Rourkela Steel Plant's Journey from Losses to Profits
1. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 166 HRD Centre
An Introduction to Rourkela Steel Plant
Rourkela steel plant was the torchbearer for Public Sector Steel Industry in India and
carried the banner of the industrial revolution for the nascent Republic of India. The
Steel Plant, now a unit of the Steel Authority of India Limited (SAIL), was a started
during the mid-fifties of the 20th century in collaboration with the leading steel
makers from the Federal Republic of Germany.
The units at 1.0 MT stage were commissioned between December 1958 and early
part of 1962. With a view to meet the additional demand for flat products in the
country, it was decided to increase the capacity of the Blooming& Slabbing Mill, Hot
Strip Mill and Plate Mill RSP. Accordingly, capacity of ingot steel was increased to
1.0 MT to 1.8 MT between the years 1965 to 1969. Besides expansion of the units, the
scheme also envisaged additional unit of new units like Electrical Steel Mill (for
dynamo and transformer grade steel) and galvanized lines (for corrugated and plain
galvanized sheets). Subsequently to the expansion of the steel plant a number of units
were added to enhance the product quality, production, productivity and to meet the
market needs. These units included Blast Furnaces, Spiral Weld Pipe Plant, Silicon
Steel Mill, Captive Power Plant-II, Mechanical Shop, Structural & Fabrication Shop,
Heavy Loco Repair Shop, Slag Granulation Plant and Coke Oven Battery number 5.
In order to overcome technological obsolescence and to remain competitive in the
market place, even internationally, RSP went in for modernization, which was
conceived in the year 1988. Phase-I of modernization, which emphasized on
improving the quality of raw materials, consisted of new Oxygen Plant at Blast
Furnace-4, Raw Material Handling System, Coal Handling Plant (in Coke Ovens) and
power Distribution system, was completed in the year 1994. Phase-II consisted of a
new Sinter Plant, basic Oxygen Furnace and Slab Casting Shop-II, modification of
Plate Mill and Hot Strip Mill and installation of Slab Casting Shop in SMS-I, except
2. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 167 HRD Centre
for Hot Strip Mill, which was completed in the year 1999, all the other areas were
completed in the year 1997.
Rourkela Steel Plant is one of the unique steel plants under the SAIL umbrella
with a wide variety of special purpose steels. The use of its plates in Ship building and
high pressure vessels, Silicon Steel in electrical industries, Corrugated galvanized
sheets for roofing including industrial roofing, Pipes in the oil & gas sectors, Tin
Plates in packaging industries and Special Plates in the defense of the nation is well
known.
Most of the Production and Services units of Rourkela Steel Plant have been
certified by M/s RWTUV, Germany to ISO 9001:2000 Quality Management System.
American Petroleum Institute (API) also certifies the Pipe Plants of RSP to API Q1
Quality Assurance System Sixth Version in August 2000.
The units certified under ISO 9001:2000 QMS are as follows:
1 Air Conditioning
2 Blast Furnace
3 Calcining Plant II
4 Electrical Resistance Weld Pipe Plant
5 Galvanizing Line & Electro Tinning Line of CRM
6 Hot Strip Mill
7 HRD Centre
8 Mechanical Shop
9 Ore Bedding and Blending Plant
10 Planning & Coordination (Services)
11 Plate Mill
12 Repair Shop(Electrical)
13 Repair Shop(Mechanical)
14 Roll Shop
15 Silicon Steel Mill
3. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 168 HRD Centre
16 Sinter Plant-II
17 Spiral Weld Pipe Plant
18 Steel Melting Shop-I
19 Steel Melting Shop-II
20 Structural & Fabrication Shop
21 T &RM(Loco Repair Shop)
22 Tonnage Oxygen Plant-I
23 Tonnage Oxygen Plant-II
The following units of RSP have also been certified with ISO 14001: 2004
Environment Management
System (EMS)
1 Environmental Engineering Department
2 Hot Strip Mill
3 Plate Mill
4 Silicon Steel Mill
5 Sinter Plant-II
Special Features of Rourkela Steel Plant:
It is the first Plant in Asia to adopt LD process of steel making.
It is the only Plant producing large diameters ERW/SW Pipes confirming to most rigid
standards of API.
It is the first steel Plant in India to adopt external desulphurization of hot metal by
calcium carbide injection process.
It is the only steel Plant in SAIL producing Cold Rolled Oriented (CRNO) Steel sheets
for use in the electrical industries with installed capacity of 73000 Ton/yr
Rourkela is the first in vacuum degassing metallurgy. This system has been adopted
primarily for production of silicon steel for the cold rolled non-oriented sheets. This
4. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 169 HRD Centre
system consists of vacuum arc refining and vacuum oxygen refining units and
degassing facility.
It is the first integrated Steel Plant of SAIL which adopted the cost effective and
quality centered continuous casting route to process 100% of steel produced.
All the major production departments and some service departments and some service
departments certified to ISO 9001:2000 QMS.
Silicon Steel Mill, Environmental Engineering Department and Sinter Plant-II
certified to ISO 14001:2004 EMS.
5. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 170 HRD Centre
The Turnaround Story
Rourkela Steel Plant (RSP) carved out a place for itself in recent corporate history
when it ended almost a decade of making losses changed the complexion of its bottom
line from red to black.
The steel plant, which is an integral part of Steel Authority of India Limited, had
earlier enjoyed the reputation of being one of the most profitable plants of the
company. It even had the distinction of enjoying uninterrupted net profit from 1984-85
to 1994-95. However due to various reasons, both internal and external, the plant
began to incur losses from the year 1995-96. While the external factors consisted of
overcapacity in domestic market, steep decline in steel prices and a recession in steel
industry worldwide, the internal conditions included poor capacity utilization in the
modernized units and existing units, leading to high costs, poor health of equipment,
frequent work interruptions due to mal-operations, breakdowns and fires, adverse
techno-economics indices, low level of employee morale, little or no respect for
Rourkela Steel Plant and a conspicuous absence of leadership. The situation at
Rourkela Steel Plant got worse each year but just when things seemed to be getting out
of hand, change in the leadership took place with the arrival of Dr. Sanak Mishra, who
took over as the Chief Executive towards the end of first half of the year 2001.
In around four year’s time, under the visionary leadership of its Chief Executive,
Rourkela Steel Plant has achieved one of the most dramatic turnaround in Indian
Corporate History. The Steel Plant which was on the verge of oblivion in 2001-02, is
now firmly on path of profitability and prosperity. While the steel plant has completed
a spectacular turnaround in financial terms by not only making a net profit during
2004-05 which is several times the sum total of profits earned by it since inception,
6. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 171 HRD Centre
what is more important is that a transformation has taken place in RSP and this
transformation has begun to embrace every aspect of working.
Initiation of the Turnaround Strategy (2001-2002)
Regenerating Strength with People
The new Chief Executive began in a unique way with some unprecedented steps. He
took up the challenge of pioneering a change intervention to revive and transform
Rourkela Steel Plant from a loss making to a “PROFITABLE HARMONIOUS AND
VIBRANT ORGANISATION”. He constructed a programme spread over a three-year
period to achieve this objective.
‘Regenerating Strength with People’ was a people-centered transformation
programme. It emerged out of the Chief Executive’s firm conviction that people
constitute the most powerful force in moving an organization forward, even when the
organization is highly technology centered.
A simple strategy called ‘profit-related performance’ was adopted as the single
most important objective of the Plant. This was reinforced repeatedly so that the
employees could internalize the message and reflected in their efforts for the overall
performance of the Plant. The employees had to understand one fundamental thing,
that is, the most critical inputs for performance of the plant. The employees had to
understand one fundamental thing, that is, the most critical inputs for performance and
progress had to come from internal actions by the employees themselves- mostly
physical activities. It was to be emphasized to the employees that if RSP was to earn
even positive gross margin to start with, then physical performance was essential.
7. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 172 HRD Centre
There was absolutely no substitute for PERFORMANCE since the “future of Rourkela
Steel Plant depended upon internal physical actions.”
The Chief Executive set the programme in motion by setting the ten priorities,
which were:
Employees Motivation and Employees Pride
Leadership Practices
Environmental Relations and Organizational Change
Plant Maintenance and Equipment Health
Small Investment Schemes for Maintaining Current Operations
Sustained Operation and Consistent Production
Strengthening Secondary Streams of Cash Generation
Operational and Purchase Cost Reduction
Sustaining the Benefits of Operation Vijay
Enhancing Gross Margin and Net Sales Realization
To drive the implementation process, a Strategy Team (headed by the Chief Executive
himself) and Crack Teams were also formed to look into specific issues.
The earliest preparation for the transformation of Rourkela Steel Plant finds
expression in the Managing Director’s novel initiative of moving out of his office to
REACH OUT to people by visiting employees on the shop floor, right at their place of
work. The purpose of these visits was to communicate the priorities before the
organization while also understanding the needs of the employees. The employees
were encouraged to speak about their contribution to the department’s performance,
their hopes and aspirations. In a month and half or so, the Chief Executive had
traveled across the length and breadth of the steel plant interacting individually with
several hundred employees- something that no Chief Executive had ever attempted.
The climate of cordiality and informality could magnetize the people towards the
Leader and generated a strong sense of commitment among the employees to
8. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 173 HRD Centre
participate in the change process. At each shop floor, the common refrain was…” Give
us a challenge and see how we perform.. Give us proper input material and we will
give you production…Give us spares we want to give you reliable equipment…” in an
overwhelming atmosphere, people listened to that message of their Managing
Director.” Everyone here must do what he or she is supposed to do. We can move
forward only by carrying out internal actions by ourselves; no one from outside is
going to do it for us. It is, therefore, important that each one of us must do what we
promise to do and what is expected from us by our Plant.”
This built a general consensus that the whole collective needed to work
together if the plant was to build a future for itself. With these initial preparations, the
Managing Director took the next step of conducting a series of carefully structured
interactive workshops for implementing the change initiatives. These workshops were
unique in their approach. These were not mere communication exercises. On the other
hand these were “commitment centered exercises with the people who made
production happen and who made production happen and who could open up before
the Chief Executive with all their frankness in their eagerness to contribute in their
area of work. Day by day, these workshops grew more vibrant and helped
participation of each and every employee in the process of taking Rourkela Steel Plant
forward. It was remarkable in corporate history that workshops were planned to cover
the entire workforce numbering nearly 26000 employees. These workshops were as
follows:
Workshops for Sharing Concern
This was the vital process for survival. This exercise ensured that employees were
updated with the financial results of the plant and sensitized towards the implications
of the specific activities that caused loss of revenue/cash. The grass root level workers
whose contributions had direct impact upon the performance of the Plant for
revenue/cash earnings were targeted for this information sharing exercise. Each
9. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 174 HRD Centre
workshop covered a cross-section of about 100 key workers from a major process
department or zone of departments. The participants belonged to core operation and
maintenance activities of a department besides persons from allied service
departments and support functions like Materials, Personnel, and Finance etc. While
workers constituted 70% of the participants, others included executives involved in
monitoring the jobs and allied departments. Senior executives from the concerned
zones also participated in the workshops. The Managing Director himself was present
in each and every workshop to extend guidance and support.
In each workshop, a detailed presentation was made on the revenue/ cash aspects
relating to the Plant and shop-specific parameters. Besides highlighting the relevant
data on the financial results of the Plant (Gross Margin, Cash Profit and Loss etc.),
insight was also provided into the monetary loss involved in techno-economic factors,
lower Net Sales Realization for the specific products, shortfalls of performance in
individual shops such as delay in production, downtime and other adverse trends in
various related indices of performance. During the interactions after the presentation,
participants were encouraged to come forward and suggest improvements in their
areas of working, by their own actions, for arresting revenue and cash loss.
Internal Customer- Supplier Workshops
This was another unique exercise to bring together inter- related departments on a
single platform. The purpose was to bring about better inter departmental co-
ordination and sort out various internal customers problems. Here the employees of a
particular department discussed their requirements with their upstream and lateral
supplier departments and explored solutions for implementing to fulfill the
department’s and explored solutions for implementation to fulfil the department’s
targets and priorities. For example, a customer- supplier exchange of views was
arranged between Blast Furnaces with employees groups from supplier departments
like Coke Ovens, Sinter Plant, Ore Bedding & Blending Plant for emphasizing the
importance of the right quality, quantity and timely supply of Coke, Sinter, sized Ore
10. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 175 HRD Centre
etc. Similar interface was organized in the finishing mills area for the Silicon Steel
Mill with its supplier departments like Hot Strip Mill and Roll Shop. This type of
intervention helped in providing a common platform for the inter-departmental
agencies to mutually appreciate each other’s requirements and constraints. The
priorities were to be addressed not by cohesive teams sharing the vision of the total
Plant as a whole.
Issue Focussed Participative Workshops
Surprises like maloperations, breakdowns and fires had become a major problem
hindering the continuity of operations and there was increasing evidence of the agony
of the employees in such situations. To overcome these stumbling blocks, specific
issue-focussed interactions were also initiated and a new pattern was adopted in these
interactions. For instance, the common issue of maloperation in equipment/machines
was taken up and a workshop was first arranged for focusing the particular issue
before a combined group of participants from different individual departments, which
had sustained dislocation due to critical incidents of maloperation. The affected groups
themselves presented specific case studies of maloperation, and deliberations were
held to analyse the underlying causes and identify preventive measures. The learning
points from the critical incidents were shared for pre-empting similar dislocation in
future. A series of subsequent rounds of interactions were launched at departmental
venues, in which incidents of maloperation the concerned operating groups analyzed
relating to the particular shops. Besides enabling employees to take necessary
precautions for improving their operational efficiency, these interactions could also
strengthen their sense of ownership and accountability for performance. Special
problem solving workshops were organized to focus on various issues that were
critical to the Plant’s performance. Burning issues such as inconsistency in the supply
of 100% screened ore from OBBP to Blast Furnaces, reorganizing maintenance
support to production units by Centralised Maintenance Departments, increasing
11. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 176 HRD Centre
converter lining life, or the issue of loading of HR Coils etc. were effectively
addressed in these multi-disciplinary forums. Moreover, the interfacing of employees
directly connected to the critical issue created a feeling of importance of different
departments and their contribution to Total Performance. The synergy of collective
problem solving stimulated by the interactions could be seen to give results, which is
hitherto could not have been imagined.
Bringing Closeness
These different interactive workshops ultimate had one aim. Managing Director put
it in a powerful communication: “The future of our steel plant lies entirely in our own
hands, that is, in the hands of the nearly 24000 employees of Rourkela Steel Plant. If
the steel plant does not have a future, then none of us here including our family
members have any future either. We therefore, have to work together like the members
of one family- the RSP family- to take the steel plant forward.
The Chief Executive aimed at creating an ambience that would generate an urge
among the employees to work together and realize the pleasure of working together.
He succeeded in reducing the distance between the minds of employees, by bringing
them together on a single platform with the common goal of taking Rourkela Steel
Plant forward. In the words,” bringing closeness” among the employee.
Implementing Of The Turnaround Strategy (2002-03)
Dealing with Survival & Security for the Future
The first year of the three-year project of the Managing Director generated a newfound
confidence among the collective in the plant. For the first time they were able to see in
themselves the ability to fight odds and come out on top- entirely by adopting internal
12. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 177 HRD Centre
actions directed to achieve a defined result. In all the workshops, there was one thing
in common- Employees were keen to be apart of he total process. They yearned to
know where the organization is heading and how they could be an integral part of the
total effort. Each one wanted to contribute meaningfully and everyone wanted to be a
part of that magical term called ACCOMPLISHMENT. In fact it was the Managing
Director, who in one of his earlier interactions had said,
“If we want RSP to move forward, we all have to work a lot harder than what we have
been doing. It may be difficult and inconvenient for many of us- I cannot do anything
about that. But the one thing I can assure you at the end of the effort is a sense of
ACCOMPLISHMENT which will be something you can all be proud of.”
Encouraged by the performance during the financial year 2001-02, the RSP
collective took up the challenge to sustain the momentum and target still higher levels
of production. The strategy was three prolonged i.e. maximize the volume production,
cut down cost, minimize waste and retain market share of products through improved
quality. Another major strategic decision was to produce only against firm orders. The
steel plant thus targeted 1.8 MT of Hot Metal, 1.670 MT of Continuous Cast Slabs,
1.440 MT of HR Coil and 1.671 MT of Saleable Steel indicating ambitious growth
rates of 22.7%, 26.4%,26.4% and22.1% respectively with reflected mood of the
collective.
The Mass Contact Exercise
It was in this backdrop that the Managing Director commenced an exercise that has
never been witnessed in the Corporate History anywhere in the world. It was just the
evidence that had expected considering his absolutely unambiguous belief in the
power of employees to take an Organization forward.
13. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 178 HRD Centre
As the financial year 2002-03 unfolded, Managing Director began a unique and
unprecedented programme, which was called the Mass Contact Exercise. This type of
interaction was to synergize people towards taking upon stretched goals through a
collective resolve. A series of Mass Contact Exercises were initiated commencing on
19th April 2002 with the periodicity of two workshops a week on a fixed day. The
purpose of this massive interaction was to facilitate a convergence of around 500
employees in each workshop and generating discussion aimed at eliciting individual
commitments for ensuring the “Survival and Future of RSP.” A few of these exercises
were held even during the night shift duty between 11 pm an d 1 am, which was
visible demonstration of seriousness of purpose.
The sessions were steered by Managing Director along with Executive Director
(Works). Each session began with the MD’s opening remarks highlighting the issues
and priorities critical to the survival and future of the Plant. He identified some of the
main obstacles to RSP’s progress. The high interest and depreciation burden arising
out of modernization which was getting compounded because of failure to achieve
capacity utilization which was getting compounded because of failure to achieve
capacity utilization in modernization units and other units as well. Poor performance
in Techno-economic parameters, which had an influence on financial performance.
Low quality maintenance of equipments, which led to frequent breakdowns and thus
low production Surprises in the form of maloperation, equipment failures, accidents
and fires. He constantly emphasized that only these were taken out of the way, no one
family and help each other. He pointed out that it is not the MD or the ED (Works)
who can solve problems. They can only show the direction and provide support. Each
department or function has to work towards removing its problem. They can only
show the direction and provide support. Each department or function has to work
towards removing its problem one by one. He also pointed out that there were
departments that had started doing well because they sat together doing well because
they sat together and found out solutions to their problems. One of the most powerful
messages of the MD to each participant was” Remember, our future and the future of
14. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 179 HRD Centre
our family members depend fully on the future of Rourkela Steel Plant. If Rourkela
Steel Plant does not have a future, then none of us sitting here nor our family members
have any future either.”
The employees were thereafter briefed through two presentations. While the
first presentation dwelt
on the performance during the previous fiscal and the strategies adopted for
achieving the growth plan for 2002-03, the second presentation focused on the techno-
economic factors and financial impact of actions such as shift change delays, losses
per hour of production disruption for whatever reasons , losses due to accidents &
maloperation etc. Following the presentation, an interaction session was initiated by
ED(Works) emphasizing the attention that was required to be given by the employees
in the priority areas.
One of the motivating factors in the Mass Contact Exercise was the
leadership provided by Managing Director in each of these sessions. He was present
all through, setting the tone right in the beginning, listening carefully to each
employee who spoke, and channelising the suggestions of the employees to the Plant’s
requirement of achieving profitability. It was thus possible to bring about a climate of
trust and togetherness, which is essential for energizing an organization. Employees
stood up to reinforce their identification with the plant. Many of them committed to go
back and never do any thing that will hurt the plant. Statements like “I am and will
always remain indebted to RSP for my livelihood, for providing me bread and butter
and for helping me raise my children,” came from one of the employees, and “Every
hour, every minute and every second I shall try my best to do something good for the
Plant…” was how another employee put it in the Mass Contact Exercise. Many other
employees spoke similarly indicating their love for Rourkela Steel Plant. Other reacted
by declaring that this situation of poor performance cannot be allowed to continue and
has to stop. Employees resolved that they would go back to the stop. Employees
resolved that they would go back to the shop floor and do whatever is required to
make the steel plant perform at its best. Grievances turned into suggestions, blaming
15. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 180 HRD Centre
turned into introspection and there was eagerness among employees do those things
that would show them in better light in the presentations. Every employee could
become aware of the challenges before RSP and the significance of his or her
individual contribution.
A unique feature of the Mass Contract Exercise was the reaffirming of the collective
commitment through a formal pledge, which was adopted on the suggestion of the
suggestion of the employees themselves. This pledge was,” We the employees of the
Rourkela Steel Plant commit ourselves to work together like the members of a family
for the survival, and for its growth and prosperity”
What was more important is that the suggestions of the employees for improvement
were take up for implementing by a system of follow up. In many cases the employees
were called and spoken to for encouragement in what they were doing to bring in
improvements. In this programme, which has no precedent in corporate history, 57
sessions were held during April 2002 to March 2003 where more than 23000
employees participated to reaffirm their commitment to the Survival and Future of
Rourkela Steel Plant. The result was the formulation of Mission Statement of the steel
plant, which says:
The future of our Steel Plant lies in our own hands. It is our individual and collective
responsibility to rebuild our Plant into a profitable, harmonious and vibrant
organisaton. We will do what things are necessary which are good for our plant. We
shall never do anything that hurts our Plant.
Workshops for Improving Departmental Performance
Concerning the ambitious growth rates envisaged in the performance plans, it was
important that every department worked at its peak. Keeping this in mind, Managing
Director initiated another intervention for gearing up the performance of individual;
department in order to achieve RSP’s growth plan for 2002-03. For each of the key
departments, a series of workshops was held at weekly intervals. The participants
consisted of 70 non-executives and 30 executives. While the non-executives came
16. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 181 HRD Centre
from all the sections of the departments. Besides this Heads of the Departments and
representatives of support service departments also participated.
In each workshop, Managing Director himself set the tone at the start. The objective of
these workshops was to understand the targets, i.e., the level of operation required to
achieve the targets. The main task was to identify the critical factors that could come
in the way of achievement and to present the plan to overcome these critical factors.
The unique thing was that in most departments, the presentation was worked out
jointly by the managers and worked out.
This intervention created an entirely new ownership of targets and an unbelievable
commitment to enhancing performance. The progress of action was reviewed in the
workshops arranged during the succeeding weeks and this interactive process was
continued up to the stage of achieving the desired level of performance. The key
departments for which these workshops was held were Coke Ovens, Blast Furnaces,
Steel Melting Shops-I&II Cold Rolling Mill, Captive Power Plant and Refractories.
About 70 sessions were held as a part of this exercise.
Apart from this, Managing Director took a special intervention for Ore
Bedding & Blending Plant and Traffic & Raw Materials department to highlight the
importance of team working and introduction of productive practices because of the
importance of team working and introduction of productive practices because of the
importance of these two support departments for RSP’s growth plan. The initial
workshops were steered by Managing Director himself. Subsequently, weekly
workshops were held at the level of Head of Department where all employees were
covered.
Over Intervention
There are certain sections of employees who have a different identify at a point of
time. These are the new Management Trainees; newly promoted functional executives,
front line executives etc. MD held separate interactions with each other of these
categories as well. While spelling out the priorities of the organization, MD went on to
17. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 182 HRD Centre
carefully explain the kind of special role these people can play to achieve RSP’s plans
during the year and the specific expectation from them. While the young management
trainees had a first hand opportunity to meet the Leader to understand the real
challenges before the organization, the front line as well a functional executives were
impressed with how they could utilize their experience to act as catalyst in the process
of transformation.
Consolidating the grains
Rourkela Steel Plant ended the fiscal on a promising note registering its best-ever
annual performance since inception in all aspects of its working. While the production
surpassed all earlier levels of performance, despatches to the market also attained new
peaks eclipsing earlier mark.
Production of major items continued to grow at unprecedented rates for the second
year in succession. In 2002-03 production of Hot Metal at 1.645 MT(12.2%), Total
Continuous Cast Slabs at 1.475 MT(10.6%), Total Hot Rolled Coils at 1.287
MT(15.2%) and Total Saleable Steel at 1.563 MT(12.8%) surpassed all past
performance levels. It was now for the second year in a succession that RSP had
recorded the best growth rates for major items among all SAIL plants. It was a matter
of great significance that all modernized units operated at 100% or more capacity
utilization during the second half of fiscal.
While increasing volumes, RSP continued to focus on value added products like
plates from Plate Mills, CR sheets & coils, HR coils, tin plates and CRNO steel,
keeping market demand in view for ultimately achieving profitability. A noteworthy
point was that RSP not only produced but also despatched more than 1.5 MT of
saleable steel to the market.
Another important aspect of RSP’s efforts to enhance its profitability
was through cost reduction efforts and improving techno-economic parameters. The
steel plant was able to achieve a massive Rs.118 crore savings through various cost
18. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 183 HRD Centre
control projects taken up during the year. Lowest ever coke rate and lowest ever
energy consumption since inception was achieved with improvement of 5.5% and 5%
in the respective areas. The Plant was also able to achieve process cost reduction by
substantial improvement in the lining life of LD Converters in SMS-I and SMS-II.
In the first year of the turnaround story strategy RSP had steadily progressed to the
level of earning Profit Before Depreciation Interest and Taxes(PBIT) for the year
2002-03 while earning cash profit for the quarter of the fiscal(January-March 2003).
The steel plant was thus able to come back to this elevated level after a gap of seven
years having last earned cash profit in January 1996. THE MOOD IN THE RSP C
OLLECTIVE WAS UPBEAT AND BASED ON THIS MOOD THE STEEL PLANT
TOOK UP FURTHER CHALLENGES FOR THE YEAR 2003-04.
Implementing Of The Turnaround Strategy (2003-04)
Graduating to a Path of Profitability & Prosperity
The year 2003-04, the third year of effort by Managing Director, was a crucial one.
The high growth rates achieved during the earlier years had to be sustained.
After having PBDIT for the year 2002-03 and earning Cash Profit during the last
quarter of that fiscal the steel pant had to exert itself that much extra to not only
sustain the present production levels but on it further and move further ahead. The
steel plant had to now enter the domain of Net Profit. The emphasis once again was
to sustain the increased volumes of production with a view to bring down cost of
production and at the same time produce more of high value added products only
against market demand.
A Change of Theme in the Mass Contact Exercise
19. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 184 HRD Centre
The Mass Contact Exercises resumed on the 9th of the April with the commencement
of the new financial year. But this time, it was launched with the theme “Profitability
And Prosperity of Rourkela Steel Plant”. In his opening remarks, Managing Director
made some points very clear. The success of Rourkela Steel Plant during the
preceding months and earning of Cash Profit had been possible largely due to the
untiring efforts of the employees and especially because the employees had
internalized one major thing. That was “if Rourkela Steel Plant did not have a future
then none of the employees including their family members had any future either.”
The employees had now begun to work in the Plant like the members of a family- the
Plant like the members of a family –the RSP family, which was a good sign for the
steel plant. The collective had also established that the steel plant was capable of
producing at its capacity as proved in the performance of the modernized units
working at more than 100% capacity utilization. MD also pointed out that there were
several occasions during the previous year when the Plant could have gone into the net
profit mode but for work stoppages, breakdowns, maloperation etc. which led to lost
opportunities. He described the day when there was a work stoppage, breakdown or
accident as a BLACK DAY. A good day is when the steel plant is able to avoid all
these incidents and produce 5000 tonnes of Hot Metal, Crude Steel, Hot Rolling,
Saleable Steel and Despatch 5000 tonnes of Saleable Steel as well.” Let us make every
effort to make every day a Good Day and eliminate the Bad Days completely,” he
repeated each time.
If there was one thing that revolutionized the minds of the employees, in the crucial
third year, it was the concept of SAMSKAR adopted by the Managing Director.
SAMSKAR, imbibed from Vedic philosophy was a process of Reforms. It said,” We
have to create and sustain a peaceful work environment where every employee can
contribute to the plant in assigned area of work with full freedom and dignity and
without fear.”
20. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 185 HRD Centre
This became the guiding principle for the RSP collective. It also revealed a deep
commitment of Managing Director to creating an ambience in the works area that
would give employees the things they value most as human beings.
Each Mass Contact Exercise continued to be steered by Managing Director himself
where he spelt out the priorities before the organization and the important issues that
was pulling back the steel plant in its endeavour to become a profitable plant. The first
and foremost priority was safety. He repeated each time that “We must value human
life-our own and that of others who work with us. Accidents cause maximum loss to
the individual employees, their family members and the Plant also suffers. Our
Profitability and Prosperity would mean nothing if an employee lost his life in the
process. We must, therefore, be alert and pay maximum attention to safety. We simply
cannot afford to run a process if there is a safety risk to our colleagues.” To make
Rourkela Steel Plant a safe place, it was essential that all employees pay attention to
house keeping because the two went hand in hand. Then for sustaining high levels of
operations the equipments had to continue to operate day in and day out. He
emphasized the importance of Cost of Production as making the crucial difference in
profitability. He praised the employees for enabling a reduction of cost of production
by sheer volume of production. He reminded them that efficiency in using resources
had to improve to make the steel plant cost effective. He highlighted the cost of inputs
like Coke,
Energy consumption cost of Refractories and several other inputs whose economy
would improve competitiveness in the market.
MD’s opening remarks were followed by two presentations. The first one focused on
the achievements of the previous year. Then the performance against targets for the
current year was discussed describing details of the factors that came in the way of
achieving them highlighting every incident and event. Comparisons with the
performance of the sister plants was also made to generate benchmarks to be reached
by RSP. The second presentation revealed the losses arising out of actions and
activities of the collective and the monetary loss caused to the steel plan due to shift-
21. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 186 HRD Centre
change delay, keeping equipment idle for an hour and due to adverse techno-economic
factors. The second presentation also showed the direct relationship also showed the
direct relationship between the plant’s performance and the earning potential of
employees thereby enabling the employees to understand the established the truth that
the employees prosper when the plant performs. MD put it very appropriately by
saying “We want profitability for Rourkela Steel Plant and Prosperity for its
Employees.” He went to introduce an adhoc motivation scheme called 100% Plus
where the employees of a department achieving 100% capacity could earn Rs.100
each and for each additional 2% an additional Rs. 50 for each employee.
The atmosphere is the Mass Contact exercise was changing from anxiety to
excitement. Employees came forward to express their achievements and commitment
to achieve more. There were occasions when employees did not speak because of their
feeling of a strong sense of failure for not having achieved targets. The Samaskar
statement became internalized and many employees openly declared their sense of
pride to belong declared their sense of pride to belong to a work culture where the
dignity of the human being stood high. Besides suggesting ways and means to achieve
the goal of profitability and prosperity, employees called upon the MD to introduce
steps that would ensure their dignity at work and an atmosphere that could help them
to carry on with the job of uninterrupted production without fear from any source.
They also pointed out that certain facilities like proper public convenience buildings
and canteens could help employees save time. These suggestions were taken up by
Managing Director and shall be described in detail a little later.
Leadership Practice
The most novel initiative of MD was the introduction of a programme called
Leadership Practice. It was one of the ten priorities identified by MD in 2001 as an
area of concern because there had been total absence of leadership throughout the
22. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 187 HRD Centre
Plant. As the Steel Plant was recovering from the brink of disaster through a
movement involving employees it was essential that a system be put in place to keep t
the direction of change in line with the long term objective of building and sustaining
a Profitable, Harmonious and Vibrant Rourkela Steel Plant. The one certain method of
doing this was to establish Leadership at every level in the Organization. In order to
channelise the latent potential of employees were provided with empowerment and
enabled to practice leadership at all levels. By way of inculcating this approach as a
way of work life at RSP, MD conceived SAMSKAR and articulated it as the most
suited formula of work ethos of RSP.
Originally addressed to the shift-in charges, it was later extended to Senior and
Middle level Executives. Seeing its effectiveness, non-executive shift-incharges were
also added as participants.
Each session was of three hours duration with the Managing Director himself as the
lead faculty for a group of 40 participants. The session was structured in three parts:
Inputs by MD on the concept of Leadership as required in specific context of RSP
Presentation by a team of executives on Production Plan & Production Mix for
Profitability of RSP as well as five important dimensions of leadership relevant to
RSP
Interaction session consisting of suggestion and commitment of the participants on
discharging Leadership role to meet challenges
Explaining Leadership as a contextual concept, MD called upon the participants to
understand that Leadership at RSP has to be developed to make the Steel Plant a
Profitable, Harmonious and Vibrant one. Through his own concept of the Materialistic
and Metaphysical Powerhouses he opened up the possibilities to the participants to
exploit their own latent strength and abilities. Through these sessions MD has driven a
23. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 188 HRD Centre
process of change by identifying, supporting and nurturing everyday Leaders who will
provide long-term strength to the organization.
The FIVE dimension of Leadership emphasized by MD include:
• Leaders have to create and sustain a peaceful work environment where every
employee can contribute to plant in assigned area of work, with full freedom
and dignity and without fear.
• Leaders must empower the people who work with them or follow them.
Empowerment is the freedom to do what one is supposed to do. Empowerment
is not the freedom to choose what to do.
• Leaders must persuade people to attach the highest value to human life, and
therefore, safety must be most important consideration in all spheres of
activity.
• Leaders must teach and guide people to treat the equipment and machinery
with utmost care and maintain them to full potential.
• Leaders must convince people to work together like a family, keeping in mind
the interests and goals of the steel plant.
In about 15 sessions held at the HRD Centre, more than 500 participants right from
non-executive shift incharges to the level of General Managers and Executive
Directors participated.
Performance Improvement Workshops
These were directed at improving the performance of the key operation departments
whose performance was critical to the RSP’s ultimate Profitability
24. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 189 HRD Centre
Increased importance given to Service Support Facilities
ENERGY MANAGEMENT
Energy Management Department in Rourkela Steel Plant is primarily responsible for
meeting the fuel/ energy requirements of all the consuming units both qualitatively
and quantitatively, while keeping the energy cost at the minimum possible level. In
order to meet the above objective, the department performs the following functions:
Planning the fuel requirements and gas / utility balances as per the production plan and
consumption norms decided jointly with the consuming departments. Fuel includes
Coke Oven Gas, Blast Furnace Gas, Converter Gas and Mixed Gas while utilities
include steam, oxygen, nitrogen, argon and synthesis gas.
Monitoring of the optimum availability and distribution of fuel gases and utilities on
round the clock basis from Energy Centre.
Preparation of daily, monthly, annual gas / utility balances, specific Energy
consumption and cost reports. Analysis of deviation and taking up with the concerned
agencies.
Energy conservation activities in all the energy consuming units to ensure efficient
utilisation of energy. This includes maintaining of operational parameters, combustion
control, condition of fuel/ energy consuming equipment, status of instrumentation and
control system and inspection/ follow up for rectification of leakages.
25. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 190 HRD Centre
For ensuring gas safe operation in the plant gas/ oxygen/ explosive mixture testing is
done for all protocol/ non-protocol jobs as per requirement. Also gas safety equipment
like masks, carbon monoxide and oxygen monitor and breathing apparatus etc. are
maintained in proper condition.
Maintenance of the yard utility grid to ensure uninterrupted supply of fuel gases/
utilities to the consumers besides day to day maintenance jobs. This involves repair/
replacement activities as per requirement.
Involvement and participation in all the projects as per vision 2012 and under AMR
and other schemes, to ensure adoption of energy efficient technologies and proper
integration of the individual unit gas/ utility pipe lines with the main grid.
26. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 191 HRD Centre
SAFETY ENGINEERING
Iron and Steel production being a complex and hazardous activity, SAIL recognizes its
moral, economic and legal obligations to prevent hazards, provide healthy working
environment and guard against all foreseeable risks. The management of SAIL
recognizes its obligation to endeavour to progressively identify, control and eliminate
all hazards and conditions which present risk to employees and / or possible damage
and loss to the plant and equipment including products.
Safety Engineering department of Rourkela Steel plant is a technical wing with a multi
disciplinary team discharging all the above functions. It has been the constant
endeavour of the department over the past 40 years to create a hazard free, safe
environment for the employees of Rourkela. Towards this end the department has been
carrying out the following major functions:
Safety training to all levels of the employees including Contractor labour.
Periodic inspection of equipment, work methods and the environment.
Identification of hazards and taking steps for their elimination.
Facilitate procurement of personal protective equipment as required for various jobs,
prepare norms of issuing the same and enforce its use by the employees.
Creating awareness of employees through visuals like hoardings, posters, film shows,
printed handouts, bulletins, safety campaigns, various competitions etc.
27. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 192 HRD Centre
Publishing safety rule books for various departments, printing permit to work. Holding
protocol meeting for major shutdown and other hazardous jobs.
Encouraging joint participation in the field of safety through the Central Safety
Committee (at the apex level) and the safety committee of departments (headed by
General Managers). Monitoring implementation of the recommendations of these
committees.
Briefing the contractors on the hazards inherent in their area of work and the safety
requirements for their jobs before start of the job. Day-to-day monitoring of the work
of contractors and ensure penalty to defaulting contractors.
Conducting Safety Audits by internal as well as external teams and taking necessary
actions to liquidate the deficiencies noted.
Working in close liaison with Environmental Engineering Department and
Occupational Health Centre to promote a clean, healthy and safe environment.
Monitoring compliance of the various provisions relating safety as numerated in the
Factories Act, 1948.
Maintaining constant liaison with the various statutory authorities like the Director of
Factories, Inspector of Factories & Boilers, various Labour Institutes.
RSP has won several National Safety Awards for its exemplary performance. RSP
won Steel Minister’s Safety Shields for best performance and RSP also won many
awards from the State Government and the Standing Committee on Safety in the Steel
Industry.
28. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 193 HRD Centre
RRoouurrkkeellaa SStteeeell PPllaanntt tthhuuss,, iiss ccoommmmiitttteedd ttoo::
The safety of its employees and the people associated with it including those living in
its neighbourhood.
Pursue the safety efforts in a sustained and consistent way by establishing safety goals,
demanding accountability for safety performance and providing the resources to make
safety programme work.
29. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 194 HRD Centre
ENVIRONMENTAL ENGINEERING
Rourkela Steel Plant has established a full-fledged Environmental Engineering
Department with latest monitoring and analysis facilities during early nineties. The
Environmental Engineering Laboratory which is attached to this department has got
recognition from Central Pollution Board.
Responsible for:
Monitoring and analysis of various pollutants of Air, Water and Wastes.
Inspection and evaluation of efficiency of various pollution control equipment
installed in different departments.
Coordination with respective departments for implementation of statutory regulations.
Coordination with State Pollution Control Board, Central Pollution Control Board,
Ministry of Environment and Forests and other Government agencies and bodies for
implementation of various statutory rules and other regulations.
The quality of waste water generated at different sources is regularly monitored by
collecting samples from 50+ locations throughout the plant including the final
discharge of effluent from Lagoon to River Brahmani. Any deviation from the norm is
analysed for taking corrective actions.
The stack emissions from 20+ number of active stacks are regularly monitored for
Dust emissions (SPM) into environment. The efficiency of air pollution control
equipment like Electro Static Precipitators, Bag houses etc. are also monitored
regularly for suggesting corrective actions. Environmental Engineering Department
has installed online stack monitors at 15 numbers of stacks which is first time in
Indian Steel Industries.
30. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 195 HRD Centre
This department is regularly monitoring ambient air quality at six number of ambient
air quality monitoring stations which are at OBBP administration building, EED
building, RDCIS building, PMPH building, BOD plant building & Fertiliser Lab
building. This department has established an automatic ambient air quality monitoring
station at Indo-German club which is first time in Indian Steel Industries. It
continuously monitors the levels of suspended particulate matter, respirable dust,
Sulphur Dioxide, Oxides of Nitrogen, Carbon Monoxide, Hydrocarbons & Methane.
The pollutant levels are displayed on a bill board continuously at IG club and the data
is downloaded regularly from the central station installed at Environmental
Engineering Department.
Environmental Engineering Department has taken up a massive drive in identification
of alternative uses for different solid wastes through out the plant for making them as
byproducts. The utilisation of solid waste has greatly improved due to adoption of 4 R
principle (Reduce, Recycle, Reuse & Recover).
The inventorisation of hazardous wastes in Rourkela Steel Plant is conducted by
Environmental Engineering Department along with State Pollution Control Board and
got authorisation from State Pollution Control Board for handling and management of
25 numbers of Hazardous Wastes which is the highest among all Indian steel plants.
Environment Information Management System (EIMS) which is a unique online
software system developed on Oracle 9I platform using optical fiber network by
Rourkela Steel Plant, first of its kind in Indian Steel Industries to strengthen the
pollution control facilities by online monitoring of various pollutants and giving first
hand information to Management for taking corrective actions.
A road map identifying new pollution control projects and strengthening of existing
pollution control projects is prepared, to meet the future requirement in view of
31. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 196 HRD Centre
stringent statutory requirements and commitments given under Corporate
Responsibility for Environment Protection (CREP).
Execution of projects under Clean Development Mechanism (CDM), replacement of
Ozone Depleting Substances (ODS) with non ozone depleting substances, finding
ways and means for abate/reduce fugitive emissions like door and door frame
emissions in coke ovens by using spray materials are other areas where Environmental
Engineering Department is actively involved.
The Environmental Engineering Laboratory is provided with latest instruments for
analysis of various parameters. The laboratory is equipped with
AAS (Atomic Absorption Spectro
Photometer)
HACH 2001 spectrophotometers
Orion Ion Analyser
BOD(Biochemical Oxygen Demand)
apparatus
BOD incubator
COD(Chemical Oxygen Demand)
reactor
Phenol Distillation Sets
Auto Titrating apparatus
High volume samplers
Respirable dust samplers
Stack monitoring kits
Flue gas analysers
Flow meter for open channel flow
Noise meter
32. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 197 HRD Centre
FIRE SERVICES
The Fire Services Wing of the earstwhile Hindustan Steel Security Force (HSF) was
established under the provision of security scheme, compiled by the security advisor,
HSL. After the induction of CISF, Fire Service was made a separate department.
OObbjjeeccttiivvee::
To prevent fire from starting
To prevent loss of life and property when fire starts
To confine fire to the place where it started
To extinguish fire
MMoottttoo:: ““WWee sseerrvvee ttoo ssaavvee””
Sections: The department organizes itself in to four Strategic wings
Operation wing
Prevention wing
Maintenance wing
Training wing
OOppeerraattiioonn WWiinngg::
The most vital of all the four wings is the operational wing. The prime responsibility
of reducing the response time lies with the operation wing by responding to an
emergency at its earliest. The operation wing’s activities are categorized into (i)
Preparation and (ii) Attack.
PPrreeppaarraattiioonn::
33. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 198 HRD Centre
Fire Service department deploys its Physical human resources at four Fire Stations at
strategic locations of the Plant. The four fire stations are:
(i) Central Fire Station
(ii) Modernization Fire Station
(iii) Fertilizer Fire Station
(iv) CO & CCD Fire Station
These four Fire Stations always remain alert to attend to any exigency round the clock.
AAttttaacckk::
The Central Fire station, which is the nerve center of the Fire Service department, on
receipt of any emergency call, despatches its appliances at it’s earliest. On arrival at
the scene of fire, rescue, special service call, the Officer I/c studies the situation and
plans his strategy of attack. Further assistance of manpower or reinforcement of
additional appliances / equipment is called for interalia VHF or other mode of
communication with the control room. The Operation wing, as a part of its pre-fire
planning, also carries out regular Mock drills and Topography study. The Operation
wing fulfills the mission of Fire Service department.
PPrreevveennttiioonn WWiinngg::
This wing fulfils the first objective of Fire Service to prevent fire from starting. The
major activities of this wing is to plan for scheduled inspection of all hazardous / fire
prone areas, the detection and protection systems, checking of all fire hydrants / fire
extinguishers.
MMaaiinntteennaannccee WWiinngg::
Of all the physical resources, the appliances and equipment used by fire service must
be trouble free at any point of time. The wing does all the in-house maintenance,
preventive maintenance of all the appliances and equipment available with Fire
Service. The list of appliances (vehicles) and equipment available with Fire Service
department are as under:
34. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 199 HRD Centre
Sl. No. Fire Fighting Appliances / equipment Quantity
Foam Tender 06 Nos.
Water Tender 01 No.
Foam-cum-DCP Tender 01 No.
Crash Fire Tender 01 No.
Emergency Tender 01 No.
Towing Tender 02 Nos.
Hydraulic Platform (Snorkel) 01 No.
Jeep 02 Nos.
Portable Pump 07 Nos.
Submersible Pump 03 Nos.
Portable Fire Extinguishers (CO2, DCP & Foam) 3500 Nos.
35. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 200 HRD Centre
TTrraaiinniinngg WWiinngg::
Training wing has to carry out an important task in imparting in-house training to its
new recruits and refresher course for old timers. Both acquiring knowledge and skill,
the training wing is constantly trying to cope up with the needs of the plant employees
in general and Fire Service department in particular. The Fire Control Management
(FCM) programme conducted under the aeges of HRDC department is an unique
venture. With faculty support from Fire Service department added with practical
demonstrations this FCM programme enhances both knowledge and skill of the
participants to greater extent. Specialized training programmes, pertaining to only Fire
Service personnel are also conducted at regular intervals.
36. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 201 HRD Centre
ADDITION MODIFACTION REPLACEMENT PROJECT MONITORING CELL
(AMRPMC)
Functioning of AMRPMC:
AMRPMC is the Nodal Agency for Capital Investment Schemes. The Cell scrutinises
all Capital Investment Schemes, obtains sanction and monitors the progress of the
sanctioned schemes. The methodology adopted is:
Getting Capital Investment Proposals at the beginning of each financial year.
Compile the schemes and obtain funds from Corporate Office.
Prioritise the schemes as per allocation of funds.
Scrutinise each prioritised proposal thread bare and obtain sanction.
Monitor the overall progress of the sanctioned schemes on a quarterly basis.
For prioritised schemes estimated below Rs.10 lakhs the Cell itself scrutinises the
proposal and puts up for sanction. For schemes estimated above Rs.10 lakhs the Cell
puts up the proposals to a duly constituted “Investment Proposal Scrutiny Committee”
for further scrutiny and screening and thereafter puts up to an APEX Committee for
prioritisation. Schemes below Rs.10Lakhs are also put up by AMRPMC to the same
APEX Committee for prioritisation.
AMRPMC is also the convenor of Central Survey Committee which recommends the
“Replacement” of written off assets. AMRPMC usually does not deal with assets of
Administrative Category (such as Furniture, Photocopiers etc.)
Some of the items sanctioned through AMRPMC and seen around us are Mobile
Equipment and Transport Vehicles, Hospital Equipment, Modification of Spill Way of
Mandira Dam, Modification of Hockey Stadium with Synthetic Turf.
37. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 202 HRD Centre
In 2005-06 Rs.50 crores were allocated to RSP from Corporate Office for AMR
Schemes. Awarding of consultancy to Centre for Engineering & Technology (CET)
for any feasibility study is also undertaken by AMRPMC.
38. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 203 HRD Centre
COMPUTER & INFORMATION TECHNOLOGY (C&IT)
In Rourkela Steel Plant, computerization has been used for various activities:
Quicker availability of information for decision making
Cost Reduction & Cost Control
Production, Planning & Control
Stricter Inventory Control.
C&IT is equipped with following equipment:
SUN SS20/712
SUN Enterprise 3000 (E3K)
SUN Hyper Sparc
SUN Blade 2000
SUN Fire 280R (2 Nos.)
SUN Fire 480R (2 Nos.)
SUN 3510 Fiber Storage
Followings are some computer application areas in RSP:
Production, Planning & Control area covering movement plan from CMO, planning,
manufacturing operation, testing & inspection, despatches.
Sales invoicing from DA to accounts receivable
In Finance areas from on-line sectional computerization to profit & loss accounting
including statutory requirements.
In Costing area from monthly cost sheet variance analysis to element wise cost
analysis.
Human Resource Information System covering employees master data, orders,
circulars, computerization of unit personnel offices.
39. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 204 HRD Centre
Employee Services area covering pay slip, PF slip, Income Tax, VRS schemes,
incentive, bonus etc. till trial balance.
CMMS module covering preventive maintenance planning, shop scheduling, FMM
equipment, Cranes, Repair Shop (Electrical).
Materials Management area from cataloging, indent, tender enquiry, order placement,
inspection, receipts, issues, budget control, ABC analysis, lead time analysis & MIS.
Town Services covering quarter allotment to employees & non-employees, shop
allotment, private party billing & revenue collection etc.
Hospital area covering indoor patient registration, non-entitled patient billing &
revenue collection, central medicine store & ward medicine accounting.
Plant Status for MD, EDs, GMs, HoDs and Plant Control.
Process Control Computer Systems in RSP:
A general process control computer system consists of the following levels of
distribution of responsibility, with two-way communication among peer-level as well
as with higher levels:
Level-1 - direct digital control of process using PLC, DCS (Digital Control System)
and Operator HMI (Human Machine Interface)
Level-2 - supervisory control level, for process tracking and optimisation using a
server type of computer and terminals
Level-3 - infra-level coordination computers for production, planning and control
functions
Level-4 - scheduling, decision making, management information level
The Level-2 systems communicate with the process through Level-1 interface called a
gateway. Most of the systems have facility of material tracking and process
monitoring, GUI (Graphical User Interface) based displays, operator data screens, set-
point downloading to Level-1, communication with SUN system and MIS reports.
40. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 205 HRD Centre
Safety features are included in the design using interlocks and power-reboot
procedures. The computer systems which have been implemented in the process areas
of Rourkela Steel Plant are described below:
Sl.
No.
Location Computer System Modules
BF-4 L1: ABIL, L2:
VAX/VMS
Skip charge tracking
Supervisory control for Blast
Furnace
Laboratory Management
SP-II L1: Yokogawa, L2:
VAX/ VKS
Online connection to L1-DCS
for data acquisition
Parameter display and transfer
to Plant-status database
BOF-II Shop L1: ABB, L2:
VAX/VMS
New heat preparation
Process aim calculation
Hot-metal, scrap ordering
Reblow Calculation
Main blow advice
Ladle alloy calculation
End of blow & Feedback
calculation
41. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 206 HRD Centre
Casters
(SMS-I& II)
including
LHF & Argon
rinsing
L1: ABB, L&T, ABIL,
Siemens L2: VAX/
ALPHA/ VMS
Material Tracking
Cut-length optimisation advice
Laboratory Management
Dynamic secondary cooling
control
Machine status tracking
Heat/slab tracking
Reheating
Furnace
(HSM)
L1: Siemens PLC,
Yokogawa DCS, L2:
VAX/VMS
Slab arrival
Slab line-up
Process tracking
Thermal tracking
Zone-wise set point
downloading
Rolling programme
Pacing control
In-process weighing
HSM:
Roughing,
Coil box,
AGC, Speed
Control,
Coiler
Controls,
Coiler
Conveyor
L1: Siemens Simadyn-D,
R-30, PLC, MMC-216,
HMI: SIFLEX, Win CC
Automatic mill pass-R0
Process tracking
Looper Control
Gauge Control
Speed Control
Communication among L1
Coil shape control
Process synchronisation
42. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 207 HRD Centre
ERWPP L1: ABIL PLC,
L2: Windows 2000
Planning
Pipe tracking
Product analysis
Pipe testing & inspection
Despatches
Energy
Management
L1: ADAM signal I/O
L2: Windows-2000, FIX
Data acquisition
Analysis Management
Alarm Management
Online Mixed Gas CV
Gas balancing
Mimics and trend graph
Supervisory
Load Control
Centre
L1: ECIL-RTU
L2: Windows-NT, SCO-
Unix
Data acquisition
Alarm Management
Area-wise energy balancing
Mimics and trend graph
Connectivity with Eastern Grid
Environment
Functions
Online data acquisition from
field instruments
User interface system for
parameter monitoring
Periodic area-wise reporting to
Management & Statutory bodies
43. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 208 HRD Centre
Weigh
Bridges
L1: Digital weight
indicators: Philips,
Avery, Sanmar, Ashbee,
Weitex
L2: Windows-XP, DOS
Online communication with
Digital-Weight Indicator for
weight
Communication with central
database server
Logic for net weight calculation
and screens for operator
interface
44. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 209 HRD Centre
MATERIALS MANAGEMENT
Materials Management (MM) department ensures availability of input materials to
consuming departments of Rourkela Steel Plant at right time, right quality, right
quantity and right price. It also ensures customer satisfaction and supply chain
management. The important functions under MM department are as follows:
Peripheral Industries & Vendor Development (PIVD):
This section of MM is the central agency for registration of vendors.
For established/ reputed vendors, deemed registration is processed considering the
firm's market structure.
Important functions include maximisation of reservation of items for local Small Scale
Industries (SSI) and facilitating increase in the order booking value on Local SSI, for
development of SSI in Orissa.
Liaison with District Industries Centre for resolving issues of Local SSI with RSP.
Stock Control:
This is MM's material planning agency for processing indents for multi-user
Automatic Procurement items (consumables as well as spares) based on previous
consumption norms and procurement policy and specific projected requirements of
user departments.
Stock Control monitors the safety stock of critical multi user items and issues
materials to user departments.
Activities include allotment of catalogue numbers for consumables.
Stock Control is the nodal agency for Indent Scrutiny Committee for consumables.
Standardisation & Rationalisation Group (SRG):
45. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 210 HRD Centre
This is RSP's central spare and consumables catalogue specification clearance agency.
All transactions of this section are on-line in Integrated Materials Management System
(IMMS) and SRG operates on paperless office concept.
SRG is responsible for specification standardisation in order to reduce the total
number of catalogue numbers of RSP by reducing duplicate catalogue specification
generation.
46. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 211 HRD Centre
Purchase:
The broad function of the department is to process order placement against revenue
procurement indents received from user departments and to follow-up for receipt of
material.
Purchase sections are organised in purchase groups for
General Purchase
Spares
Refractories
Rolls
Minor Raw Material (MRM)
Import
Repair Job Contract(RJC)
Ispat General Hospita (lIGH)
Activities in purchase are to obtain quotations from registered vendors, examine and
negotiate commercial parameters of quotations, negotiate by formation of Tender
Committee for price (where required) obtain approval & concurrence of Finance for
order placement and follow-up for execution of order.
Emphasis is being placed by Purchase for maximisation of long term rate contracts
with price variation clause, open/ global tendering & price bid through reverse auction
route.
Purchase Procedure governs all activities of Purchase.
Purchase activities are under process of being covered by e-procurement system and
RSP is leading among SAIL units, an on-line internet enabled system of viewing
tenders, submitting sealed quotations, viewing purchase orders, payment information
etc. in order to move towards paperless transaction and for increased level of
Transparency.
Inspection:
47. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 212 HRD Centre
The broad function of the Department is to ensure that the material being supplied
meets the desired specification as per the quality requirement of the user.
Inspection by RSP Inspection Zone is carried out at Stores Receipt and in the premises
of vendors.
Inspection department develops the Quality Assurance Plan for items in consultation
with user departments.
Inspection also undertakes Capacity Assessment of vendors in the Vendor Registration
Process.
Stores:
The broad functions of Stores department is to monitor movement of input materials
(consumables, spares and minor raw material), its receipts, immediate accountal and
safe custody and quick issue to user departments as and when required by them. Its
activity starts as soon as an item is ready for despatch at supplier premises. Organising
transport, receipt, accountal and safe custody of the material are the basic functions of
Stores.
Stores cater to the need of consumers through 6 Main Stores i.e. Central Stores, Plant
Store-II, Modernisation Stores, Refractory Stores, Cement Structural Modernisation
(CSM) Stores, IGH Stores and 6 Sub-Stores conveniently located near consuming
departments.
Store is also the custodian of materials not drawn by indenting department. Items
which are not drawn for a long period are classified as Deemed Non-moving (items
not moved for more than 4 years and less than 5 years), Non-moving (items not moved
for more than 5 years), Obsolete / Surplus (items unusable and approved by MD).
Materials declared as Obsolete / Surplus are disposed off by Marketing section of MM
department.
48. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 213 HRD Centre
All activities of Stores, starting from entry of material at RSP gate till issue to
departments has been computerised. Payment copy of GARN (Goods Acceptance/
Rejection Note) is being electronically transferred to Finance. All outside despatches
through Stores is also computerised.
Another important function of Stores is to lodge insurance claims and realise through
F&A(Claims & Freights Section).
Marketing:
Prime products of RSP are sold through Central Marketing Organisation (CMO), all
other products are sold by Marketing Department. The product range dealt by
Marketing Department includes defectives, coil/sheet cuttings, rejected pipes,
granulated slag, coke fractions, fertilisers such as ammonium sulphate, various waste
products like LD Slag, Ferrous Sulphate etc. Marketing Department also looks after
disposal of old/used machinery, conveyor belts, drums, electrical spares and unused /
surplus obsolete spares. In addition to the above, all idle assets of plant are also
disposed off by Marketing Department.
49. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 214 HRD Centre
For disposal of products, there are 2 yards, namely Secondary Steel Stock
Yard(SSSY), which stores defectives, coils/sheet cuttings. The other stockyard is
Central Disposal Yard(CDY), which handles maintenance scraps/ wastes like old/used
conveyor belts, old/used electrical spares, used drums, old batteries, old vehicles etc.
For disposal of above items Marketing department has introduced latest system of e-
sale through "Online Forward Action". In this process customer bids its highest price
through Internet.
The present annual revenue generated through sale of secondary items is to the tune of
Rs.320 - 350 Crores.
50. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 215 HRD Centre
FINANCE & ACCOUNTS
The major functions of Finance & Accounts department are as under:
Financial Accounting:
Finance department is responsible for recording of monetary transactions in the books
of accounts and preparation of final accounts quarterly as per the provisions of
Companies Act, complying with provisions of Income Tax Act and Wealth Tax Act.
The final accounts are prepared as per the requirement of schedule VI of the
Companies Act, 1956. Quarterly accounts are subject to review by the auditors
appointed by the Corporate Office, SAIL. The annual accounts are examined by
auditors appointed by Comptroller and Auditor General (C&AG) of India under the
provisions of Companies Act. The auditors so appointed are required to report on true
and fair view of the accounts amongst others. The annual accounts are thereafter
reviewed by the Resident Audit Officer of Commercial Audit branch of C&AG.
Memos raised by Commercial Audit are replied to with necessary clarifications and on
satisfaction of the Commercial audit, the memos are dropped otherwise the comments
of C&AG are reported in the Annual Accounts and placed before the Annual General
Meeting of the company.
Cost Accounting:
Cost Accounting involves costing of products and services, preparation of standard
cost, variance analysis, pricing of products and services and preparation of various
MIS reports like monthly profit forecast, techno economic report, cost control report,
scrutiny of make/buy proposal etc. Cost sheets are prepared on historical cost basis by
following the principles of Process Costing. Standard cost sheet is prepared for control
purposes. Monthly cost sheets are prepared and made available to different
departments on line. Cost awareness workshops are conducted department-wise.
Finance department is also responsible for cost audit under Companies Act. The cost
51. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 216 HRD Centre
data are examined by a qualified accountant appointed by Board of Directors with the
approval of Central Government. The cost audit report is submitted to Company Law
Board, Cost audit branch by the cost auditor.
Preparation of annual Budget and budgetary control reports:
Operation budget is prepared as per guidelines of the corporate office.
Departmentwise budget is fixed for each expenditure head for controlling expenses
bringing about cost efficiency in the operation of the plant. Quarterly budget reports
are made available to different departments for their information and necessary action.
Capital budgets are prepared by Project finance in consultation with head of works and
project department.
Stock Verification:
It involves physical verification of inventory and assets. Entire inventory of raw
materials and Semi/Finished goods is physically verified at the end of each quarter.
The inventory of Stores and spares is physically verified over a period of three years.
However the inventory of high value items is verified every year. The fixed assets are
physically verified over a period of three years in a phased manner.
Preparation of pay roll and complying with the provisions of Provident Fund
Act, Income Tax Act:
Monthly payrolls are prepared on the basis of master data in the computer duly
updated from time to time on issue of relevant office orders by Personnel Department
and Plant departments. Attendance of all the employees is collected and fed into the
computer by the Finance department. Finance department is also responsible for
disbursement and recovery of loans, deduction and deposit of income tax at source.
Employeewise accounts are maintained for the Provident Fund deducted every month
from the salaries of the employees.
52. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 217 HRD Centre
Scrutinizing purchase/contract/expenditure proposals and giving concurrence:
Proposals involving funds and requiring approval of MD are routed through
GM(F&A). Other proposals are checked by finance department as per delegation of
power. The representative of Finance department are nominated in various
tender/negotiation committees for obtaining the best price and commercial terms.
Examining the financial viability of investment proposals:
Various investment proposals are thoroughly examined from financial point view.
Payment of Suppliers/Contractors Bills:
Bills of suppliers/contractors are received checked and paid as per the terms of
contract with them.
Preparation of invoices:
Invoices are prepared for despatch of materials from the plant in compliance with
provisions of related laws like Orissa VAT Act, Central Excise Act, Service Tax Act,
Entry Tax Act and Income Tax Act.
53. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 218 HRD Centre
PERSONNEL
While managing human resource is an integral job of the Manager at all levels, in a
business organization, a nodal agency is required to oversee and monitor the myriad
human processes and also to carry out specific functions required to optimize the
available human resources. The Personnel Department of Rourkela Steel Plant is
primarily responsible for this. The functions of Personnel Department can be broadly
categorized as follows :
Rationalization of Manpower:
To meet the present and future manpower needs, Personnel department makes
strategic personnel planning and ensures induction of competent personnel in the
organization. Personnel department analyses the requirement of manpower and
existing profile on a continuous basis leading to a systematic deployment plan, which
comprises of both redeployment from within and recruitment for ensuring right man
on the right job. An annual manpower budget is prepared taking care of various
oragnaisational requirements and objectives. Besides, thrust is also put for optimum
utilization of the human resource by way of redeployment, retraining etc.
Motivating Employees:
In order to encourage the employees to maintain consistently high levels of
performance, Personnel department facilitates the introduction & implementation of
various financial & non-financial motivational schemes & awards . The schemes are
both group and individual-based. Various schemes are in place linked to achievement
of departmental targets based on production, productivity, cost control, quality-
consciousness etc. There are also some schemes that reward individual/ group
creativity and accomplishments. Apart from this good performance is recognised
54. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 219 HRD Centre
through in-house newsletters, magazines, RSTV, Departmental Notice Boards,
appreciation letters etc.
Grievance Redressal System:
Effective and quick redressal of grievances of employees is a vital Personnel function
especially in a labour intensive industry like Rourkela Steel Plant. There is an
effective system of informal grievance handling through Employee Assistance
Register (EAR) to settle employees’ grievances at the shortest possible time. The
EARs are available in all the Personnel Unit Offices and in Control Rooms of some
major departments. The aggreved employees can record their grievances/ difficulties
relating to a number of areas attendance, pay, house allotment/ maintenance,
promotion, seniority, etc. The Unit Personnel Officers take appropriate follow-up
actions to sort out the grievances at the earliest and also keep the employee concerned
informed by making appropriate entries in the EAR.
In addition to the above, there is also a formal two tier grievance redressal machinery
called Grievance Redressal Committee for Employees (GRCE) and an apex body
called Grievance Redressal Apex Committee for Employees (GRACE) for redressal of
the employees’ grievance on a time bound basis.
Employees’ Welfare and Social Security:
Employees welfare is of utmost priority among various Personnel commitments in any
organization. Personnel department takes utmost care for ensuring & up keeping of
vast array of welfare facilities both statutory and non-statutory. Some of the main
Welfare facilities include canteens, rest rooms, drinking water, public convenience
buildings, first aid, medical facilities, baby crèche etc. Besides Personnel department
facilitates the implementation of all social security measures in vogue in the
organization viz. PF, Gratuity, Workmen’s Compensation, Employee Family Benefit
55. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 220 HRD Centre
Scheme, Employee Family Benefit Voluntary Scheme, Life Cover Scheme, SESBF
etc.
Performance Management System(PMS) and growth of employees:
For an objective assessment of the performance and potential of the employees and to
distinguish between different levels of performance, the Personnel department
implements the Performance Management System in vogue in the company. Besides
to motivate the employees for their better performance, Personnel department takes
care the aspiration of the employees by effecting promotion, career planning and
succession planning. A comprehensive appraisal system for the employees has been
developed to ensure an objective assessment of performance and potential of the
employees and to integrate company's and individual goals. There are also systematic
Promotion Policies for promotion within executives, within non-executive employees
and also for promotion from non-executive to executive cadre.
Communication:
Communication is the lifeline of any organization. It can help establish a performance
oriented culture in the organization. Communication helps not only in disseminating
information to the employees , it also helps in enhancing employees morale,
inculcating a sense of participation and belongingness, fostering team-spirit and a
motivation to perform better. To facilitate involvement of employees in all spheres of
their activity Personnel department facilitates various structured communication
programmes viz:
MD’s Mass Contact Exercise: With an aim to synergise employees towards
organizational goals, a unique and unprecedented programme started on 19-04-2002.
It is held once in a week, where around 500 employees participate and contribute their
constructive idea/suggestions for growth of the organization and interact with the
Managing Director. A presentation highlighting the areas of concern and good
56. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 221 HRD Centre
performance is also made to aware the important issues affecting the plant and the
employees.
General Manager’s Communication Meeting: Every General Manager holds a
monthly meeting of groups of employees of his area of control and major departmental
issues, action plans, performance highlights, etc. are discussed.
HOD’s Communication Meeting: Heads of departments hold weekly/ fortnightly
meetings with employees where departmental issues, safety aspects, improvement
plans etc. are discussed.
Sectional In-charge’s Communication Meeting: Sectional In-charges of major units
hold weekly meetings of employees to discuss day-to-day shop-floor issues.
Issue Based Workshops: It is held whenever required and all agencies concerned
with the issue are encouraged to evolve improvement plans.
Besides these Unit Personnel Executives also communicate various plant related
issues to the employees at shop floor.
Building a Responsive Work-force:
Discipline plays an important role in an Industry. It is a bare minimum necessity for
sustaining the Production & Productivity. While emphasising positive discipline like
quick grievance redressal, ensuring proper welfare facilities, improving quality of
work life etc. prompt and consistent disciplinary action is taken against the
employees concerned under the disciplinary rules & procedures of the company. In
order to ensure the employees availability on the shop floor in time, the Direct
Reporting System (DRS) is in vogue whereby employees report at their place of work
directly and put their signature in the attendance register both at the beginning and end
57. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 222 HRD Centre
of the shift. The Unit Personnel Executives undertake periodic surveillance on DRS to
make the system more effective.
Away from the traditional fire-fighting management, the Personnel collective believes
in pro-active IR management through involving the employees in all spheres of work
activities, cultivating a participative culture and creating a atmosphere of creativity.
Various committees and bodies are in place at both the departmental and central level
so as to involve the employees in various issues of significance for the Plant as well as
the welfare of the employees.
Besides the above some key Personnel functions in RSP are:
Formulation and ratification of human resources policies, in line with the business
strategies.
Designing and redesigning of organization and work systems.
Designing and regulating compensation systems.
Ensuring compliance to statutory requirements.
Functioning as convener of all job contracts in the works departments.
Ensuring compliance of all statutory matters in respect of final bills of contractors.
58. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 223 HRD Centre
HUMAN RESOURCE DEVELOPMENT CENTRE
The Technical Institute was established in the year 1959 to impart professional
training to new entrants and the employees of the erstwhile Hindustan Steel Limited.
Since its inception it has not only equipped the employees of Rourkela Steel Plant to
discharge their responsibilities but also has extended similar assistance to the
employees of other SAIL units. The earlier building and workshop complex was
installed in 1959. In 1984 the ground floor of the present MDP wing was installed and
in 1993 the first floor of the MDP wing was built. The Refractory Shop came up in
1993. With the passage of time the scope of the activities of the Institute has expanded
and it was renamed as Training and Development Centre in 1985 and subsequently as
Human Resource Development Centre in August, 2000.
It is conducting Training Programmes towards reinforcement of employee's
competence. Today the Centre has grown to a position through imparting professional
training to new entrants as well as the employees of Rourkela Steel Plant to bridge the
ever-increasing gap of skill, knowledge and experience. Around 55% of training
pertains to technical areas, addressing the immediate requirement of the day.
Training Strategy:
The gamut of HRD activity centers around:
Training of all fresh entrants : Standard Training Schemes exist which are followed in
all the units of SAIL
Training of existing employees Through
identifing the thrust areas of training as per organisational needs to reach corporate
goals
pursuing each thrust area department wise and designing training programmes based
on the above needs.
the identification of number of employees to be trained in each programme.
59. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 224 HRD Centre
covering all employees, irrespective of level of specialisation.
Focus of HRDC:
During the recent times, HRD activities have been given special thrust and directed
towards transformation and turnaround of Rourkela Steel Plant. While making efforts
towards bringing about continuous improvements and fostering a culture of learning
and innovation, the focus has been on linking training events and outcomes to the
business needs and strategic goals of the company.
HRD Activities:
Based on the training need received from the different departments Annual Training
Plan is prepared indicating the training programmes to be conducted in each thrust
area and number of employees to be trained. This is discussed and approved by the
apex body before being included in the APP (Annual Performance Plan) of the
Organisation. In HRD Centre the training is imparted in the following broad areas.
Induction Training:
All new recruitees for Rourkela Steel Plant are trained in the HRDC before posting to
their departments. Specific training scheme has been prepared for each of the
categories of trainees and training is imparted based on the same. For executives
joining as Management Trainees and Jr. Manager (Finance), Central Induction is held
at plant location or Management Training Institute, Ranchi followed by Plant training.
For non-executives category i.e. Sr. Technician cum Operative Trainees, Technicians
cum Operative Trainees, Semi Skilled Worker Trainees and Trade Apprentices
separate training modules have been designed consisting of training in HRDC as well
as on-the-job training in the department.
Competence Enhancement:
This area is divided into the following broad sub-areas :
60. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 225 HRD Centre
Technical Skill Development training - Includes Basic Engineering Skill, Unit
Training, Hi-tech Training and Department Specific Programmes, Systematic
Maintenance Management, Technology Awareness Programmes and Performance
Excellence Workshops etc.
Redeployment Training - Employees transferred to other departments are imparted
redeployment training to familiarise them with their new departments and job
assignments.
Multiskill Training - As a consequence of cluster promotion policy, the non-
executive employees are to be trained in all the jobs they have to perform in a job
cluster. It includes all training conducted on Material Handling, Basic Welding & Gas
Cutting, Electro Hydraulics, Machine Tools Maintenance, Basic Fabrication and
Layouts and other programmes conducted to facilitate Multiskilling.
Managerial Training – Its objective is to make the managers aware of the changing
business scenario and understanding individual role in achieving the organisational
objectives.Acquiring the managerial skills like Leadership, Planning, Effective
Communication, Delegating, Problem Solving, Decision Making, Developing
Subordinates, Presentation, Concept of Cost and Quality, Team Building
etc.Understanding individual roles and responsibilities for establishing and
maintaining standards.It includes General Management Programmes like MDP, SDP,
EME and Specific Managerial Skill Development programmes like Microplanning,
Counselling, TOTO Module and Emotional Intelligence etc.
Specific Areas:
Areas like safety and health consciousness, environment control, Occupational
Hazards and means to combat them and stress management are addressed to through
programmes like Safety, Environment, Fire Control Management, Cost Control and
Cost Reduction, Energy Conservation, ISO 9000, ISO 14000, Quality Control Tools
and Problem Solving Workshops etc.
61. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 226 HRD Centre
Foreign and External Training:
All training programmes for which employees are sponsored abroad are covered under
“Foreign” whereas outstation programmes conducted by agencies other than SAIL and
its units, for which employees are sponsored are covered under “External”.
Other Areas:
Various workshops / seminars, Hindi Training programmes conducted for employees
of non-works departments are included here. This also includes the training activities
conducted here for employees of sister units of SAIL.
Training Facilities:
The Centre is well equipped with various facilities required, for conducting different
types of training programmes like spacious well furnished Classrooms, Galleries,
Conference Rooms, Syndicate Halls, Auditorium, Laboratories, Audio-visual aids,
Workshops & Library.
Classrooms and Laboratories:
HRDC has 22 fully furnished Classrooms. The classrooms are well equipped with the
type of furniture required for different types of courses (e.g. white board, Overhead
Projector, Flip Chart Board, LCD Projector etc) for conducting the normal lecture
classes and syndicate discussions, seminars, Communication Meetings and other
Management Development activities.
This department has 2 laboratories (Electronics Lab and Hydraulics & Pneumatics
Lab) and 1 Computer Centre.
Electronics Laboratory was commissioned in the Year 1994 M/s Feedback UK to
train the employees of RSP in the Electronics, Electrical and Automation areas to suit
the present plant requirement.
Hydraulics & Pneumatics Laboratory was commissioned in 1993 with a view to
retraining senior employees to increase the competency level to cope with the advent
62. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 227 HRD Centre
of latest technologies with modernization. The equipments were supplied by M/s
Amatrol INC, USA.
Computer Centre was installed in 1989. Equipped with 8 modern PCs (Celeron /
Pentium) to train the executive / non-executive of RSP in Common Software
Packages.
Workshop Facilities:
Various skilled and multiskilled training and work order jobs for various departments
are undertaken by different workshops. Besides fresh Trade Apprentices, regular
training courses like Basic Engineering Skill Training and other shop based
Programmes are also conducted.
Machine shop has Lathe Machines, CNC Lathe Trainer, Shaping Machines, slotting
machine, Radial Drilling Machine, Universal Milling machine, Horizontal Milling
Machine, Boring Machine, Double ended Pedestal Grinder, Surface Grinder and
Power Saw Metal Cutting Machine. In Machine shop the Apprenticeship Training for
Machinist Trade is conducted covering Shaping, Slotting, Planning. Milling, Drilling
and grinding exercises. For Turner trade exercises are conducted in Lathe Machine,
Drilling Machine and Capstan Lathe.
Welding Shop has welding Transformers, MIG/MAG CO2 Welding Machine, TIG
Welding machine, Pedestal grinding Machine and Gas Cutting and Welding facilities.
Fitting Shop has 70 nos of Bench vices, 2 Pillar type Drilling Machine, Hydraulic
Press, Bending machine, Shearing machine, 2 Pedestal grinding machine, 2 Bench
Drilling machine. Other facilities of Fitting Shop are Material Handling
Demonstration Equipment, Eldro Brake.
63. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 228 HRD Centre
Electrical Shop has various AC & DC drives, Transformer Panel, Crane Circuits
Panel Battery Panel, Resistance Boxes and common electrical measuring instruments.
4 Basic Engineering Modules are conducted here.
64. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 229 HRD Centre
Other Infrastructural Facilities:
Caretaking Cell:
Looks after the total building maintenance and overall housekeeping of HRD Centre
with a thrust for improved housekeeping standards.
Customer Care Cell:
Coordinates all training programmes conducted in HRD Centre. It monitors Audio-
Visual Aids, provides stationeries to the programme in-charges, organises tea/ lunch
etc., coordinates all communication Meetings, maintains Photo-copiers, prepares
attendance of all participants and also attends to the general requirements of all the
programmes.
Documentation Cell:
Computerises the entire training documents in the SUN System (Training
Management System). All the departments are connected through this network. It
maintains bio-data of trainings, updates the records, prepares highlights every month,
training need complied for making Annual Training Plan (ATP).
Trade Testing Centre:
Conducts trade tests and job tests as per plant requirements according to laid down and
approved norms.
Library:
HRD Centre maintains a library of 20,000 books containing various technical and
managerial topics and all the latest editions of the publications related to the
curriculum with computerised Information System. The library provides a comfortable
reading environment for the employees, trainees and faculty members.
Hostel:
65. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 230 HRD Centre
The Trainees Hostel complex has accommodation of about 250 trainees. There are
facilities for indoor and outdoor games, a gymnasium, a playground, common rooms
and Reading Room exist. Furnished dining halls are provided in the hostel where the
trainees run their own messes.
Office:
Office extends support through establishment functions, budget preparation,
processing of bills, dealing with foreign training, receiving and distribution of daily
daks and record keeping.
66. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 231 HRD Centre
Stores:
Maintains all consumables / spares required by HRD Centre . Coordinates the regular
stock verifications and maintains the asset schedule, initiates write off actions of
unserviceable assets and other items like tools and tackles.
CENTRAL POWER TRAINING INSTITUTE
In 1985 Government of India had constituted a high level committee to look into the
various aspects of training in the Power Sector. Recognising the importance of
specialized training for power plant personnel, the SAIL board in April 1990 approved
the setting up of the Central Power Training Institute at Rourkela which was open for
in-house training in October 1993.
Central Electricity Authority (CEA) accorded highest degree (Category - I)
recognition to the CPTI in 1996 empowering it to train operation and maintenance
personnel of Thermal Power Plants having unit size up to 500 MW and related Power
Distribution units. This is a fulfillment of statutory requirement of Power Plant and
Power Distribution personnel. It has documented a Quality Assurance System for all
its activities and won “Golden Peacock National Quality Award” for 1997. It has
merged with Rourkela Steel Plant in July 2004 and operates under the Human
Resource Development Centre.
Objectives:
To contribute towards fulfilment of technical training needs of the personnel in the
area of captive power generation to meet organizational goals.
To provide a conducive environment for learning through excellent facilities,
hospitality and other support services.
To develop training tools and instruments.
67. Rourkela Steel Plant Panorama 2005
For Internal Circulation only Page: 232 HRD Centre
To facilitate and organize company wide workshops and seminars in the area of
power.
To develop training tools and instruments.
To extend facilities in organizing special events for Rourkela Steel Plant.