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TQM at TATA Steel


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Total Quality Management implementation at Tata Steel along with its evolution over time

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TQM at TATA Steel

  2. 2. TOTAL QUALITY MANAGEMENT • • TQM is an process oriented approach which focuses on process efficiencies to achieve results. Customer satisfaction will be achieved only with an collective effort from all the employees TQM Systems and Tools TQM Philosophy
  3. 3. TQM PHILOSPHY Employee Empowerment and development Absolute Customer Focus Continuous Improvement Systemic Approach to Management
  4. 4. OBJECTIVES OF TQM Quality as first priority leading to Total Customer Satisfaction Market In-Customer Orientation Management by facts-the data driven scientific approach Process Management-Preventive Planning and Control Upstream Control-Marketing is the key to control Employee Respect-Total Satisfaction Top Management Commitment
  6. 6. SCOPE OF TQM Quality System Process of Continuous Improvement Development of the staff involved
  7. 7. CONS OF TQM Lack of focus in the mission statement Lack of attention to some critical points implementation of TQM. Absence of proper performance management system. Excessive focus on company’s image instead analyzing facts and outcomes.
  8. 8. CORE VALUES OF TBEM • • • To improve upon the organizational performance practices and capabilities. To facilitate communication and share best practices among the group companies. To serve as a working tool for managing performance and guiding organizational opportunities for learning. Visionary Leadership Customer driven Excellence Organizational & Personal Learning Agility Focus on Future Social Responsibility
  9. 9. FRAMEWORK OF TBEM Leadership • Credited for creating a sustainable organization focus Strategic Planning • Deployment and measurement of action plans Customer & Market Focus • Ensuring long term competitiveness of the firm Measurement Analysis & Knowledge Management • Alignment and integration across the organization
  10. 10. FRAMEWORK OF TBEM (Contd..) Workforce focus • Employee engagement and agility of employees Process Management • Cost and cycle time reduction are primary drivers Business Results • Analysing all the six outcomes on the whole
  11. 11. INDUSTRY CHALLENGES OF TATA STEEL • • • • Market driven realizations New players, glut and fight for survival Lower import tariffs Emergence of buyer’s market
  12. 12. CHALLENGES OF TATA STEEL (Contd..) • • • Financially burdened Human resource under utilization Lack of competitive culture in the firm Domestic demand slow down Lower prices and margins Slow down in global markets Overcapa city in domestic markets
  13. 13. STEPS TOWARDS EXCELLENCE “If we don’t take care of our customers, somebody else does”- Tata Steel CMD Lead the change process and avoid delegation Pave way for endless two way communication in the company Set up a small group of handpicked personnel to drive change in the organization. Including even the top management for accountability by rolling out Key Result Areas (KRA’s) Implementation 3C Model of Excellence
  14. 14. INITIATIVES IDENTIFIED FOR EXCELLENCE • • Operational Improvement – Reduce cost of production – Manage investment and maximize return – Improve capital structure – Improve supply chain/ logistics Strategic Priorities – Refine product mix as per customer requirement – Manage human resources in effective manner – Strategize long term goals in line with industry attractiveness CHANGE CODE OF CONDUCT COST CUSTOME R
  15. 15. TOOLS USED FOR DELIVARABLES TOTAL OPERATIONAL PERFORMANCE Minimal investment Shortest time span Impacting the company bottom line PRODUCT & CUSTOMER RATIONALIZATION Fragmented Customer Base Data Duplication & over burden on employees Rationalize customer requirement with SAP
  16. 16. TOOLS USED (Contd..) • CUSTOMER VALUE MANAGEMENT It is used to plug any gaping holes of the process and maximise customer returns.
  17. 17. TOOLS USED (Contd..) • RETAIL VALUE MANAGEMENT For better estimates of the market prices and demand planning.
  18. 18. TOOLS USED (Contd..) • STRATEGIC SOURCING Understand the category Supplier market assessment Prepare a supplier survey Selection and communication Building the strategy
  19. 19. RESULTS Change • Specific fuel consumption was reduced by 80% and 3097 new ideas were initiated Cost • Raw material consumption had reduced by 56.7% and net 15% reduced cost of steel Quality • 400+ personnel was exposed to initiatives and safe working place Investments • Labour productivity increased by 95%
  20. 20. RESULTS (Contd..) Financials • Company’s debt to equity ratio reduced from 1.5 to 1 & higher margin realization Specific Energy Consumption • Bottom line savings of Rs.720 crore Lowest of cost of production S.No Commodity POSCO NIPPON SAIL TATA STEEL 1 Coke 65 107 99 56 2 Sinter 30 29 18 15 3 Hot Metal 87 119 106 75 4 Liquid Steel 123 160 154 109 5 HR Coil 156 233 221 151
  21. 21. RECOMMENDATIONS Alternative ways of production • Optimizing controls in BF units • Direct reduced iron- EAF Increase R&D spend • Product diversification • Reuse of Slag Raw Material Untapped Rural Markets • Coking coal imports • Iron ore alternatives • Tapping in to infrastructural schemes of Govt. of India • Distribution network
  22. 22. RECOMMENDATIONS (Contd..) • INVESTING IN EMERGING TECHNOLOGIES FINEX • Adopted by POSCO and lowers emissions FASTMELT • Lower raw material consumption and better energy efficiency HISMELT • Direct Smelting process with lower capital investment and operational costs
  23. 23. REFERENCES 1. TBEM assessment related data 2. ticleid=1464335&show=html- Journal on Components of TQM 3. ticleid=842084&show=html- Journal on Impact on productivity 4. cleid=871929&show=html- Journal on Total Quality Management in a nutshell 5. Enhancing customer satisfaction 6. Frame work proposal for TQM 7. Tata Steel annual report