Welcome To This Presentation On Tata Steel's Journey Towards Business Excellence

Welcome To This Presentation
On Tata Steels Journey Towards Business Excellence
PHASES OF THE JOURNEY

AWARENESS PROMOTION INTEGRATION EXCELLENCE 1989-92 1993-95 1996-98 1998 -
VISION
TATA STEEL enters the new millennium with the confidence of a learning, knowledge based and a happy organisation. We will establish ourselves as the supplier of choice by delighting our customers with our services and our products. In the coming decade, we will become the most cost competitive steel plant and so serve the community and the nation. Where Tata Steel ventures .others will follow.
STRATEGIC GOALS
Wealth Creation
Create a culture of
continuous learning and change
Achieve World Class status in

services and products
Reach the position of the most cost

competitive steel producer
Establish industry leadership
OUR THRUST AREAS

Change
MUTATE AND IMPROVE FURIOUSLY
Value underpinning
Code of Conduct
Cost
RUTHLESS CUTTING OF WASTEFUL EXPENDITURE
Customer
STRIVE RELENTLESSLY TO BUILD RELATIONSHIPS AND INFLUENCE CONSUMPTION
QUALITY MANAGEMENT STRUCTURE

MEETING SCHEDULE BI-MONTHLY
APEX QUALITY COUNCIL MEMBERS - MD, VPs, GMs TQM Group QUALITY COUNCIL MEMBERS - VPs, GMs, AGMs TQM Group QUALITY SUB COUNCIL MEMBERS - GMs, AGMs, DEPT. HEADS, TQM VALUES VISION MISSION STRATEGIC GOALS/ SCORECARD
BI-MONTHLY
BI-MONTHLY
SUBCOUNCIL SCORECARDS
MONTHLY
MANAGEMENT REVIEW DEPT. AT DEPARTMENTS SCORECARDS MEMBERS - DM, OFFICERS AQUIP & KRAs
AQUIP FORMULATION
FEEDBACK FROM JRD QV, CII. JNT TQA ANNUALBUSINESS PLAN ( ABP/ AOP ) COMPANY POLICIES, STRATEGIC GOALS COUNCIL/SUBCOUNCIL OBJECTIVES, KPMs
EMPLOYEES ATTITUDE SURVEY
DEFINE GOALS (SCORECARD/KPMs)
STRETCH TARGETS
CUSTOMER REQUIREMENTS, MOUs, FEEDBACK
IDENTIFY
IMPROVEMENT ACTIVITIES
GAPS ???
PRESENT LEVEL
LEADERSHIP INFORMATION PROCESS & CUSTOMER HUMAN & ANALYSIS SYSTEMS RESOURCE FOCUS (QMS/EMS) FOCUS
REVIEW PROGRESS
DEPLOYMENT OF COMPANYS STRATEGY

Corporate philosophy, Mission, Vision, Values Corporate Strategy (Strategic Goals) MD's Balanced Score Card Councils' Strategy, Objectives & Key Performance Measures (Score Card)
Subcouncils' Strategy, Objectives & Key Performance Measures (Score Card)

Departmental Goals & Key Performance Measures (Score Card)
Develop AQUIP, Prioritise Improvement Activities / Projects linked to Goals / KPMs
Personal KRA's linked to Goals / KPMs
THE JOURNEY SO FAR ...

TPM / BM /TOP Strategic Goals ISO 14000 / QS 9000 Business Process Reengineering
Internal Customer Concept (MOU) Thrust on JRD QV Self Assessment of Divisions (JN Tata)
AQUIP Quality Councils - Objectives Quality Management Structure ISO 9000 / TS 13004 QMS Quality Coordinators Forum Training for Trainers Quality Policy Training on q vs Q
Management & Union Joint Bodies
TQM INITIATIVES
1 EMPLOYEE INVOLVEMENT - QC, 5-S, SUGGESTIONS 2 PROCESS CONSISTENCY - ISO 9000 / TS 13004/ ISO 14001/ QS 9000 3 IMPROVEMENT PROCESSES INCREMENTAL : QIP / VE / SPC / MIP BREAKTHROUGH : TOP/ TPM/ BM/ BPR
TQM INITIATIVES
4 POLICY DEPLOYMENT - BALANCED SCORE CARD, AQUIP
5 INTERNAL CUSTOMER CONCEPT - MOU 6 ASSESSMENT OF BUSINESS EXCELLENCE J N TATA / TBEM / CII-EXIM
EMPLOYEE INVOLVEMENT & RECOGNITION ASSESSMENT & REVIEW : STAGNATION OF INVOLVEMENT AROUND 10%
DORMANT CIRCLES
LOW MOTIVATION OF CIRCLE MEMBERS ACTIONS TAKEN : REVIEW AT QSC/QC LEVEL LETTER FROM MD TO ALL HODs INTRODUCTION OF MENTOR SYSTEM NOMINATION OF BEST CIRCLES FOR NATIONAL/INTERNATIONAL CONVENTIONS VISIT OF BEST COMPANIES IN INDIA
PROCESS CONSISTENCY - QMS/EMS
ASSESSMENT & REVIEW :

TOO MUCH DOCUMENTATION PROCEDURES NOT UNIFORM AUDITORS NOT MATURED TOO MANY AUDITS ACTIONS TAKEN : INTEGRATION OF EMS WITH QMS TRAINING OF AUDITORS AS LEAD AUDITORS STANDARDIZATION OF DOCUMENTS AUDIT FREQUENCY CHANGED TO YEARLY
QUALITY SYSTEM CERTIFICATION

No of Units Certified (Cumulative)
100 90 80 70 60 50 40 30 20 10 0
TOTAL ELIGIBLE UNITS : 92 EXTERNAL : 25 INTERNAL : 67
87
71
25
45 26
21
5
24
22
47 23
62
1996-97
1997-98
1998-99
EXTERNAL
1999-00
INTERNAL
EMS (ISO 14001) CERTIFICATION

TO BE CERTIFIED
CERTIFIED CERTIFIED
CERTIFIED
WORKS
WEST BOKARO
MINES
JHARIA
IMPROVEMENT PROJECT MANAGEMENT ASSESSMENT & REVIEW :

PROJECT SELECTION NOT SYSTEMATIC
NO CENTRAL DATABASE OF PROJECTS

RECOGNITION SYSTEM NOT UNIFORM LOW COMPLETION RATE OF PROJECTS
ACTIONS TAKEN :
PROJECT SELECTION BASED ON GAP ANALYSIS (PRESENT & TARGET LEVEL) PROJECTS LINKED TO KPMs & PART OF AQUIP CENTRAL DATA BASE ON QUIKS COMMON RECOGNITION SYSTEM REVIEW OF PROJECTS AT QSC/QC LEVEL
TEAM RECOGNITION PROCESS - IMPROVEMENTS OVER THE YEARS
LINKAGE TO KNOWLEDGE MANAGEMENT UNIFORM RECOGNITION SYSTEM INVOLVEMENT OF THE ENTIRE WORK FORCE OF A PARTICULAR LOCATION LINKAGE TO STRATEGIC GOALS
BOTTOM LINE IMPACT
LEARNING ORGANISATION A common recognition system for all types of projects
PEP NITE
TOP BM NITE
Harnessing the ideas of all concerned in a focussed manner. Recognition to outstanding individuals and depts.
Selection of projects for improvement is based on the Gaps identified between KPMs and current levels of performance in the AQUIP preparation.
PROPOGATION OF SEVERAL IMPROVEMENT METHODOLOGIES

VOLUNTARY PARTICIPATION OF EMPLOYEES TEAM RECOGNITION AND COST AUDIT OF COMPLETED PROJECTS EMPLOYEE PARTICIPATION
PROBLEM SOLVING TEAMS IED / MCA TASK FORCES BEFORE 1986 VE BANQUET NITES QUALITY DAY CELEBRATIONS
Q-NITE OR&MS NITE WS NITE
Training all Officers in various improvement methodologies available like MIP,OR,SPC,JURAN, RE,WS,VE etc. and encourage them to apply the knowledge as appropriate
Voluntary participation of Workers encouraged through formation of Quality Circles and recognition of best QCs
Selection of projects through VE Workshops with large participation of Officers at all levels.
AGENCY
Participation of a limited number of Officers / Supervisors through 42 - Hour Work Simplification Course, etc. TQM VE O&CR TQ&R TQM IED 1988 1990
TOP IED
TQ&R
TQ&R IED
TIME SCALE
1990-97
1997-98
1998 - 99
2000
2000
RECOGNITION OF PROJECTS
16 10 42 84 48 81 5 14 1 6 25 MD VP QSC HOD
100
1996-97
1997-98
1998-99
1999-00
IMPROVEMENT PROJECTS
70 60 50 40 30 20 10 0 58 41 32 48 59
27 6 5 1999-00
1996-97
1997-98
1998-99
COMPLETED
DROPPED
Savings through VE
250
Benchmark with Phillips Inc., USA (3% of Sales Turnover)

195 194
192
200
176 139
190.76
207.07
207
150
126.56 101.8
110
150 135
100
52.42
50
29.79
20
50
60
0 94-95 95-96 96-97 97-98 98-99 99-2K
Target
Actual savings
Benchmark
POLICY DEPLOYMENT

DELAY IN SCORECARD/AQUIP PREPARATION KPMs NOT ALIGNED KRAs NOT ALIGNED WITH KPMs QUANTITATIVE ALIGNMENT OF SCORECARD ACTIONS TAKEN : TIME-BASED SCHEDULE FOR FINALIZATION OF SCORE CARDS & AQUIP ALIGNMENT OF KPMs ENSURED BY TQM FACILITATORS REVIEW FREQUENCY CHANGED
INTERNAL CUSTOMER FOCUS

MOU NOT DEPLOYED AT ALL DEPARTMENTS COVERAGE OF CUSTOMERS NOT ADEQUATE MOU PARAMETERS SELECTION NOT ADEQUATE COMPLIANCE CALCULATION NOT ADEQUATE ACTIONS TAKEN : MOU DEPLOYED AT ALL DEPARTMENTS 60 % CUSTOMERS COVERED UNDER MOU SYSTEMATIC SELECTION OF MOU PARAMETER COMPLIANCE CALCULATION SYSTEM MODIFIED
ASSESSMENT OF BUSINESS EXCELLLENCE

APPLICATION NOT ON PROCESS LINES DUPLICATION IN JRDQV & JNT TQA APPLN. FEEDBACK REPORT NOT ON TIME OFIs NOT ACTIONABLE ACTIONS TAKEN :
ASSESSMENT YEAR FOR JNT TQA : OCT-SEPT DIVISIONAL APPLICATIONS ON PROCESS LINES REALLOCATION OF SCORE & FOOTNOTES ADDED TRAINING TO LEADERS FOR ACTIONABLE & TIMELY REPORT SUBMISSION TO DIVISIONS
JNT TQA ASSESSMENT RESULT SCORES OF UNITS MIGRATED TO NEXT HIGHER BAND MARKETING & SALES RECEIVED JN TATA TOTAL QUALITY AWARD 2000 WEST BOKARO & MINES DIVISION RECEIVED COMMENDATION CERTIFICATE
MAJOR INITIATIVES
INVESTMENT IN CRM TO MEET CUSTOMER REQUIREMENT CHANGE IN ORGANIZATION STRUCTURE, CREATION OF NEW
SUPPLY DIVISION
RE-VISIT OF VISION AND STRATEGIC GOALS
PERFORMANCE ETHIC TO MAP COMPETENCY

DELAYERING OF ORGANIZATION - M&S, CRM
TOP INITIATIVE WITH McKINSEY

E- COMMERCE IN SUPPLY & DELIVERY
MAJOR INITIATIVES
RESEARCH LEARNING GROUP
- OBL TASK FORCE STRATEGY CELL TECHNOLOGY GROUPS
KNOWLEDGE MANAGEMENT
HOT MAIL - BOTTOM-UP COMMUNICATION

WEB SITES - HORIZONTAL COMMUNICATION RE-ENGINEERING OF 3 BUSINESS PROCESSES MODE & IMRB SURVEYS STRATEGY WORK SHOPS - ONCE IN A QUARTER
AND THE JOURNEY CONTINUOUS . JRD QV SCORES

700 600 500 400 300 200 100 0 582 443 201 510 616
1996
1997
1998
1999
2000
THANK YOU
J N TATA SCORES
30 25 20 15 10 10 8 10 5 0 < 250 1997 251 - 350 1998 351 - 450 1999 451 - 550 2000 4 1 4 8 3 26 21 22 19

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Welcome To This Presentation On Tata Steel's Journey Towards Business Excellence

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Welcome To This Presentation

On Tata Steels Journey Towards Business Excellence

PHASES OF THE JOURNEY

Achieve World Class status in

Reach the position of the most cost

Establish industry leadership

OUR THRUST AREAS

QUALITY MANAGEMENT STRUCTURE

EMPLOYEES ATTITUDE SURVEY

DEFINE GOALS (SCORECARD/KPMs)

CUSTOMER REQUIREMENTS, MOUs, FEEDBACK

DEPLOYMENT OF COMPANYS STRATEGY

Subcouncils' Strategy, Objectives & Key Performance Measures (Score Card)

Develop AQUIP, Prioritise Improvement Activities / Projects linked to Goals / KPMs

Personal KRA's linked to Goals / KPMs

THE JOURNEY SO FAR ...

Management & Union Joint Bodies

PROCESS CONSISTENCY - QMS/EMS

ASSESSMENT & REVIEW :

QUALITY SYSTEM CERTIFICATION

TOTAL ELIGIBLE UNITS : 92 EXTERNAL : 25 INTERNAL : 67

EMS (ISO 14001) CERTIFICATION

IMPROVEMENT PROJECT MANAGEMENT ASSESSMENT & REVIEW :

NO CENTRAL DATABASE OF PROJECTS

TEAM RECOGNITION PROCESS - IMPROVEMENTS OVER THE YEARS

LEARNING ORGANISATION A common recognition system for all types of projects

PROPOGATION OF SEVERAL IMPROVEMENT METHODOLOGIES

Q-NITE OR&MS NITE WS NITE

Benchmark with Phillips Inc., USA (3% of Sales Turnover)

0 94-95 95-96 96-97 97-98 98-99 99-2K

ASSESSMENT & REVIEW :

INTERNAL CUSTOMER FOCUS

ASSESSMENT & REVIEW :

ASSESSMENT OF BUSINESS EXCELLLENCE

ASSESSMENT & REVIEW :

RE-VISIT OF VISION AND STRATEGIC GOALS

PERFORMANCE ETHIC TO MAP COMPETENCY

TOP INITIATIVE WITH McKINSEY

HOT MAIL - BOTTOM-UP COMMUNICATION

AND THE JOURNEY CONTINUOUS . JRD QV SCORES

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