Innovations that have transformed Tata Steel |
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ASPIRE
Programme
In 2002, the challenge before Tata Steel was to become an EVA+ Company
under average steel prices, even though no other steel company in India and very few in
the world were EVA+. While those within the Company were already intent on the pursuit of
excellence, ASPIRE sought to take this effort on a higher level, on a track which would
ensure that the generation of new ideas and the implementation of change took place at a
faster pace.
The introduction of ASPIRE promoted
aspiration rather than capability driven pursuit of excellence; accelerating the pace of
improvement by creating the necessary skills; harnessing the intellectual and emotional
energy of all employees; cultural change to drive the behavioural aspects of managing
growth.
The programme created 1000 Green Belts,
50 Black Belts and Master Black Belts, 21 Knowledge Communities, 32 TPM Coordinators along
with Central Facilitators, Sponsors & Champions across the Company to create the
desired impact. As a result of the programme, the Company saved Rs 220 crores as of
January 2005. But more important has been the impact on the aspirations of it’s
employees, who today believe that they can, if they determine to do so, muster the
resources to achieve any goal. They are no longer constrained by the limitations of
resources and capability.
Patenting
of Ideas
Once the employees were enthused to
stretch their capabilities, the Company encouraged them to safeguard their intellectual
property through process and product patents giving them an opportunity to protect those
strokes of genius, which ensures a competitive edge for the Company.
Tata Steel, therefore, launched an intensive campaign to encourage its
employees to protect their ideas. A Ready Reckoner was published to instill the belief
that even the smallest idea has the power to improve the Company’s products and
processes. The Company also developed a notebook, which contained a step-by-step procedure
for capturing all the information needed to comply with patent regulations. Tata Steel
walked its employees through the procedure for registering patents and copyrights so that
it did not remain an incomprehensible task.
The impact of this effort has been almost immediate with 23
patents/copyrights being sealed and another 151 patents/copyrights in process.
Different Strokes
for Different Folks
All vehicle owners are familiar with the
problem of corrosion both inside and outside the fuel tank. The inner walls of the fuel
tank get corroded due to sulphur and other ingredients in the fuel, while the outer walls
get corroded due to the atmosphere. Rather than rely on conventional materials, Tata Steel
combined a galvanised sheet - which provides excellent protection from atmospheric
corrosion on the outside - with a special high chromated galvannealed sheet on the inside
to protect the fuel tank from corrosion. A Salt Spray test was conducted on the sheet.
After 168 hours it was observed that the bare galvannealed sheet showed extensive red rust
- indicative of corrosion - while the high chromated sheet remained absolutely intact.
Therefore, Tata Steel used the concept of “different strokes for different
folks” to give the auto maker and the end customer a superior product.
Customer Value
Management
For 85 years Tata Steel worked under a
license regime, where production was rationed and the customer had to accept what was on
offer. With the liberalisation of the Indian economy in 1992, the Company entered into the
transactional era where suddenly the customer was king. It’s focus on upgrading
technology, managing prices and remaining one of the lowest cost producers of steel in the
world was an important reason for Tata Steel’s emergence as India’s foremost
steel producer. By 2000, the Company had among the most modern steel plants in the world.
The focus then shifted to working with its customers to build a long term strategic view
and align its production and product mix to segments it wished to focus on.
As its plans began taking shape the
Company has been aggressively customising value creation vehicles.
Recognising
Good Performance
To add a great level of excitement to the
quest for excellence, Tata Steel introduced “Shabash” - a mechanism, which
provides instant recognition to employees whose behaviour was worth rewarding. There is
now instant recognition of the individual and the team. In addition, the kitty set aside
by the Company for rewards is spread over a wider group. Those considered eligible are
nominated for Shabash Diwas. Their performance is reviewed by the Recognition Team and the
award winners are rewarded on Shabash Diwas.
Sponge
Iron in Blast Furnaces
Tata Steel has opted to eliminate the
traditional method of first reducing the ore in the Blast Furnace. Instead, it now charges
them with sponge iron to create additional capacity in each of its Blast Furnaces. The
Company discovered that with the addition of 200 kg/thm of sponge iron in the Blast
Furnace, it’s capacity increased from 1 million tonnes to 1.2 million tonnes.
The Company also found that besides
improved productivity, the coke rate in ‘F’ Blast Furnace had dropped from 591
kg/thm in July 2004 to 435 kg/thm by December 2004, with the gradual introduction of 177
kg/thm of sponge iron in July 2004 to 213 kg/thm in December 2004.
Productivity during the same period shot
up from 2 t/m3/day to 2.37 t/m3/day.
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