Tata Steel would like it to be known that its philosophy of the customer first har haal me has helped it win the prestigious CII-EXIM Bank Award for business excellence for 2000. The award has come as a shot in the arm, especially against the backdrop of a depressed market scenario.

Coming as it does within 90 days of Tata Steel winning two other awards - the internal JRD Quality award and the Best Integrated Steel Award for 1998-99 it is natural that Tata Steel should be proud of its achievement, as this award would also give it the much needed impetus and recognition in the international market.

"If there are 20 people sitting at the table, the people sitting at the edge will get thrown out, but if we are entrenched, we cannot get thrown out,'' Mr Sanjay Singh, Chief Corporate Communication, Tata Steel, told Business Line.

"Every year in April, we sign MoU with our customers, and the next year, we review the promises we made the previous year with the customer. At Tata Steel, every department is a supplier and also a customer.'' This means that departments sign MoUs with their internal customers too.

According to Mr Singh, the steps Tata Steel took to enhance productivity, reduce downtime, introduce just-in-time and best quality standards were what won the award for the company. Mr Singh said Tata Steel had set quality standards as early as 1989, when eight of the brightest had been selected to head quality services.

They were reporting directly to the Chairman. There were no budgetary constraints and they could attend any seminar. After moulding and training these leaders, they were then sent to head other profit centres as executives-in-charge. Driven by the tenets of customer-driven-quality, the entire leadership structure is organised in the form of a quality management structure, which each at level is engaged in the pursuit of corporate excellence.

Another major improvement that Tata Steel has brought about is in cutting its flab.

The company has spent on the VRS scheme in 1999-2000, known in company parlance as the `Early Separation Scheme'.

We want to bring our wage bill which is now 15 per cent of our turnover down to single digits, Mr Singh said.

The company's main steel works are located at Jamshedpur while its captive iron ore mines are at Noamundi in Bihar and Joda in Orissa. Its coal comes from collieries in Jharia and West Bokaro.

The company recently invested in setting up a modern cold rolling mill. The company has also developed a "corporate citizenship index'', which has measures related to health services, civic amenities and environmental awareness, to monitor the performance of the company towards the community and the society within which it resides.

The CII-EXIM bank award for excellence is administered by CII with technical support from the European Foundation for Quality Management, Brussels.