SOMETHING NEW
Wired to
Success
Mr. Partho Sengupta unvelling Nai
Disha at the Wire Division |
Nai Disha, the new strategy adopted by
the Wire Division of Tata Steel has started yielding positive results. In partnership with
Renoir Consulting — globally known for Change Management and Business Process
Re-Engineering, Nai Disha has helped the Wire Division in overcoming its various
shortcomings and boost up the overall efficiency.
The Problem
The scenario was not so bright till
sometime back when the Wire Division faced various challenges. Known as the leader in the
manufacturing of steel wire, it had a 30% market share which was at stake.
Production at the three state-of-the-art
plants could not meet the growing global demand for steel wire. The company had to take
steps which would ensure its continued lead in the steel market. There was an urgent need
to revamp the entire strategy.
Tata Steel entered into a partnership
with Renoir Consulting and thus ‘Nai Disha’ was adopted. The new team led by Mr.
Partha Sengupta, EIC started off by taking stock of the company’s manufacturing
facilities and common practices. Production, yield and supply chain management were the
priority areas that had to be looked into.
The Findings
On the production front it was found that
:
The actual efficiency of the machines
was only reported on the days when the machines oprated. This resulted in disparities
between the actual average efficiency of 62% and the estimated efficiency of 75% of the
machines, thus inflating the machine utilisation figures.
The reviews were unstructured and not
focused on resolving the root cause.
Lack of supervisory control encouraged
extended breaks and unwarranted speed reduction, resulting in decreased productivity.
Lack of discipline and accountability,
poor work practices and callous attitude towards performance.
Yield
Yield was not monitored and reported at
all plants.
The scrap collected was not recorded
machinewise or shiftwise.
The scrap was not reported against the
estimation of scale loss and the loss in yield was incorrectly interpreted.
Supply Chain
Management
It was found that there was a lack of
commitment in order processing.
Delay in supply of raw material
jeopardized the planning process.
Too many deviations from the plan and
adoptation of alternatives affected the production capacity.
Multiple order processing of small
quantities of the same product resulted in high lead-times.
Order compliance was neither monitored
nor reported, resulting in customer dissatisfaction.
High lead times for consumables and
spares increased internal customer dissatisfaction.
There was a lack of adherence to formal
practices in last minute orders. Trials and diversions led to compromise in the order
compliance.
Nai Disha - the
action plan
After the initial findings, Renoir
Consulting, drew up a strategy–Nai Disha. It is a 40-week programme divided into
three phases aimed at performance excellence and goal orientation.
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