA year on year as envisaged in the Group Vision 2007. TQM (Total Quality Management) and Technology to enthuse its people to newer heights of excellence. When it became imperative to include factors like modernization. In a global scenario of high paced competition. Tata Steel felt the need to adopt an integrated improvement programme to accelerate the speed of change. ASPIRE includes improvement tools like Suggestion Management. VE. ASPIRE .With this came the added challenge of becoming an EVA positive Company even when market conditions were not favourable. 2003 as a means of reaching the ultimate goal set in Vision 2012 of becoming the global industry benchmark for Value Creation and Corporate Citizenship. Six Sigma. The ASPIRE philosophy revolves around self-confidence and the desire to excel. The seeds of conception having been sown in 2002. TOP. ASPIRE (acronym for Aspirational Initiatives to Retain Excellence) was launched on 2nd May. ASPIRE seeks to find ways of mitigating the difficulty posed by limited resources in the way of ambition fulfillment. The Technology focus is aimed at improving the capability for new Product and Process development. The Company is now in the process of bringing improvement initiatives under a single umbrella of Aspire T3 that comprises TOC (Theory of Constraints). TQM provides the fundamental structure for customer and quality focused continuous improvements. Through ASPIRE T3. Tata Steel has been quick to anticipate the emerging needs of individual aspirations and the professional drivers that motivate its employees. growth. and therefore improvement knows no bounds.
Policy Management. Quality Circles (QC) are small group activities which involves firstline employees who continually control and improve the quality of their work. TOP in Marketing: Launched in 2002 with the help of McKinsey. Management. QIP. The various improvement initiatives adopted by Tata Steel which are recognized as Aspire Tools are: Value Engineering (VE): Value Engineering is an organized approach for identification and elimination of unnecessary cost. TOC and some others. It is generally used for Task Achieving Projects like New Product Development. QC & Benchmarking: Tata Steel adopted Juran Trilogy concept for undertaking Quality Improvement Projects (QIP). VE. Major focus of this initiative was on cost reduction. Total Operational Performance (TOP): Total Operational Performance initiative was launched in 1998 with the help of McKinsey. Define-Measure-Analyse-Improve-Control (DMAIC): The fundamental objective of the DMAIC methodology is the implementation of a measurement-based strategy that focuses on process improvement and variation reduction. TOP. The beginning was made in July ’99 to place a Knowledge Management (KM) program for the company and systematically as well as formally share and transfer learning concepts. TPM. products and services. DMADIC focus is predominantly on design aspects. . Problem solving and Task achieving under the Aspire model. Knowledge Management (KM): Tata Steel decided to embark on formal KM initiative in the year 1999.TATA STEEL ASPIRE Aspire Tools ASPIRE includes improvement tools like Suggestion. Knowledge Management. The broad improvement processes relate to TQM principles of Daily Management. Benchmarking is a process of exploring for best practices and performances across the world and putting systematic efforts to bridge the gap. TOP in Marketing was the first new ASPIRE initiative launched with a focus on creating value through partnership with customers. best practices and other implicit knowledge. Define-Measure-Analyse-Design-Improve-Control (DMADIC): This tool is based on Design for Six Sigma Philosophy. New Market Development etc. quality & throughput improvement. Six Sigma.
Total Quality Management (TQM) and Technology. 2006 this initiative focuses on implementation of Theory of Constraints (TOC). TS16949. What are the various Initiatives undertaken under the Aspire T3 umbrella program of Tata steel? List the various tools used by Tata steel under this program. . 2. Describe in brief about Total Quality Management and its implementation at Tata steel. OSHAS. 4. J. What were the Performance Improvement Team (PIT) initiatives undertaken at various departments of Tata steel under the TQM programme and what were the results of the implementation? 3. discuss and implement small improvements (Kaizens) in the area of work. are adopted by various units to establish basic management systems. Tata / S. This process is developed in line with Tata Business Excellence Model (TBEM) which is based on US Govt. ASPIRE T3: ASPIRE T3 Launched in November. QC circles and TPM circles are known as SGA teams. Deming Assessment: This assessment is done by Japanese Union of Scientists and Engineers (JUSE) for the companies implementing TQM practices and applying for Deming Application Prize. whereas service quality is being focused through TOC implementation. This will help the company to become more competitive and a global leader by achieving excellence in product & service quality. identify. Value creation is focused through better understanding of customer (internal) requirements and supplier capabilities. ISO 14000 etc. TQM & Technology will help to achieve superior product quality through process consistency. Quality Management Systems (QMS): Quality Management Systems as required. Small Group Activities (SGA): Small Group Activities (SGA) are promoted under daily management through SGA teams who meet. Vishwanathan Total Quality Assurance Process: Tata Steel has instituted J N Tata / S Vishwanathan Total Quality Assurance process.Supplier Value Management (SVM): This aims to reduce costs and resources in the entire value chain of supplier and Tata Steel. like ISO 9000. Questions 1. process capability and technological capability. N. Malcolm Baldridge Model. Explain in brief about the customer centric approach implemented under the TQM program by Tata steel and its effect on its performance.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.