Dramatic changes have happened at Tata Growth Shop with the implementation of Critical
Chain Project Management. Based on the Theory of Constraints, it was able to
create a radial impact. In addition, unused or equipments with idle capacities were
revived to generate greater throughput.
Tata Growth Shop recorded its highest
annual turnover since 1998, during the financial year just completed. Each quarter the
profit centre bettered its previous record. At the end of the year, post-record earnings
touched Rs 282 crores, as compared to Rs 209.21 in FY 98, its previous highest. |
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Especially significant for TGS
was an almost 50% cut in fabrication cost, which was Rs 11.1/kg against Rs 20.5 in FY 03.
The total fabrication output of the profit centre was 13,131 tonnes. TGS despatched seven
500 TPD Kiln & Coolers during the financial year, while during the previous year it
despatched only one set. In terms of value this was 450% higher at Rs 43
crores.
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The Steel Works has achieved an all time record in Plant
Specific Energy Consumption of 6.965 Gcal/tcs i.e., a reduction of 0.01 Gcal/tcs over the
best achieved level of 6.975 Gcal/tcs in FY 02-03. This led to a saving of Rs 1.82 crores
at the present level of Energy Cost.
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A 97-98 year old company cannot remain a small
company, the Managing Director, Mr B Muthuraman said at the production function.
We should ask ourselves how we can double this profit under the same circumstances
and with the same volume. The Theory of Constraints programme will be launched in June. We
had launched the ASPIRE programme on May 2, 2003 and that programme is going on very well.
We can further increase our productivity. This requires technique as well as a disciplined
approach. Presenting a picture of a radically different Company in the immediate
future, the Managing Director emphasised that Tata Steel must aspire to be counted among
the ten best companies in the world by 2010 and the best five soon after.Achievements in Safety
- Partnership forged with world benchmark
safety performing company, M/s DuPont to build the skill and will to achieve world class
safety performance.
- Efforts to inculcate Safety Behaviour
through Safety Observation Training to all line management starting from the Managing
Director, Deputy Managing Directors, Vice Presidents, Chiefs, Heads, up to Managers was
undertaken. The Safety Audit and Observation process with a system to track action taken
has been established.
- Concept of 24 hour Safety introduced;
Safety training at site through visuals on Safety on Wheel and Project Tiger
to get feedback on effectiveness and effective use of Personal Protective Equipments (PPE)
was implemented.
- More than 3000 projects were completed on
Ergonomics at the shop floor, use of ergonomically designed chair standardised.
Innovations across the Company
Tata Steel has devised innovative techniques, introducing
ideas which have never been used in the Indian Steel industry to inject a burst of energy
and bring about greater agility in its operations and processes. These include:
- ASPIRE - this
programme has promoted an aspiration-based rather than capability driven culture of
excellence.
- PATENTING PROCESS - the
aspirations of individuals have found endorsement through the support they receive from
the Company to patent their ideas.
- SHABASH- rather
than have to wait to receive recognition, the Shabash Programme introduced by the Company
ensures instant recognition - on a weekly basis - for a whole gamut of exemplary behaviour
across all units of the Company.
- TECHNICAL ASSISTANCE - the triumphs that the employees of the Company have achieved beyond its
own boundaries is optimised by the request for a team from Tata Steel to help Meishan
Steel of China make low phosphorous steel.
- PROCESS IMPROVEMENTS - at the shopfloor the Company has opted to charge sponge iron in its blast
furnaces so as to improve the productivity of its blast furnaces. Also, it has introduced
automation in areas such as the peel bar in the Wire Rod Mill to enhance productivity.
- CUSTOMER VALUE MANAGEMENT AND BRANDING - Tata Steel has branded its products to effectively communicate to the
consumers the unique and superior properties of its products. It has through CVM exploited
all value creating opportunities in its chain to deliver greater value to the customer.
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