Improvement Initiatives

Customer First Programme at tata steel europe

Action: 11 industry-focused sectors were identified namely aerospace, automotive, construction, consumer goods, energy and power, materials handling, packaging, rail, security and defence, shipbuilding and engineering. The activities included:

• Categorising customers to ensure the right level of focus and developing account plans for the highest opportunity customers.
• Creating group-wide key performance indicators for marketing & sales, implementing a cross-Tata Steel Europe (TSE) customer satisfaction programme and developing a single products and services catalogue.

Result: Around 100 people across TSE’s sales & marketing team worked on the first phase which was completed in February 2010. Subsequent phases are now in progress, which include developing 3 to 5 year plans for each sector, identifying initiatives for executing these plans, identifying quick wins and developing a customer satisfaction tool. Product catalogues have been developed and high-level metrics have been defined.

Financing initiative AT TATA STEEL India

Action: In early 2008, Tata Steel Limited had embarked on its expansion plan to raise the steelmaking capacity of its Jamshedpur Works from 6.8 mtpa to 9.7 mtpa to fulfil the growing demand of the Company’s customers. In the midst of its expansion plans, the global steel industry was adversely affected by the global economic crisis. The Company acted swiftly to counter the credit squeeze by engaging with its relationship bankers in India and exploring opportunities in the international capital markets to finance this project.

Result: There was tremendous support from the Company’s relationship banks who along with a few other large banks completed the Rupee Term Loan syndication for the Project which was oversubscribed by almost 2 times. The syndication process for the financial closure of the 2.9 mtpa expansion project was completed in March 2010 through a Rupee financing of US$ 2.1 billion on a project finance basis and long tenor external commercial borrowings from export credit agencies of € 335 million. The Company also raised equity of US$ 500 million through Global Depository Receipts listed on the London Stock Exchange which helped in capitalising the Balance Sheet and to enable deployment of funds in the ongoing expansion at Jamshedpur.
The financing risk of the project is now entirely mitigated and progress of the project is on track for completion in 2011-12.

SOURCING EXCELLENCE THROUGH STRATEGIC INITIATIVES AT TATA STEEL INDIA

Action: In the face of high raw materials price volatility and an overall trend of rapidly increasing prices, the Procurement Division of Tata Steel India focused its efforts on keeping these trends in check by leveraging long-term contracts and relationships, and on minimising risk by hedging and through various other strategic sourcing tools, including innovations and improvement initiatives using Total Quality Management precepts.

Result: As a result of these focused strategies, the Division achieved a savings of Rs. 725 crores in FY 10, comprising Rs. 275 crores through strategic initiatives and Rs. 450 crores in price reductions, which were primarily captured in H1 FY 10.

IronMaking Group

• Usage of cheaper coals (LCCS) in the coke making blend increased to an all-time high of 41%, 33.6% and 29% this year at IJmuiden, Port Talbot and Scunthorpe, compared to earlier rates of 13%, 20% and 8% respectively.
• 2 blast furnaces at IJmuiden and Port Talbot were salamander tapped as part of temporary blow-down due to the contraction in market demand. This process is useful in reducing the risk of hearth failures while still allowing quick restarts.
• The usage of iron-rich steelmaking waste reached record levels of 164 kg/tcs and 143 kg/tcs during the year at Port Talbot and Scunthorpe respectively, compared with baseline usage of 128 kg/tcs and 72 kg/tcs.
• As a result of shared best practice from Corus’ Scunthorpe and Teesside plants, the number of coke ovens in Batteries 5, 6 and 7 at Jamshedpur that were subject to down-time during the year fell to zero from 48 in 2008.
• The slag volumes at the Port Talbot blast furnaces were reduced from the initial baseline of 245 kg/thm to 221 kg/thm in FY 10.

Steelmaking Group

• Increasing the number of tuyeres at both IJmuiden and Port Talbot from 4 to 6 is improving the yield from the BOS vessels. The changing of the tuyere design at the BOS converters at IJmuiden to bottom stirring is bringing benefits through improved converter life and yield.
• Improved fleet management systems and the introduction of ladle coordinators helped increase the life of steel ladles from 110 heats in 2008 to 120 heats in February 2010 at Port Talbot.
• LD #1 in Jamshedpur achieved its highest ever vessel life of 5,202 heats in November 2009, thus saving on the cost of relining the vessel; LD #2, at Jamshedpur achieved an increased average casting speed of 1.19 m/min from 1.17 m/min year-on-year after implementing a shop tracking system learnt from IJmuiden.
• Learnings achieved through the PIT process enabled Vessel 1 at Scunthorpe to achieve its highest ever vessel life of 6,153 heats in January 2010, thus saving the cost of relining the vessel. The number of tuyeres at Scunthorpe was increased from 3 to 4, improving the yield from the BOS vessels.

Flat Rolling Group

• Based on learnings from Jamshedpur and facilitated through the PIT, the Hot Strip Mills at IJmuiden and Port Talbot have been able to increase their coil weights from 20.2t to 21.7t and from 19.0t to 20.6t over the period April 2008 to March 2010, achieving significant fixed cost reductions.
• The Hot Strip Mill at Jamshedpur successfully implemented a planned maintenance schedule that was followed at IJmuiden. This initiative, coupled with back-up roll changes, resulted in a higher number of net operating hours.
• The Cold Rolling Mill at Jamshedpur achieved zero roll failures after implementing mill and roll shop practices learnt from Corus plants.
• Port Talbot reduced the electricity consumption of its HSM from baseline 92 kwh/t to 88.5 kwh/t in FY 10.

 

 

Long Rolling Group

• An energy saving campaign was rolled out and various initiatives taken across the Sections Mills in TSE resulted in 12% year-on-year savings across all section mills.
• The Hayange Rail Mill in France is developing the capability to produce 108-metre rails through sharing experience with Scunthorpe’s Medium Section Mill.
• There was an increase in yield at the Teesside Beam Mill and improvement in yield across plate mills of Scunthorpe and Dalzell.